Defense Department not tracking personnel spending, report says

[The Straight Story]

Defense Department not tracking personnel spending, report says

By David McGlinchey
[e-mail]

The Defense Department is not providing sufficient oversight to ensure that military personnel appropriations actually are directed to cover pay, benefits and expenses, according to a new Government Accountability Office report.

As a result of the report, the Office of the Secretary of Defense has ordered a study on the cost and time needed to modify the relevant financial systems to comply with regulations.

GAO released similar findings to lawmakers in 2003, and the fiscal 2004 conference report on defense appropriations called on the Pentagon to "strengthen the annual review process" and "provide transparency of disbursements at the same level as the budget submission."

In the report released this week, however, GAO announced that the Pentagon is not following congressional direction on oversight.

"The military services are not matching obligations to disbursements at the individual disbursement transaction level in all the years that disbursements can occur as required by the Financial Management Regulation," the report (GAO-05-87R) said. "Additionally, the services are not reporting the obligation balances at the budget submission level as directed by congressional conferees."

http://www.govexec.com/dailyfed/1104/113004d1.htm