About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

B-133025 1 (1972-01-05)

handle is hein.gao/gaobaaejb0001 and id is 1 raw text is: COMPTROLLER GENERAL'S REPORT TO THE CONGRESS DIGEST WHY THE REVIEW WAS MADE INCREASED USE OF A CIAL D A AND AN IMPROV TARIFF SYSTEM NEEDED Y THE MILITARY AIRLIFT COMMAND Department of the Air Force B-133025 LM091332 / The Military Airlift Command (MAC), Department of the Air Force, provides air transportation for all milij&ry and certain civilian agencies. An in-nst-rial--fund5ystem is used whereby MAC is paid by its customers for a significant part of the expenses it incurs in providing services. In fiscal year 1970 the fund incurred expenses and collected revenue amounting to almost $1 billion. The General Accounting Office (GAO) audited the Airlift Service Industrial Fund to determine whether financial information and the tariff system were being used by airlift managers to maintain an economical airlift service. FINDINGS AND CONCLUSIONS Use of financial data Decisions regarding the initiation, expansion, and continuation of service over established routes are made by Headquarters, Air Force, and MAC air- lift managers on the basis of operations information but without consider- ing financial data. For example, revenue and cost data were not considered by airlift managers before a request for weekly service to Woomera, Australia, was approved in June 1970. GAO, using data available to MAC, found that a weekly flight between Travis Air Force Base, California, and several locations in Austra- lia earned about $144,000 and cost slightly over $305,000 during a recent 3-month period, or a projected annual loss of about $643,000. (See p. 11.) GAO recognizes that a military requirement might be the overriding factor in approving an additional route. Financial data should be available to managers and customers, however, so that they will be fully aware of the financial consequences of their decisions. Need for an improved tariff system The tariff rates established (one for passengers and one for cargo) to reim- burse the fund do not differentiate between high- and low-cost services. As a result it is not possible to bill a customer for the approximate costs incurred by MAC in providing the services. For example, one flight, of which the Navy was a principal user, was incurring a projected annual loss 1 JA 5, 1 7? IO-l.via J

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most