A comprehensive summary of efforts to prevent and detect the incidence of fraud, waste, and abuse in DOD programs and to take prompt and appropriate action when such matters are disclosed is presented. Recommendations for corrective action are made, and a summary of matters referred for prosecution and the results of such prosecutions are included. In addition, a statistical summary, categorized by organization, of audit and inspection reports completed during the reporting period is given. Supplemental information includes a statistical summary of criminal investigation cases completed during the reporting period. Descriptions of the more significant audit and inspection findings that point out ways for management and operating officials to improve the economy, efficiency or effectiveness of DOD operations are given. For purposes of this report, the definition of 'fraud' is broadened to include other unlawful activity against the Government and 'waste' and 'abuse' are combined into a single category. A summary of the activities of DOD audit inspection and investigative organizations is presented in Part II of the report. The summary describes the functions of these organizations and presents highlights of the results of their operations. It also shows the status of progress made on special programs to combat fraud and waste in DOD programs. Details regarding specific instances of fraud, waste or abuse are appended. (Author abstract modified).