United States General Accounting Office

GAO Report to Congressional Committees

April 1998 NONAPPROPRIATED

FUNDS

Opportunities to

Improve DOD’s

Concessions

Committee

GAO/NSIAD/AIMD-98-119

GAO United States

General Accounting Office

Washington, D.C. 20548

National Security and

International Affairs Division

B-278782 

April 30, 1998

Congressional Committees

In its June 16, 1997, report on the National Defense Authorization Act for

Fiscal Year 1998, the Committee on National Security, House of

Representatives, expressed concern that certain nonappropriated fund

activities at the Pentagon reservation were being operated without

adequate congressional oversight and coordination. The focus of the

Committee’s concern was the Department of Defense (DOD) Concessions

Committee, which, through its concessionaires, generated sales of

approximately $30 million in fiscal year 1997. The report directed us to

perform a comprehensive review of the Concessions Committee’s

operations. This report responds to that direction and addresses the

Concessions Committee’s (1) financial operations; (2) oversight and

management; and (3) contributions to morale, welfare, and recreation

(MWR) funds.

Background The Concessions Committee succeeded the Pentagon Post Restaurant

Council, which was established in 1942 by the Secretary of the War

Department. The Council managed the cafeterias and allied operations,

including a drugstore, newsstand, and shoe shine and repair shop. The

Committee was created and operates pursuant to the Secretary of

Defense’s statutory authority under 10 U.S.C. 133 and is responsible for

providing for the administration, operation, and control of services

deemed essential to the health, welfare, and morale of employees and for

the convenience of the government. The Committee is a nonappropriated

fund instrumentality serving civilian and military employees in the

Pentagon and the Navy Annex.

Specifically, the Committee issues contracts to others for the provision of

all food services, 331 vending machines, and 33 activities providing retail

goods and personal services. (See app. I for a listing of activities.) During

fiscal year 1997, these activities generated sales of approximately

$30 million, resulting in nearly $3.3 million in revenues for the Committee.

The Committee uses its revenues to provide funding to six civilian MWR

funds benefiting military and civilian employees working in the Pentagon

and the Navy Annex after paying its operational costs.1

 The MWR funds use

the contributions from the Committee to pay administrative and operating

1

The six MWR funds are the Office of the Secretary of Defense/Joint Staff, Army, Navy, Air Force,

Defense Information Systems Agency, and Defense Intelligence Agency.

Page 1 GAO/NSIAD/AIMD-98-119 Nonappropriated Funds
B-278782 

expenses and to subsidize welfare and recreation activities, including

discount tickets to sporting and cultural events and group events.

The Director of Administration and Management, Office of the Secretary

of Defense, is responsible for overseeing the Committee’s operations. The

Committee has eight members, including representatives from each of the

military services and the Office of the Secretary of Defense (see app. II).

The Committee employs four full-time staff, paid from nonappropriated

funds, including a business manager who is responsible for day-to-day

operations. The current manager, who had extensive experience with the

Army and Air Force Exchange Service, has been employed in his current

capacity for more than 10 years.

Results in Brief The Concessions Committee’s financial statements are audited by an

independent public accounting firm, and those financial statements have

consistently received unqualified opinions. As a result, we did not

independently review the Committee’s financial operations. We reviewed

the independent public accounting firm’s work for the last 2 fiscal years.

Our review disclosed no instances where the firm did not comply in all

material respects with generally accepted government auditing standards.

The Committee is not subject to the reporting and oversight requirements

of other nonappropriated fund instrumentalities. Specifically, Department

of Defense regulations require other nonappropriated fund

instrumentalities to submit financial reports to the Office of the Assistant

Secretary of Defense (Force Management and Policy). In addition, the

military exchange services prepare annual reports that are submitted to

the Congress. Although the Committee’s operations are reviewed by a

senior official in the Office of the Secretary of Defense, the Committee has

not been required to submit financial information to Force Management

and Policy. Therefore, the Congress does not receive information on its

activities.

