Magazine article National Defense

Watchdog Finds High Carryover at Navy Depots

Magazine article National Defense

Watchdog Finds High Carryover at Navy Depots

Article excerpt

* Budget carryover at Navy maintenance depots has regularly exceeded allowable amounts over the past decade, raising the possibility that congressional appropriators will cut funding for the repair yards, the Government Accountability Office found.


The Navy operates three fleet Readiness Centers in Cherry Point, North Carolina, Jacksonville, Florida and San Diego, California, which are supported by the Navy Working Capital Fund. The facilities repair aircraft, engines and components, and manufacture parts and assemblies.

"Work completed at the FRCs ensures that deployed and next-to-deploy units have the battle-ready items needed to train and fight in current and future military operations," the GAO said in a June report to Congress titled, "Budgeting for Carryover at Readiness Centers Could Be Improved."

Budget carryover occurs when FRC work has been ordered and funded by military customers but has not been completed by the end of the fiscal year in which the work was slated to be performed. The Defense Department has a formula based on new orders received from customers that sets the amount of carryover allowed.

"The congressional defense committees have recognized that some carryover is appropriate to facilitate a smooth flow of work during the transition from one fiscal year to the next," GAO said in the report. …

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