Army Housing

Overcharges for On-Base Lodging Have Not Been Repaid Gao ID: NSIAD-93-188 August 3, 1993

In a September 1990 report (GAO/NSIAD-90-241) on Army facilities used to lodge military personnel temporarily assigned for training or other purposes, GAO found that Army bases had overbilled soldiers by $70 million and used the money to subsidize officers' clubs, golf courses, guest houses, and similar activities. GAO found that the Army has yet to repay the overcharges that have accumulated from inflated transient lodging fees. Transient lodging service charges have been reduced somewhat but continue to be inflated.

GAO found that the: (1) Army has not repaid accumulated overcharges totalling $157 million as of September 30, 1991; (2) Army has not reimbursed its operations and maintenance accounts with nonappropriated morale, welfare, and recreation funds; (3) transfer of transient lodging charges to nonappropriated accounts is inconsistent with congressional guidance and Department of Defense (DOD) policy, but DOD has not required the Army to repay the overcharges; and (4) Army has stopped using transient lodging service charges to support other morale, welfare, and recreation activities, but it has continued to inflate service charges to reduce the impact of reductions in appropriated funds.

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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