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Military Personnel: DoD Needs to Strengthen the Annual Review and Certification of Military Personnel Obligations
MILPERS appropriations are available for obligation for a period of 1 year(or for the duration of the fiscal year in which the budget authority was appropriated). However, the appropriated funds remain available for5 additional fiscal years for the payment of obligations (e.g., for permanent change-of-station contracts or pay adjustments that were incurred during the year of appropriation). Thus, the military services can disburse MILPERS obligations over a period of up to 6 years. For example, about94 percent of fiscal year 2003 MILPERS obligations were disbursed during the first year. The remaining 6 percent, or about $6.5 billion, was not disbursed (i.e., remained as unliquidated obligations) and is available to disburse for up to 5 additional fiscal years. MILPERS obligations differ from other obligations such as for operations and maintenance and procurement where payments are made for specific transactions, such asunder a contract. MILPERS individual payments are made against a planned level of obligations for like items,5 such as incentive bonuses and payroll checks.
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