Summary: GAO evaluated the Army's internal controls for managing equipment worth a reported $117 billion as of September 1992. The Army did not keep reliable information on the types, quantities, and locations of its equipment, potentially impairing the distribution, the deployment, and the readiness of these items and wasting resources. Equipment balances fluctuated for reasons no one could explain, differed from records kept by the units in possession of the equipment, and contained large amounts of equipment in transit between units. Even if the Army corrected these problems, it would still lack accurate information because units did not record equipment promptly or accurately. In addition, units did not complete physical counts that could have spotted erroneous balances, Army regulations did not ensure that the data posted to unit level records were accurate, and measures to ensure that units complied with existing regulations had not been widely implemented. The upshot is that the readiness of personnel and weapon systems may be impaired and that units had no guarantee that equipment was protected from loss and was being used as authorized.
