	Background

CBSX provides worldwide asset visibility over the Army’s reportable equipment items, including the Army’s most critical war fighting equipment. As part of the validation process, CBSX compares these SPBS-R balances to CBSX balances, identifies discrepancies, and adjusts the CBSX balances to agree with SPBS-R. CBSX is adjusted to agree with SPBS-R because SPBS-R is the Army’s official accountable record. Scope and Methodology

To determine the primary causes for adjustments to correct discrepancies between CBSX and SPBS-R, we analyzed a statistically projectable sample of 150 adjustments from our sample universe of 32,649 adjustments. To determine if the Army’s improvement efforts adequately address the causes of CBSX errors, we reviewed and analyzed the Army’s plans and related documentation. Because of these software errors, CBSX (1) posted incorrect adjustments, (2) posted invalid transactions, or (3) did not post valid transactions. At the same time, the modifications being made under this improvement effort will not correct many of the causes of adjustments to CBSX that we identified. In particular, adjustments caused by transactions not received by CBSX, the largest problem, will not be corrected unless additional efforts are made. The CBSX Compatibility Rate Is an Incomplete Performance Indicator

The Army’s initiatives to improve CBSX discussed in the previous section are intended to help the Army achieve its management goal of a 98-percent compatibility rate, which the Army uses to measure the extent that CBSX and property book records agree. In addition, even if the compatibility rate measured all current differences between CBSX and unit property books, it does not serve as a complete indicator of CBSX accuracy. However, these changes do not address the primary cause of CBSX adjustments—transactions not received by CBSX. To improve the transaction audit trail and enhance unit understanding of CBSX reporting, we recommend that the Secretary of the Army ensure that
LOGSA update Army Regulation 710-3, Asset and Transaction Reporting System, to require units to (1) verify their confirmations of receipt and research and resolve any differences, (2) reconcile differences between property books and CBSX and investigate reasons for adjustments, (3) retain property book transaction records (including receipt confirmations) relating to CBSX to determine the causes of adjustments and support the reconciliation, (4) review the monthly reports they receive from LOGSA, and (5) follow up on transactions that were rejected by CBSX; the major commands require that all property book officers using SPBS-R, including those assigned to medical and Reserve units, successfully complete SPBS-R training; the Army Quartermaster Center and School revise the SPBS-R training to include how to analyze CBSX confirmations and monthly reports; the major commands enhance property book officer training by requiring ongoing and up-to-date CBSX training such as that provided by LOGSA’s annual CBSX conference or, alternatively, LOGSA videotape its annual CBSX conference and provide on-site training using this tape at Army units to train those unable to attend the CBSX conference; and
LOGSA establish a formal site visit program to conduct periodic assistance/training for property management personnel.
Why GAO Did This Study

Pursuant to a legislative requirement, GAO reviewed the Army's Continuing Balancing System-Expanded (CBSX) logistics system, focusing on: (1) the primary causes for the numerous adjustments to correct discrepancies between the Army's CBSX system and its primary property book system; (2) whether the Army's ongoing improvement efforts will correct the causes of these discrepancies; and (3) whether the Army's current method of assessing CBSX accuracy, referred to as the rate, is adequate.

What GAO Found

GAO noted that: (1) while the Army ensures that CBSX equipment balances accurately reflect the balances in its primary property book system twice a year, the Army does not identify the causes of adjustments made to CBSX balances to correct discrepancies; (2) GAO's analysis of the causes of CBSX adjustments has identified opportunities to correct process weaknesses and computer software problems that would reduce the number of adjustments and, consequently, increase the accuracy of CBSX throughout the year; (3) the Army does not have an effective process to ensure that equipment transactions from Army units are received by CBSX; (4) GAO's statistically projectable sample of adjustments made to CBSX to bring it into agreement with the Army's primary property book system, showed that over 40 percent of the adjustments were due to transactions not received by CBSX; (5) other reasons for adjustments included software errors and incorrectly posted transactions; (6) the lack of reconciliations performed between CBSX and unit property books, an outdated regulation, and incomplete training also were underlying factors that contributed to differences between CBSX and the primary property book system; (7) the Army's ongoing efforts to improve CBSX address some of the causes of adjustments such as those related to certain software errors and incorrectly posted transactions; (8) however, these efforts do not fully address property book transactions that were not received by CBSX, the largest cause of adjustments; (9) the Army also does not have an effective mechanism to measure CBSX performance; and (10) the Army-wide CBSX compatibility rate, the factor used to measure the extent to which CBSX and property book records agree, is overstated because it does not count all adjustments made to CBSX balances to correct discrepancies.