United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office National Security and International Affairs Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1995-10-06 monographic deposited born digital 34 p. GA 1.13:NSIAD-96-8 https://www.govinfo.gov/app/details/GAOREPORTS-NSIAD-96-8 P0b002ee18037e63b f:ns96008 DGPO 2010-08-12 2011-03-24 GAOREPORTS-NSIAD-96-8 machine generated eng fdlp REPORT GAOREPORTS-NSIAD-96-8 NSIAD-96-8 Overpayments Underpayments Department of Defense contractors Accounting errors Federal agency accounting systems Data integrity Defense cost control Accounting procedures Financial management Refunds to government Letter Report NSIAD F33657 The 374 business units--representing 82 large defense contractors and 57 small contractors--that responded to GAO's request for data as of July 1994 reported about $231.5 million in outstanding overpayments and about $625.9 million in underpayments. The evidence suggests and contractors reported that they followed up to collect underpayments and usually notified the Defense Department of overpayments. Contractors did not, however, always return overpayments unless told to do so. The Defense Finance and Accounting Service Center in Columbus, Ohio, cannot readily detect payment discrepancies because of significant errors in its automated payment records. Despite these errors, Center personnel pay contractors' invoices as if the payment data were correct. The Center did not properly pursue recovery after overpayments were reported by contractors or identified through contract reconciliation. The Center's delay in collecting overpayments has been long and costly. For the $84.2 million in overpayments that it reviewed, GAO estimates that recovery delays cost the government about $10.6 million in interest. Even after a public accounting firm completed contract reconciliations to identify the amounts owed the government, the Center did not recover overpayments promptly. https://www.govinfo.gov/content/pkg/GAOREPORTS-NSIAD-96-8/html/GAOREPORTS-NSIAD-96-8.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-NSIAD-96-8/pdf/GAOREPORTS-NSIAD-96-8.pdf GAO/NSIAD-96-8 https://www.govinfo.gov/app/details/GAOREPORTS-NSIAD-96-8 Letter Report GAO/NSIAD-96-8; DOD Procurement: Millions in Contract Payment Errors Not Detected and Resolved Promptly; Overpayments Underpayments Department of Defense contractors Accounting errors Federal agency accounting systems Data integrity Defense cost control Accounting procedures Financial management Refunds to government