Inventory Management: Receipt Confirmation Problems
NSIAD-88-179
Published: Jul 14, 1988. Publicly Released: Sep 12, 1988.
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Highlights
GAO reviewed inventory management practices within the Army, Navy, Air Force, and the Defense Logistics Agency (DLA) to determine whether their internal controls were adequate to ensure that they received the materials they paid for.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should require the Secretaries of the Army, Navy, and the Air Force, and the Director, DLA, to comply with existing DOD guidance regarding shipments of material in transit to wholesale storage activities. |
Closed – Implemented
The services and DLA are seeking to fully comply with current DOD guidance and have implemented some improved procedures and systems to ensure that no shipments of material to wholesale activities are lost intransit.
|
| Department of Defense | The Secretary of Defense should require the Secretaries of the Army, Navy, and the Air Force, and the Director, DLA, to establish or reemphasize routine follow-up procedures on shipments of material that have been paid for but not received. |
Closed – Implemented
DOD components have taken positive actions to ensure that all material receipt processes, including followups, are in place to validate that all material paid for is received.
|
| Department of Defense | The Secretary of Defense should require the Secretaries of the Army, Navy, and the Air Force, and the Director, DLA, to establish routine reconciliation procedures for their supply and financial records to ensure that material that is paid for is actually received. |
Closed – Implemented
The Office of the Secretary of Defense issued a policy statement emphasing the importance of this reconciliation process to the services and DLA.
|
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Topics
Accounting proceduresAir Force suppliesArmy suppliesFinancial recordsInternal controlsInventory control systemsMilitary inventoriesNaval suppliesMilitary forcesLogistics