Review of Use of Appropriated Funds for Defense Commissary Operations

GAO reviewed whether the Department of Defense (DOD) took appropriate action to comply with the intent of Congress regarding the proper funding of certain operating expenses. The review was designed to provide Congress with information to use in considering future DOD appropriation requests.

GAO found that, during fiscal year (FY) 1980, the Army, the Air Force, and the Marine Corps used $3.8 million in appropriated funds for intrabase transportation, purchase and maintenance of equipment, supplies, and utilities. GAO believes that the Armed Services should use commissary revenues to reimburse appropriated funds for all such expenses incurred since the beginning of FY 1976. The Armed Services have provided equipment without charge for use in support of commissary operations and because the commissaries may not have a permanent need for some of this equipment. GAO believes that appropriated funds should be reimbursed in an amount equal to either the cost of the equipment or an appropriate rental charge. In FY 1977, the Air Force used $3.6 million in appropriated funds for the purchase and maintenance of data processing equipment to be used exclusively in its commissary system. This use of funds was prohibited by law. Congressional prohibition against the use of appropriated funds to subsidize certain commissary operating expenses is longstanding. Despite this, such use continues because the military services have adopted widely divergent funding practices that conflict with the intent of Congress and Defense Directives.

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) 275-1581