Regulations on War Reserve Material Not Followed

LCD-80-40: Published: Feb 28, 1980. Publicly Released: Feb 28, 1980.

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Various Defense, Army, and command regulations authorize the use of war reserve assets to satisfy urgent peacetime operating requirements providing such use is for high-priority requirements. GAO studied use of the secondary war reserve material at the Army Troop Support and Aviation Materiel Readiness Command (TSARCOM).

GAO identified three areas where regulations were not followed. About 25 percent of the requisitions filled with war reserve assets were for low-priority, peacetime requirements. War reserve stocks used to fill peacetime requisitions were not always replaced in a timely manner. It took an average of at least 167 days to replace the stock, well over the Army's goal of 120 days. The peacetime operating funds saved by using war reserve assets were not always reinvested in war reserve requirements. As a result, war reserve stock was used to supplement TSARCOM peacetime obligational authority. The manual blotter records which were to be used to record funds conserved by using war reserve assets were not properly maintained. GAO felt that the weaknesses identified in its study demonstrated the need to strengthen management controls. TSARCOM officials initiated corrective actions, but GAO was concerned that the problems might recur since there was no ready means of monitoring war reserve use on a continuing basis.

Recommendation for Executive Action

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Commanding General of the Army Materiel Development and Readiness Command (DARCOM) should: (1) require TSARCOM to either continue to prepare war reserve utilization reports or adopt alternative measures which will ensure that the weaknesses have been corrected; (2) bring the GAO findings to the attention of the other DARCOM commodity commands and have them determine if similar problems exist; and (3) continually monitor the use of war reserve assets at all commodity commands to ensure that such usage is only for urgent requirements and is stringently controlled.

    Agency Affected:

 

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