Professional Documents
Culture Documents
May 2004
MILITARY
OPERATIONS
GAO-04-668
May 2004
MILITARY OPERATIONS
The Global War on Terrorism— In fiscal year 2003, DOD reported obligations of over $61 billion in support of
principally involving operations in the Global War on Terrorism. GAO’s analysis of the obligation data showed
Afghanistan and Iraq—was funded that 64 percent of fiscal year 2003 obligations reported for the war on
in fiscal year 2003 by Congress’s terrorism went for Operation Iraqi Freedom; among the DOD components,
appropriation of almost $69 billion.
the Army had the most obligations (46 percent); and among appropriation
To assist Congress in its oversight
of spending, GAO is undertaking a accounts the operation and maintenance account had the highest level of
series of reviews relating to reported obligations (71 percent).
contingency operations in support
of the Global War on Terrorism. In Global War on Terrorism Obligations by Operations for Fiscal Year 2003 as of
September 2003, GAO issued a September 30, 2003
report that discussed fiscal year Dollars in thousands
2003 obligations and funding for
$6,275,079
the war through June 2003—
Operation Noble Eagle
Military Operations: Fiscal Year
2003 Obligations Are Substantial,
but May Result in Less
Obligations Than Expected, 10%
GAO-03-1088. This report continues
the review of fiscal year 2003 by
26% $15,913,050
analyzing obligations reported in
Operation Enduring Freedom
support of the Global War on
Terrorism and reviews whether the
amount of funding received by the 64%
military services was adequate to
cover DOD’s obligations for the
war from October 1, 2002, through
September 30, 2003. GAO will
also review the war’s reported
obligations and funding for fiscal $38,838,865
year 2004. Operation Iraqi Freedom
Total $61,026,994
In official oral comments on a draft
of this report, DOD officials stated Source: The Defense Finance and Accounting Service's Consolidated DOD Terrorist Response Cost Report as of
September 30, 2003.
that there were no objections to the
report. Note: GAO did not audit this data.
The adequacy of funding available for the Global War on Terrorism for fiscal
year 2003 military personnel and operation and maintenance accounts varied
by service. For military personnel, the Army, Navy, and Air Force ended the
fiscal year with more reported obligations for the war than funding and had
to cover the shortfalls with money appropriated for their budgeted
peacetime personnel costs. For operation and maintenance accounts, the
Army, Navy, and Air Force appeared to have more funding than reported
obligations for the war. However, the Navy and Air Force have stated that
the seeming excess funding ($299 million and $176.6 million respectively)
www.gao.gov/cgi-bin/getrpt?GAO-04-668.
were in support of the war on terrorism, but had not been recorded as such.
To view the full product, including the scope Therefore, Navy and Air Force obligations exactly match funding. The
and methodology, click on the link above. Marine Corps used funds appropriated for its budgeted peacetime operation
For more information, contact Neal Curtin at
(757) 552-8100 or curtinn@gao.gov. and maintenance activities to cover shortfalls in funding for the war.
Contents
Letter 1
Results in Brief 3
Background 4
Obligations for GWOT Operations 5
Funding Adequacy for GWOT Varied by Service 9
Agency Comments 12
Tables
Table 1: Military Personnel Fiscal Year 2003 GWOT Funding
and Obligations 10
Table 2: Operation and Maintenance Fiscal Year 2003 GWOT
Funding and Obligations 10
Figures
Figure 1: Primary Locations of DOD’s Fiscal Year 2003 Global War
on Terrorism Operations 4
Figure 2: Global War on Terrorism Obligations by Operation for
Fiscal Year 2003 as of September 30, 2003 6
Figure 3: Global War on Terrorism Obligations for Fiscal Year 2003
by DOD Organization as of September 30, 2003 7
Figure 4: Global War on Terrorism Obligations for Fiscal Year 2003
by Appropriation as of September 30, 2003 8
Abbreviations
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Congressional Committees
Following the terrorist attacks of September 11, 2001, the United States
began military operations to combat terrorism both in the United States
and overseas. These operations are known collectively as the Global War
on Terrorism (GWOT). Between September 2001 and September 2003, the
Department of Defense (DOD) has spent about $78 billion in support of
the war.
