Army Working Capital Fund: Army Industrial Operations Could Improve Budgeting and Management of Carryover
Abstract
Industrial Operations activities support combat readiness by providing depot maintenance and ordnance services to keep Army units operating worldwide. To the extent that these activities do not complete work ordered and funded by fiscal year-end, the work and related funding will be carried over into the next fiscal year. DOD established a formula based on new orders from customers for determining the allowable carryover as defined by DODs Financial Management Regulation. GAO was asked to review issues related to carryover. GAOs objectives were to determine (1) the extent to which Industrial Operations actual carryover differed from allowable amounts and reasons for differences; (2) the extent to which Industrial Operations budgeted carryover differed from actual carryover, reasons for differences, and actions Army is taking to improve related budgeting; and (3) the key drivers for orders with large carryover balances and the extent to which the Army is taking actions to reduce carryover. GAO reviewed carryover guidance, analyzed carryover and related data, and interviewed Army officials.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 2016
- Accession Number
- AD1013829
Entities
Organizations
- United States Government Accountability Office