Army Management Controls Over Bulk Fuel in Germany and Italy

A review was made of the Army's accounting and management controls over bulk fuel in Germany and Italy. Army regulations require commanders to properly manage, control, and account for bulk fuels and to pursue aggressive policies for receiving, storing, issuing, and inventorying fuels. Additionally, they are required to promptly identify shortages and take prompt action to account for those exceeding allowable losses.

Although all activities authorized to store and dispense bulk fuels are required to exercise proper accounting for and control over the fuels, many instances were found where this was lacking. There were weaknesses in management controls over transactions and documents, and failure to record documents and to properly take physical inventories as well as a lack of knowledge on the part of personnel responsible for controlling fuels. Over 200,000 gallons of fuel were either unaccounted for or represented differences between recorded and physical inventories. In a number of instances, information was not readily available or the records were so inadequate that it could not be determined what should have been the recorded quantities. A majority of the activities reviewed did not have adequate equipment for taking physical inventories and the capacities of storage tanks did not have proper certifications. Clerical and procedural discrepencies which were noted may be indicators of systemwide weaknesses which could increase opportunities for fuel mismanagement and diversion.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: No director on record Team: No team on record Phone: No phone on record