Financial Management

Theater Missile Defense Cooperation Account Gao ID: NSIAD-95-93 April 3, 1995

In response to the National Defense Authorization Act for Fiscal Year 1994, the Defense Department (DOD) established a Theater Missile Defense Cooperation Account in the U.S. Treasury. The account was created to accept contributions from any allied foreign government or international organization for theater missile defense programs. DOD notified U.S. allies about the account, but had not received any contributions as of the end of February 1995. Thus, there were no financial transactions for GAO to assess. Beyond informing allies about the account, DOD has made no further efforts to obtain contributions. Because DOD does not anticipate any cash contributions, it has not issued regulations governing the account because it believes that they are a low priority.

GAO found that: (1) although DOD established the account in the U.S. Treasury and notified allies about the account, no contributions had been received as of the end of February 1995; (2) the account has a zero balance and there are no transactions to assess; (3) DOD has made no effort beyond its initial notification to obtain contributions; (4) instead of seeking cash contributions, DOD has pursued cooperative development of several theater missile development systems with U.S. allies; and (5) DOD has not issued any regulations governing the account, since it does expect to receive any cash contributions.

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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