Summary: This report reviews how the Advanced Strategic Missile Systems program used its fiscal year 1990 appropriations. GAO concludes that the program office satisfied the congressional stipulation that at least $21 million of fiscal year 1990 appropriations be used to boost guidance development. The program office used $11.2 million of the fiscal year 1990 missile appropriations to help pay for four advanced guidance technology development contracts that had been charged against fiscal year 1989 appropriations. However, $9.2 million of the $11.2 million represented obligations incurred before the start of fiscal year 1990. Use of funds in this way violated the law and was inconsistent with the Air Force regulation governing the obligation and deobligation of appropriated funds. In addition, the Air Force's replacement of fiscal year 1989 appropriations with fiscal year 1990 appropriations--a move to free up 1989 funds for nonguidance projects whose funding was curbed by language in the conference report--circumvented the intent of the fiscal year 1990 appropriations legislation.
