Financial Systems

Weaknesses Impede Initiatives to Reduce Air Force Operations and Support Costs Gao ID: NSIAD-93-70 December 1, 1992

The Air Force lacks accounting systems to account for all operations and support costs connected with fighter wings, its main aircraft unit. Existing Air Force data collection systems fall short in accumulating information that is sufficiently accurate, timely, and comprehensive. The Air Force's efforts to better manage the cost of aviation fuel, reparable parts, and depot maintenance and repair are being hurt by the lack of accurate and complete cost information. Although fighter wings may end up saving money, the systems do not give wing commanders the detailed information that they need to make informed decisions on parts repair and fuel conservation, nor do they provide the Air Force with the data needed to evaluate the results of the fuel savings test. The financial systems supporting F-15 repair and modifications at the Warner Robins Air Logistics Center do not contain accurate cost information, mainly because of internal control weaknesses, a situation that hinders the F-15 manager from adequately overseeing costs and repairs.

GAO found that: (1) the Air Force Visibility and Management of Operations and Support Costs system's data were not sufficiently accurate, timely, or detailed; (2) the Air Force's financial management systems do not provide cost information on aircraft reparable parts or timely, complete, and accurate information on aviation fuel usage; (3) financial management systems at the Warner Robins Air Logistics Center did not provide accurate cost data about repairing and modifying individual F-15 aircraft, primarily because of weak internal controls; (4) Warner Robins used excessive standard labor hours to bill and budget for modification work, resulting in overcharges to aircraft procurement funds during fiscal year (FY) 1991 and overstated budgets for the installation of modifications; (5) the F-15 repair program lost about $8.7 million in FY 1991; and (6) Warner Robins incorrectly made materiel charges for individual aircraft to overhead instead of specific jobs.

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.

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