Prior GAO Work

In June 2012, we reported on DOD’s initial implementation of DAWDF;  we found that the ability of DOD components to effectively plan for and  execute efforts supported by DAWDF was hindered by delays in DOD’s  DAWDF funding processes and the absence of clear guidance on the  availability and use of funds. Congressional Actions Have Enabled DOD to Overcome Previous DAWDF Funding Challenges

DOD, enabled by recent congressional action, has improved its ability to  fund DAWDF, which allowed DOD to fund DAWDF in 2 months,  compared to the 24 months the credit funding process took in fiscal year  2014. Despite the improved timeliness of funding DAWDF by transferring  expired funds, DOD experienced a significant increase in the amount of  carryover funds by the beginning of fiscal year 2016. Specifically, the  carryover balance increased from $129 million as of October 1, 2014, to  $875 million as of October 1, 2015, or nearly twice the amount DOD  eventually obligated in fiscal year 2016. When coupled with DOD’s fiscal  year 2017 spending and funding plans, we estimate that these actions will  result in a carryover balance of about $156 million at the beginning of  fiscal year 2018 in the DAWDF account, or about 26 percent of DOD’s  estimated fiscal year 2018 spending (see fig. DOD Has Taken Some Steps to Improve Management and Oversight of the Fund, but Opportunities Exist to Improve Guidance and Data Quality

DOD has taken several actions to improve management and oversight  processes for DAWDF over the past year, including issuing an updated  acquisition workforce strategic plan and DAWDF operating guidance. DOD components identified more than $3 billion in potential DAWDF  funding requirements for fiscal years 2018 through 2022, which is  expected to exceed available funding by $500 million over this period. Without additional clarification on whether  DAWDF funds may be used to pay for personnel to manage DAWDF, and  under what conditions, DOD components will continue to be at risk of not  using DAWDF funding consistently, or, if DAWDF can be used to help  manage and oversee the fund, potentially missing opportunities to  enhance management and oversight. For example, in addition to the requirement for the DOD  components to submit annual and 5-year spending plans, DOD’s August  2016 guidance formalized the requirement to hold a midyear review to  assess DAWDF execution and discuss best practices, among other  issues, as a part of HCI’s management and oversight of the fund. To meet this  standard, programs require procedures to verify that required data are  complete and accurate. Clearly aligning DAWDF funding with DOD’s strategic plan—as we  recommended in 2012—may help DOD determine how to prioritize  component spending plans. At the tactical level, our work found that DOD components’ guidance,  practices, and views on whether they could use DAWDF to pay for  personnel to help manage the fund varied. In its comments,  reproduced in appendix II, DOD partially concurred with both of the  recommendations, and indicated actions that will be or have been taken  to address them. In response to our recommendation that DOD ensure that processes are  in place to verify the accuracy and completeness of data on the execution  of DAWDF initiatives, DOD noted that it had made significant  management and other changes to improve the accuracy and  completeness of data used and provided by components on the execution  of initiatives funded by DAWDF. Appendix I: Objectives, Scope, and Methodology

This report examines (1) the process the Department of Defense (DOD)  uses to fund the Defense Acquisition Workforce Development Fund  (DAWDF) and (2) DOD’s management and oversight of DAWDF  initiatives. To obtain an understanding of how the planning, review, and  implementation processes for DAWDF initiatives worked, we selected a  nongeneralizable sample of 10 fiscal year 2015 DAWDF initiatives.
Why GAO Did This Study

Congress established DAWDF in 2008 to provide DOD with a dedicated source of funding to help recruit and train members of the acquisition workforce. Since 2008, DOD has obligated more than $3.5 billion to meet those objectives. However, in 2012, GAO reported that DOD's ability to execute hiring and other initiatives had been hindered by delays in the DAWDF funding process, resulting in a large amount of unused funds being carried over from year to year.
GAO was asked to review DOD's management of DAWDF. This report examines (1) the process DOD uses to fund DAWDF and (2) DOD's DAWDF management and oversight. GAO analyzed relevant legislation; DOD's, the military departments', and other defense agencies' guidance and processes; and DAWDF budget and initiative execution data. GAO also interviewed DOD officials and conducted a nongeneralizable sample of 10 fiscal year 2015 DAWDF initiatives based on type of initiative and dollar value.

What GAO Found

The Department of Defense (DOD), enabled by congressional action, has improved the timeliness of the funding process for the Defense Acquisition Workforce Development Fund (DAWDF). For fiscal year 2015, DOD was authorized to transfer expired funds, which allowed it to fund DAWDF in 2 months. In contrast, for fiscal year 2014, DOD relied on the military departments and other defense agencies (referred to as components) to remit funds to the DOD Comptroller, which took 24 months to complete. As a result, hiring, training, and other initiatives were delayed. Congress also took action in 2016 to reduce the amount of funding carried over from year to year, which totaled $875 million at the beginning of fiscal year 2016, or nearly twice the amount DOD eventually obligated for that year (see figure). GAO estimates that the amount of carryover funds at the beginning of fiscal year 2018 will be reduced to about $156 million.
In the past year, DOD has taken several actions to improve its management and oversight of DAWDF, including issuing an updated acquisition workforce strategic plan and DAWDF operating guidance. For example, DOD's August 2016 DAWDF guidance required components to submit annual and 5-year spending plans and formalized the requirement to hold a midyear review to assess DAWDF execution and discuss best practices. However, GAO found that DOD components identified more than $3 billion in potential DAWDF funding requirements for fiscal years 2018 through 2022, which may exceed available funding over this period. Clearly aligning DAWDF funding with DOD's strategic plan—as GAO recommended in June 2012—may help DOD determine how to prioritize these requirements. GAO also found that components' guidance, practices, and views on whether they could use DAWDF to pay for personnel to manage the fund varied. Further, GAO found components did not have processes to verify the accuracy and completeness of data reported on DAWDF-funded initiatives. Internal control standards indicate that consistent policies and accurate data can help ensure that funds are used effectively and as intended. Without such controls, DOD could be missing opportunities to use DAWDF more effectively to improve its acquisition workforce.

What GAO Recommends

DOD should (1) clarify whether DAWDF funds could be used to pay for personnel to help manage the fund and (2) ensure that DOD components have processes in place to verify the accuracy and completeness of DAWDF data. DOD partially concurred with both recommendations, and has taken or plans to take actions to address them.