Management Costs Associated with the Defense Enterprise Fund
Abstract
This report is being issued to provide lessons learned for managing enterprise funds. The Cooperative Threat Reduction Program was initiated in FY 1992 to reduce the threat posed by weapons of mass destruction remaining in the former Soviet Union. In June 1994, DoD established the Defense Enterprise Fund to assist Belarus, Kazallhstan, Russia, and Ukraine in the privatization of defense industries and conversion of military technologies and capabilities for civilian use. The National Defense Authorization Act for fiscal year 1994, section 1204 (22 U.S.C. 5953), authorized the President to designate Demilitarization Enterprise Funds to receive grants and use those grants for financially supporting demilitarization of industries and converting military technologies and capabilities to civilian activities. The law required that the President consult with the Department of State and the U.S. Agency for International Development to ensure that the terms of any such grants were consistent, to the maximum extent practicable, with grants awarded to enterprise funds established under the Support for East European Democracy Act of 1989 (Public Law 101-179 22 U.S.C. 5421). The authority and requirements established under the National Defense Authorization Act for fiscal year 1994, section 1204, were subsequently delegated to the Secretary of Defense. The Defense Enterprise Fund was created under the authority delegated to the Secretary of Defense. The DoD and Department of State provided funding of $66.7 million to the Defense Enterprise Fund through a grant. Inspector General, DoD, Report No. D-2000-176, "Defense Enterprise Fund," August 15, 2000, discusses reasons why the value of investments decreased from $38.3 million to $31.3 million* as of March 2000. As of September 30, 2000, the total value of the Defense Enterprise Fund was $ 15.2 million, including $11.0 million of investments.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 31, 2001
- Accession Number
- ADA397819
Entities
Organizations
- Office of the Inspector General, U.S. Department of Defense