In fiscal year 2003, these costs were incurred preparing  for and undertaking GWOT, including the 2003 war against Iraq. Fiscal Year 2003 Funding for the Global War on Terrorism

To support GWOT in fiscal year 2003, Congress appropriated $68.7 billion  to DOD in the Consolidated Appropriations Resolution, 2003, and  Emergency Wartime Supplemental Appropriations Act, 2003. By the end  of June 2003, only one of the services, the Marine Corps, had obligated  more than 75 percent of the funds appropriated for operation and  maintenance, while the other three services had obligated between 65 and  68 percent, although three-fourths of the fiscal year had already elapsed,  raising doubts about whether all the services will be able to obligate their  entire fiscal year 2003 GWOT operation and maintenance funds in the  remaining 3 months of fiscal year 2003. As can be seen in figure 2, the percentage of directly appropriated  operation and maintenance funds that were obligated as of June 30, 2003,  ranged from a low of 65 percent for the Army to a high of 78 percent for  the Marine Corps. Based on our analysis, we believe that in fiscal year 2003 the services, with  the possible exception of the Marine Corps, may not obligate all operation  and maintenance funds appropriated to them for GWOT. Since fiscal year 2002, funds  for these operations have been included in the services’ base programs. Therefore, the funds requested for these  Operations in the President’s fiscal year 2004 budget request for DOD may  no longer be necessary as requested. Recommendations for Executive Action

To ensure that funds already appropriated, including funds transferred  from the Iraqi Freedom Fund, to the military services for GWOT are fully  utilized and that additional funds are not transferred to the military  services’ operation and maintenance and military personnel accounts from  the Iraqi Freedom Fund until they are needed, we recommend that the  Secretary of Defense (1) monitor the obligation of funds in the services’  operation and maintenance accounts, including the GWOT funds,  (2) ensure that all funds transferred to the services’ operation and  maintenance accounts that are not likely to be obligated by the end of  fiscal year 2003 are transferred back to the Fund as allowed by the  Wartime Supplemental Appropriation, and (3) closely review the  executability of further funding transfers from the Iraqi Freedom Fund to  ensure the funds will be obligated as planned. Matter for Congressional Consideration

Because Operations Northern Watch, Southern Watch, and Desert Spring  were canceled in March 2003, after the President’s fiscal year 2004 budget  submission, Congress may wish to delete the funds requested for this  purpose from the fiscal year 2004 DOD appropriations.
Why GAO Did This Study

The Global War on Terrorism (GWOT)--principally involving operations in Afghanistan and Iraq--is being funded in fiscal year 2003 by Congress's appropriation of almost $69 billion, including almost $16 billion in a transfer fund called the Iraqi Freedom Fund. To assist Congress in its oversight of funding for GWOT, GAO examined the obligation of GWOT funds and the implications for additional funding in fiscal year 2003 and the President's request for fiscal year 2004 funds for several operations in Southwest Asia that were canceled after the budget was submitted.

What GAO Found

While funds obligated by DOD for GWOT, including the war with Iraq, in fiscal year 2003 are substantial--about $39 billion through June 2003--the funds appropriated by Congress appear to be sufficient for fiscal year 2003, and some of the services may not obligate all of the funds they were appropriated for fiscal year 2003. For example, at the end of June 2003, with 75 percent of the fiscal year completed, the services' percentage of GWOT operation and maintenance funds that had been obligated ranged from a low of 65 percent for the Army to a high of 78 percent for the Marine Corps. In contrast, the percentage of military personnel funds obligated by the three-fourths of-the-fiscal-year mark by the services ranged from 72 to 75 percent of GWOT appropriations. The military services believe they will obligate all the fiscal year 2003 funds appropriated to them. In addition, the services have received billions of dollars more in transfers from the Iraqi Freedom Fund. But GAO's analysis suggests that they may not need all the funds transferred as well as further transfers in fiscal year 2003 for operation and maintenance, since considerable unobligated fiscal year 2003 funds remain in their direct appropriations. Since DOD terminated Operations Desert Spring and Northern and Southern Watch in Southwest Asia in March 2003, the funds ($1.4 billion) that were included in the President's fiscal year 2004 budget to support those operations next year may no longer be necessary.