DOD’s budget for the Selective Reenlistment Bonus Program has more than tripled in recent years—from $235 million in fiscal year 1997 to an estimated $789 million in fiscal 2002. By not doing so, they broadened the number of eligible specialties and reenlistees who received bonuses. Some Services Do Not Consistently Use All of the Criteria They Have Established for Selecting Specialties That Receive Bonuses

Some services are not consistently using all of the criteria they have established to select critical specialties for the Selective Reenlistment Bonus Program. Growth in the Number of Specialties and Reenlistees

The services, with the exception of the Marine Corps, have not been applying all of their criteria for selecting specialties to include in their Selective Reenlistment Bonus Programs. Overall, we found that the Army, Navy, and Air Force did not manage their programs to stay within their budgets appropriated by Congress. DOD Has Not Provided Adequate Guidance and Oversight

DOD canceled the instruction containing criteria for the Selective Reenlistment Bonus Program in 1995 and has not replaced it. Without this instruction, the services have not had clear direction on how to manage their programs. Moreover, it has not reviewed the services’ processes for establishing their reenlistment bonus programs. To improve DOD’s oversight and the services’ management of the Selective Reenlistment Bonus Program, we recommend that the Secretary of Defense require that the Undersecretary for Personnel and Readiness issue an instruction that provides the services with guidance for administering and selecting specialties for inclusion in their programs and   conduct annual reviews of the Selective Reenlistment Bonus Program as required by DOD’s directive. Consequently, without these essential management controls, it is not clear how the Department can be sure that the program is being implemented as intended.
Why GAO Did This Study

Because of the recent growth in DOD's Selective Reenlistment Bonus Program, the House Appropriations Committee asked GAO to determine (1) the extent to which the services have followed their criteria for managing their programs and (2) whether DOD has provided adequate guidance for and oversight of the program.

What GAO Found

The Navy and Air Force have not used all of the criteria they have established for selecting critical military specialties eligible for bonuses under their Selective Reenlistment Bonus Programs. The Army's guidance does not include specific criteria for selecting critical specialties. Since these services have not used all of their criteria, the number of eligible specialties and the number of enlisted personnel who receive bonuses have expanded. Moreover, the services did not manage their programs to stay within their budgets appropriated by Congress. The Department of Defense's (DOD) budget for the Selective Reenlistment Bonus Program has more than tripled in recent years--from $235 million in fiscal year 1997 to an estimated $789 million in fiscal year 2002. DOD has not provided adequate guidance for and oversight of its Selective Reenlistment Bonus Program. DOD canceled an instruction that established criteria for selecting specialties for the program. Without this instruction, DOD cannot be sure that the program is being implemented as intended. Also, DOD has not reviewed the services' processes for selecting critical specialties or for establishing their corresponding bonus levels, despite requirements to do so annually. Thus, DOD has not ensured that the services are implementing their programs appropriately to help improve short-term retention in critical military specialties