U.S. flag

An official website of the United States government, Department of Justice.

NCJRS Virtual Library

The Virtual Library houses over 235,000 criminal justice resources, including all known OJP works.
Click here to search the NCJRS Virtual Library

Correct Balance of Defense's Foreign Military Sales Trust Fund Unknown

NCJ Number
74580
Date Published
1980
Length
31 pages
Annotation
This report discusses the Defense Department's efforts to reconcile differences between the records used to prepare statements of account to foreign customers and the cash balances in these customers' trust fund accounts. It also comments on financial management problems experienced in administering the foreign military sales program.
Abstract
The General Accounting Office (GAO) visited numerous Defense sites; examined trust fund and sales case records; reviewed pertinent legislation, policies, practices, and procedures; and interviewed responsible Defense officials. By comparing September 30, 1979, balances, GAO found that cash balances on trust fund records differed from balances on detailed sales case accounting records for all foreign military sales customers. In total, trust fund accounts differed by $1.5 billion from the detailed records of sales cases. Following review, unexplained differences were still about $390 million. GAO recommends that Defense direct its departments to establish adequate control over customer trust funds by identifying and correcting existing differences in trust fund and supporting detailed sales records. Defense should also continue actions to centralize foreign military sales accounting and disbursing. Appendixes include correspondence and tabular data. (Author abstract modified)