Management of Canceling Funds

Abstract

This report takes an in-depth look at the Department of Defense’s (DOD) management of canceling funds. As the national debt pushes past $31 trillion, the way and manner in which funds are budgeted and managed will increasingly become more scrutinized. Is the Department of Defense handling canceling funds in the most effective manner to best serve the warfighter, taxpayer, and industry partners? Representing 48.5% of all the federal canceled funds, it is vital for the DOD to understand why so much funding is canceling, the impact of canceled funds, and how to implement a cost-effective strategy to get the best use out of appropriated funds. Analysis includes review of relevant funding laws and regulations, Government Accountability Office and DOD reports, strategies and results broken down by agency, and research and briefings provided by stakeholders across the DOD. Recommendations based on this analysis will ultimately include a push for extending the expired phase to eight years, the establishment of a unified DOD strategy on canceling funds, and implementation of a DOD funds tracking tool.