We also determined what plans DOD has in place to (1) implement/enhance the selected systems, (2) estimate the costs to improve the selected systems, and (3) eliminate the systems not selected. However, DOD lacks the management tools to accomplish this task. Specifically, DOD has not (1) developed a process to ensure the Fund’s policies are consistently implemented, (2) improved the accuracy and reliability of the Fund’s systems, (3) improved the Fund’s monthly financial reports, (4) adequately managed the Fund’s cash, and (5) developed performance measures and goals. DOD Has Reversed Fund’s Cash Management Policy

Since the Fund was established, its cash balance has been centrally managed by the Office of the Secretary of Defense (Comptroller). However, there is no assurance that this policy change will enhance DOD’s cash accountability. Financial Management: DOD’s Efforts to Improve Operations of the Defense Business Operations Fund (GAO/T-AIMD/NSIAD-94-170, April 28, 1994).
Why GAO Did This Study

Pursuant to a legislative requirement, GAO reviewed the Department of Defense's (DOD) progress in implementing the Defense Business Operations Fund Improvement Plan, focusing on: (1) the policies essential to the Fund's operations; and (2) DOD ongoing efforts to correct problems that hinder Fund operations.

What GAO Found

GAO found that: (1) DOD has no systematic process in place to ensure consistent implementation of the Fund's policies; (2) Fund managers lack guidance to execute daily Fund operations; (3) DOD lacks the financial systems necessary to provide for successful Fund operations; (4) DOD has been unable to improve the accuracy and reliability of its financial systems; and (5) DOD has reversed its cash management policy to return cash control to DOD components, however, there is no assurance that this policy change will enhance DOD cash accountability.