1
U.S. General Accounting Office, Military Operations: Fiscal Year 2003 Obligations
Are Substantial, but May Result in Less Obligations Than Expected, GAO-03-1088
(Washington, D.C.: Sept. 17, 2003).
2
See Department of Defense Financial Management Regulations, 7000.14-R, vol. 1,
Definitions, page xvii.
3
The term “incremental costs” means those directly attributable costs that would not have
been incurred if it were not for the operation. Sections 230406 and 230902 of Department
of Defense Financial Management Regulations 7000.14-R, volume 12, chapter 23,
Contingency Operations (Feb. 2001) provide additional information on incremental costs.
We further note that DOD’s financial systems only capture total obligations and the
services use various management information systems to identify incremental obligations
and to estimate costs.
Although we did not validate the accounting systems or data that the
Defense Finance and Accounting Service uses to produce these
consolidated cost reports, we did discuss the data presented in these
reports with DOD and service officials and agreed that for the limited
scope of this review, the consolidated reports provided the best available
data. We also did not verify whether reported obligations were actually in
support of GWOT. However, we are beginning a separate review of the
obligations accumulated through the various sources of information
used by the services, including the method by which the Defense Finance
and Accounting Service acquires and consolidates this data into the
consolidated cost reports and whether the obligations support the war.
We conducted our review from January 2004 through March 2004 in
accordance with generally accepted government auditing standards.
4
These reviews are focused on (1) the efforts and costs to develop democracy in Iraq,
rebuild its infrastructure, and develop its security forces and (2) reconstruction-related
contract actions by DOD (primarily the U.S. Army, including the Army Corps of Engineers),
the U. S. Agency for International Development, and the Department of State.
5
The remaining 13 percent of obligations were reported by 15 DOD agencies including the
Defense Logistics Agency and the Defense Information Systems Agency.
The adequacy of funding available for fiscal year 2003 GWOT obligations
reported in military personnel and operation and maintenance accounts
varied by service. The Army, Navy, and Air Force ended the fiscal year
with more reported obligations for the war than funding for military
personnel and had to cover the shortfalls with funds appropriated for their
budgeted peacetime operations. The Army, Navy, and Air Force, however,
appeared to have more funding than obligations in their operation and
maintenance accounts for the war. The Navy and Air Force advised us that
the seeming excess funding ($299 million and $176.6 million respectively)
were in support of the war on terrorism, but were not recorded as such.
Therefore, Navy and Air Force obligations exactly match funding. The
Marine Corps used funds appropriated for its budgeted peacetime
operation and maintenance activities to cover shortfalls in GWOT funding.
In official oral comments on a draft of this report, DOD stated that it had
no objections to the report.
6
DOD also received about $5.7 billion in funding in support of GWOT within the
intelligence community. While obligations incurred against this appropriation are not
captured in DOD’s Consolidated Terrorist Response Cost Reports, DOD reports that this
amount was fully obligated in fiscal year 2003.
Figure 1: Primary Locations of DOD’s Fiscal Year 2003 Global War on Terrorism Operations
Iraq Afghanistan
Philippines
Djibouti
Source: GAO.
To support the war in fiscal year 2003, Congress appropriated $68.7 billion
to DOD: $6.1 billion in the Consolidated Appropriations Resolution, 2003,7
7
P.L. 108-7 (Feb. 20, 2003).
Congress has also appropriated funds for the reconstruction of Iraq and
Department of State and U.S. Agency for International Development
projects.10 We are reviewing the contracts involved in the reconstruction,
as well as the funding for other projects and will be issuing separate
reports on these issues.
8
P.L. 108-11 (Apr.16, 2003).
9
P.L. 108-11, chap. 3 (Apr. 16, 2003).
10
P.L. 108-11, chap. 5 (Apr. 16, 2003).
Dollars in thousands
$6,275,079
Operation Noble Eagle
10%
26% $15,913,050
Operation Enduring Freedom
64%
$38,838,865
Operation Iraqi Freedom
Total $61,026,994
Source: The Defense Finance and Accounting Service's Consolidated DOD Terrorist Response Cost Report as of
September 30, 2003.
