Defense Real Property: DOD Needs to Take Additional Actions to Improve Management of Its Inventory Data
Highlights
What GAO Found
GAO found that the Department of Defense's (DOD) Real Property Assets Database (RPAD) contained inaccurate data and lacked completeness, although certain data that GAO reviewed had improved their accuracy since fiscal year 2014. RPAD is a department-wide database of real property data annually compiled by the Office of the Secretary of Defense from the inventories of the military services and DOD's Washington Headquarters Services, which manages real property in the National Capital region. DOD uses RPAD to report on DOD's real property to Congress and other federal agencies, such as the Office of Management and Budget and the General Services Administration to assist in managing federal real property.
DOD has weaknesses in its processes for recording and reporting real property data that have led to inaccurate and incomplete information. GAO and others found military services have not consistently recorded real property transactions (i.e., acquisition of, change to, and disposal of a real property asset) and physical inventories of assets. GAO also found that the military services have not corrected identified discrepancies in their data systems, such as missing entries for utilization and facility condition and overdue asset reviews. GAO reviewed records of 120 facilities with identified discrepancies in fiscal year 2015 RPAD data and compared them to the records in the respective data system in 2017 and found that 61 discrepancies remained. The military services had corrected the data in the remaining 59 reviewed facilities in their data systems. DOD's efforts to prepare for an upcoming financial audit have helped identify issues and improve accuracy of some data. However, if DOD does not require the military services to fully monitor recording processes and implement corrective actions to resolve data discrepancies, the department will continue to have incomplete and inaccurate real property data and unreliable RPAD information.
DOD has not addressed three risks that can adversely affect its ability to use its information to manage its real property. Specifically, DOD (1) has unfilled real property positions limiting its capacity to manage its data, (2) lacks a department-wide approach to improving its data quality, and (3) has not identified how it will complete implementation of an effort to improve access to data. These risks exist, in part, because DOD has not developed a strategy that identifies and addresses risks with accompanying time frames and performance metrics. If DOD does not develop a strategy that identifies and addresses risks to data quality and information accessibility, DOD may miss the opportunity to reasonably ensure that the information needed for effective decision making by DOD, Congress, and other federal agencies is available to meet real property accountability and reporting objectives.
Why GAO Did This Study
DOD manages a portfolio of real property assets that as of fiscal year 2016 reportedly included about 568,000 facilities with a combined plant replacement value of about $1 trillion and 27.2 million acres of land. DOD requires the military services and Washington Headquarters Services to collect and maintain information about each of the assets in their inventories to assist the department with management decision making.
In May 2017, the House Armed Services Committee, Subcommittee on Readiness, asked GAO to review DOD's management and use of its real property data. This report evaluates (1) how accurately and completely RPAD reflects DOD's real property assets, (2) DOD's processes to ensure accuracy and completeness in recording and reporting real property data, and (3) DOD's actions to ensure it has addressed risks that may affect the use of real property information for managing its assets. GAO analyzed the RPAD and military services' data for fiscal years 2014-2016; reviewed documentation; conducted site visits; and interviewed DOD officials.
Recommendations
GAO is making six recommendations to improve DOD's real property data, including fully monitoring recording processes; developing and implementing corrective actions for identified data discrepancies; and developing a strategy to address risks associated with data quality and information accessibility. DOD concurred or partially concurred with all draft recommendations. In response, GAO agreed to combine two recommendations.
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of the Army |
Priority Rec.
The Secretary of the Army should require monitoring of its processes used for recording all required real property information--to include evaluating on an ongoing basis whether or to what extent these activities are being carried out--and remediating any identified deficiencies. (Recommendation 1) |
The Army concurred with this recommendation. As of June 2022, DOD officials told us that the Army has required monitoring of its processes used for recording all real property information. Specifically, the Army developed a 5-year plan to address the recommendations to improve data quality and accountability in conjunction with the ongoing DOD financial statement audit. The plan reportedly requires measuring results through directed physical inspections and record updates, using a single, standardized Accountable Property System of Record (APSR) for all assets. DOD officials also told us that the Army developed an automated validation and second-person verification to comply with the requirements and business rules of the DOD Real Property Information Model (RPIM). In November 2023, the Army provided copies of its Real Property Management Handbook and Audit Guidance for Real Property for fiscal years 2022 and 2023. Our review of these documents found that the Army had documented its processes for recording real property information, including monitoring activities and remediating any identified deficiencies. Based on these actions, we determined the Army has met the intent of this recommendation.
|
| Department of the Navy |
Priority Rec.
The Secretary of the Navy should require monitoring of Navy and Marine Corps processes used for recording all required real property information--to include evaluating on an ongoing basis whether or to what extent these activities are being carried out--and remediating any identified deficiencies. (Recommendation 2) |
The Navy concurred with this recommendation. In June 2022, DOD officials stated that the Department of Navy required monitoring of its processes used for recording real property information. Specifically, the Department of Navy (DON) established a requirement for a 100% inventory check to ensure existence and completeness of its real property information. As part of DOD larger effort to improve its financial management through the Financial Improvement and Audit Readiness (FIAR) guidance, DOD officials also told us that the Navy plans to implement the existence and completeness results provided by an independent Public Accounting Firm. In September 2023, the DON provided documentation of the Navy and Marine Corps published real property inventory procedures. In addition, the DON provided documentation that the Navy and Marine Corps had completed 100% inventory checks of their real property assets and remediated identified deficiencies and included documentation from an independent Public Accounting Firm regarding its test of the Navy's inventory monitoring process and subsequent closure of a previous Notice of Finding and Recommendation. Lastly, the DON provided documentation that the Navy and Marine Corps are monitoring the implementation of real property internal controls. Based on these actions, we determined that the Navy and Marine Corps have met the intent of our recommendation.
|
| Department of the Air Force |
Priority Rec.
