Summary

GAO reviewed the Issue-in-Kind (IIK) system used by the Army Reserve and the National Guard to provide replacement clothing to their personnel, focusing on whether: (1) the Army implemented adequate controls over its IIK system; and (2) a monetary allowance system would be more efficient and economical.

GAO found that the Army Reserve and National Guard: (1) did not have adequate internal controls over the IIK system; (2) lacked criteria limiting the frequency of clothing replacements; (3) did not maintain centralized records of clothing issues; (4) did not ensure that personnel turned in old items when issued new ones; and (5) did not have adequate accounting procedures that properly identified replacement clothing costs. In addition, GAO found that: (1) a monetary clothing allowance would be more economical and efficient than the IIK system, since the Army could save $6.6 million annually in clothing costs due to the expected life of clothing items and the relatively few days a year during which reservists train; (2) an allowance would reduce the administrative work load for unit supply personnel; and (3) the Army could save at least $1.4 million annually if it discontinued operation of its 53 National Guard clothing issue points and used the active Army's supply system instead.