Changes in DOD's Inventory Reporting, 1989-1992
NSIAD-94-112: Published: Feb 10, 1994. Publicly Released: Feb 25, 1994.
- Full Report:
Pursuant to a congressional request, GAO reviewed changes in the Department of Defense's (DOD) secondary item inventory since fiscal year (FY) 1989, focusing on the: (1) total value of the inventory; (2) value of potential excess stock; (3) impact of inventory revaluations; and (4) annual funding levels for secondary item inventory acquisitions.
GAO found that: (1) the nominal value of DOD secondary inventory items and disposal stock decreased by $29.2 billion and $9.8 billion, respectively, between fiscal years 1989 and 1992; (2) the inventory values reported by DOD are not comparable because the services use different methods for valuing inventories; (3) DOD has established an uniform system for valuing all inventory at the latest acquisition cost and adjusting the latest acquisition value of disposal stock and items needing repair; (4) in 1992, DOD total inventory decreased by $20.2 billion because of revaluations; (5) Congress appropriated $26.7 billion in FY 1992 and $26 billion in FY 1993 for DOD secondary inventory items, but reduced the amount appropriated as a result of congressionally-directed fund transfers; and (6) DOD has requested $26.2 billion in FY 1994 for secondary inventory items.