This report is the third in a series of DoD Office of Inspector General, Special Plans and Operations assessments regarding accountability and control of sensitive items transferred or being transferred to the Iraqi Security Forces (ISF). We performed the first assessment on accountability and control of munitions being transferred to the ISF in September and October 2007. The team returned to Iraq in April - May 2008 for a second assessment, this time to determine the status of the corrective actions undertaken based on the first report, and to review the Foreign Military Sales (FMS) program and the development of Iraqi logistics and medical sustainability. During the fieldwork, we discovered potentially significant weaknesses in the management of internal controls for NVDs by the U.S. military, and alerted the Commander, Multi-National Force-Iraq (MNF-I) and Commander, Multi-National Security Transition Command-Iraq (MNSTC-I), to those problems. We conducted he fieldwork for this third assessment in Iraq during October and November 2008. The team assessed the oversight and management of NVDs, and whether current accountability, control, and physical security concerning the distribution of NVDs provided to the ISF was adequate. In the course of our assessment, we reviewed the following areas: contracting and procurement, transportation and storage, U.S. issuance procedures, and the accountability and control support provided by the ISF.