United States Government Accountability Office

Washington, DC 20548 

March 17, 2008 

Congressional Committees 

Subject: Global War on Terrorism: Reported Obligations for the Department of Defense

Since 2001, Congress has provided the Department of Defense (DOD) with hundreds of 

billions of dollars in supplemental and annual appropriations for military operations in 

support of the Global War on Terrorism (GWOT).1

 DOD’s reported annual obligations2 for 

GWOT have shown a steady increase from about $0.2 billion in fiscal year 2001 to about 

$139.8 billion in fiscal year 2007. To continue GWOT operations, the President requested 

$189.3 billion in appropriations for DOD in fiscal year 2008. Through December 2007, 

Congress has provided DOD with about $86.8 billion of this request, including $16.8 billion 

for Mine Resistant Ambush Protected vehicles. As of February 2008, Congress has not taken 

action on the remaining $102.5 billion. The United States’ commitments to GWOT will likely 

involve the continued investment of significant resources, requiring decision makers to 

consider difficult trade-offs as the nation faces an increasing long-range fiscal challenge. The 

magnitude of future costs will depend on several direct and indirect cost variables and, in 

some cases, decisions that have not yet been made. DOD’s future costs will likely be 

affected by the pace and duration of operations, the types of facilities needed to support 

troops overseas, redeployment plans, and the amount of equipment to be repaired or 

replaced.3

 

DOD compiles and reports monthly and cumulative incremental obligations incurred to 

support GWOT in a monthly Supplemental and Cost of War Execution Report. DOD 

leadership uses this report, along with other information, to advise Congress on the costs of 

the war and to formulate future GWOT budget requests. DOD reports these obligations by 

appropriation, contingency operation,4

 and military service or defense agency. The monthly 

cost reports are typically compiled within the 45 days after the end of the reporting month in 

 1

After the terrorist attacks of September 11, 2001, the President announced a Global War on Terrorism, 

requiring the collective instruments of the entire federal government to counter the threat of terrorism. 

Ongoing military and diplomatic operations overseas, especially in Iraq and Afghanistan, constitute a key part 

of GWOT. These operations involve a wide variety of activities, such as combating insurgents, training the

military forces of other nations, and conducting small-scale reconstruction and humanitarian relief projects. 2

According to Department of Defense, Financial Management Regulation, 7000.14-R, vol. 1, Definitions 

(December 2001), p. xvii, obligations are incurred through actions such as orders placed, contracts awarded,

services received, or similar transactions made by federal agencies during a given period that will require

payments during the same or a future period. 3

For more information see GAO, Securing, Stabilizing, and Rebuilding Iraq: Key Issues for Congressional 

Oversight, GAO-07-308SP (Washington, D.C.: Jan. 9, 2007), and Global War on Terrorism: Observations on

Funding, Costs, and Future Commitments, GAO-06-885T (Washington, D.C.: July 18, 2006). 4

DOD defines contingency operations to include small, medium, and large-scale campaign-level military 

operations, including support for peacekeeping operations, major humanitarian assistance efforts, 

noncombatant evacuation operations, and international disaster relief efforts. 

GAO-08-557R Global War on Terrorism
 GAO-08-557R Global War on Terrorism Page 2 

 

which the obligations are incurred.5 DOD has prepared monthly reports on the obligations 

incurred for its involvement in GWOT since fiscal year 2001. 

Section 1221 of the National Defense Authorization Act for Fiscal Year 20066

 requires us to 

submit quarterly updates to Congress on the costs of Operation Iraqi Freedom and 

Operation Enduring Freedom based on DOD’s monthly Supplemental and Cost of War 

Execution Reports. This report, which responds to this requirement, contains our analysis of 

DOD’s reported obligations for military operations in support of GWOT through December 

2007. Specifically, we assessed (1) DOD’s cumulative appropriations and reported 

obligations for military operations in support of GWOT and (2) DOD’s fiscal year 2008 

reported obligations through December 2007, the latest data available for GWOT by military 

service and appropriation account. 

Over the years, we have conducted a series of reviews examining funding and reported 

obligations for military operations in support of GWOT. Our prior work7

 has found the data 

in DOD’s monthly Supplemental and Cost of War Execution Report to be of questionable 

reliability. Consequently, we are unable to ensure that DOD’s reported obligations for GWOT 

are complete, reliable, and accurate, and they therefore should be considered 

approximations. 

Based on this work, we have made a number of recommendations to the Secretary of 

Defense intended to improve the transparency and reliability of DOD’s GWOT obligations. 

