GAO found that DOD, between fiscal years 2013 through 2023, realigned approximately $32.9 billion of funding for service member pay and benefits. MaYcaL / Getty Images
Watchdog wants more transparency on DOD’s reprogramming of military pay funds
While GAO did not find that the realignment decreased military benefits, it did urge the Pentagon to provide more information on the funding to Congress.
A Government Accountability Office report published Wednesday did not find that the Defense Department’s reprogramming of funds for service members’ wages and benefits hurt those programs. However the watchdog did recommend that the Pentagon provide more information to Congress when it realigns such funding.
Due to the risk of unforeseen circumstances, Congress allows DOD, under certain conditions, to reprogram funds, including in its military personnel (MILPERS) appropriations account that covers items like service member pay and quality-of-life matters.
Between fiscal years 2013 through 2023, GAO found that DOD realigned approximately $32.9 billion of MILPERS funding, which represents about 2% of the total amount appropriated for the account.
GAO noted that number includes funds that were transferred into MILPERS as well as money that was moved around within the account. But most years more money was directed out than into MILPERS.
DOD officials told investigators that, if pay is lower than budgeted, those funds could be used for other priorities. But the Pentagon also had to realign funds in the account in response to unexpected events like COVID-19 and the war in Ukraine.
Officials said that reprogramming did not harm DOD’s ability to fund MILPERS’ program obligations during the review period. Still, GAO argued the Pentagon can make the process more open to stakeholders.
“The military components collect program-level information on MILPERS realignments, but DOD is not required to do so and, therefore, does not provide complete information in its reports to Congress on the increases and decreases in funding that programs experience because of those realignments,” investigators wrote. “Thus, the effect that realignments may have on funding to specific MILPERS programs would not be fully transparent to Congress and those who use these reports, such as the Under Secretary of Defense (Comptroller).”
GAO related this to DOD’s broader financial management, which the watchdog has designated as “high risk” since 1995.
“DOD’s well-documented fiscal challenges make it important that Congress and DOD and its components have reliable, useful and timely financial information,” investigators wrote.
GAO recommended that DOD submit reports to Congress with complete information on individual program-level realignments of MILPERS funds.
The Pentagon partially agreed with the recommendation, saying it would clarify budget structure and reporting requirements for the military personnel active and reserve components in line with congressional guidance in the DOD appropriations law.
GAO said it was “encouraged” by this action but that it’s unclear whether DOD will provide more complete information without congressional direction.
DOD did agree with the remaining recommendations that each of the military branches report realignments by individual program for MILPERS accounts in their annual budget materials.