Navy Aviation Spare Parts Billing Transaction Issues
GAO-01-178R: Published: Jan 11, 2001. Publicly Released: Jan 11, 2001.
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During its review of the Navy's aviation spare parts billing transactions, GAO compared the prices that customers were billed for to the prices they should have paid according to the parts catalog maintained by the Naval Inventory Control Point-Philadelphia. GAO found thousands of transactions in which the customers' price did not match the catalog price. Also, thousands of additional transactions were discovered in which key information used to generate accurate customer bills was missing. On the basis of these findings, GAO concludes that the Navy may be incorrectly reporting its sales of aviation spare parts.
Recommendations for Executive Action
Status: Closed - Implemented
Comments: The Navy made changes implementing GAO's recommendation in May 2001.
Recommendation: Since in the vast majority of cases customers turn in a broken part and are billed the net price, the Navy Inventory Control Point-Philadelphia should set the billing default to the net rather than the standard price when the advice code is missing. Taking this action would decrease the number of bill reversals and thus reduce the additional work and resources required to issue reversals.
Agency Affected: Department of Defense: Department of the Navy: Naval Inventory Control Point
Status: Closed - Implemented
Comments: The Navy made changes implementing GAO's recommendation in May 2001.
Recommendation: The Navy Inventory Control Point-Philadelphia should flag those customer requisitions without an advice code and track those requisitions to ensure that customers are billed at the appropriate price.
Agency Affected: Department of Defense: Department of the Navy: Naval Inventory Control Point
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