This is not a USO bash. The GAO is pointing to the DOD, specifically the AFE.
You go away.
USO response:
The General Accounting Office (GAO) issued a report in December entitled DOD Needs to Strengthen Internal Controls over Funds Used to Support USO Activities.
In auditing the Defense Department’s Armed Forces Entertainment (AFE) Office, GAO specifically identified the need for AFE to strengthen internal controls over funds used to support USO celebrity entertainment tours.
The period covered by the report addresses tours prior to Jan. 2002 and precedes the current USO management team. Changes had been made in accounting procedures related to celebrity entertainment tours prior to the GAO audit. But we welcomed the GAO audit and cooperated fully with GAO auditors. We also learned additional information about strengthening our accounting procedures related to these tours.
The USO also identified some problems with a contract employee in the entertainment division and moved the entertainment accounting function to full-time staff in our financial management office.
There was no improper behavior on the part of any of the entertainers involved with the tours cited in the GAO report and no evidence of malfeasance on the part of any employees.
Both AFE and the USO have taken steps to correct the weaknesses identified in the GAO report.
USO/AFE TOURS
The USO shares with AFE the financial responsibility for producing celebrity entertainment tours. This arrangement is beneficial to AFE as the USO can pay for expenses that the federal government is not authorized to cover. These expenses are related to transportation, production costs and lodging, and do not include talent fees. Each entertainer is paid a $50 per day honorarium.
Contrary to the recent article in the Los Angeles Times stating that the USO billed AFE for inappropriate travel expenditures, the USO does not bill AFE for travel-related charges. The travel agency handling bookings for the tours bills AFE. AFE is supposed to bill the USO for travel-related expenses that AFE is not authorized to cover (e.g., the difference between business-class and first-class travel). AFE failed to bill the USO for some of these expenses. Those excess charges have now been identified, validated and paid by the USO.
The non-travel related expenditures identified in this report were inappropriately submitted to AFE and had not been identified as such by the contract employee. These inappropriate charges also are in the process of being paid by the USO.
Only 20 percent of USO funds go toward entertainment tour expenses. The vast majority of USO funds are used for day-to-day expenses for USO centers around the world for services directly benefiting service members and their families.
MTV CONCERT
Regarding the MTV concert and TV special, all payments to MTV were accompanied by supporting documentation. Additional documentation was requested and submitted to AFE and GAO, and payment is no longer in dispute.
USO ENDOWMENT FUND
The only funds specifically appropriated to the USO are earmarked for the USO Endowment Fund. No congressional appropriations for the fund are used to support any USO operations, including celebrity entertainment tours. GAO confirmed this in the course of its audit.
1/22/04
link:
http://www.uso.org/pubs/8_29_7786.cfm