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This report discusses our review of the Army's accounting
and management controls over bulk fuel in Germany and Italy
We found significant weaknesses in the accounting for and
controls over fuel as it moves through the U S Army, Europe,
and Seventh Army (USAREUR) distribution system Corrective
actions promised by USAREUR officials and implementation of
the recommendations in this report should substantially
improve the situation
Our review was performed at 15 Army activities storing
and dispensing bulk fuel including 5 wholesale supply points
and 10 other retail supply and customer activities We talked
with responsible officials, reviewed regulations and documents,
and participated in taking physical inventories of fuel The
teview covered the period of operations from October 1977 to
February 1979
BACKGROUND
USAREUR activities in Germany receive bulk fuel--motor
gasoline, diesel fuel and jet propulsion fuel--through a system
of U S and NATO pipelines and storage terminals The fuel,
which is procured by the Defense Fuel Supply Center, is
delivered by Military Sealift Command tankers to the U S -owned,
French-operated petroleum terminal located near Donges, France
From there the fuel moves by pipeline across France to one of
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