As of January 2003, Congress had provided a total of $38 billion to the Department of Defense (DOD) to cover emergency response costs related to the war on terrorism. Appropriated in different ways in FY2001, 2002, and 2003, these funds are meant to pay for expenses that DOD would not normally incur, such as contingency military operations and Pentagon building repairs. This report reviewed DOD’s management of emergency response funds, specifically: (1) DOD’s adherence to the Office of Management and Budget’s (OMB) guidance in managing funds and the sufficiency of DOD’s guidance on the use of these funds; and (2) DOD’s ability to track the use of emergency response funds in general. Tables and figures. This is a print on demand report.