Financial Status of Air Force Expired Year Appropriations
Abstract
This report gives the results of our audit of the financial status of Air Force expired year appropriations. We made the audit to determine whether other appropriations in the Air Force were experiencing problems similar to those previously reported in our audit of the FYs 1987 and 1988 Air Force Missile Procurement appropriations. In our report on that audit, we found that the Air Force experienced deficits and accounting problems relating to funding upward cost adjustments to obligations when such costs were charged to expired year appropriations. Public Law 101-510, the National Defense Authorization Act for Fiscal Year 1991, phased out each appropriation's merged and merged surplus accounts. Now, unobligated balances and obligated unexpended balances are not merged. Instead, they retain fiscal year identity, and there is now a maximum 5-year period after expiration of an appropriation when obligations can be recorded, adjusted, and liquidated. After that 5-year period, residual obligations must be paid with current year funds. The primary audit objective was to review the financial status of Air Force expired year appropriations and determine whether significant financial problems, including funding shortfalls, existed. We focused on the methods and internal controls Air Force officials used to manage the financial status of major procurements and related financial operations. Because of discrepancies encountered, we expanded our objectives to include Air Force use of current year dollars to finance obligation growth in open merged accounts and Air Force policy on the use and disclosure of appropriation refunds receivable in fund records and reports.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 18, 1994
- Accession Number
- ADA375458
Entities
Organizations
- Office of the Inspector General, U.S. Department of Defense