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AFMD-81-53 1 (1981-08-14)

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BY THE COMPTROLLER GENERAL



Report To The Congress


OF THE UNITED STATES


The Air Force Has Incurred Numerous

Overobligations In Its Industrial Fund


The Air Force has incurred numerous overob-
ligations in its industrial fund in rec~nt years,
ranging up to $210 million, and has not re-
ported the deficiencies to the President and
the Congress as required by law. Further, the
Air Force illegally adjusted balances on its
,yearend accounting reports. Because of these
,adjustments, existing overobligations were
not disclosed.

The Air Force practice of obligating its indus-
trial fund in excess of available budgetary re-
sources, based on anticipated customer orders,
!circumvents the appropriation and apportion-
,ment process and is not in accordance with
the intent of the Congress or OMB guidelines.

The Air Force should limit its industrial fund
'obligations to available resources and report
rall violations of the Anti-Deficiency Act to
the President and the Congress.


116124


    AFMD-81-53
AUGUST 14, 1981


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