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FGMSD-78-18 1 (1978-02-23)

handle is hein.gao/gaobaaxyu0001 and id is 1 raw text is: DOCOHENT RESUME 07110 - (B2647675] (Applicaticn of the Full-Fun 7ing Concept]. PGNSD-78-18; B-165069. February 23, 1978. 9 pp. + 3 enclosures (18 pp.). Report to Pep. Butler Derrick, Chairman, rouse Cconittee on Budget: Budget Process Task Force; by Bluer E. Staats, Comptroller General. Issue Area: Accounting and Financial Reporting (2800). Contact: Financial and Generel management Studies Div. Budget Function: Miscellaneos: Financial management and Information Systems (1002). Organization Concerned: Department of Defense; Office of Banagement and Budget. Congressional Relevance: House Committee on Budget: Bodget Pzccess Task Force. Rep. Butler Derrick. Authority: P.L. 86-149, as amended. 65 Stat. 4. CMB Circular A-11. DOD Directive 7200.4. DOD Directive 7250. Under the full-funding concept, funds are provided at the outset for the total estimated ccst of an item. %be concept best applies to major procurements. As used ky the Department of Defense, however, it does not provide funding for an entire program in a given year. Instead, it provides for the full cost of funding the number of items for which procurement mill be initiated that year. The concept is economically advantageous for many operations and is applicable to most Federal agencies. The lack of full funding has resulted in delays and added costs in water resources projects. Office cf management and Budget (0RB) Circular A-li provides for full funding of all major procurement and construction programs. However, it provides for inclusion of anticipated future price increases for only certain multiyear programs. Some agencies may use different methodologies for costing out similar long-range programs. In order for the Congress to evaluate programs and allocate resources efficiently, demands for resources should be presented more consistently. Full funding can result in savings through multiyear leasing of automatic data processing equipment and sultiyear procurement. The Congress should provide full funding for certain types of procurement and projects and consider directing the ORB to initiate the design and procedures needed to consistently reflect full new budget authority requirements in budget requests for large, multiyear projects. (HTU) 1