Financial Management

GAO continues to support the concept underlying the Defense Business Operations Fund. The fund, which could significantly reduce the Pentagon's costs, represents a comprehensive management tool for the services and components to plan and control their operations. The Defense Department (DOD), however, has underestimated the scope and complexity of implementing the fund. As a result, resources have been spread much too thin to handle the planning and development of the policies and procedures, to identify functional requirements, and to provide needed direction. GAO believes that unless the right executive leadership and process is put into place at the top, the fund's financial management operations will continue to fall short. Simply put, DOD must demonstrate both its commitment and ability to implement the fund and it should not be allowed to add any new activities or functions to the fund until it does so.