Improper Use of Industrial Funds by Defense Extended the Life of Appropriations Which Otherwise Would Have Expired

摘要

By improperly using industrial funds, which are revolving funds modeled after businesslike operations, Defense carried over $35 million in work from fiscal year 1982 to 1983. This work, financed with Operation and Maintenance funds that otherwise would have expired, Maintenance funds that otherwise would have expired, extended the 1-year life of those funds. Although this $35 million in workload carryover at the six industrial fund activities visited is not statistically projectable Defense-wide, GAO believes the matters discussed in this report exist to some degree with other appropriations and at the other 79 Defense industrial fund activities. GAO recommends ways to strengthen and better enforce controls over the industrial fund process which affects both industrial fund and customer activities. Implementing these recommendations should result in (1) proper fiscal year funding of work done by industrial funds and (2) more accurate reporting of the results of industrial fund operations. (Author)