[Accounting for Reports of Discrepancy Under Foreign Military Sales Program]

The Army requested a decision regarding whether it should charge Foreign Military Sales (FMS) administrative funds or the Army Stock Fund for FMS customer claims of non-receipt of materiel that the Army could not document that it shipped. GAO concurred with the Defense Security Assistance Agency's (DSAA) conclusion that the Army Stock Fund should bear the expense, since: (1) DSAA issued the applicable regulation regarding use of appropriated funds; and (2) the DSAA interpretation was not plainly erroneous or inconsistent with the regulation. Accordingly, the Army should charge the claims to the Army Stock Fund.