Also, the Committee’s governing directive does not specify the procedures

by which the Committee is to manage its day-to-day operations or criteria

for determining the types of sales activities it may engage in. In the

absence of specific operating procedures, the Committee has followed

Army regulations for nonappropriated fund instrumentalities. While we did

not find any instances where the Committee deviated from the Army

regulations, the absence of mandatory operating regulations represents a

weakness in management controls. Although the Committee has chosen to

Page 2 GAO/NSIAD/AIMD-98-119 Nonappropriated Funds
B-278782 

follow these regulations, it is not required to do so and therefore cannot be

held accountable for deviations.

Although the amount available for MWR contributions is directly linked to

the Committee’s decisions to retain earnings for reserves and equipment,

there is no written policy to guide its members in making these decisions,

and we could find no documentation supporting how the decisions were

reached. Although the Committee has a capital expenditure budget, it does

not have a long-term operating budget for use in making these decisions.

At our suggestion, the Committee has indicated it will prepare a 5-year

operating budget that will identify the minimum level of cash reserves that

are needed to cover current operations. The Committee also plans to

review its long-term capital expenditure budget in light of the ongoing

Pentagon renovations. These actions may result in identifying additional

resources that could be made available to morale, welfare, and recreation

funds.

Financial Data Reflect

a Profitable Operation

The Concessions Committee does not receive appropriated funds. It

generates its revenues, about $3.3 million for fiscal year 1997, primarily by

charging concessionaires and others a fee for operating in the Pentagon or

the Navy Annex.

Although the Committee does not directly receive any appropriated funds,

it (1) received equipment, with a net book value of $349,997, in 1992 and

1996, when it assumed certain operations previously performed by

appropriated activities and (2) has the benefit of a board of directors and

legal counsel whose salaries are paid for by appropriated activities—a

practice that is consistent with other DOD nonappropriated fund

instrumentalities. Serving as a committee member is a collateral duty for

all of these personnel.

Between fiscal year 1994 and 1997, the Committee used, on average, over

76 percent of its revenues to pay its expenses, including general and

administrative costs, and operating expenses associated with the food

service and other concessionaire operations. The remaining funds were

available for funding future operations, capital expenditures, and

contributions to civilian MWR funds. The Committee prepares annual

financial statements that detail its revenues and expenses and that are

audited by an independent public accounting firm.

Page 3 GAO/NSIAD/AIMD-98-119 Nonappropriated Funds
B-278782 

Independent Financial

Statement Audits

Performed

The Committee received unqualified opinions on its fiscal year 1997 and

1996 financial statements based on audits performed by the independent

public accounting firm. Our review of the audit reports and supporting

workpapers did not identify any instances where the audits appeared to

deviate from generally accepted government auditing standards. The

independent public accounting firm, which specializes in nonappropriated

fund MWR audits, has audited the Committee’s financial statements for the

past 50 years. The partner-in-charge of the audits since 1993 could not

recall any significant reportable problems identified during work at the

Committee.

Findings or recommended operational improvements identified during the

audits that do not affect the reliability of financial statements are generally

communicated through management letters. On February 16, 1998, the

independent public accounting firm issued a management letter to the

Committee resulting from its fiscal year 1997 audit. The accounting firm

recommended that, for internal control purposes, more than one person

be involved in processing cash receipts from temporary concessionaires,2

the food service inventory process be moved closer to year end, and a new

general ledger account be created to report bad debt expense. The

Committee Chairman told us he agreed with the recommendations and

asked the business manager to provide information on implementation

plans. No management letter was issued for fiscal year 1996.

