The Services Need To Improve Accuracy When Initially Assigning Demilitarization Codes

This report is one in a series of reports concerning the DoD Demilitarization DEMIL program. The audit objective was to determine whether the Services were properly evaluating DoD property and assigning accurate DEML codes when property enters the DoD supply system. We also determined whether the Defense Logistics Agency was validating the accuracy of DEMIL codes when property was sent to the Defense Logistics Agency after being identified as excess. The Services were not properly coding DoD property when initially registering items in the DoD supply system. Specifically, of the 33,364 DEMIL codes assigned during the 2-year period ending September 30, 2012, the DoD Demilitarization Coding Management Office determined that 8,872 codes were inaccurate. According to the DoD Demilitarization Coding Management Office officials, inaccurate coding still existed as of June 2014. The inaccurate coding occurred because personnel responsible for assigning DEMIL codes were not properly trained, no emphasis was placed on ensuring the codes were accurate when initially assigned, DoD and Service guidance did not clearly define the responsibilities and qualifications for the inventory control point DEMIL administrator position, and Service guidance lacked specific training requirements.