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AFMD-82-62 1 (1982-06-18)

handle is hein.gao/gaobabdjz0001 and id is 1 raw text is: UNITED STATES GENE;AL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 ACCOUNTING AND PINANCIAh MAMAGZMWT DIVISiON B-207735 JUNE 18, 1982 The Honorable John F. Lehman Secretary of the Navy Subject: Additional Controls Are Needed Over Navy Relief Fundraising Activities (GAO/AFMD-82-62) Dear Mr. Secretary: The Navy Relief Society, founded in 1904, provides interest- free loans or grants to active duty and retired Navy and Marine Corps servicemen and women and their dependents during valid emer- gencies. The Society receives its funds through annual Navy- sponsored voluntary fundraising campaigns. On May 5, 1981, we received an allegation from a Navy employee over our Fraud Hotline that plans for the 1981 Navy Relief Society Fundraising Campaign at Puget Sound Naval Supply Center (PSNSC) in Bremerton, Washington, violated State and Federal regulations and Navy policies and instructions. The PSNSC campaign plans were al- leged to include the raffling of liquor and beer and the use of civilian employees as campaign organizers. The employee believes that these activities are improper and that they are also occurring at other Navy installations. The caller further alleged that em- ployees were complaining that campaign activities interfered with official work and, as a result, jobs are backlogged. We initiated an inquiry into the allegation under control number 18059. During the course of our inquiry, we interviewed Navy officials, collected and reviewed documents, and investigated campaign activities. As a result of our inquiry, we believe addi- tional controls over Navy Relief fundraising activities are needed. In February 1981, the Secretary of the Navy issued SECNAVNOTE 5340, authorizing all Navy commanding officers to begin their 1981 fundraising campaign in support of the Navy Relief Society. This authorization granted a limited exemption to the prohibition on gambling, betting, and lotteries on Government owned, leased, and controlled property by permitting commanders to conduct raffles and similar games of chance. Two conditions were placed on this exemption: 11(911019) 118724

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