For example we have recommended that DOD (1) revise the cost reporting guidance so that 

large amounts of reported obligations are not shown in “other” miscellaneous categories and 

(2) take steps to ensure that reported GWOT obligations are reliable. In response, DOD is 

taking steps to improve GWOT cost reporting. For example, DOD has modified its guidance 

to more clearly define some of the cost categories and is taking additional steps to 

strengthen the oversight and program management of the cost reporting. Specifically, DOD 

has taken steps to improve transparency by requiring components to analyze variances in 

reported obligations and to disclose reasons for significant changes, and to affirm that 

monthly reported GWOT obligations provide a fair representation of ongoing activities. 

However, we have found that some required explanations were not disclosed and DOD’s 

methodology did not always identify obligations omitted from cost reports, and in some 

cases, DOD components did not provide required affirmation statements to attest to 

accuracy.8

 DOD is now developing additional procedures to ensure compliance with the 

variance analysis and affirmation statements policies. Until all DOD efforts are more fully 

implemented, it is too soon to know the extent to which these changes will improve the 

reliability of DOD’s cost reporting. 

5

Department of Defense, Financial Management Regulation, 7000.14-R, vol. 12, ch. 23. This regulation 

generally establishes financial policy and procedures related to DOD contingency operations. Volume 6A, 

chapter 2, and volume 3, chapter 8, of the DOD Financial Management Regulation also include provisions to 

ensure the accuracy of cost reporting. 

6

Pub. L. No. 109-163, § 1221(c) (2006). 

7

For more information see GAO, Global War on Terrorism: DOD Needs to Improve the Reliability of Cost 

Data and Provide Additional Guidance to Control Costs, GAO-05-882 (Washington, D.C.: Sept. 21, 2005), and 

Global War on Terrorism: DOD Needs to Take Action to Encourage Fiscal Discipline and Optimize the Use 

of Tools Intended to Improve GWOT Cost Reporting, GAO-08-68 (Washington, D.C.: Nov. 6, 2007). 8

GAO-08-68.
 GAO-08-557R Global War on Terrorism Page 3 

 

While establishing sound cost reporting procedures and oversight is clearly important, the 

reliability of the cost-of-war reports also depends on the quality of DOD’s accounting data. 

Factors contributing to DOD’s challenges in reporting reliable cost data include longstanding deficiencies in DOD’s financial management systems. We are aware that DOD has 

efforts under way to improve these systems as well. 

We have also made recommendations to improve transparency and fiscal responsibility 

related to funding the war on terrorism, and to permit Congress and the administration to 

establish priorities and make trade-offs among those priorities in defense funding. 

Specifically, we recommended that DOD (1) issue guidance defining what constitutes the 

“longer war against terror,” identify what costs are related to that longer war, and build 

these costs into the base defense budget; (2) identify incremental costs of the ongoing 

GWOT operations that can be moved into the base budget; and (3) in consultation with the 

Office of Management and Budget, consider limiting emergency funding requests to truly 

unforeseen or sudden events.9

 We will continue to review DOD’s efforts to implement these 

recommendations as part of our follow-up work on GWOT. 

Scope and Methodology 

To conduct our work, we analyzed applicable annual and supplemental appropriations from 

fiscal year 2001 through fiscal year 2007 and for fiscal year 2008 through December 2007. We 

also analyzed DOD’s monthly Supplemental and Cost of War Execution Reports from 

September 2001 through December 2007, the latest data available. Specifically, we identified 

appropriated amounts intended for GWOT and reported GWOT obligations for each 

operation, military service, and appropriation account. 

We are continuing to review DOD’s fiscal year 2008 funding and reported obligations, 

including the reliability of the reported obligations. We are also reviewing the processes, 

including models and other tools, used to estimate GWOT funding requirements. We plan to 

report on this work later this year. 

We conducted this performance audit from February 2008 to March 2008, in accordance 

with generally accepted government auditing standards. Those standards require that we 

plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable 

basis for our findings and conclusions based on our audit objectives. We believe that the 

evidence obtained provides a reasonable basis for our findings and conclusions based on 

our audit objectives. 