Committee’s Operations

Generate Revenue and Net

Income

The Committee’s revenues have averaged $2.8 million a year since 1994

while its expenses have averaged $2.1 million. From fiscal year 1994 to

1997,3

 the Committee declared MWR contributions ranging from $500,000 to

$625,000. MWR contributions, as a percentage of net income during the

same period, ranged from a high of 102 percent in fiscal year 1994 to a low

of 77 percent in fiscal year 1997. Earnings that were not used to pay

expenses or MWR contributions were retained by the DOD Concessions

Committee for future use in purchasing new equipment, funding

renovations, and paying operating expenses. Table 1 documents

concessionaire sales and the Committee’s revenues, expenses, net income,

MWR contributions declared, and MWR contributions declared as a

percentage of net income.

2

Temporary concessionaires accounted for approximately 3 percent of the Concessions Committee’s

revenue in fiscal year 1997.

3

In fiscal years 1996 and 1997, the Committee withheld $50,000 per year of declared MWR

contributions for distribution in future years when reductions in income were anticipated due to the

renovation of the Pentagon.

Page 4 GAO/NSIAD/AIMD-98-119 Nonappropriated Funds
B-278782 

Table 1: Concessions Committee Financial Statistics: Fiscal Years 1994 Through 1997

Concessionaire

Concessions Committee

Fiscal year Sales Revenues Expensesa Net income

MWR

contributions

declaredb

MWR contributions

as a percentage

of net income

1994 $26,939,391 $2,584,240 $2,092,054 $492,186 $500,000 102

1995 25,976,784 2,497,988 1,938,646 559,342 500,000 89

1996 27,329,737 2,684,071 2,013,186 670,885 525,000 78

1997 29,823,130 3,266,424 2,450,836 815,588 625,000 77

Total $110,069,042 $11,032,723 $8,494,722 $2,538,001 $2,150,000 85

aExpenses include adjustments for gains or losses from furniture and equipment disposal.

bIn general, the Committee declares its MWR contributions in 1 year for distribution in the next.

Source: DOD Concessions Committee information.

Revenues Are Primarily

From Concessionaire

Contracts

All of the Committee’s revenues result from fees it charges

concessionaires for operating in the Pentagon and the Navy Annex. The

Committee does not engage in resale activities. Rather, the Committee

competitively solicits proposals, seeking a fee arrangement that is based

on the type of activity—a percentage of sales and/or a flat fee that is based

on space occupied. Following its review of the competitive proposals, it

makes a tentative selection that is submitted to the Director of

Administration and Management, Office of the Secretary of Defense, for

final approval. Once approved, the fee arrangement becomes part of the

contractual agreement between the Committee and the concessionaire.

During fiscal year 1997, concessionaire activities accounted for over

$3.1 million of the Committee’s total $3.3 million in revenues. Interest

earnings accounted for most of the remaining revenue.

Most Expenses Directly

Relate to Concessionaire

Activity

The Committee’s major expenses involve food service concessions

expenses, such as depreciation and equipment repair and maintenance;

other concessions expenses, such as space rent,4

 parking lot costs, and

vending commission expenses; and administrative and general expenses,

such as salaries and benefits. During fiscal year 1997, expenses totaled

about $2.5 million (76 percent of total revenue), of which $2.1 million

4

Space rent represents the Committee’s payments to the Washington Headquarters Services for costs

associated with buildings operations, including utilities and depreciation. This expense is set at 

37.5 percent of the Committee’s prior year revenue.

Page 5 GAO/NSIAD/AIMD-98-119 Nonappropriated Funds
B-278782 

represented concessionaire expenses and $0.4 million represented

administrative and general expenses.

Reporting and

Oversight

Requirements Differ

From Other

Nonappropriated

Fund

Instrumentalities

In its June 16, 1997, report, the National Security Committee, House of

Representatives, expressed concern that the Concessions Committee was

operating without adequate congressional oversight and coordination.

Although the Committee’s operations are reviewed by a high level official

within the Office of the Secretary of Defense, the Committee is not subject

to the reporting and oversight requirements of other nonappropriated fund

instrumentalities. Information on the financial activities of the other

nonappropriated fund instrumentalities is reviewed centrally within the

Office of the Secretary of Defense and submitted to the Congress through

the military services.

