	Background

		DOD’s MWR Program Categories and Funding Sources

DOD Instruction 1015.10, Military Morale, Welfare, and Recreation  (MWR) Programs, establishes policy, assigns responsibilities, and  prescribes procedures for operating and managing programs for military  MWR programs. According to DOD’s 2016 report to Congress on appropriated  funding support for MWR programs, the funding targets are intended to  ensure that the services adequately fund MWR programs instead of  requiring the servicemembers and their families to pay out of their own  pockets for costs that should be borne by appropriated funding. For the MWR Category C  recreational activities for servicemembers and their families, appropriated  funding support should generally be limited because this category has the  highest capability of generating nonappropriated funding revenues. The Services Did Not Consistently Meet One of the Two Appropriated Funding Targets and Are Taking Steps to Address This, but DOD Has Not Comprehensively Evaluated the Targets to Ensure They Are Appropriate

The services generally met the funding target for fiscal years 2012  through 2017 for MWR Category A mission-sustaining programs, but did  not consistently meet the target for Category B programs that provide  community support systems to servicemembers and their families during  the same time period. Service officials said they are taking steps to meet  the Category B target, such as restoring targeted levels of appropriated  funding support in future budget planning. Data indicate that the services  are getting closer to meeting the target. However, DOD has not  comprehensively evaluated the funding targets, which were established  more than 20 years ago, to ensure they currently are appropriate. Table 3 provides additional detail on the extent to which each service met  the 65-percent funding target for MWR Category B community support  programs in fiscal years 2012 through 2017. USD(P&R) officials stated that since that time there have been no further  evaluations of the Category A or Category B targets and agree that it is  time to evaluate the current relevance of the targets. Until DOD  comprehensively evaluates the appropriateness of current targets for  Category A and B programs and, based on its evaluation, documents any  changes it makes to its funding targets, DOD cannot be certain that the  targets reflect the current operating environment and do not pose undue  financial burden on the servicemembers. DOD Has Established an Oversight Structure and Performance Measures for MWR Programs but Has Not Developed Measurable Goals for Determining Whether MWR Programs Are Cost-Effective

		DOD Has Established a Structure to Provide Oversight of MWR Programs

DOD has established a structure that specifies roles, responsibilities, and  procedures for overseeing MWR programs. DOD and the Services Have Performance Measures to Assess MWR Programs but These Measures Lack Measurable Goals for Determining Cost- Effectiveness

DOD Instruction 1015.10 identifies six broad categories of performance  measures that the services use to assess their respective MWR  programs. However, these measures do not include measurable goals,  which are needed to assess the cost-effectiveness of the 55 activities that  currently make up the MWR programs. Specifically, DOD identifies six  broad performance measure categories in its instruction and, according to  service officials, the services collect and use various types of information  within these categories to periodically assess and adjust these activities,  as appropriate. While both the broad and specific measures established by DOD and the  services can provide useful context about the status of individual MWR  activities, they do not contain measurable goals that service officials could  use to compare program results with costs to determine whether an  individual activity is cost-effectively operating. Because the services’  efforts to develop specific performance measures are in early stages of  development it is too early to determine whether these efforts will result in  measurable goals that can be used to assess the cost-effectiveness of  the MWR programs. Until DOD develops  performance measures that include measurable goals, DOD officials and  other decision makers, such as Members of Congress, may find it difficult  to determine whether the MWR programs and the activities that make up  the MWR programs are meeting servicemember needs in a cost-effective  manner. We recommend that the Secretary of Defense ensure that the USD(P&R),  in consultation with the Secretaries of the military departments,  comprehensively evaluate the funding targets for Category A and B MWR  programs and document any changes made to the targets and the  methodology used.
Why GAO Did This Study

DOD's MWR programs provide servicemembers and their families with three categories of programs: Category A (e.g., fitness and libraries), Category B (e.g., camping and performing arts), and Category C (e.g., golf). DOD oversees the percentage of appropriated funding allocated to MWR programs by category and measures the military services' compliance with established funding targets. DOD set the targets at 85 percent for Category A and 65 percent for Category B. DOD did not set a target for Category C since this category has the ability to generate revenue from user fees.
House Report 115-200 accompanying a bill for the National Defense Authorization Act for Fiscal Year 2018 includes a provision for GAO to review DOD' s MWR programs. GAO assessed the extent to which (1) the services have met DOD's established funding targets for each category of MWR programs and DOD has comprehensively evaluated the relevance of its targets, and (2) DOD has oversight structures and performance measures that include measurable goals, including those for cost-effectiveness, by which to review MWR programs. GAO analyzed MWR program information for fiscal years 2012-2017 and compared DOD's MWR policy with guidance for using measures and evaluating goals.

What GAO Found

The Department of Defense (DOD) established funding targets for two categories of Morale, Welfare, and Recreation (MWR) programs—Category A, which promotes the physical and mental well-being of servicemembers, and Category B, which funds community support systems for servicemembers and their families. These targets are intended to ensure that the military services adequately fund these programs with appropriated funds instead of requiring servicemembers and their families to pay fees out of pocket to cover program costs. However, GAO found the following:
In fiscal years 2012-2017, the military services generally met the DOD-set target to provide 85 percent of appropriated funding for Category A programs but not the 65-percent target for Category B programs. Service officials said they are taking steps to meet the Category B target, such as by restoring targeted levels of appropriated funding support in future budget planning. Data GAO reviewed indicate that these steps are helping the services get closer to meeting the target for Category B.
DOD has not comprehensively evaluated the targets, established more than 20 years ago, to ensure that they are appropriate. DOD officials said they agree that it is time to evaluate the relevancy of the targets as the current operating environment is fundamentally different than when the targets were established 2 decades ago. Further, DOD officials said that they are unsure of the process or methodology used to originally develop the targets because they have no documentation supporting these decisions. Until DOD comprehensively evaluates the appropriateness of the targets and, based on its evaluation, documents any changes made, it cannot be certain that the targets reflect the current operating environment and do not pose undue financial burden on servicemembers.
DOD established oversight structures and performance measures for MWR programs, but has not established measurable goals to assess the cost-effectiveness of the 55 activities that make up MWR programs. DOD's MWR policy identifies six broad performance measure categories for the program. DOD officials responsible for developing MWR program goals acknowledged that DOD's MWR policy does not include measurable goals for assessing the cost-effectiveness of program activities, and do not currently have plans to make any changes to the goals. Service officials told GAO that they collect and use various types of information within the categories to assess specific activities. While both the categories established by DOD and the service-specific efforts provide useful context about the status of individual MWR activities, they do not replace the need for measurable goals that can be used to assess whether the programs are operating cost-effectively. The services are in the early stages of developing more specific performance measures, but it is too early to determine whether these efforts will result in measurable goals that can be used to assess cost-effectiveness. Until DOD develops performance measures that include measurable goals, it cannot ensure that MWR programs meet servicemember needs in a cost-effective manner.

What GAO Recommends

GAO recommends that DOD evaluate the funding targets and document any changes needed and develop measurable goals for MWR programs' performance measures. DOD concurred with the recommendations.