Summary 

From fiscal year 2001 through December 2007, Congress has provided DOD with about 

$635.9 billion for its efforts in support of GWOT.10 DOD has reported obligations of about 

$527 billion for military operations in support of the war from fiscal year 2001 through fiscal 

9

GAO-08-68. 10From fiscal year 2001 through fiscal year 2004, military operations in defense of the homeland (Operation 

Noble Eagle) were funded through supplemental appropriations. Since fiscal year 2005, these operations have 

been funded through DOD’s base budget. Because Congress does not appropriate funds by military operation, 

these amounts cannot be separately identified. Therefore, the $635.9 billion includes funding for Operation 

Noble Eagle only from fiscal years 2001 through 2004. 
year 2007 and for fiscal year 2008 through December 2007. The $108.9 billion difference11

between DOD’s GWOT appropriations and reported obligations can generally be attributed 

to certain fiscal year 2008 appropriations and multiyear funding for procurement; military 

construction; and research, development, test, and evaluation from previous GWOT-related 

appropriations12 that have yet to be obligated, and obligations for classified and other 

activities, which are not reported in DOD’s cost-of-war reports. As part of our ongoing work, 

we are reviewing DOD’s rationale for reporting its GWOT related obligations. 

Figure 1 shows the increase in DOD’s cumulative reported GWOT obligations and 

cumulative GWOT appropriations from fiscal year 2001 through fiscal year 2007 and for the 

first quarter of fiscal year 2008 (October through December 2007). 

Figure 1: DOD’s Cumulative Reported GWOT Obligations and Cumulative GWOT

Appropriations for Fiscal Years 2001 through 2007 and for the First Quarter of Fiscal 

Year 2008 (October through December 2007) 

Notes: Reported GWOT obligations include Operation Noble Eagle, Operation Enduring Freedom, and Operation Iraqi Freedom, and 

generally reflect costs reported in DOD’s cost-of-war reports. However, the fiscal year 2002 and 2003 figures include about $20.1 billion 

that according to DOD officials was war related but not reported in DOD’s cost-of-war reports. GAO has assessed the reliability of DOD’s 

obligation data and found significant problems, such that these data may not accurately reflect the true dollar value of GWOT obligations. 

Of DOD’s total cumulative reported obligations for GWOT through December 2007 (about 

$527 billion), about $406.2 billion is for operations in and around Iraq as part of Operation 

Iraqi Freedom, and about $92.9 billion is for operations in Afghanistan, the Horn of Africa, 

 11We calculated this difference by comparing available data on appropriations and reported obligations. Since 

data on appropriations for Operation Noble Eagle from fiscal year 2005 through fiscal year 2007 are

unavailable, the difference between DOD’s GWOT appropriations and reported obligations may be larger. 

 Page 4 GAO-08-557R Global War on Terrorism

12Appropriations for military personnel and operation and maintenance are usually available for 1 year, while

appropriations for research, development, test ,and evaluation are usually available for 2 years; procurement 

funds (with the exception of shipbuilding funds, which are sometimes available longer) are usually available

for 3 years; and military construction funds are usually available for 5 years. 
the Philippines, and elsewhere as part of Operation Enduring Freedom. The remaining about 

$28 billion is for operations in defense of the homeland as part of Operation Noble Eagle. 

As figure 2 shows, DOD’s reported obligations for Operation Iraqi Freedom have 

consistently increased each fiscal year since operations began. The increases in reported 

obligations for Operation Iraqi Freedom are in part because of continued costs for military 

personnel, such as military pay and allowances for mobilized reservists, and for rising 

operation and maintenance expenses, such as higher contract costs for housing, food, and 

services and higher fuel costs. In addition, the need to repair and replace equipment because 

of the harsh combat and environmental conditions in theater and the ongoing costs 

associated with the surge strategy announced in January 2007, which provided for the 

deployment of additional troops, have further increased obligations for Operation Iraqi 

Freedom. In contrast, DOD’s reported obligations for Operation Noble Eagle have 

consistently decreased since fiscal year 2003, largely because of the completion of repairs to 

the Pentagon and upgrades in security at military installations that were onetime costs, as

well as a reduction in combat air patrols and in the number of reserve personnel guarding 

government installations. Reported obligations for Operation Enduring Freedom have 

ranged from $10.3 billion to $20.1 billion each fiscal year. Recent increases in reported 

obligations for Operation Enduring Freedom are in part caused by higher troop levels in 

Afghanistan, the costs associated with training Afghan security forces, and the need to 

repair and replace equipment after several years of ongoing operations. 

