Financial Status of Navy Expired Year Appropriations
Abstract
We made the audit to determine whether the Navy had problems with expired year appropriations similar to those in the Air Force. The Air Force had difficulty in funding upward adjustments to obligations for contract changes when costs were properly chargeable to expired year appropriations. Such changes had previously been funded from merged surplus accounts. The National Defense Authorization Act for Fiscal Year 1991 (the Act) changed the period of time and the procedures for the liquidation and adjustment of obligations after an appropriation's period of availability. In general, the new law provided that an appropriation will maintain its fiscal year identity after its period of availability has exired, and will be available for legitimate obligational adjustments for 5 years, but not for new obligations. The Act canceled all merged surplus authority effective December 5, 1990. Consequently, merged surplus accounts were no longer available for restoration of obligational adjustments approved after that date. Amounts transferred to merged accounts ("M" accounts) as of or before September 30, 1990, remained available for obligational adjustments and disbursements until September 30, 1993 (a 3-year transition period during which, at each September 30, any deobligated balances were canceled.) Objectives. The objectives of the audit were to identify expired appropriations that may have financial problems and to review the financial status of those appropriations. We reviewed the methods used to determine the financial status of expired ear appropriations and evaluated the financial status of major procurements citing these appropriations.
Document Details
- Document Type
- Technical Report
- Publication Date
- Feb 10, 1994
- Accession Number
- ADA375766
Entities
People
- Andrew Katsaros
- Dennis L. Conway
- F. J. Lane
- Jacqueline J. Vos
- Nancy L. Hendricks
Organizations
- Office of the Inspector General, U.S. Department of Defense