Other nonappropriated fund instrumentalities are required to submit

financial data to the Office of the Assistant Secretary of Defense for Force

Management and Policy,5

 which uses this information to perform

statistical comparative analyses and to monitor the performance

indicators. These instrumentalities also submit information through the

heads of their military components that is consolidated into reports to the

Congress. For example, the Army and Air Force Exchange Service

prepares an annual report summarizing its resale and concessions

activities in the United States and overseas.

The Committee’s operations are overseen by the Director, Administration

and Management, Office of the Secretary of Defense. The Director’s

responsibilities include approving the minutes of all Committee meetings

and all contracts and other transactions that exceed $2,500. The Director

is the final decisionmaker for all business activities. Reports of the

Committee’s activities and plans are not submitted to any other offices

within the Office of the Secretary of Defense or included in any external

reports. Similarly, the Committee’s financial statements are not submitted

to any other office or consolidated into external financial reports.

Operating Procedures

Are Not Specified

The Committee’s current operating guidance does not specify the

procedures by which the Committee is to exercise its authority or the

types of goods and services that can be offered by concessionaires. In the

absence of specific operating procedures, the Committee has elected to

5

Financial Management of Morale, Welfare, and Recreational Activities, DOD Instruction 7000.12,

May 27, 1987.

Page 6 GAO/NSIAD/AIMD-98-119 Nonappropriated Funds
B-278782 

follow Army regulations applicable to nonappropriated fund

instrumentalities. While the Committee has chosen to follow these

regulations, it is not required to do so and therefore cannot be held

accountable for deviations.

The Committee derives its operating authority from a DOD directive.6

 This

directive authorizes the Committee to “operate directly or through an

independent contractor restaurants, cafeterias, snack bars, and dining

rooms in the Pentagon Building.” It also authorizes the Committee to

provide commercial type concessions. The directive does not specify the

procedures by which the Committee is to plan, organize, direct, and

control day-to-day operations, nor does it provide specific guidance on the

types of goods and services that can be offered through its

concessionaires.

In the absence of required operating procedures, and based on directions

provided by the Deputy Chief of Staff of the War Department in 1942, the

Committee has historically followed the Army Regulations 215

Series—Nonappropriated Fund Instrumentalities—Morale, Welfare, and

Recreation with its subsections that prescribe procedures for day-to-day

operations involving personnel practices, contracting, and accounting and

reporting. The purpose of these regulations is to establish policies and

procedures governing Army MWR activities and nonappropriated fund

instrumentalities to include those for which the Army has been designated

executive agent.

The June 16, 1997, report on the National Defense Authorization Act for

Fiscal Year 1998, by the Committee on National Security, House of

Representatives, also expressed concern that the Concessions Committee

may not be operating in consonance with congressional resale policy. Our

work indicates that the Committee is not required to follow DOD

regulations governing resale policy. The Concessions Committee’s legal

counsel told us that the Committee is not a resale activity because it

operates through concessionaires and does not engage in direct sales.

Although the Committee is not required to so, the business manager told

us that the Committee has elected to follow DOD Directive 1330.9 (Dec. 15,

1986), which establishes uniform policies for operating armed services

exchanges. This regulation lists the authorized types of goods and services

that can be offered for resale by the military exchanges.

6

In 1951 DOD Directive 5140.2 established guidance for the newly named DOD Concessions

Committee. This directive was superseded in August 1958 by DOD Directive 5120.18, which was

revised in April 1980 and October 1997.

Page 7 GAO/NSIAD/AIMD-98-119 Nonappropriated Funds
B-278782 

No Written Policy for

Calculating MWR

Contributions

There is no written policy or long-term operating budget to guide the

Committee’s members in deciding annual contributions to MWR funds, and

we found no documentation discussing how decisions were reached. Over

the past 4 fiscal years, the Committee has contributed fewer dollars as a

percentage of its income to the MWR funds, while significantly increasing

the amount retained as reserves. The Committee Chairman told us the

members’ decisions were guided by the need to fund planned capital

improvements and maintain stable MWR contributions during the Pentagon

renovation. However, without proper long-term operating budgets, the

extent to which such reserves are necessary is not clear. If the

Committee’s need for reserves are overstated, additional resources could

be made available to MWR funds.

