Information Technology Funding in the Department of Defense

This report discusses information technology funding in DoD in response to a request from the Chairman, Subcommittee on Defense, House Appropriations Committee. The Chairman asked the Inspector General, DoD, to review how DoD funds information technology system development projects and whether the choices of appropriations to be used for financing the systems conflict with DoD Regulation 7000. 14-R, Department of Defense Financial Management Regulation, June 1998. The Chairman expressed concern on whether DoD had taken action to correct development and modernization funding inconsistencies for information technology system acquisitions, as directed by House Appropriations Committee Report 105-591, which accompanied the DoD Appropriations Act for FY 1999. The overall audit objective was to determine whether the FY 2000 budget submission for information technology investments complied with the direction to correct funding inconsistencies from the House Appropriations Committee. Specifically, we determined how DoD funds the development and modernization of information technology system acquisitions and whether the appropriations used for financing complied with the provisions of DoD Regulation 7000. 14-R. We also evaluated the effectiveness of the management control program as it applied to the audit objective. See Appendix A for a discussion of the audit scope and methodology and our review of the management control program.