Figure 2: DOD’s Reported GWOT Obligations for Fiscal Years 2001 through 2007 by 

Operation 

Notes: Operation Iraqi Freedom began in fiscal year 2003; therefore no obligations were reported in fiscal years 2001 and 2002 for this

operation. Reported GWOT obligations generally reflect costs reported in DOD’s cost-of-war reports. However, the fiscal year 2002 and

2003 figures include about $20.1 billion that according to DOD officials was war related but not reported in DOD’s cost-of-war reports. 

GAO has assessed the reliability of DOD’s obligation data and found significant problems, such that these data may not accurately reflect 

the true dollar value of GWOT obligations. 

 Page 5 GAO-08-557R Global War on Terrorism
In fiscal year 2008, through December 2007, DOD’s total reported obligations of about 

$34.8 billion are about one quarter of the total amount of obligations it reported for all of 

fiscal year 2007. Reported obligations for Operation Iraqi Freedom continue to account for 

the largest portion of total reported GWOT obligations by operation—about $28.1 billion. In 

contrast, reported obligations associated with Operation Enduring Freedom total about 

$6.6 billion, and reported obligations associated with Operation Noble Eagle total about 

$49.6 million. 

The Army accounts for the largest portion of reported obligations for fiscal year 2008 

through December 2007—about $27.2 billion, nearly 11 times higher than the almost 

$2.5 billion in obligations reported for the Air Force, the military service with the next 

greatest reported amount. Among appropriation accounts, operation and maintenance, 

which includes items such as support for housing, food, and services; the repair of 

equipment; and transportation to move people, supplies, and equipment, accounts for the 

largest reported obligations—about $16.1 billion. Reported obligations for procurement 

account for about 27 percent of reported obligations, or about $9.4 billion. Of the 

$43.6 billion provided to DOD for procurement in fiscal year 2007, approximately 21 percent, 

or $9.1 billion, has yet to be obligated and remains available in fiscal year 2008. Figure 3 

shows DOD’s reported obligations for fiscal year 2008 through December 2007 by DOD 

component and appropriation account. 

Figure 3: DOD’s Reported GWOT Obligations for Fiscal Year 2008, by DOD 

Component and Appropriation Account, as of December 2007 

Notes: Obligation figures may not add to $34.8 billion because of rounding. The “Other” portion of the appropriation account pie includes 

programs designed to reimburse coalition countries for logistical and military support, to train and equip the Afghan National Army and 

Armed Forces of Iraq and to execute the Commanders Emergency Response Program. GAO has assessed the reliability of DOD’s

obligation data and found significant problems, such that these data may not accurately reflect the true dollar value of GWOT obligations. 

 Page 6 GAO-08-557R Global War on Terrorism
Agency Comments 

We requested comments from DOD, but none were provided. 

- - - - - 

We are sending copies of this report to interested congressional committees; the Secretary 

of Defense; the Under Secretary of Defense (Comptroller); and the Director, Office of 

Management and Budget. We will also make copies available to others upon request. In 

addition, this report will be available at no charge on the GAO Web site at 

http://www.gao.gov.

If you or your staff have any questions about this report, please contact me at (202) 512-9619 

or pickups@gao.gov. Contact points for our Offices of Congressional Relations and Public 

Affairs may be found on the last page of this report. Key contributors to this report are listed 

in the enclosure. 

Sharon L. Pickup 

Director, Defense Capabilities and Management 

Enclosure 

 

 Page 7 GAO-08-557R Global War on Terrorism
 GAO-08-557R Global War on Terrorism Page 8 

List of Committees 

The Honorable Carl Levin 

Chairman 

The Honorable John McCain 

Ranking Member 

Committee on Armed Services 

United States Senate 

The Honorable Daniel K. Inouye 

Chairman 

The Honorable Ted Stevens 

Ranking Member 

Subcommittee on Defense 

Committee on Appropriations 

United States Senate 

The Honorable Ike Skelton 

Chairman 

The Honorable Duncan L. Hunter 

Ranking Member 

Committee on Armed Services 

House of Representatives 

The Honorable John P. Murtha 

Chairman 

The Honorable C. W. Bill Young 

Ranking Member 

Subcommittee on Defense 

Committee on Appropriations 

House of Representatives 
Enclosure 

 

GAO Contact and Staff Acknowledgments 

GAO Contact Sharon Pickup, (202) 512-9619 or pickups@gao.gov

Acknowledgments In addition to the contact named above, Ann Borseth, Assistant 

Director; Richard Geiger; Ron La Due Lake; Deanna Laufer; 

Lonnie McAllister; and Eric Petersen made key contributions to 

this report.

(351171)

Page 9 GAO-08-557R Global War on Terrorism
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