Financial Management: Ordnance Accountability at Fleet Combat Training Center Atlantic (D-2003-084)

Abstract : Navy officials and commanders responsible for accountability of ordnance assets should read this report. It discusses controls over ordnance inventory that are necessary for accurate reporting of financial, logistical, and operational data. The audit was performed in support of Public Law 101-576, the "Chief Financial Officers Act of 1990," November 15, 1990, as amended by Public Law 103-356, the "Federal Financial Management Act of 1994," October 13, 1994. This report is the third report in a series resulting from an audit of the financial reporting of operating materials and supplies. The first report discusses the Naval Air System Command's financial reporting of non-ordnance operating materials and supplies. The second report discusses Navy efforts to improve the financial reporting of its conventional ordnance portion of operating materials and supplies and its conventional ordnance information system. This report addresses the accountability of ordnance assets at the Fleet Combat Training Center Atlantic (FCTCLANT), which was one of the sites selected for review as part of a Navy-wide statistical sample of Navy ordnance storage facilities. A review of 20 FCTCLANT ordnance inventory records found 13 to be inaccurate. This occurred because personnel at FCTCLANT did not perform annual physical inventories, magazine-to-record reviews, and periodic record-to-record reconciliation. As a result, FCTCLANT ordnance data reported as part of Navy financial statements and in logistic and operational systems databases were unreliable. To correct the reported problems, the Commander, FCTCLANT should request that Naval Ammunition Logistics Center personnel perform an Ammunition Management Accountability Review (AMAR) to ensure that inventory accountability policies are met. The Commander also should conduct physical inventories, magazine-to-record location surveys, and periodic reconciliation of local property records to the Navy master property record,