Navy Ordnance: Analysis of Business Area Price Increases and Financial Losses
Abstract
The Chairman, Subcommittee on Military Readiness, House Committee on National Security, asked us to determine why the Navy ordnance business area increased prices 78 percent from fiscal years 1994 through 1996 and incurred about $212 million in losses during that 3-year period. The Chairman also asked us to determine whether management has accurate and consistent financial management information for effectively managing the Navy ordnance business area. On December 11, 1996, the Under Secretary of Defense (Comptroller) reorganized DBOF and created four working capital funds: Army, Navy, Air Force, and Defense-wide. The Navy ordnance business area is now part of the Navy Working Capital Fund. The four working capital funds will continue to operate under the revolving fund concept - using the same policies, procedures, and systems as they did under DBOF - and charge customers the full costs of providing goods and services to them. The Comptroller made this change to clearly establish the military services' and DOD components responsibilities for managing the functional and financial aspects of the business areas.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 01, 1997
- Accession Number
- AD1165561
Entities
People
- David R. Warren
- Jack L. Jr Brock
Organizations
- United States Government Accountability Office