Summary: 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.
