The services’ annual O&M budget requests to Congress are presented in four broad categories referred to as budget activities: operating forces, mobilization, training and recruiting, and administrative and servicewide activities. As shown in table 3, the amounts obligated have increased slightly during the 3-year period, but, at their highest level, still only represent 21.5 percent of the Army’s and 26.8 percent of the Air Force’s total O&M obligations. In contrast, the Army obligated about $900 million less than the amounts requested.The fact that the Army did not obligate all the funds that it requested for its combat forces means that the amount initially requested for combat forces was probably used to fund other O&M programs. Table 5 shows the types of training and recruiting activities the Army and the Air Force obligated their O&M funds for in fiscal year 1995. However, overall, the Army and the Air Force obligated less than they requested for their training and recruiting activities. Funding for Base Support

For fiscal years 1993 through 1995, the Army obligated about 33 percent of its total O&M funds for base support and the Air Force about 30 percent. Table 6 shows the amounts requested and obligated for base support program elements during the 3-year period under review. Another area where the services obligated more than was requested was for environmental activities. The Air Force also obligated significantly more of its O&M funds for environmental activities than it requested—about $774 million versus $404 million. Funding for Management, Command, and Servicewide Activities

Between fiscal years 1993 through 1995, the Army obligated approximately 37 percent of its O&M funds for management, command, and servicewide activities. The Air Force obligated about 35 percent of its O&M funds for the same purposes. This is particularly true for the Army, which historically obligates less funds for its combat forces than it requests even when appropriated more than requested. Conversely, the opposite trend emerges for the infrastructure and management accounts. The reason why obligations exceed the amounts requested may be because Congress appropriated more than requested. DOD also commented that it disagreed with our statement that only one-third of Army’s and Air Force’s O&M funds are obligated for combat forces, including training and recruitment. The purpose of this delineation was to illustrate what portion of the O&M funds were used for those O&M activities that could be directly related to the combat forces as opposed to those O&M activities that were infrastructure related. 2. The report was clarified to point out that the Army obligated less than requested for combat forces and support of forces and that the Air Force obligated more than requested for combat forces and support of the forces. 4.
Why GAO Did This Study

GAO reviewed how the Army and Air Force obligated their annual operation and maintenance (O&M) funds.

What GAO Found

GAO found that; (1) the services have a great deal of flexibility as to how they use their O&M funds; (2) this flexibility is evident in the O&M obligation trends, which illustrate that the proposed uses of O&M identified in the budget request may not always reflect how the funds are obligated; (3) this is particularly true for the Army, which historically obligates less funds for its combat forces than it requests even when Congress appropriates more than was requested; (4) the Army and the Air Force obligate about one-third of their O&M funds for activities directly related to combat forces, including training and recruitment; (5) the remainder goes to support infrastructure-type activities such as base support and management activities; (6) from fiscal years 1993 through 1995, the Army obligated less than 20 percent of its O&M funds for combat forces and support of the forces and the Air Force obligated about 26 percent of its O&M funds for such purposes; (7) when training and recruiting funds are added, the Army's and the Air Force's obligations are about 30 and 34 percent, respectively; (8) the balance of the O&M funds was obligated for infrastructure-type functions such as base support and management activities. During the 3-year period, the Army obligated 33 percent of its O&M funds for base support and 37 percent for management activities; (9) the Air Force obligated 30 percent of its O&M funds for base support and 35 percent for management activities for that same period; (10) the fastest growing accounts were minor construction, maintenance and repair, administrative activities, and international activities; (11) when the amounts obligated for combat forces and support of the forces and training and recruitment are compared to the amounts requested for these categories, the Army historically requested more than it obligated; (12) conversely, it often obligates more than requested for infrastructure and management activities; (13) in part, this may be due to Congress appropriating more than requested; (14) however, it can also be the result of O&M funds requested for one purpose being obligated for another purpose; (15) GAO's comparison of the amounts obligated and budgeted by the Air Force for these same functions showed that the Air Force obligated slightly more than it requested for combat forces; (16) with regard to training and recruiting, the Air Force obligated less than the amounts requested; and (17) it obligated more than it requested for base support and slightly less than it requested for management activities.