Improved Controls Needed Over Waivers of the Armed Services Exchange Regulations

Gao ID: NSIAD-85-72 May 13, 1985

In response to a congressional request, GAO determined whether the post exchange at Mountain Home Air Force Base, Idaho, is selling major home appliances contrary to the intent of law and applicable federal regulations.

GAO found that the post exchange is acting within its authority under existing military regulations because it is considered isolated with respect to the availability of these products and is entitled to a waiver of post exchange regulations. However, since there are now six retailers of home appliances within 11 miles of the base, the classification of the base as isolated is questionable. GAO found that post exchange regulations do not provide sufficient guidance on how to determine what constitutes adequate availability of commercial facilities. Furthermore, federal regulations do not require the submission of current data to support the annual revalidations of the initial waiver request. Finally, GAO found that the regulations do not require periodic audits of the initial waiver and subsequent revalidation processes.

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: Harry R. Finley Team: General Accounting Office: National Security and International Affairs Division Phone: (202) 512-5187


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