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AFMD-93-52R 1 (1993-03-01)

handle is hein.gao/gaobackfz0001 and id is 1 raw text is: m • I General Acounting Office Wasihngton, D.C. 2058 Accounting and Financial Management DivisionIII ll j if B-249045 148597 March 1, 1993 Congressional Committees The National Defense Authorization Act for Fiscal Year 1993 (Public Law 102-484, October 23, 1992) directed the Department of Defense (DOD) to complete the first phase (Milestone I) of its implementation of the Defense Business Operations Fund by November 22, 1992. Specifically, the act required that for this milestone, the Secretary of Defense was to (1) substantially complete the development of the policies governing the Fund's operations, (2) identify the Fund's interim systems requirements, and (3) prepare an evaluation report on the adequacy of the skills and resources devoted to the Fund and its related systems. The act also required GAO to monitor and evaluate DOD's progress in implementing the Fund and established a sunset date of April 15, 1994, by which the Congress must approve its continued existence. This letter provides our comments on DOD's progress in implementing the Fund and our suggestions for improvement. We are convinced of the soundness of the Fund's concept and principles and have been supportive of this initiative. Clearly, a properly functioning Fund is essential to DOD achieving the cost efficiencies the new administration has set as a goal. At the same time, we recognize that the benefits which can be derived from the Fund will only be realized if it is implemented in a sound, logical manner. Thus far, we do not believe DOD's progress has met these criteria. Accordingly, we will only be able to continue our support of the Fund if DOD significantly strengthens the management of its implementation. GAO/AFMD-93-52R Defense Business Fund

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