DOD Financial Management: Actions Needed to Account for Army Ammunition at Contractor-Owned, Contractor-Operated Sites , September 4 , 2025
DOD Financial Management: Actions Needed to Account for Army Ammunition at Contractor-Owned, Contractor-Operated Sites , September 4 , 2025
From the report: "The Secretary of the Army (Army) is the single manager for conventional ammunition for the Department of Defense (DOD). Conventional ammunition includes items ranging from small arms cartridges to rockets, mortars, and artillery shells.
GAO focused its audit on Army ammunition held for repair and managed at contractor-owned, contractor-operated (COCO) sites. Of the approximately $41 billion in ammunitions the Army reported in its financial statement as of September 30, 2024, $966 million of it was held at COCO sites. The Army uses the Logistics Modernization Program (LMP) system to account for ammunition inventory held at these sites.
GAO found that the Army did not accurately record ammunition inventory information in its financial accounting records. For example, the Army did not have accurate information about which COCO sites held ammunition inventory during GAO’s audit. Further, based on the sample testing results, GAO estimated that the Army did not properly record in the LMP system approximately 95 percent of the selected records as of July 31, 2024. Specifically, GAO tested 94 Army ammunition records held at three COCO sites and found that the Army did not properly record 89 of the selected records, as shown below."
Authors - Government Accountability Office (GAO)Related Resources
