Military Services' Accountability and Management Controls Over Fuel

LCD-79-210: Published: Mar 28, 1979. Publicly Released: Mar 28, 1979.

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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.

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