Asset review. Facility condition. The military services’ real property efforts to prepare for financial audit  have included developing manuals, monitoring activities such as testing  of the implementation of real property procedures, and implementation of  corrective actions to address identified deficiencies in the processes and  procedures. DOD’s Real Property Asset Database Contained Inaccurate Data and Lacked Completeness, Although Certain Data We Reviewed Improved

DOD’s RPAD has data quality issues specific to accuracy of certain data  elements and completeness of the dataset, although certain data we  reviewed improved since fiscal year 2014. The percentage of facilities with a  missing review date increased from 3.4 percent in fiscal year 2014 to  7.2 percent in fiscal year 2016. Specifically, we found (1) the military services have not recorded all  assets that existed and reflected previously disposed facilities that no  longer existed as active in their respective data systems, (2) the military  services did not report all assets in the RPAD submission to OSD that  were recorded in each military service’s data system, and (3) OSD did not  include all assets reported by the military services in RPAD, as shown in  figure 4. Deficiencies Exist in DOD’s Processes for Recording and Reporting Real Property Data

DOD’s processes for recording and reporting real property data have  deficiencies that contribute to inaccuracies and incompleteness in the  RPAD data. Military Services Did Not Consistently Record Real Property Data

The processes for recording real property information include  documenting and entering into the data system when transactions— acquisition of, change to, and disposal of a real property asset—or  physical inventories occur. Military Services Have Not Corrected Identified Discrepancies Reported in Their RPAD Submissions

The military services have not corrected identified discrepancies in their  real property data reported to OSD in the annual RPAD submissions. Furthermore, we found that the guidance does not require the military  services to develop and implement corrective action plans to remediate  discrepancies in significant data elements in their data systems that are  identified by OSD’s verification and validation tool. DOD Has Not Addressed Risks to Its Ability to Use Information to Manage Its Real Property

DOD has not addressed three risks—unfilled real property positions to  manage its data, lack of a department-wide approach to improving data  quality, and a limited plan for the implementation of its expanded data  platform—that diminish its ability to use real property information to  manage its real property. However, in part, DOD’s weaknesses with  quality information on real property and accessibility to this information  continue to exist because DOD has not developed a strategy that  identifies and addresses risks, such as those previously described, and  includes time frames and performance metrics. Without a strategy for improving the quality  of the data and information used to manage its real property, DOD,  Congress, the Office of Management and Budget, and the General  Services Administration will not have information needed for effective  decision making and do not have reasonable assurance that risks to data  quality and information accessibility are being managed appropriately. Conclusions

DOD’s efforts to reform its real property management is complicated by  not having quality data on its large inventory of assets—over 568,000  facilities with an estimated combined plant replacement value of about $1  trillion. An accurate and complete inventory of its assets is essential for  DOD to make informed management decisions about its real property. Without taking actions to address these deficiencies, DOD will  continue to have inaccurate and incomplete real property data and  unreliable information in RPAD. Without  a strategy to address these risks, DOD is missing an opportunity to  ensure that the information needed for effective decision making, such as  budget decisions and oversight by Congress, is available to meet real  property accountability and reporting objectives and to avoid inefficient  and potentially costly workarounds, such as additional data calls to  installations. (Recommendation 5)
The Secretary of Defense should ensure that the Undersecretary of  Defense for Acquisition and Sustainment, in collaboration with the military  services, develops a strategy that identifies and addresses risks to data  quality and information accessibility. In written  comments, DOD concurred with four recommendations and partially  concurred with three recommendations.
Why GAO Did This Study

DOD manages a portfolio of real property assets that as of fiscal year 2016 reportedly included about 568,000 facilities with a combined plant replacement value of about $1 trillion and 27.2 million acres of land. DOD requires the military services and Washington Headquarters Services to collect and maintain information about each of the assets in their inventories to assist the department with management decision making.
In May 2017, the House Armed Services Committee, Subcommittee on Readiness, asked GAO to review DOD's management and use of its real property data. This report evaluates (1) how accurately and completely RPAD reflects DOD's real property assets, (2) DOD's processes to ensure accuracy and completeness in recording and reporting real property data, and (3) DOD's actions to ensure it has addressed risks that may affect the use of real property information for managing its assets. GAO analyzed the RPAD and military services' data for fiscal years 2014-2016; reviewed documentation; conducted site visits; and interviewed DOD officials.

What GAO Found

GAO found that the Department of Defense's (DOD) Real Property Assets Database (RPAD) contained inaccurate data and lacked completeness, although certain data that GAO reviewed had improved their accuracy since fiscal year 2014. RPAD is a department-wide database of real property data annually compiled by the Office of the Secretary of Defense from the inventories of the military services and DOD's Washington Headquarters Services, which manages real property in the National Capital region. DOD uses RPAD to report on DOD's real property to Congress and other federal agencies, such as the Office of Management and Budget and the General Services Administration to assist in managing federal real property.
DOD has weaknesses in its processes for recording and reporting real property data that have led to inaccurate and incomplete information. GAO and others found military services have not consistently recorded real property transactions (i.e., acquisition of, change to, and disposal of a real property asset) and physical inventories of assets. GAO also found that the military services have not corrected identified discrepancies in their data systems, such as missing entries for utilization and facility condition and overdue asset reviews. GAO reviewed records of 120 facilities with identified discrepancies in fiscal year 2015 RPAD data and compared them to the records in the respective data system in 2017 and found that 61 discrepancies remained. The military services had corrected the data in the remaining 59 reviewed facilities in their data systems. DOD's efforts to prepare for an upcoming financial audit have helped identify issues and improve accuracy of some data. However, if DOD does not require the military services to fully monitor recording processes and implement corrective actions to resolve data discrepancies, the department will continue to have incomplete and inaccurate real property data and unreliable RPAD information.
DOD has not addressed three risks that can adversely affect its ability to use its information to manage its real property. Specifically, DOD (1) has unfilled real property positions limiting its capacity to manage its data, (2) lacks a department-wide approach to improving its data quality, and (3) has not identified how it will complete implementation of an effort to improve access to data. These risks exist, in part, because DOD has not developed a strategy that identifies and addresses risks with accompanying time frames and performance metrics. If DOD does not develop a strategy that identifies and addresses risks to data quality and information accessibility, DOD may miss the opportunity to reasonably ensure that the information needed for effective decision making by DOD, Congress, and other federal agencies is available to meet real property accountability and reporting objectives.

What GAO Recommends

GAO is making six recommendations to improve DOD's real property data, including fully monitoring recording processes; developing and implementing corrective actions for identified data discrepancies; and developing a strategy to address risks associated with data quality and information accessibility. DOD concurred or partially concurred with all draft recommendations. In response, GAO agreed to combine two recommendations.