Figure 1: Example of DOD's Long Line of Accounting

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Figure 1: Example of DOD's Long Line of Accounting - Cont

annually in reduced processing costs. Two key areas where DOD needs to

focus its efforts are (1) better using available technology by developing

seamless, fully integrated payment systems and (2) streamlining and

simplifying, to the extent practical, its payment processes.

Detailed Accounting

Let me give a few examples of the detailed accounting requirements that

Requirements Are a Burden on

DFAS payment personnel are faced with when paying a bill. These

Payment Process

examples clearly suggest the need for simplification.

DOD uses what is called a "long line of accounting" to accumulate

appropriation, budget, and management information for contract

payments. For all contracts, the buying activity assigns a two-character

code called an accounting classification reference number (ACRN) to each

accounting line containing unique information. Figure 1 is an example of

an accounting line--the type and quantity of information varies among the

services.

Figure 1: Example of DOD's Long Line of Accounting

Source: DOD.

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GAO/T-NSIAD-99-193