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DOD Infrastructure: DOD Is Opening Unneeded Finance and Accounting Offices

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Report Type Reports and Testimonies
Report Date April 24, 1996
Report No. NSIAD-96-113
Subject
Summary:

In a September 1995 report (GAO/NSIAD-95-127), GAO evaluated the Defense Department's (DOD) justification and its cost analysis for consolidating more than 300 defense accounting centers into five large existing finance centers and 20 new sites called operating locations. GAO challenged the need for the 20 operating locations because (1) DOD's analysis showed that finance and accounting operations could be consolidated into as few as six; (2) some planned sites, particularly those located on closed or realigned military bases, would cost $173 million to renovate; and (3) DOD, in arriving at its decision, had not considered additional operating efficiencies expected from business process reengineering initiatives. DOD generally agreed with GAO's findings. This report raises an issue that, in GAO's view, warrants immediate attention: DOD is opening new finance and accounting centers even though its recent analysis shows that they are not needed.

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