Recoupment of Transportation Costs Incurred on Foreign Military Sales Cases
Abstract
We are providing this final report on the Audit of Recoupment of Transportation Costs Incurred on Foreign Military Sales (FMS) Cases for your review and comment. The audit was made during the period December 1988 through March 1989. The primary objectives of the audit were to determine whether transportation commands, including the Navy's QUICKTRANS and the Air Force's LOGAIR air operations, were properly reimbursed for all FMS transportation costs, and to evaluate the adequacy of the methods used to bill transportation costs to FMS customers. In addition, we reviewed the internal controls over the billing and reimbursement of these transportation costs. We also followed up on recommendations from two prior audit reports covering the subject area. During FY's 1987 and 1988, FMS transportation billings to foreign customers amounted to $30.5 million. The audit showed that basic procedures exist to ensure that processing of accurate billing information is possible. However, a change is needed in the methodology used to bill FMS customers. In addition, the audit made limited reviews and tests of the internal controls, These reviews and tests showed no material internal control weaknesses. We found that tested items were generally in compliance with applicable laws and regulations; however, we could not determine whether untested items were in compliance with those laws and regulations. The results of the audit are summarized in the following paragraph, and the details and audit recommendations are report.
Document Details
- Document Type
- Technical Report
- Publication Date
- Feb 23, 1990
- Accession Number
- ADA386276
Entities
Organizations
- Office of the Inspector General, U.S. Department of Defense