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2019 spring report – reporting item No. 10 "Federal Armed Forces failed to keep their promise of billing logistics services provided to third parties"

Apr 02, 2020

The Federal Armed Forces provide logistics services to third parties but still do not ensure systematic billing of these services. They did not comply with their commitments made to parliament.

In 2007 and again in 2014, the Federal Ministry of Defence promised parliament to review invoicing of logistics services provided to foreign units, authorities and civilian recipients and to ensure prompt and accurate billing of all services. Until the time of our audit, the Federal Armed Forces had lacked an overview of the logistics services provided to third parties. Also, the Ministry had not improved the billing of such services thus tolerating budget losses. In 2019, services provided in the two preceding years amounting to €2.5 million had not been billed. Outstanding receivables totalling €0.6 million even went back as far as 2009. As soon as possible, the Federal Armed Forces should develop an overview of the logistics services provided to third parties, improve the billing procedure and avoid budget losses.

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