Improper Use of Industrial Funds by Defense Extended the Life of Appropriations Which Otherwise Would Have Expired

Gao ID: AFMD-84-34 June 5, 1984

Pursuant to a congressional request, GAO examined whether the life of Department of Defense (DOD) appropriations was being extended through improper use of working capital funds.

At six industrial fund activities visited by GAO, about $35.7 million of the $192.5 million in operation and maintenance (O&M) funded workload was carried over from fiscal year (FY) 1982 to FY 1983 through improper use of industrial funds. GAO found that industrial funds were improperly used because the activities did not adhere to existing statutes and regulations governing industrial fund operations and the use of O&M appropriations, resulting in extension of the availability of O&M funds which would have otherwise expired. GAO believes that the carryover found at the six activities may exist to some degree in other appropriations and at the other 79 defense industrial funds and related customer activities.

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


The Justia Government Accountability Office site republishes public reports retrieved from the U.S. GAO These reports should not be considered official, and do not necessarily reflect the views of Justia.