Defense Business Operations Fund: Management Issues Challenge Fund
Implementation (Letter Report, 03/01/95, GAO/AIMD-95-79).

Pursuant to a legislative requirement, GAO reviewed the Department of
Defense's (DOD) progress in implementing the Defense Business Operations
Fund Improvement Plan, focusing on: (1) the policies essential to the
Fund's operations; and (2) DOD ongoing efforts to correct problems that
hinder Fund operations.

GAO found that: (1) DOD has no systematic process in place to ensure
consistent implementation of the Fund's policies; (2) Fund managers lack
guidance to execute daily Fund operations; (3) DOD lacks the financial
systems necessary to provide for successful Fund operations; (4) DOD has
been unable to improve the accuracy and reliability of its financial
systems; and (5) DOD has reversed its cash management policy to return
cash control to DOD components, however, there is no assurance that this
policy change will enhance DOD cash accountability.

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

 REPORTNUM:  AIMD-95-79
     TITLE:  Defense Business Operations Fund: Management Issues 
             Challenge Fund Implementation
      DATE:  03/01/95
   SUBJECT:  Funds management
             Revolving funds
             Cost accounting
             Cash management
             Federal agency accounting systems
             Financial management systems
             Accountability
             Monetary policies
             Internal controls
             Defense operations
IDENTIFIER:  Defense Business Operations Fund Improvement Plan
             Defense Business Operations Fund
             Joint Financial Management Improvement Program
             
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