The Secretary of the Air Force should require monitoring of its processes used for recording all required real property information--to include evaluating on an ongoing basis whether or to what extent these activities are being carried out--and remediating any identified deficiencies. (Recommendation 3) |
The Air Force concurred with this recommendation. In January 2023, Air Force officials provided documentation demonstrating that the Air Force has required monitoring of its processes for recording all required real property information to address accuracy and completeness. For example, the Air Force revised and published its instruction DAFI 32-9005 in September 2022. The updated instruction requires that the total force perform annual existence and completeness validation of buildings, structures, linear structures, and land and update the accountable property system of record to ensure completeness. Also, the Air Force in December 2021 issued standard operating procedures for existence and completeness testing for building structures to establish business processes. The procedures allow the Air Force to monitor that each installation performed the annual requirement for existence and completeness validation and updated the accountable property system of record. Based on these actions, we have determined that the Air Force has met the intent of our recommendation.
|
| Department of Defense |
Priority Rec.
The Secretary of Defense should ensure that the Undersecretary of Defense for Acquisition and Sustainment, in collaboration with the military services, defines and documents which data elements within the RPAD submissions are most significant for decision-making. (Recommendation 4) |
DOD concurred with this recommendation to define and document which data elements within its Real Property Assets Database (RPAD) submissions are most significant for decision-making. In 2020, DOD officials told us they would conduct a review of all data elements in its RPAD, including compiling list of all data elements actively being used by data consumers. DOD stated it would update the charter of the Real Property Information Model (RPIM) Configuration Support Panel to annually review and update all required data elements. In March 2023, DOD provided documentation of the revisions to the Panel's charter, summaries from the Panel's last two semi-annual meetings in 2023 and 2024, and control sheets from those meetings that document changes to specific data elements collected within the RPAD submissions. The documentation showed that the Panel's review of the data elements to identify those that are most significant contributed to a reduction in the total number of required data elements from 216 to 209 as of May 2023. We believe these actions meet the intent of our recommendation.
|
| Department of Defense |
Priority Rec.
The Secretary of Defense should ensure that the Undersecretary of Defense for Acquisition and Sustainment, in collaboration with the military services, coordinates on corrective action plans to remediate discrepancies in significant data elements in its real property data system that are identified by OSD's verification and validation tool. (Recommendation 5) |
DOD concurred with this recommendation to coordinate on corrective action plans to remediate discrepancies in significant data elements in its real property data system that are identified by OSD's verification and validation tool. As of July 2020, DOD officials told us they plan to establish a senior leader Functional Governance Board to monitor accuracy compliance. DOD also plans to establish quarterly progress reports to be posted on the Data Analytics Integration Support (DAIS) application for constant monitoring by all users. As of June 2022, DOD officials stated that they have completed these quarterly reports 6 times, with each report showing improvements in accuracy. However, DOD officials also stated that the Functional Governance Board had been delayed due to the elimination of some senior-level organizations focused on real property but expected the board to be reestablished by the new Office of the Assistant Secretary for Energy, Installations, and Environment. In March 2024, DOD provided documentation that in January 2023 it established the Real Property and Financial Functional Council. DOD also provided end of year reports from fiscal years 2021-2023 from its annual accuracy monitoring of real property data submitted by military services. These summary reports identify discrepancies in significant real property data elements submitted by military services for each of the submission years. DOD officials stated the report are provided to the military services for correction. Additionally, OSD's Fiscal Year 2023 Real Property Inventory guidance stated that the military services must correct or develop a correction action plan to address the identified discrepancies in the summary reports. We believe these actions meet the intent of our recommendation.
|
| Department of Defense |
Priority Rec.
The Secretary of Defense should ensure that the Undersecretary of Defense for Acquisition and Sustainment, in collaboration with the military services, develops a strategy that identifies and addresses risks to data quality and information accessibility. At a minimum, this strategy should establish time frames and performance metrics for addressing risks related to (1) unfilled real property positions, (2) a lack of a department-wide approach to improving its data, and (3) implementation of OSD's expanded data platform. (Recommendation 6) |
DOD partially concurred with this recommendation and stated that it plans to collaborate with the military services on separate service strategies that reflect each military service's operating environment. As of July 2020, DOD officials told us they plan to stabilize their Data Analytics Integration Support (DAIS) platform to improve data inventory by ensuring successful network connectivity for all military service users. DOD will update policy guidance to formalize the use of the DAIS platform for inventory submission by the military services. DOD also will develop and formalize in policy benchmarks and metrics to monitor data accuracy. As of June 2022, DOD officials stated that they had established network connectivity for all DAIS users and were working to update policy guidance to include DAIS and to establish benchmarks and metrics. Documentation provided by DOD from the military services since January 2024 show that each has used efforts associated with the financial audit to conduct existence and completeness inventories of their real property assets, which had assisted with managing the risks to data quality. We believe these actions partially addresses the recommendation for providing a departmentwide approach and implementation of OSD's data platform. However, DOD officials also stated that addressing the risks related to unfilled real property positions is something that each military service would need to address. As we stated in our report, while the Office of the Secretary of Defense (OSD) cannot direct the military services to fill their real property positions, OSD can coordinate with the military services to identify opportunities to overcome unfilled positions. Potential opportunities may include using available staff more efficiently or evaluating opportunities to better address how they will manage unfilled positions. Until OSD and the military services prioritize and coordinate to identify opportunities for filling vacant positions, this will continue to contribute to workload backlogs and prevented them from sufficiently maintaining their real property data.
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