Navy Supply: Naval Air Stations Have Inventory Accuracy Problems
NSIAD-90-45
Published: Dec 07, 1989. Publicly Released: Dec 07, 1989.
Skip to Highlights
Highlights
GAO reviewed the Navy's inventory management procedures and practices at naval air stations, focusing on the Norfolk, North Island, and Oceana Naval Air Stations.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of the Navy | The Secretary of the Navy should direct the Commander, Naval Supply Systems Command, to improve internal controls over air station inventories. Specifically, the Commander should review the research program and develop approaches to assist activities in completing effective causative research within the specified times in order to increase the likelihood of identifying and correcting inventory problems. |
Inventory accuracy workshops have been conducted for all East and West Coast air stations. One of the topics covered was the process, use, and requirements of causative research.
|
| Department of the Navy | The Secretary of the Navy should direct the Commander, Naval Supply Systems Command (NAVSUP), to improve internal controls over air station inventories. Specifically, the Commander should direct air stations to fully implement the required independent quality control program for appraising physical inventory functions. |
NAVSUP Instruction 4440.184A was issued on December 18, 1989. It reemphasizes specific requirements for independent quality control of physical inventory functions.
|
| Department of the Navy | The Secretary of the Navy should direct the Commander, Naval Supply Systems Command, to improve internal controls over air station inventories. Specifically, the Commander should direct air stations' commands to properly document their oversight of air station inventory management practices and their corrective actions for improving inventory record accuracy. |
The air station commands have: (1) established a personal computer database to monitor inventory adjustment trends; (2) conducted a quarterly analysis to highlight problem areas; (3) provided feedback reporting on problems identified; and (4) published all air station results to foster competition.
|
| Department of the Navy | The Secretary of the Navy should direct the Commander, Naval Supply Systems Command, to improve internal controls over air station inventories. Specifically, the Commander should ensure that the Navy's training module addressing error classification code selection and analysis is fully implemented at all field activities and their higher commands. |
The training module was given during air station inventory accuracy workshops. In addition, both instructor and student guides were provided for subsequent training at the local level.
|
| Department of the Navy | To provide an additional focus on this area, the Secretary of the Navy should designate inventory management improvement as an issue that will receive special emphasis in Financial Integrity Act (FMFIA) assessments. This should be one of the areas targeted for an overall evaluation by the Navy. |
As part of the FMFIA process, the Navy designated the effectiveness of controls over property for review by Navy commands and activities during fiscal years 1990 and 1991.
|
| Department of the Navy | The Secretary of the Navy should direct the Commander, Naval Supply Systems Command, to evaluate plans to implement statistical sampling programs at all Navy supply activities and determine if they can be expedited or if alternative programs can be used in the interim. |
All stock points with the UADPS computer system have implemented a statistical sampling program. The remaining stockpoints, which account for less than 10 percent of the total inventory value, have designed statistical sampling capabilities into their plans for modernized automatic data processing replacement systems.
|
Full Report
Public Inquiries
Topics
Financial managementInformation systemsInternal controlsInventory control systemsManagement information systemsMilitary inventoriesNaval suppliesProperty and supply managementRecords managementReporting requirements