Pentagon Admits Losing $1 Billion of Weapons In Iraq, In Addition To the Trillions of Dollars Missing

[SEE: Pentagon Claims That It Has “Lost” Over $18 Trillion, Which Probably Paid Foreign Army Payrolls]

Audit Report

09-14-2016
Equipping and Training Iraq and Afghan Security Forces
The Army Did Not Implement Effective Controls To Maintain Visibility and Accountability of Iraq Train and Equip Fund Equipment (Project No. D2016-D000JB-0104.000)
DODIG-2016-134
Click the following link to view the redacted version of this report:  http://www.dodig.mil/FOIA/err/DODIG-2016-134.pdf

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Objective

We determined whether the Army had effective controls for processing and transferring Iraq Train and Equip Fund (ITEF) equipment to the Government of Iraq. This is the third in a series of audits on property accountability in support of Operation Inherent Resolve.

ITEF, created by the FY 2015 National Defense Authorization Act, assists the Government of Iraq to combat the Islamic State of Iraq and the Levant. Examples of ITEF equipment provided to the Government of Iraq include body armor, navigation sets, magazine pouches, ambulances, and cargo trucks.

Findings

Army commands documented procedures for processing and transferring ITEF equipment to the Government of Iraq. However, the 1st TSC did not have effective controls to maintain complete visibility and accountability of ITEF equipment in Kuwait and Iraq prior to transfer to the Government of Iraq. Equipment visibility provides users with equipment location, movement, and status. Army Regulation 735-5 states that all property acquired by the Army will be continuously accounted for from the time of acquisition until the ultimate consumption or disposal of the property. However, the 1st TSC could not provide complete data for the quantity and dollar value of equipment on hand, including rolling stock and ammunition. Rolling stock refers to vehicles. Examples include Mine Clearance Systems, ambulances, and wrecker trucks. The 1st TSC did not have effective controls because it did not use centralized systems to maintain visibility and accountability of ITEF equipment. Instead, the 1st TSC relied on multiple spreadsheets developed by different commands in both Kuwait and Iraq to provide it with visibility and accountability of equipment and did not consistently account for equipment in Iraq.

As a result, the 1st TSC did not have accurate, up-to-date records on the quantity and location of ITEF equipment on hand in Kuwait and Iraq. Accurate, up-to-date records of equipment on hand in Kuwait and Iraq are critical for filling equipment requests. The process to contact multiple commands and reference multiple spreadsheets to determine equipment quantities and location could delay the fulfillment of a request or delay the development of future requests. In addition, not having accurate records of equipment on hand could result in duplicate equipment requests. Further, the use of manually populated spreadsheets increased the risk for human-error when inputting and updating equipment data.

Recommendation

We recommend that the Commander, 1st Theater Sustainment Command, use automated systems to account for and provide complete visibility of Iraq Train and Equip Fund equipment.

Management Actions Taken

During the audit we informed the Deputy Commanders, 1st TSC and Combined Joint Forces Land Component Command–Operation Inherent Resolve; the Commander, 336th Combat Sustainment Support Battalion; and officials from the Combined Joint Task Force–Operation Inherent Resolve of the lack of centralized visibility and accountability systems for ITEF equipment.

The Deputy Commander, 1st TSC, agreed with our findings and immediately initiated steps to implement corrective actions. As a short-term solution, 1st TSC developed a centralized equipment visibility tracker. The tracker, located on a shared drive, allowed the 1st TSC and commands associated with the ITEF program to have a centralized system to track ITEF equipment on hand at multiple locations and make changes to the tracker when ITEF equipment was processed through their locations. As a long‑term solution, 1st TSC is working towards using Army visibility and accountability systems to further increase its visibility and accountability of ITEF equipment. The Deputy Commander, 1st TSC, anticipates full use of the systems in late 2016. The management actions taken addressed the concerns we identified; therefore, we are not making any additional recommendations.

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