Spare parts, sparer accounting

The Defense Department reports that a shortage of spare parts has caused a decline in military readiness. Yet because of incomplete financial data, auditors could not determine how much of the $1.1 billion appropriated for spare parts was actually spent for that purpose.

According to a General Accounting Office report issued in June, DOD allocated 92 percent of the money for spare parts into the military services' operation and maintenance account.

However, DOD's financial management system "does not show the extent to which this funding was used for spare parts," according to the report.

Once the funds are in those accounts, DOD does not routinely track the amount of funds used for spare parts. "They could have been used for a variety of purposes, including spare parts," the GAO report said.

The report shows the importance of having good financial records, said Greg Kutz, GAO's director of financial management and assurance. There is a lot of concern about giving an organization money if they don't know where they are spending it.