Report | Feb. 24, 2016

The Army Did Not Fully Document Procedures for Processing Wholesale Equipment in Kuwait DODIG-2016-056


Objective:

The objective was to determine whether the Army had effective controls for processing equipment in Kuwait. This project relates to the overseas contingency operation, Operation Inherent Resolve, and was completed in accordance with the OIG’s responsibilities, as described in Section 8L of the Inspector General Act of 1978, as amended. This is the second in a series of audits on property accountability in support of Operation Inherent Resolve.

Findings:

Army Field Support Battalion (AFSBn)–Kuwait generally had effective controls for processing—receiving, repairing, maintaining, storing, and preparing for issue—equipment at Camp Arifjan; however, it did not update existing standard operating procedures for processing Army Pre-Positioned Stock equipment or formalize its procedures for processing retrograde equipment. This occurred because AFSBn–Kuwait relied upon experienced Department of Army civilians to provide guidance to receive, maintain, and issue equipment instead of reviewing the existing standard operating procedures to determine areas requiring updates and documenting procedures being used. As a result, oversight of processing and maintaining equipment could be done in an ad hoc manner as experienced personnel redeploy, increasing the risk that equipment is misreported to Army Sustainment Command, unaccounted for, or stolen. In the event of increased operational tempo for Operation Inherent Resolve, formal guidance for equipment processing is needed to ensure roles and responsibilities are established and equipment moving into and out of Camp Arifjan is properly accounted for and maintained.

During the audit, we also observed a lack of physical security controls for equipment stored in one location at Camp Arifjan. According to AFSBn–Kuwait officials, two generators, valued at $52,000, were stolen as a result of poor security at this lot. The Commander, 401st Army Field Support Brigade, has initiated actions to correct the deficiency.

Management Actions Taken:

During the audit, we advised the Commanders of the 401st Army Field Support Brigade and AFSBn–Kuwait that deficiencies in the controls for processing wholesale equipment existed. The Commanders agreed with our observations and immediately initiated steps to implement our suggested corrective actions. For example, AFSBn–Kuwait agreed to create new wholesale equipment standard operating procedures that will incorporate updated Army Pre-Positioned Stock procedures and establish retrograde procedures. AFSBn–Kuwait anticipated a completion date of March 1, 2016, for the standard operating procedures. The management actions taken addressed the concerns we identified; therefore, we are not making any additional recommendations.

This report is a result of Project No. D2015-D000JB-0266.000.