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Problems With the U.S. Management of Foreign Currency Transactions for NATO Programs

ID-82-10 Published: Dec 16, 1981. Publicly Released: Dec 16, 1981.
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Highlights

GAO examined allegations concerning the management and adequacy of internal auditing of foreign currency transactions in support of U.S. participation in the North Atlantic Treaty Organization (NATO) infrastructure and international military programs. GAO also reviewed actions taken by Army officials in Europe to correct foreign currency purchasing and timing of payments deficiencies.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
U.S. Army, Europe The Support Group Commander should ensure that the size, staff composition, and scope of audit activities of the internal review are sufficient to meet its current mission. The Commander should develop written procedures describing the roles and responsibilities of the Director for Resource Management and the Chief, Internal Review Division, to assist in defining and clarifying the relationship between the two. These procedures should be written to ensure that: (1) all functional areas within the purview of the Support Group's current mission receive adequate consideration in planning audit coverage by internal review; (2) the Chief of the Internal Review Division receives an appropriate level of access to and guidance from the Commander concerning the conduct of the internal review program; and (3) a working relationship is maintained between the Chief of the Internal Review Division and the Director for Resource Management.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
U.S. Army, Europe The Support Group Commander should develop a well-defined policy on NATO call payments to delineate the procedures to be followed by all the participants in the process. These procedures should: (1) clearly delineate the intent of the Treasury regulations; (2) define responsibilities and actions to be taken by each participant; (3) specify the payment due date on the payment vouchers; (4) record the date a recipient account is credited; (5) establish a cycle for the NATO calls for all the participants to ensure that adequate time is provided; and (6) provide for sufficient documentation to make certain that the results of the NATO calls process are adequately recorded.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Full Report

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Topics

Cash managementDefense agreementsForeign currency accounts (Treasury)Foreign currency exchangesForeign military assistanceInternal auditsInternal controlsPaymentsInternational organizationsMilitary forces