The Special Inspector General for Iraq Reconstruction prepared the report for Sen. John Warner, R-Va., chairman of the Armed Services Committee, The New York Times reported.
The report concluded that the U.S. military did not record the serial numbers of thousands of pistols and hundreds of AK-47s distributed to Iraqis. That makes it impossible to determine if they ended up on the black market.
Stuart Bowen Jr., head of the inspector general's office, also prepared a report for Warner on whether the Iraqi government is capable of taking over logistical support for its military and police.
"There's a couple of red flags," Bowen said. "Most significantly, is the Iraqi Ministry of Interior properly preparing to take over the mission and sustain it? We don't know because we don't have adequate visibility into their budgeting, and to a lesser extent the same red flag is up for the Department of Defense."