Of the overall reported amount obligated within DOD for GWOT during
fiscal year 2003, the Army reported the largest amount of obligations,
46 percent of the total, as shown in figure 3. (The Army had the largest
number of military personnel engaged in the war.) In addition to the
obligations reported by the other military services, about 13 percent of
DOD’s GWOT obligations were reported by a total of 15 other DOD
organizations, such as the Defense Information Systems Agency and the
Defense Logistics Agency. Of these DOD organizations, the Defense
Logistics Agency reported the largest amount of obligations—over
$3.6 billion.
Dollars in thousands
$3,707,447
Marine Corps
$7,659,299
6% Other DOD organizations
13%
$7,849,460
46% 13% Navy
22%
$13,475,159
Air Force
$28,335,629
Army
Total $61,026,994
Source: The Defense Finance and Accounting Service's Consolidated DOD Terrorist Response Cost Report as of
September 30, 2003.
Dollars in thousands
3%
$1,768,024
Investment
26% $15,566,119
Military personnel
71%
$43,692,851
Operation and
maintenance
Total $61,026,994
Source: The Defense Finance and Accounting Service's Consolidated DOD Terrorist Response Cost Report as of
September 30, 2003.
In discussing the results of our analysis with the Office of the Under
Secretary of Defense (Comptroller) and the military services, there was
recognition of the large amount of obligations captured in miscellaneous
categories. The Office of the Under Secretary of Defense (Comptroller) is
considering how best to provide more specific detail in future cost reports.
The adequacy of funding available for fiscal year 2003 GWOT obligations
Funding Adequacy reported in military personnel and operation and maintenance accounts
for GWOT Varied varied by service. The funding available for the war consists of funds
directly appropriated to the military services for GWOT, the net transfer of
by Service funds from the Iraqi Freedom Fund, and reprogrammed funds originally
appropriated to the services for peacetime operations.
Dollars in millions
Air Force Army Navy Marine Corps
Total GWOT Funding Available $3,363.4 $8,574.2 $1,813.8 $1,483.6
Obligations Reported 3,409.1 8,730.0 1,933.8 1,481.8
Difference (45.7) (155.8) (120.0) 1.8
Source: P.L. 108-7, 108-11, and the Defense Finance and Accounting Service’s Consolidated DOD Terrorist Response Cost Report as of September 30, 2003.
Table 2: Operation and Maintenance Fiscal Year 2003 GWOT Funding and Obligations
Dollars in millions
Air Force Army Navy Marine Corps
Total GWOT Funding Available $10,050.7 $19,423.0 $6,067.4 $2,005.7
Obligations Reported 9,874.1 19,392.8 5,768.4 2,078.2
Difference 176.6 30.2 299.0 (72.5)
Source: P.L. 108-7, 108-11, and the Defense Finance and Accounting Service’s Consolidated DOD Terrorist Response Cost Report as of September 30, 2003.
• The Army reported slightly more funding than obligations for the war.
At the end of fiscal year 2003, the Army reported obligations that initially
appeared to be more than $500 million less than the available funding.
However, as of January 2004, the Army has subsequently updated its
fiscal year 2003 reporting to reflect about $470 million in additional
reported obligations. According to Army officials, the Army had not
included in the September 30, 2003, consolidated cost report $494 million
in obligations reported to support the Coalition Provisional Authority in
11
The Coalition Provisional Authority is the name of the temporary governing body, which
has been recognized by the United Nations as the lawful government of Iraq until such time
an internationally recognized interim administration or representative government is
established by the people of Iraq. United Nations Security Council Resolution 1483,
(May 22, 2003).
12
GAO-03-1088.
As noted with the Army and Navy analyses, the services have reported
obligation updates to the Office of the Under Secretary of Defense
(Comptroller) for inclusion in the Defense Finance and Accounting
Service’s Consolidated DOD Terrorist Response Cost report for fiscal year
2003. The Defense Finance and Accounting Service is issuing monthly
fiscal year 2003 update reports as the obligation data is updated, which
must be added to the report as of September 30, 2003, to determine the
total fiscal year 2003 obligations reported in support of GWOT.
Neal P. Curtin
Director, Defense Capabilities and
Management Team
(350511)
Page 14 GAO-04-668 Military Operations
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