Financial Management: Financial Control and System Weaknesses Continue to
Waste DOD Resources and Undermine Operations (Testimony, 04/12/94,
GAO/T-AIMD/NSIAD-94-154).

The Comptroller General testified on the Pentagon's efforts to improve
accountability and controls over operations.  Recently, GAO has seen
encouraging signs from the Defense Department's (DOD) new leadership,
including frank admissions of financial management problems and a
heightened interest in bringing about their resolution.  The Comptroller
General focused on the status of DOD's progress in addressing problems
in the following five areas: contractor overpayments, military payroll,
unmatched disbursements, "M" accounts, and the Defense Business
Operations Fund.  The severe shortcomings in DOD's financial operations
spelled out in this testimony underscore the need to expand the
requirements of the Chief Financial Officers Act.  Specifically,
expanding and making permanent the requirement for audited financial
statements in DOD, as well as for all government agencies, is critical
to ensuring basic accountability and to making available the facts
needed to run the government more efficiently.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  T-AIMD/NSIAD-94-154
     TITLE:  Financial Management: Financial Control and System 
             Weaknesses Continue to Waste DOD Resources and Undermine
             Operations
      DATE:  04/12/94
   SUBJECT:  Accounting procedures
             Federal agency accounting systems
             Financial management
             Accountability
             Industrial funds
             Internal controls
             Strategic information systems planning
             Erroneous payments
             Fraud
             M accounts
IDENTIFIER:  Defense Business Operations Fund
             Defense Business Operations Fund Improvement Plan
             DOD Corporate Information Management Initiative
             National Performance Review
             CIM
             
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