GAO Cites Army's Sloppy Record Keeping

By ELISABETH GOODRIDGE, Associated Press WriterWed Dec 28, 2:52 PM ET

The Army can't account for $68 million in parts and tools shipped to contractors for repairs in 2004 because it doesn't demand receipts, congressional auditors said Wednesday.

"Although the (Defense Department) policy requires the military services to confirm receipt of all assets shipped to contractors, the Army is not consistently recording shipment receipts in its inventory management systems," the Government Accountability Office said in a 34-page report.

In earlier audits, the GAO found a similar lack of basic accounting oversight with Navy and Air Force parts and tool shipments.