Inventory Management:

Problems in Accountability and Security of DOD Supply Inventories

NSIAD-86-106BR, May 23, 1986

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In response to a congressional request, GAO summarized the results of its review of inventory management practices within the Army, Air Force, Navy, Marine Corps, and Defense Logistics Agency (DLA) supply systems, specifically: (1) receipt confirmation; (2) records accuracy; (3) inventory tracking; (4) reconciliation and research of inventory discrepancies; (5) retail activities' controls over inventory; and (6) physical security.

GAO found that: (1) most of the problems in inventory management practices have existed for years; (2) the services need to correct the root causes of their repetitive problems; (3) the services and DLA are consistently inaccurate in inventory records and physical inventory adjustments; and (4) lack of adequate security results in the potential for theft, waste, and misplacement. GAO also found that supply shortages must be corrected before measures can be taken to implement adequate accountability procedures.