Annually, the Committee decides how much of the year’s net income will

be distributed to MWR activities and how much will be reserved for future

needs. According to the Committee Chairman, this decision is based on a

number of factors, including known capital expenditure requirements and

the needs of the MWR funds. Once the Committee decides on the division of

its net income, it requests approval from the Director, Administration and

Management, Office of the Secretary of Defense. The approved MWR

contribution is stated in the Committee’s minutes, but there is no

discussion supporting how the members arrived at this decision.

As of September 30, 1997, the Committee had a total of $3.2 million in cash

reserves—$1.3 million that was not designated for a specific purpose but

would be available for payments of future operating expenses and MWR

contributions and $1.9 million for the repair, maintenance, and

replacement of equipment. Although the Committee does not have a

long-term operating budget for estimating its future operating cash reserve

needs, it does have a capital expenditure program budget, which estimates

it will need $3 million through fiscal year 2002 and another $1.6 million

beyond that date to fund equipment and related expenditures.

Despite the current balances in its reserves, the Committee is concerned

about its ability to fund planned capital improvements and maintain stable

MWR contributions during the planned 10-year renovation of the Pentagon.

As a result, the Committee withheld and placed in reserve $50,000 of

declared MWR contributions in both fiscal years 1997 and 1996. The

Committee did this to enable it to have extra funds available to

supplement MWR contributions in future years when reductions in income

are anticipated. Specifically, the Committee anticipates income will

decrease during the renovation of the Pentagon because 20 percent of the

Page 8 GAO/NSIAD/AIMD-98-119 Nonappropriated Funds
B-278782 

Pentagon staff will be temporarily relocated to office space outside of the

building.

Because of the uncertainties related to the renovation, the Committee

Chairman has asked the business manager to reassess the capital

expenditure program budget. At our suggestion, the business manager

agreed to request its independent public accountant’s assistance in

preparing a 5-year operating budget that would identify the minimum level

of cash reserves needed to cover normal operations. These analyses

should be documented and should be used in future decisions regarding

reserve amounts and MWR contributions.

Conclusions The Committee provides significant contributions to six MWR funds. Its

financial operations have been audited, and our review disclosed no

instances where the independent public accounting firm did not comply in

all material respects with generally accepted government auditing

standards. However, there are opportunities to improve the Committee’s

oversight and operations because the Committee is not subject to the

same reporting requirements as other nonappropriated fund

instrumentalities and the Congress does not receive information on its

activities. Also, the absence of specified operating procedures, including

guidance on the types of goods and services that can be offered,

represents a weakness in management controls. Although the amount

available for MWR contributions is directly linked to the Committee’s

decisions to retain earnings for reserves and equipment, there is no written

policy to guide its members in making these decisions, and we could find

no documentation supporting how the decisions were reached.

Furthermore, the Committee does not have a long-term operating budget

for use in making these decisions.

Recommendations We recommend that the Secretary of Defense (1) require the Committee to

comply with the same reporting requirements of other nonappropriated

fund instrumentalities, thereby ensuring that the Congress has the

opportunity to review the Committee’s activities; (2) specify operating

regulations to be followed by the Committee in its day-to-day operations,

including guidance on the types of goods and services that can be offered;

and (3) require the Committee to develop a policy and a long-term

operating budget to guide members in making MWR contributions and cash

reserve decisions and to document in its minutes the rationale for those

decisions.

Page 9 GAO/NSIAD/AIMD-98-119 Nonappropriated Funds
B-278782 

Agency Comments

and Our Evaluation

We received written comments on a draft of this report from DOD (see 

app. III.) DOD described actions it plans to take in reference to our

recommendations. Specifically, it will modify the DOD issuance governing

the operations of the Concessions Committee to (1) require the Committee

to comply with the same reporting requirements of other nonappropriated

fund instrumentalities and (2) specify operating regulations to be followed

by the Committee in its day-to-day operations, including guidance on the

types of goods and services that can be offered. Once complete, these

actions will satisfy the intent of our first two recommendations.

