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090189 1 (1977-08-05)

handle is hein.gao/gaobacvwt0001 and id is 1 raw text is: C, ( AUG 05 1977 ()1 ) Major General Harold F. Hardin, Jr. Commander, U.S. Army Tank-Automotive Materiel Readiness Command Warren, Michigan 48090 Jp D 2 Dear General Hardin* On July 18-19, 1977, Ms. Jennifer Jones of command on our Review of Foreign Military Sales Assistance Team Costs (Code 943306). my staff visited your (FMS) Customer The Foreign Military Sales Act of 1968 authorized the United States Government to sell defense articles and services to other nations. Pricing guidelines in DOD Instruction 2140.1 state that foreign customers will reimburse DOD for all cost elements identified in the DD Form 1513 Offer and Acceptance. These costs include charges for salary and travel expenses of customer assistance teams which provide technical assistance to foreign customers. The following costs incurred by Anniston Army Depot and reported through the Army Depot System Command to the Tank-Automotive Materiel Readiness Command (TARCOM) were not billed to the Security Assistance Accounting Center for reimbursement: --Morrocco case UHB was not billed $5,619 for travel and personnel expenses incurred by a 2-man quality assurances team that visited Morrocco to assure proper delivery of 28 tanks. -Greece case VNP was not billed $9,100 for travel and personnel expenses incurred by a 4-man team that visited Greece to provide technical assistance on tank conversion. Apparently the TARCOM Program and Budget Division did not inform the Finance and Accounting Division that these were reimbursable costs. The effect of such underbillings is that the U.S. Government is subsidizing sales to other nations. UNIT ED STATES GENERAL ACCOUNTING OFFICE REGIONAL OFFICE 8112 FEDERAL OFFICE BUILDING FIFTH AND MAIN STREETS CINCINNATI, OHIo 45202 yr7ptf 0 q0 10 0?0 197

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