Program Transition Met Statutory Requirements

The transition of the CMP from the Army to the Corporation was completed on September 30, 1996, in accordance with the Corporation for the Promotion of Rifle Practice and Firearms Safety Act. The Secretary of the Army transferred (1) all property under the control of the Director of Civilian Marksmanship, the Civilian Marksmanship Support Detachment, and the National Match Fund, including office equipment, targets and frames, vehicles, supplies, and appliances; (2) control of the leased property that had been occupied by the Civilian Marksmanship Support Detachment in Port Clinton, Ohio; and (3) all funds available from sales programs and fees to the National Board for the Promotion of Rifle Practice and all funds in a nonappropriated fund account known as the National Match Fund. Corporation Policies Inadequate, and Procedures to Ensure Firearms Sales Comply With the Act Not Followed

The Corporation has not routinely ensured that its sales of firearms to individuals complied with the requirements of the 1996 act. The Corporation obtained background investigations from the Defense Security Service (DSS). Most of the support provided (more than $9.9 million) was specifically authorized by the 1996 act to be provided on a nonreimbursable basis. In addition, according to Corporation officials, as of September 30, 1998, DOD had provided more than $1 million in support for which it was reimbursed. The 1996 act does not specifically refer to other DOD support that is being provided without reimbursement. The Secretary of the Army did not issue regulations relating to the logistical support to be provided to the Corporation and reimbursement for that support as required by the act. Some Army officials responsible for providing support told us they were unsure of what support they should be providing to the Corporation and how to arrange for reimbursement of expenses. Army Transferred Firearms to the Corporation and Holds More for Potential Future Transfer

As of September 30, 1998, the Army transferred more than 56,000 firearms to the Corporation. At transition, the Army transferred to the Corporation all of the required firearms except those at Anniston. As of September 30, 1998, the Army was storing more than 230,000  M1 Garands, over 35,000 .22 caliber rifles, and over 4,000 other firearms at Anniston for potential transfer to the Corporation. At that time, the Army and the Corporation were negotiating a new memorandum of understanding that could make these firearms available to the Corporation. However, Army officials told us that some of these firearms were not at Anniston under CMP control on February 9, 1996. Should the Army decide to transfer firearms from Anniston that were not under CMP control on February 9, 1996, legislative authority other than section 1615 of the act will be needed. Our randomly selected sample of Corporation sales records for three types of firearms sold to individuals showed that the Corporation sold firearms without adhering to its procedures designed to ensure that purchasers had not been convicted of felonies, were U.S. citizens, and were members of a CMP-affiliated club. To determine the types and number of firearms the Army transferred to the Corporation and has stored for potential transfer, we reviewed the supporting workpapers to the Army report on the assets held by the CMP before the program’s transition, Army records of transfers, and Army and Defense Logistics Agency inventory records.
Why GAO Did This Study

Pursuant to a congressional request, GAO reviewed the Corporation for the Promotion of Rifle Practice and Firearms Safety's administration of the Civilian Marksmanship Program (CMP), focusing on: (1) whether CMP's conversion to a private corporation and the Corporation's subsequent firearms sales were conducted in accordance with the 1996 National Defense Authorization Act; (2) the types and value of federal support provided to the Corporation; and (3) the types and number of firearms the Army transferred to the Corporation and was storing for potential transfer.

What GAO Found

GAO noted that: (1) the Army and the Corporation completed the transition of the CMP to the Corporation on September 30, 1996, in accordance with the 1996 act; (2) the Corporation has not routinely ensured that it complied with the requirements of the 1996 act in its firearms sales to individuals; (3) GAO estimates that the Corporation sold between 1,200 and 2,200 M1 Garand rifles without adhering to its own procedures that were designed to ensure that the purchasers were not convicted of felonies, were U.S. citizens, and were members of a Corporation-affiliated club; (4) the Army and other defense agencies had provided more than $19 million in support to the Corporation as of September 30, 1998; (5) for support provided on a reimbursable basis, Corporation officials told GAO the Corporation reimbursed the Army and other defense organizations more than $1 million; (6) additional support, including obtaining background investigations of prospective gun buyers, was provided to the Corporation at a cost of more than $440,000 but was not specifically referred to in the act and was not reimbursed by the Corporation; (7) the Secretary of the Army has not prescribed regulations relating to the logistical support to be provided to the Corporation and reimbursement for that support, even though the 1996 act required the Secretary to do so; (8) several Army officials told GAO they were uncertain as to what support they should be providing and how to arrange for reimbursement from the Corporation for expenses incurred by the Army; (9) as of September 30, 1998, the Army had transferred more than 56,000 firearms to the Corporation; (10) at transition, the Army transferred to the Corporation all of the required firearms except those at Anniston Army Depot; (11) as of September 30, 1998, the Army was storing more than 230,000 M1 Garands, over 35,000 .22 caliber rifles, and more than 4,000 other firearms at Anniston for potential transfer to the Corporation; (12) at that time, the Army and the Corporation were negotiating a new memorandum of understanding that would make any of these firearms that were surplus to Army requirements available for transfer to the Corporation; (13) Army officials told GAO that some of these firearms were not at Anniston under CMP control on February 9,1996; and (14) should the Army decide to transfer firearms that were not under CMP control on February 9, 1996, legislative authority other than section 1615 of the act would be needed.