Accession Number:

ADA621567

Title:

Navy Working Capital Fund: Budgeting for Carryover at Fleet Readiness Centers Could Be Improved

Descriptive Note:

Congressional rept.

Corporate Author:

GOVERNMENT ACCOUNTABILITY OFFICE WASHINGTON DC

Report Date:

2015-06-01

Pagination or Media Count:

43.0

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.

Subject Categories:

  • Administration and Management
  • Economics and Cost Analysis
  • Logistics, Military Facilities and Supplies

Distribution Statement:

APPROVED FOR PUBLIC RELEASE