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Financial Management: Fiscal Year 1992 Audit of the Defense Cooperation Account

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Report Type Reports and Testimonies
Report Date Aug. 13, 1993
Report No. NSIAD-93-185
Subject
Summary:

During fiscal year 1992, foreign governments, private groups, and individuals contributed more than $5 billion to the Defense Department (DOD), mainly to defray the costs of Operations Desert Shield and Desert Storm. GAO found that DOD credited all cash contributions to the Defense Cooperation Account and administered these funds in accordance with legal and accounting requirements. Through various memoranda, DOD also established procedures for tracking, reporting, and valuing in-kind support. DOD corrected reporting discrepancies that GAO had noted in an earlier report. DOD's fiscal year 1992 reports to Congress reflected adjustments to the estimated value of in-kind contributions. DOD's formal regulations on the Defense Cooperation Account and related contributions of cash and goods have not been issued. This lack of formal guidance may have caused the proceeds from the sale of contributed goods to be deposited in an account other than the Defense Cooperation Account.

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