Financial Management: Operating Cash Requirement for Air Force Stock Fund Can Be Reduced
AFMD-89-60
Published: Apr 07, 1989. Publicly Released: May 08, 1989.
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Highlights
Pursuant to a congressional request, GAO reviewed Air Force stock fund pricing and refund practices to determine: (1) whether the stock fund could operate at less than the currently required 11-day operating cash balance; (2) how refunds made to stock fund customers affected the 11-day cash balance; and (3) how customers used the refunds.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of the Air Force | The Secretary of the Air Force should improve the stock fund accounting system so that it produces accurate and reliable reports on both the appropriated and operating cash balances. Until this system deficiency is corrected, this deficiency, together with planned corrective actions, should be included in the Air Force FMFIA reports to the Secretary of Defense. |
Closed – Implemented
The Office of the Secretary of Defense (OSD) has changed its criteria concerning the amount of cash needed by the stock fund. Defense has directed the services to use total cash for setting stock fund prices. The total cash balance is included in Defense's accounting system.
|
| Department of the Air Force | The Secretary of the Air Force should prepare future budget submissions to Congress using an operating cash target of approximately 3 days as long as appropriated funds are available to cover temporary operating cash shortages. |
Closed – Implemented
The House and Senate Appropriation Committees used the GAO report as a basis for reducing the Department of Defense's (DOD) fiscal year 1990 budget by $707.2 million. DOD has reduced the amount of cash needed to be maintained by the stock fund.
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Topics
Accounting systemsAppropriated fundsCash managementFinancial recordsFunds managementInternal controlsInventory control systemsNoncomplianceReporting requirementsRevolving funds