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![handle is hein.gao/gaobacxof0001 and id is 1 raw text is:
DOCUMENT FESUME
02478 - (A1712713] (Restricted)
[Accounting and Reimburseaent for Foreign Milita'.y Sales].
January 28, 1977. 3 pp. + enclosure 11 pp.).
Report to Col. Emil J. Klingenfts, Deputy Commander, Department
of the Army: International Logistics Comand, New Cumberland,
PA; by Allen R. Voss, Regional Manager, Field Cperdtions Div.:
RPegional Office (PhiladelphiT).
Issue Area: Accounting and Financial Peporting (2800):
International Economic and Military Programs: Foreign
Military Sales (605)
Contact: Field Operations iv.: Regional Office (Philadelp.ia)
Budget FunFtion: Miscellaneous: Financial Management and
Inform.ation Systems (1002).
A review was completed at the Army International
Logistics Command of the accounting and reimbursement of
administrative expenses, incluling civilian and military
personnel ccsts, connected with foreign -alitary sales.
Findings/Conclusions: Unnecessary loss of revenue to the
Government was discovered. The 2% administrative surcharge is
not being billed to foreign customers on certain cases although
the Letter of Offer and Acceptance (DD Form 1513) provides for
the surcharge. These caser are erroneously recorded (coded) in
the computer master program as being exempt from the surcharge.
The cause of the incorrect coding was not determined, because of
lack of documentation. However, a recently introduced
programming system will assure correct coding in the future. To
cite an example of the revenue loss, of 117 cases reviewed out
of 149 cases supposedly erempt from the surcharge, 66 cases were
actually subject to the surcharge, for a loss of $940,000.
Recommendations: Reviews should be performed of DD Form 1513s
for the 32 partially exempt cases and the 32 entirely exempt
cases not examined by GAO to identify improperly coded items in
the master record. The master program should be corrected for
all 66 cases found plus any additional cases identified.
Customers should be rebille? to asness the surcharge erroneously
omitted. (DJM)
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