Navy Use of Variable Housing Allowance Survey Data

During the audit of the DoD Family Housing Requirements Determination, a review of the Navy's use of data to determine family housing requirements became a concern. This report discusses the Navy use of the variable housing allowance survey data to determine family housing requirements. The primary audit objective was to evaluate whether estimated housing requirements were valid and supported the need for constructing additional DoD family housing. A specific objective was to determine whether family housing requirements developed by the Naval Facilities Engineering Command were properly supported, and identified in an economical manner. We expanded our objective to include a review of the Navy's use of the variable housing allowance survey responses as it relates to the family housing requirements determination process. There were flaws in the Naval Facilities Engineering Command's use of variable housing allowance survey data for determining family housing requirements at Naval organizations. As a result, the Navy overstated the number of personnel considered as unacceptably housed by at least 25 percent. Conversion of this overstated family housing data could result in the Navy programming excessive funds for future family housing. However, after the completion of our audit field work, the Navy implemented procedures to improve the variable housing allowance survey data. Because the Navy has already implemented corrective actions, this final report contains no recommendations.