Waste Awareness Saves Money

Government agencies have a reputation for wasteful spending.  As taxpayers, we are concerned over acts of waste.  As stewards of non-appropriated funds, we must all be educated on waste, which is part of the trio known as fraud, waste and abuse.

Waste was a hot topic following the President’s March 13, 2017, executive order to conduct a comprehensive plan for reorganizing the executive branch. Cleaning up the top office of government is a start to combating waste and sets the example for others to follow.

The Exchange is concerned with waste caused by mismanagement, inappropriate actions and inadequate oversight.

As a Department of Defense entity, the Exchange is concerned with waste caused by mismanagement, inappropriate actions and inadequate oversight. Commonly, waste does not involve a violation of law, but penalties do exist.

The Department of Defense Instruction 1015.15, Establishment, Management, and Control of Non-appropriated Fund Instrumentalities and Financial Management of Supporting Resources, states, “Non-Appropriated Funds (NAF) are entitled to the same protection as funds of the U.S. Treasury. NAF personnel are subject to the same penalties that govern the misuse of appropriations by Appropriated Funds personnel. Violations by military personnel are punishable under Chapter 47 of the Uniform Code of Military Justice.”

Mismanagement refers to actions by managers or supervisors that create a waste of funds. Staffing is a great example. Too many people on a shift can create a high expenditure for salary, but too few on a shift can cause a loss of sales. Managers must carefully make decisions to create balance and take actions designed to minimize wasteful costs.

Inappropriate actions refers to any action by an employee that creates waste. It covers a wide range of actions, such as using too many paper towels, leaving lights on when they should be off or knowingly disposing of usable materials. All Exchange employees have an impact on this type of waste.

Inadequate oversight refers to weak control systems. Oversight of contract management is key, where systems for estimating and billing, as well as others, can increase the risk of unallowable and unreasonable expenses.

Take action to practice sound ethics, comply with regulatory and other legal requirements. Identifying, reporting or eliminating waste of resources is everyone’s responsibility!

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