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Highlights

Pursuant to a congressional request, GAO assessed 13 Army retail-level activities' inventory management, focusing on the extent to which the activities identified and reported inventory excesses to the wholesale level for return to the supply system.

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Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of the Army 1. The Secretary of the Army should report the accumulation and retention of retail-level excesses as material weaknesses in the Army's next annual assessment of internal controls, as required by the Federal Managers' Financial Integrity Act (FMFIA).
Closed - Implemented
The Army reported the accumulation of excess material as a material weakness in its latest FMFIA report.
Department of the Army 2. Because the retail-level activities are not complying with Army regulations that require that excess items be reported and returned to the wholesale-level supply system, the Secretary of the Army should establish a single supply system that provides the inventory supply system manager with systemwide asset visibility and the authority to redistribute excesses from locations where they are not needed to locations where they are.
Closed - Implemented
Through a series of incremental steps, the Army plans to achieve a fully integrated supply system. While the process will not be completed until 1994, keeping the recommendation open until the process is completed serves no useful purpose.

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