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DEPUTY SECRETARY OF DEFENSE 1010
DEFENSE PENTAGON |
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DEPUTY SECRETARY OF DEFENSE 1010
DEFENSE PENTAGON |
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14 JAN 1998
MEMORANDUM FOR |
SECRETARIES OF THE MILITARY DEPARTMENTS CHAIRMAN OF THE JOINT CHIEFS OF STAFF UNDER SECRETARIES OF DEFENSE DIRECTOR, DEFENSE RESEARCH AND ENGINEERING ASSISTANT SECRETARIES OF DEFENSE GENERAL COUNSEL OF THE DEPARTMENT OF DEFENSE INSPECTOR GENERAL OF THE DEPARTMENT OF DEFENSE DIRECTOR, OPERATIONAL TEST AND EVALUATION ASSISTANTS TO THE SECRETARY OF DEFENSE DIRECTOR, ADMINISTRATION AND MANAGEMENT DIRECTORS OF THE DEFENSE AGENCIES DIRECTORS OF THE DOD FIELD ACTIVITIES |
SUBJECT: Department of Defense Reform Initiative Directive #19 – Transfer of the Defense Property Accountability System to the Defense Logistics Agency
Effective January 26, 1998, responsibility for the oversight, control, and management of the day-to-day operations of the Defense Property Accountability System (DPAS) will transfer from the Office of the Under Secretary of Defense (Comptroller) to the Defense Logistics Agency. I request that the Under Secretary of Defense (Comptroller) and the Director, Defense Logistics Agency effect an orderly transition of the DPAS and ensure that all appropriate personnel, financial and contractual actions as may be necessary are accomplished in a timely manner.
The General Accounting Office (GAO) recently reported that DPAS, as functionally designed, provides financial control and generates information to account for most general property, plant and equipment. However, the GAO disclosed discrepancies in how the Department of Defense (DoD) Components manage and account for property. If not addressed, these issues could cause a delay in deploying DPAS throughout the Department. To correct this problem, the GAO proposed that the Department establish a single property accountability concept of operations document.
Since the property accountability function has significant impact on the DoD financial statements, I am assigning the responsibility for drafting this document jointly to the Office of the Under Secretary of Defense (Comptroller) and the Defense Logistics Agency. I expect the assistance and cooperation of all DoD organizations in this critical effort. The document should be completed no later than May 29, 1998.
Additionally, the GAO made other recommendations that need to be addressed. In this regard, I ask that the Under Secretary of Defense (Comptroller) work with the Director, Defense Logistics Agency to ensure that those recommendations also are resolved in a timely manner. I expect each DoD Component to continue to provide the Office of the Under Secretary of Defense (Comptroller) and the Defense Logistic Agency their full support, and to implement required actions aggressively.
 John J. Hamre |