It also will modify the issuance governing the Committee’s operations to

make explicit its commitment to contribute all proceeds not required for

the Committee’s operations to MWR activities. When complete, this action

would partially address, but not satisfy, the intent of our recommendation.

We believe that the Committee also needs to develop a long-term

operating budget for use in making and documenting its decisions

regarding retained earnings and MWR contributions. We have revised the

third recommendation in the final report to clearly reflect our intent.

Scope and

Methodology

Our objectives were to assess the Concessions Committee’s (1) financial

operations and audited statements; (2) management and oversight

procedures; and (3) MWR contributions.

To assess the Committee’s financial operations, we interviewed its

business manager, operating accountant, and independent public

accountant. We reviewed the financial audit reports and their work

papers, unaudited monthly financial reports, and corresponding year-end

Committee meeting minutes for fiscal years 1996 and 1997. In addition, we

compared the Committee’s expected cash reserves to its budgeted capital

expenditures and projected MWR contributions through 2002.

To assess the Committee’s operations and management processes, we

interviewed the Committee’s business manager and officials from military

exchanges and other Defense nonappropriated fund instrumentalities. We

used flowchart methods to trace and document the Concessions

Committee’s management procedures, participated in a tour of activities,

and obtained and reviewed military exchanges’ and other nonappropriated

fund instrumentalities’ regulations. We used this information to compare

the Committee’s management structure and operations with those of the

military exchanges and other Defense nonappropriated fund

instrumentalities’ operations.

Page 10 GAO/NSIAD/AIMD-98-119 Nonappropriated Funds
B-278782 

To assess the Committee’s MWR contributions, we documented the

amounts provided for the past 4 fiscal years and interviewed the

Committee’s business manager to discuss the rationale for those decisions.

We also interviewed officials from military exchanges and other Defense

nonappropriated fund instrumentalities to discuss their respective MWR

distribution and retained earnings policies. We compared these policies to

that of the Concessions Committee.

Our work was conducted at the Pentagon; Army and Air Force Exchange

Service Headquarters, Dallas, Texas; the Navy Exchange Service

Command’s Washington office; and the Committee’s independent public

accounting firm. Our work was also conducted from September 1997 to

March 1998 in accordance with generally accepted government auditing

standards.

We are sending copies of this report to the Secretaries of Defense, the

Army, the Navy, and the Air Force; the Chairman of the Concessions

Committee; and the Director, Office of Management and Budget. We will

make copies available to others upon request.

Please contact me at (202) 512-8412 if you or your staff have any questions

concerning this report. Major contributors to this report are listed in

appendix IV.

David R. Warren, Director

Defense Management Issues

Page 11 GAO/NSIAD/AIMD-98-119 Nonappropriated Funds
B-278782 

List of Congressional Committees

The Honorable Strom Thurmond

Chairman

The Honorable Carl Levin

Ranking Minority Member

Committee on Armed Services

United States Senate

The Honorable Ted Stevens

Chairman

The Honorable Daniel Inouye

Ranking Minority Member

Subcommittee on Defense

Committee on Appropriations

United States Senate

The Honorable Floyd Spence

Chairman

The Honorable Ike Skelton

Ranking Minority Member

Committee on National Security

House of Representatives

The Honorable C. W. Bill Young

Chairman

The Honorable John P. Murtha

Ranking Minority Member

Subcommittee on National Security

Committee on Appropriations

House of Representatives

Page 12 GAO/NSIAD/AIMD-98-119 Nonappropriated Funds
Page 13 GAO/NSIAD/AIMD-98-119 Nonappropriated Funds
Contents

