Department of the Army:

Unauthorized Activity Codes Used to Requisition New DOD Property

GAO-01-85R: Published: Dec 6, 2000. Publicly Released: Jan 4, 2001.

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This report focuses on the military's inventory management activities. Army activities and contractors are assigned activity codes to requisition property in the military supply system. Some of these codes are identified as "unauthorized" to requisition and are primarily used as a ship-to address. GAO found that 15 percent of Army activity codes identified as unauthorized to requisition were inappropriately used to requisition more than $2.6 billion in new government property during the past five years. These problems exist because activity coordinators are poorly trained or inexperienced. The Army also lacks internal controls to prevent such unauthorized requisitions.

Status Legend:

More Info
  • Review Pending-GAO has not yet assessed implementation status.
  • Open-Actions to satisfy the intent of the recommendation have not been taken or are being planned, or actions that partially satisfy the intent of the recommendation have been taken.
  • Closed-implemented-Actions that satisfy the intent of the recommendation have been taken.
  • Closed-not implemented-While the intent of the recommendation has not been satisfied, time or circumstances have rendered the recommendation invalid.
    • Review Pending
    • Open
    • Closed - implemented
    • Closed - not implemented

    Recommendations for Executive Action

    Recommendation: To correct these problems, the Secretary of Defense should direct the Secretary of the Army to verify whether the requisitioning authority for all Army activity codes is categorized accurately.

    Agency Affected: Department of Defense

    Status: Closed - Implemented

    Comments: The Department of the Army reconciled the Requisitioned Authenticity Code assigned to each Activity Address Code to verify that the codes were categorized accurately. In addition, the Army's activity address coordinators will verify an incoming requisition's authenticity code assigned to each activity address code under their purview, and will be held accountable for the need for all activity address codes within their span of control.

    Recommendation: To correct these problems, the Secretary of Defense should direct the Secretary of the Army to review procedures, including personnel training requirements, for assigning activity codes to ensure that assignments are appropriate, made in accordance with regulation, and routinely inspected to ensure compliance.

    Agency Affected: Department of Defense

    Status: Closed - Implemented

    Comments: The Logistics Support Activity has completed a 100 percent reconciliation of the Army's 51,297 activity address codes and made minor changes and deletions as necessary. The Army's policy has been changed to require an annual reconciliation between the Major Army Command American National Standard and the Logistics Support Activity database.

    Recommendation: To correct these problems, the Secretary of Defense should direct the Secretary of the Army to incorporate safeguards in appropriate databases to ensure that activity codes established as unauthorized to requisition are not used to requisition government property.

    Agency Affected: Department of Defense

    Status: Closed - Implemented

    Comments: DOD has reported that, for the appropriate databases, safeguards have been put in place to ensure that activity codes established as unauthorized will not be allowed to requisition material.

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