Military Services' Accountability and Management Controls Over Fuel
LCD-79-210, Mar 28, 1979
A review of management controls over fuel supplied by the Defense Logistics Agency in Korea and the Philippines was conducted. Controls over selected fuel shipments were tested, responsible officials were interviewed, regulations and documents were reviewed, and physical inventories of fuel were conducted.
GAO identified a lack of control, accountability, and weaknesses in management controls over transactions and documents used to support monthly reports. At one site surveyed, 465,000 gallons of fuel were identified which were not accounted for when an attempt was made to reconcile fuel receipts and issues with inventories. Inventory records did not accurately reflect quantities of fuel onhand because they were not current. In addition, personnel failed to record or improperly measured receipts; used improper inventory taking procedures; and allowed fuel control to be altered without appropriate explanation.
- Review Pending
- Closed - implemented
- Closed - not implemented
Recommendation for Executive Action
Recommendation: In view of significant gains that resulted from both Army and GAO reconciliations, the Department of Defense should require division commanders in other military departments and agencies to investigate and review gains as well as losses that exceed the prescribed tolerance, and activities be audited internally to ensure that corrective actions agreed to by agencies are implemented effectively. To improve accountability over in-transit fuel, the Secretary of Defense should direct that the system and procedures require that title of and accountability remain with the Defense Fuel Service until receipt and acceptance by the military departments or activities. The Secretary of the Army should revise the Army's system and procedures to establish controls that would require an accurate accounting for and maintenance of all receipt and issue documents from initial receipt of fuel to ultimate issue to the user; and require that all personnel responsible for the receipt, accounting for, or control of fuel receive adequate training in the techniques for taking inventory, preparation and maintenance of documentation, and preparation of reports.
Comments: Please call 202/512-6100 for additional information.