Letter 1

Appendix I 

List of Types of

Concessions Activities

16

Appendix II 

List of Concessions

Committee Members

17

Appendix III 

Comments From the

Department of

Defense

18

Appendix IV 

Major Contributors to

This Report

22

Table Table 1: Concessions Committee Financial Statistics: Fiscal Years

1994 through 1997

5

Abbreviations

DOD Department of Defense

MWR morale, welfare, and recreation

Page 14 GAO/NSIAD/AIMD-98-119 Nonappropriated Funds
Page 15 GAO/NSIAD/AIMD-98-119 Nonappropriated Funds
Appendix I 

List of Types of Concessions Activities

Committee Activities at the Pentagon

Action Resume

BTG Micro Systems, Inc.

Chateau’s Ladies Store

Cosmetic Center

Dental Office

Fannie May Candies

Gretel’s Bake Shop

Hair Care Center

Market Corner (Periodic Rover)

Moto Photo

NationsBank

Pentagon Cleaners

Priority Assist Car Buying Service

Sharon Anne Gifts

ARAMARK Corporation

Army/Air Force Mutual Aid

Cards’N Things

Carlson Wagonlit Travel

Conklyn’s Florist

David Mann Jeweler

Fort America Military Memorabilia

H&R Block Tax Service (Seasonal)

Market Center (Periodic Rover)

Market Square (Periodic Rover)

Monument Visitor Parking

Pentagon Book Store

Pentagon Vision Center

Rite Aid Pharmacy

Shoe Shine/Repair

Committee Activities at the Navy Annex

Chateau’s Annex Ladies Store

DeFluri’s Card and Gift Shop

Market Place (Periodic Rover)

Conklyn’s Florist

Hair Care Center

Page 16 GAO/NSIAD/AIMD-98-119 Nonappropriated Funds
Appendix II 

List of Concessions Committee Members

1. Chairman

Deputy Chief Financial Officer, Office of the Secretary of Defense (DOD)

Comptroller

2. Representative for Director of Administration and Management, Office

of the Secretary of Defense

Deputy Director, Real Estate and Facilities Directorate, Washington

Headquarters Services, Office of the Secretary of Defense

3. Army member

Office of the Secretary of the Army, Administrative Assistant

4. Army member

Chief, Executive Actions Division Management Directorate, Office of the

Chief of Staff of the Army

5. Navy member

Assistant for Administration, Office of Under Secretary of Navy

6. Marine Corps member

Secretary of the General Staff, Headquarters United States Marine Corps

7. Air Force member

Secretary of the Air Force, Administrative Assistant

8. Air Force member

Vice Commander Headquarters 11th Support Wing (Air Force District of

Washington)

Legal advisor

Senior Counsel, Office of General Counsel, Washington Headquarters

Services (nonvoting member)

Business manager

(nonvoting member)

Page 17 GAO/NSIAD/AIMD-98-119 Nonappropriated Funds
Appendix III 

Comments From the Department of Defense

Page 18 GAO/NSIAD/AIMD-98-119 Nonappropriated Funds
Appendix III 

Comments From the Department of Defense

Page 19 GAO/NSIAD/AIMD-98-119 Nonappropriated Funds
Appendix III 

Comments From the Department of Defense

Now on p. 9.

Page 20 GAO/NSIAD/AIMD-98-119 Nonappropriated Funds
Appendix III 

Comments From the Department of Defense

Page 21 GAO/NSIAD/AIMD-98-119 Nonappropriated Funds
Appendix IV 

Major Contributors to This Report

National Security and

International Affairs

Division, Washington,

D.C.

Barry W. Holman

Thomas J. Howard

Kevin B. Perkins

Lawrence A. Kiser

Bonita J. Page

Accounting and

Information

Management Division,

Washington, D.C.

Lisa G. Jacobson

Molly B. Boyle

Evelyn J. Logue

Office of the General

Counsel

William T. Woods

Behn Miller

(709302) Page 22 GAO/NSIAD/AIMD-98-119 Nonappropriated Funds
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