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FPCD-78-78 1 (1978-10-11)

handle is hein.gao/gaobaayde0001 and id is 1 raw text is: 





RESTRICTED -   Not to be released outside the General
Account:ng Cffice 2xcet one bt! s of specie approval
by the Office of Co-z-gressianzl Relaiaos.


REP!RRT BY THE



Comptroller General


OF THE UNITED STATES


Evaluation Of Agency Comments On

Cash And Investment Management Of

Defense Nonappropriated Funds


GAO
ment
funds
enact


reviewed the manaaement and invest-
of C 'fense central nonappropriated
and -ecommended that the Congress
legislation directing that these funds


    --deposited  in the Treasury and  in-
    vested in Treasury securities and

    --specifying -what the interest policy
    on such investments would be.

GAO   also recommended tria Defense
tighten present management and financial
controls.

Defense disagreed with the recommenda-
tions regarding tEe Treasury, manintaining
that (1) nonappropriated    fund  income
would be 'ost, principally on investments,
and 12) financial management would be
hampered. GAO has consistently urged that
nonappropr:ated funds be handled through
the Treasury and reflected in the Federal
budget. Defense and the Treasury, in
commenting on the recommendation, dir
rot provide any detailed information
which -wouid cause GAO     to change its
position, and unless they do, :he Congress
shouid enact GAO's suggestea legislation.
        T's


RELEASED


     FPCD-78-78
OCTOBER 11 1978


    RELEASED


LM107400

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