Contingency Operations: DOD's Reported Costs Contain Significant Inaccuracies

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Report Type	Reports and Testimonies
Report Date	May 17, 1996
Report No.	NSIAD-96-115
Subject	Peacekeeping Contingency operations Cost accounting Cost of war Defense contingency planning Federal agency accounting systems Financial management Internal controls Military operations Bosnia Cuba DOD Operation Southern Watch DOD Operation Uphold Democracy DOD Operation Vigilant Warrior Haiti Accounting errors Civic action Accounting procedures

Summary:

Since fiscal year 1992, the Pentagon has reported more than $7 billion in incremental costs for its participation in contingency operations, ranging from peacekeeping missions in Haiti and the former Yugoslavia to deployments to the Middle East during the Persian Gulf War. Accurate reporting of these costs is crucial to effective congressional oversight of appropriated funds. GAO found inaccuracies in the Defense Department's (DOD) costs for contingency operations, representing about seven percent of the $4.1 billion in costs reported in fiscal years 1994 and 1995. In GAO's judgment, this variance in reported costs is indicative of a material weakness in the accounting systems. DOD guidance on reporting incremental costs is vague and incomplete, and weaknesses plague DOD's accounting system.

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Contingency Operations: DOD's Reported Costs Contain Significant Inaccuracies