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GAO-01-196R 1 (2001-01-08)

handle is hein.gao/gaobaalro0001 and id is 1 raw text is: im Accountability * Integrity * Reliability United States General Accounting Office Washington, DC 20548 January 8, 2001 The Honorable Duncan L. Hunter House of Representatives Subject: Department of the Air Force: Unauthorized Activity Codes Used to Requisition New and Excess DOD Property Dear Mr. Hunter: This letter is part of our continuing effort to address inventory management activities within the Department of Defense (DOD) as a high-risk area.' We recently reported that the Army used unauthorized activity codes2 to requisition over $2.6 billion in new government property and $100 million in excess government property over the past 5 years. As a consequence, this property was vulnerable to fraud, waste, and abuse. Subsequently, you asked that we determine whether the other military services and other federal agencies maintained activity codes that were unauthorized to requisition and, if so, whether any of these codes were used to requisition new and excess government property. As discussed with your office, this letter focuses on the U.S. Air Force's use of unauthorized activity codes from January 1995 to June 2000. We have reported separately on our investigations of whether the U.S. Navy and the General Services Administration used activity codes classified as unauthorized to requisition new and excess government property. Scope and Methodology We interviewed Air Force service point personnel and obtained a list of Air Force activity codes identified as unauthorized to requisition. We provided the codes to the Defense Automatic Addressing System Center and the Defense Reutilization and Marketing Service to determine whether any had been used to requisition new and 'In 1990, we began a special effort to review and report on the federal program areas we identified as high risk because of vulnerabilities to fraud, waste, abuse, and mismanagement. This effort, supported by the Senate Committee on Governmental Affairs and the House Committee on Government Reform, resulted in a much-needed focus on problems that were costing the government billions of dollars. We identified DOD's inventory management as a high-risk area at that time because levels of unneeded inventory were too high and systems for determining inventory requirements were inadequate. 2Department of the Army: Unauthorized Activity Codes Used to Requisition New DOD Property (GAO- 01-85R, Dec. 6, 2000) and Inventory Management: Better Controls Needed to Prevent Misuse of Excess DOD Property (GAO/OSI/NSIAD-00-147, Apr. 28, 2000). 3 Department of the Navy. Unauthorized Activity Codes Used to Requisition New and Excess DOD Property (GAO-01-206R, Jan. 8, 2001) and General Services Administration: Unauthorized Activity Codes Used to Requisition New and Excess Government Property (GAO-01-221R, Jan. 8, 2001). GAO-01-196R Air Force Unauthorized Activity Codes

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