Financial Management: Improved Management Needed for DOD Disbursement Process Reforms
Abstract
DFAS, which provides accounting services for DOD, was established on January 15, 1991, to improve, standardize, and consolidate DODs finance and accounting policy, systems, and operations. DFAS is undergoing massive consolidation efforts to reduce its over 300 defense accounting offices into 5 existing large centers and not more than 21 new operating locations. DOD is also undertaking efforts to consolidate about 250 financial and accounting systems in use today to standard integrated systems. However, it will be several years until DOD completes implementation of new and improved systems. Until this occurs, DOD will have to rely on its existing systems. Few of those systems electronically transfer data to each other and thus require manual intervention to record transactions. When a disbursing station disburses funds that are accounted for at another station, the accounting station calls this a TBO. Cross disbursements are a special type of TBO wherein the disbursing station is aligned with a different military service than the accounting station (e.g., when an Army-aligned station makes disbursements that are accounted for by a Navy-aligned station). TBOs and cross disbursements can be the result of almost any disbursement activity, including payments on contracts (both for delivery of goods or services and progress payments), payroll, or travel. Although the processes vary widely among the services, figure depicts the general TBO and cross disbursement processes.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 01, 1997
- Accession Number
- AD1174083
Entities
People
- Lisa G. Jacobson
Organizations
- United States Government Accountability Office