Navy Working Capital Fund: Budgeting for Carryover at Fleet Readiness Centers Could Be Improved
Abstract
Three Navy FRCs support combat readiness by providing repair services to keep Navy units operating worldwide. To the extent that the FRCs do not complete work ordered and funded by year-end, the work and related funding will be carried over into the next fiscal year. The Department of Defense (DOD) established a formula based on new orders received from customers for determining the allowable carryover amount at yearend as defined by the DOD Financial Management Regulation. As requested, GAO reviewed issues related to FRC carryover. GAO s objectives were to determine (1) the extent to which the FRCs actual carryover differed from the allowable amounts and the reasons for any differences, (2) the extent to which the FRCs reported budget information on carryover differed from reported actual information and the reasons for any differences, and (3) the key drivers for orders with large carryover balances for fiscal years 2013 and 2014 and the actions the FRCs are taking or planning to take to reduce carryover. GAO reviewed carryover guidance, analyzed carryover and related data for the FRCs for fiscal years 2004 to 2014, and interviewed Navy officials. GAO recommends that DOD improve the budgeting for carryover by reporting the purpose and amount of waivers in FRC budgets and augmenting Navy guidance to include trend data on actual orders in developing budget estimates. DOD concurred with GAO s recommendations and cited related actions planned or under way.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 2015
- Accession Number
- ADA621567
Entities
People
- Asif A. Khan
- Greg Pugnetti
- Hal Santarelli
- Keith Mcdaniel
- Steve Donahue
Organizations
- United States Government Accountability Office