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AFMD-82-10 1 (1982-02-02)

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REPORT BY THE                                            RELEASED


Comptroller Genleral


OF THE UNITED STATES


Improvements Still Needed In

Recouping Administrative

Costs Of Foreign Military Sales



Defense is still unable to determine whether
the surcharge on sales to foreign customers is
sufficient to recover, as required by law, the
full costs of administering the foreign military
sales program,

Budget estimates necessary to obtain reim-
bursement for certain costs incurred during
fiscal 1981 were understated because military
services (1) were directed to exclude certain
costs from their budget submissions and
(2) made inaccurate or incomplete estimates
of other costs.

GAO is recommending actions necessary to
ensure that Defense recovers full administra-
tive costs of foreign military sales from the
governments making the purchases.









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 'V,                                                              AFMD-82-10
           '4 O                                              FEBRUARY 2,1982
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