The Air Force Equipment Management System Still Does Not Assure Control of Nonexpendable Equipment

NSIAD-83-20: Published: Jul 28, 1983. Publicly Released: Jul 28, 1983.

Additional Materials:

Contact:

Harry R. Finley
(202) 512-5187
contact@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

GAO reviewed how the Air Force Equipment Management System (AFEMS) accounts for nonexpendable equipment valued at over $15 billion.

Substantial amounts of proposed equipment purchases in the Air Force budget depend on AFEMS accuracy. To determine net requirements for its budget, the Air Force identifies gross requirements and subtracts equipment on hand. However, problems in accounting for that equipment hinder the Air Force's ability to accurately compute quantities of equipment to include in its budget. GAO concluded that, although the Air Force modernized AFEMS and tried to establish inventory baseline data for all assets, system weaknesses still limit assurances that requirements are based on accurate and complete information. Based on its review, GAO suggested that the Air Force may need to reconcile data and establish baselines for one equipment category at a time.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: The Air Force concurred with this recommendation and initiated various efforts to address it. After lengthy efforts, the Air Force, in 1987, successfully implemented an automated inventory system, known as the Equipment Management Accounting System, using LOGMARS technology, to improve the accuracy of the data reported to AFEMS.

    Recommendation: The Secretary of the Air Force should direct AFLC and the major commands to improve the accuracy of data reported to AFEMS by analyzing and correcting variances in specific problem areas, such as intransit equipment, onboard aircraft equipment, condemned equipment, and equipment procured outside of AFLC.

    Agency Affected: Department of Defense: Department of the Air Force

  2. Status: Closed - Implemented

    Comments: The Air Force concurred with this recommendation and initiated various efforts to identify specific actions necessary to satisfy this recommendation. Guidance and procedures to implement this recommendation have been provided. It is planned to eventually automate these procedures.

    Recommendation: The Secretary of the Air Force should direct AFLC to provide guidance and procedures to item managers for accounting for equipment under the new automated system. As a minimum, the guidance should: (1) identify the documents needed for manual reconciliations; (2) define acceptance levels of accuracy; and (3) prescribe how variances should be corrected.

    Agency Affected: Department of Defense: Department of the Air Force

  3. Status: Closed - Implemented

    Comments: The Air Force concurred with this recommendation and initiated several efforts to identify specific actions needed to validate field reported data. DOD IG determined that the Standard Base Supply System had been modified in such a way as to correct the problem. Although this action was not what GAO had recommended, it accomplished the intended objective of reducing and reconciling variances.

    Recommendation: The Secretary of the Air Force should direct AFLC to validate field-reported data through use of control files.

    Agency Affected: Department of Defense: Department of the Air Force

  4. Status: Closed - Implemented

    Comments: The Air Force concurred with this recommendation and initiated several efforts to identify specific actions needed to establish system controls. DOD IG determined that the Standard Base Supply System had been modified in such a way as to correct the problem. Although this action was not what GAO had recommended, it accomplished the intended objective of reducing and reconciling variances.

    Recommendation: The Secretary of the Air Force should direct the Air Force Logistics Command (AFLC) to establish system controls to reconcile equipment inventories from one period to the next and to report variances.

    Agency Affected: Department of Defense: Department of the Air Force

  5. Status: Closed - Implemented

    Comments: The Air Force conducted a study to validate the systems that provide data to the requirements computation system. The study identified 34 problems. After many time-consuming changes to various software programs and system interfaces, the last of the problems were corrected by April 1988.

    Recommendation: The Secretary of the Air Force should bring to bear the necessary management attention and resources to reestablish control over Air Force equipment on hand to help ensure accurate computation of future equipment requirements.

    Agency Affected: Department of Defense: Department of the Air Force

  6. Status: Closed - Implemented

    Comments: The Air Force implemented procedures to require every base equipment custodian, at least annually, to ensure that inventory records are accurate.

    Recommendation: The Secretary of the Air Force should: (1) restate Air Force policy on the need for, and frequency of, physical inventories; and (2) direct that base commanders perform physical inventories and make timely adjustments to reported data.

    Agency Affected: Department of Defense: Department of the Air Force

 

Explore the full database of GAO's Open Recommendations »

Jul 21, 2016

Jun 23, 2016

May 12, 2016

Apr 14, 2016

Mar 4, 2016

Oct 30, 2015

Sep 9, 2015

Aug 17, 2015

Jul 9, 2015

Apr 27, 2015

Looking for more? Browse all our products here