Foreign currency fluctuation allowances in Department of Defense acquisition appropriations

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93Dec_Ellsworth.pdf (2.49 MB)
Authors
Ellsworth, Charles S.
Subjects
Foreign currency exchange rates
Program Manager
Reprogramming
Advisors
Milligan, Richard D.
Moses, O. Douglas
Date of Issue
1993-12
Date
December 1993
Publisher
Monterey, California. Naval Postgraduate School
Language
en_US
Abstract
This thesis examines the nature and significance of foreign currency exchange rate fluctuation problems experienced within Department of Defense procurement programs. It also examines the establishment of foreign exchange rates and the methods currently used within the Department of Defense to deal with losses resulting from exchange rate fluctuations. The current system for budgeting and covering losses incurred from exchange rate fluctuation contains several inefficiencies which place unnecessary administrative burdens and costs on financial planners and program managers. The avoidance of foreign exchange rate fluctuation is not realistic, however, the improvement of current budgeting and managing processes can reduce inefficiencies and management costs. Possible improvements to the current system include the use of a three year weighted moving average exchange rate for annual budgets involving foreign currencies. The inclusion of procurement programs in the Foreign Currency Fluctuations, Defense appropriation or the creation of a Foreign Currency Fluctuations, Defense Procurement appropriation would provide foreign exchange rate fluctuation coverage for procurement programs.
Type
Thesis
Description
URI
https://hdl.handle.net/10945/39679
Series/Report No
Department
Financial Management
Organization
Naval Postgraduate School (U.S.)
Identifiers
NPS Report Number
Sponsors
Funder
Format
61 p.
Citation
Distribution Statement
Approved for public release; distribution is unlimited.
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.
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