Federal Manager's Daily Report

Air Force Staff Sgt. Jonathan Gies, a C-130 mobility readiness spares package supervisor with the 1st Special Operations Logistics Readiness Squadron, unravels a pallet at Hurlburt Field, Florida, July 12, 2018. The MRSP shop provides aircraft parts to several maintenance units to be used in daily operations. More than 20,000 parts are made available in support of exercises, training and special operations. (Air Force photo by Airman 1st Class Dennis Spain) Image: Air Force

DoD still is not fully tracking government property in the hands of contractors, 24 years after that issue was identified as a “material weakness,” an inspector general report has said, adding that the issue “continues to be an obstacle to the DoD and its components” achieving a clean financial audit.

It said that although DoD (also called Department of War) has a corrective action plan “that, if implemented, should enable the DoD to provide a complete and accurate balance of [those] assets, the actions to implement the CAP were ineffective.” That plan for example includes a system for tracking and reporting on such assets, but top-level management did not direct its use, the IG said, and components have not updated their systems to interface with it.

The report noted that “the DoD is required to maintain accountability and records” for property—such as test equipment, spare parts, and items under repair, maintenance or modification—“regardless of whether the DoD has physical custody of the assets.”

While such assets are not accounted for as a stand-alone line item in component balance sheets, it added, the DoD in 2014 estimated its value at $220 billion or more—a figure the GAO later said could be “significantly understated.” DoD has not updated the estimate since then “due to the ongoing material weakness and a lack of accuracy within the DoD’s accounting records,” it said.

It said that responsible offices at the DoD level and in the components except for the Army agreed with recommendations to require use of the tracking system and have component-level systems better interface with it; the Army had no comment.

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FERS Supplement vs The 10% Pension Bonus

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How Withdrawal Order Affects Taxes for Federal Retirees

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2026 FERS Retirement & Thrift Savings Plan Handbook