Financial Management: DOD's Metrics Program Provides Focus for Improving Performance
Highlights
The Department of Defense (DOD) has historically been unable to accurately account for and record its disbursements. In March 2002, the DOD Comptroller cited metrics that showed dramatic reductions in payment recording errors (57 percent between October 2000 and October 2001), backlogs of commercial payments (41 percent between April and October 2001), and travel card payment delinquencies (34 percent for those individually billed and 86 percent for those centrally billed between January and December 2001). As a result, the Congress asked us to determine whether the cited reductions were (1) calculated using consistent definitions and methodologies, (2) properly supported, and (3) effective indicators of short-term financial management progress.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Office of the Comptroller | To improve the reported metrics, the DOD Comptroller should use definitions and criteria that are consistent with Defense Finance and Accounting Service (DFAS) definitions and criteria when calculating and reporting metrics related to payment recording errors. |
The DOD metrics program complements the DFAS metrics program and appropriately uses consistent definitions and reporting criteria. The intent of a good metrics program is to emphasize the leading indicators rather than the lagging indicators. The leading indicators help the manager identify performance headed in an undesirable direction, while the lagging indicators inform managers of unsatisfactory performance. GAO's metrics program emphasizes the leading indicators rather than the lagging indicators.
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| Office of the Comptroller | To improve the reported metrics, the DOD Comptroller should measure improvements in individually billed travel card delinquencies by using same month to same month comparisons. |
DOD now measures improvements in individually billed travel card delinquencies using same month to same month comparisons.
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| Office of the Comptroller | To improve the reported metrics, the DOD Comptroller should work with the military service Assistant Secretaries for Financial Management to develop performance measures for the military services and other defense agencies in areas for which there is shared responsibility, in order to complement the DFAS metrics program. |
DOD concurred with the recommendation and directed the military service Assistant Secretaries for Financial Management and defense agency directors to cascade the Comptroller's metrics to every level in their organizations where positive change in performance could be influenced. The Comptroller's Office also established a website describing the Comptroller's performance measurement criteria and goals. By directly involving the military services and defense agencies in the metrics program, the Comptroller has made the components critical partners with DFAS in resolving DOD's financial management problems.
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