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<classification authority="sudocs">GA 1.13:NSIAD-97-175</classification>
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 <subject>Missiles</subject>
 <subject>Military inventories</subject>
 <subject>Terrorism</subject>
 <subject>Inventory control systems</subject>
 <subject>Logistics</subject>
 <subject>Facility security</subject>
 <subject>Larceny</subject>
 <subject>Weapons</subject>
 <identifier>Stinger Missile</identifier>
 <identifier>Dragon Missile</identifier>
 <identifier>Javelin Antitank Weapon</identifier>
 <identifier>C-4 Explosive</identifier>
 <identifier>Redeye Missile</identifier>
 <identifier>AT-4 Weapon System</identifier>
 <identifier>Desert Storm</identifier>
 <identifier>Bofors Infantry Light and Lethal Antitank Weapon</identifier>
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 <title>Inventory Management: Vulnerability of Sensitive Defense Material to Theft</title>
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<abstract>Pursuant to a congressional request, GAO reviewed the actions taken by
the Department of Defense (DOD) to correct weaknesses cited in GAO&apos;s
September 1994 report on the military services&apos; most sensitive category
I missiles and to determine if problems still remained. GAO also
reviewed DOD&apos;s oversight of category I rockets and the vulnerability of
category I missiles and rockets and category II grenades, mines, and
explosives to theft from U.S. military arsenals by terrorists or
extremists.&lt;p/&gt;GAO noted that: (1) DOD has taken actions to improve the oversight of
category I handheld missiles; (2) it conducted a worldwide inventory of
handheld missiles; established a new baseline inventory count as of
December 31, 1994; and implemented procedures to track changes to the
baseline; (3) DOD also established procedures to check containers to
ensure that each had a missile and verify serial numbers; (4) DOD
reemphasized physical security procedures to be followed at its
facilities; (5) despite DOD&apos;s progress toward better oversight of
handheld missiles, some weaknesses remain; (6) adjustments continue to
be made to the baseline as additional missiles are located and errors
are discovered; (7) discrepancies still exist between records of the
number of missiles and GAO&apos;s physical count; (8) the missiles may be
vulnerable to insider theft because DOD is not always selecting a
representative sample of containers to be opened during maintenance
checks; (9) some facilities are not fully complying with DOD physical
security requirements; (10) although GAO was able to match the physical
count of AT4 and light antitank weapon (LAW) rockets at each site
visited with the item manager&apos;s records, GAO also found oversight
weaknesses with the category I rockets; (11) the Marine Corps reported
three AT4 rockets missing from shipments returning from the Gulf after
Operation Desert Storm; (12) the Naval Criminal Investigative Service
reached no conclusions on whether the rockets were missing, lost, or
stolen, and the investigations were closed; (13) the services have
different procedures and requirements for maintaining oversight of the
rockets; (14) DOD&apos;s accounting and related systems, including its
logistics systems, are not integrated; (15) in accordance with the Chief
Financial Officer&apos;s (CFO) Act of 1990, each agency is to establish an
integrated financial management system; (16) establishing an integrated,
general ledger controller system, which ties together DOD&apos;s accounting
systems with its logistics and other key management systems, is critical
if DOD is to effectively ensure oversight and control over its sensitive
material; (17) GAO did not find any documentation that terrorists or
other extremists had stolen any category I handheld missiles or rockets
or category II munitions or explosives from DOD arsenals; (18) some
weapons continue to be vulnerable to insider theft as quantities of
various category II items have been stolen by uniformed or DOD
civilians; and (19) DOD and intelligence sources did not have any
indication that the stolen items were intended for terrorists.</abstract>
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<identifier type="preferred citation">GAO/NSIAD-97-175</identifier>
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<note>Letter Report</note>
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<subject>
 <topic>Missiles</topic>
 <topic>Military inventories</topic>
 <topic>Terrorism</topic>
 <topic>Inventory control systems</topic>
 <topic>Logistics</topic>
 <topic>Facility security</topic>
 <topic>Larceny</topic>
 <topic>Weapons</topic>
 <topic>Stinger Missile</topic>
 <topic>Dragon Missile</topic>
 <topic>Javelin Antitank Weapon</topic>
 <topic>C-4 Explosive</topic>
 <topic>Redeye Missile</topic>
 <topic>AT-4 Weapon System</topic>
 <topic>Desert Storm</topic>
 <topic>Bofors Infantry Light and Lethal Antitank Weapon</topic>
</subject>
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