Morale, Welfare, and Recreation: Declining Funds Require DOD to Take Action
NSIAD-94-120
Published: Feb 28, 1994. Publicly Released: Feb 28, 1994.
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Highlights
Pursuant to a congressional request, GAO reviewed the Department of Defense's (DOD) morale, welfare, and recreation (MWR) program's adaptation to reductions in military force structure, budgets, and bases, focusing on: (1) MWR financial status; (2) the problems facing the program's management; and (3) actions DOD is taking or contemplating to improve the program's operation.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should establish milestones for the completion of the strategic MWR review and the implementing guidance to: (1) improve the management and oversight of the MWR program; and (2) ensure that the services have sound management strategies that anticipate the likelihood that MWR funding will decline faster than costs. |
Closed – Implemented
A DOD report to Congress dated May 1995 outlines plans to maximize the use of decreasing MWR funds. An initiative is also under way to reorganize and update all MWR directives and instructions to support evolving MWR programs. DOD is developing a long-range resource management plan that will assess trends in MWR programs, to include resourcing requirements, the viability of each program, and construction plans.
|
| Department of the Army | The Secretary of the Army should delay the further obligation of funds for MWR capital improvement and construction projects until such projects are shown to be sound investments, affordable, and consistent with the need to be less reliant on appropriated funds in the future. |
Closed – Implemented
In March 1994, the Army MWR Board of Directors tasked Army major commands to review all unawarded nonappropriated funds for major construction projects to determine if they were still valid. The review included return on investment (internal rate of return and net present value) and appropriated funds required in support of projects. Projects that do not expect positive return on investment or that require substantial or additional appropriated funds require full justification before proceeding. The Army completed the review in May 1994 and has now revalidated all unawarded projects.
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| Department of the Army | To the extent that capital improvement and construction projects do not prove to be the best use of funds, the Secretary of the Army should redirect the funds to efforts that will increase MWR profits or lower MWR expenses. |
Closed – Implemented
The Army has completed its review of unawarded projects and has revalidated construction plans and made adjustments where warranted. Some projects, however, are required for quality-of-life programs that may not result in positive return on investment.
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Topics
Budget receiptsDefense appropriationsDownsizingDefense cost controlFunds managementInternal controlsMilitary facilitiesNonappropriated federal fundsPost exchangesProgram abusesSales