Inventory Adjustments at the Oklahoma City Air Logistics Center

PLRD-81-50: Published: Jul 30, 1981. Publicly Released: Dec 21, 1983.

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GAO reported on the Oklahoma City Air Logistics Center's accounting and physical controls over equipment, supplies, and spare parts inventory. GAO found the controls to be generally adequate; however, it called attention to its observations concerning unexplained inventory adjustments. To bring recorded inventory balances into agreement with physical counts, the Center makes sizable adjustments without fully understanding why the counts and records disagree.

GAO believes that fuller explanations of sizable discrepancies between physical and record inventories could provide Center management with information needed to reduce their frequency. GAO recognizes that some discrepancies cannot be fully explained, but it believes that the research effort should increase when the discrepancies are large, such as $5,000 or over.

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