Y2K, financial management woes plague DOD

Weaknesses in financial management practices and in the use of financial computer systems pose the top challenge to better performance at the Defense Department, according to a General Accounting Office report released last month.

The report, part of GAO's series on "Major Management Challenges and Program Risks," also highlights the Year 2000 problem and information security as key areas that threaten improved operations at the department.

GAO also reported that information technology problems overall remain a major challenge to a more effective DOD. "[DOD] faces a major change in its current organizational structure and culture, which impedes oversight and coordination of information resources from a departmentwide perspective," the report states. "Accordingly, we are continuing to designate DOD's information technology project management efforts as high-risk."

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