Accession Number : ADA298418
Title : Space Station: Status of Financial Reserves.
Corporate Author : GENERAL ACCOUNTING OFFICE WASHINGTON DC NATIONAL SECURITY AND INTERNATIONAL A FFAIRS DIV
PDF Url : ADA298418
Report Date : JUL 1992
Pagination or Media Count : 7
Abstract : As you requested, we are providing information on the financial reserves available to offset risks associated with the National Aeronautics and Space Administration's (NASA) Space Station Freedom program. In a May 1, 1991, testimony before your subcommittee, we stated our concern that the space station program was not maintaining adequate financial reserves to cover unanticipated contingencies commensurate with the high risk nature of this program. Our concern was based on the effects inadequate reserves could have on the overall success of the program, including reductions in program content, schedule delays, or cost growth. In testimony the following day, NASA stated that about 26 percent, or $4 billion, of the estimated cost to develop and operate the redesigned space station for fiscal year 1992 through fiscal year 1999 was financial reserves. NASA also noted that these reserves were adequate to cover unforeseen future contingencies. (KAR) P. 2
Descriptors : *FINANCIAL MANAGEMENT, *COST ESTIMATES, *SPACE STATIONS, HIGH RATE, RISK, GROWTH(GENERAL), COSTS, SCHEDULING, SPACE SCIENCES, DELAY.
Subject Categories : Economics and Cost Analysis
Distribution Statement : APPROVED FOR PUBLIC RELEASE