Improvements Needed in Operating and Using the Army Automated Facilities Engineer Cost Accounting System

GAO reported on the need for the Army to improve its automated Facilities Engineer Job Order Cost Accounting System and to better utilize it in managing the operation and maintenance of real property facilities. The review was made to determine whether the Army was operating and using the system in accordance with the approved system design.

The Army has invested much time and money in designing and implementing the system. By 1982, it had been implemented at about 70 installations. Ultimately, the Army plans to extend the system to about 150 installations around the world. However, users have not been convinced that the system is sound and that it could lead to more efficient and effective operations. At the installations, cost accounting system data were not being effectively used to manage facility engineer operations. Managers were not being held fully accountable for project costs incurred. At the installations visited, reported actual costs incurred on about 80 percent of the projects varied by more than 10 percent from the estimated costs. On 40 percent of the projects reviewed, reported actual costs varied by more than 50 percent from estimated costs. Managers did not research these variances and, therefore, did not know why they occurred or how to correct them. Because managers were not using the system, personnel had little incentive to see that system data were accurate, complete, and timely. GAO approved the system design 5 years ago with the understanding that certain problems would be corrected, but this has not been fully accomplished. Adequate training has not been provided to user personnel. Because cost reports produced by the system are so lengthy and do not present data in convenient formats, facility managers have been reluctant to use them. GAO believes that, with the incorporation of the design changes, the system is worthwhile.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: John F. Simonette Team: General Accounting Office: Accounting and Financial Management Division Phone: (202) 275-9490