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PAD-79-75 1 (1979-07-19)

handle is hein.gao/gaobaazmh0001 and id is 1 raw text is: ' 101 UNITED STATES GENERAL ACCOUNTING OFFICE WASH INGTON, D.C. 20548 LM109914 IN REPLY REER TO: PROGRAM ANALYSIS DV ISIO N 109914 B-160725 JULY 19, 1979 The Honorable Ike Skelton House of Representatives Dear Mr. Skelton: This is in response to your letter of April 23, 1979, in which you asked if any study on a government-wide or agency-by-agency basis has been done on the percentage of annual allocations spent for travel, equipment, and supplies during the last quarter of a fiscal year. You also asked for results of studies or investigations by this office and for our suggestions on how to counter such yearend spending. GAO has conducted and continues to conduct numerous reviews of agency procurement policies, procedures, and practices. While few of these reviews are directed specifi- cally toward yearend spending issues, we have issued reports that address certain yearend spending practices at the following agencies--General Services Administration, Department of the Army, Maritime Administration, Environmental Protection Agency, Department of Transportation, and the former Office of Economic Opportunity. These studies have found that funds are sometimes obligated at the end of the year to prevent budget authority from lapsing. This can lead to problems with the validity of yearend obligations, questions on the current needs for supplies or services, as well as the fairness of prices negotiated without competition and under hurried conditions. Recommendations in these reports have generally been directed to improvements in procurement practices for the specific situations involved.ZWe have summarized the findings and recommendations of these reports as they relate to yearend spending and have included them as an enclosure. We currently ha e underway studies on yearend spending at the Envi C, Protection Agency and the DepartmentW-06100.5- of Defense. These studies are not yet complete; however, we can brief you or your representative if you desire. In addition, we have recently received a request froma House Committee to conduct a broad review of yearend procurement in civil agencies.

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