Inventory Management: Better Controls Needed to Prevent Misuse of Excess DOD Property
OSI/NSIAD-00-147
Published: Apr 28, 2000. Publicly Released: May 30, 2000.
Skip to Highlights
Highlights
Pursuant to a congressional request, GAO reviewed the Department of Defense's (DOD) inventory management activities, focusing on the: (1) reliability of using DOD's database systems to determine whether activity codes are authorized to obtain excess DOD property; and (2) adequacy of oversight of the management and use of excess DOD property provided to selected universities and a Florida Army National Guard unit where ownership of the property remains with DOD.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should direct the military services and DOD activities to comply with regulations that require them to: (1) periodically update the inventory and management data in the Defense Automatic Addressing System Center master file, especially with regard to activity address codes; and (2) ensure that their central service points validate and reconcile their activity code files to the Defense Automatic Addressing System Center master file in a timely manner. |
The Deputy Under Secretary of Defense for Logistics issued a memorandum on September 11, 2000, to the services and DOD activities directing compliance with DOD 400.25-6-M and asking that the components' service points review their procedures for updating inventory and management data in the Defense Automatic Addressing System Center Master File to ensure the system is maintained, up-to-date, and accurate.
|
| Department of Defense | The Secretary of Defense should direct the Director, DLA, to determine why the Defense Reutilization and Marketing Automated Information System failed to reject invalid activity codes and take corrective measures so that the system will reject invalid activity codes in the future. | The Defense Reutilization and Marketing Service issued more stringent guidance for field activities that included: (1) verification that the DOD Activity Address Code (DODAAC) is listed in the official DOD Activity Address File located on the Defense Automatic Addressing System Center website; (2) rejecting invalid DODAACs before releasing property; (3) providing advice to requisitioning customers; (4) displaying signs/placards at the field activities reminding customers that valid DODAACs must be listed in the official DODAAC file; and (5) implementing system changes to generate daily reports for field activities to use in determining whether generators are attempting to use invalid...
|
| Department of Defense | The Secretary of Defense should direct the Deputy Under Secretary of Defense (Logistics) and the military services to develop and implement a system to prevent organizations from using nonrequisitioning activity codes to acquire excess DOD property by including the appropriate edits in the Defense Reutilization and Marketing Automated Information System and the Defense Automatic Addressing System. |
DOD has developed edits in the Defense Reutilization and Marketing Automated Information System and the Defense Automatic Addressing System to prevent organizations from using non-requisitioning activity codes to acquire DOD property. The system matches the address code information in the Defense Automatic Addressing System and rejects any that contains an invalid address code.
|
| Department of Defense | The Secretary of Defense should direct the Director, DLA, and the Chief, Office of Naval Research, to assess the adequacy of controls and procedures to help ensure the proper management and use of excess DOD property provided to universities for government contracts. | DOD reports that the Defense Logistics Agency has no responsibility in the oversight of excess DOD property provided to universities under government contracts. The Office of Naval Research (ONR) recognizes the need for continued attention to adequately controlling university-acquired excess government property. Two steps were implemented to improve oversight of excess government property. Existing guidance was updated to include additional internal controls so that upcoming reviews will emphasize the proper acquisition and management of excess property acquired from the Defense Reutilization and Marketing Offices (DRMOs). Further, on visits to institutions and during presentations at...
|
Full Report
Public Inquiries
Topics
Data integrityFederal agency accounting systemsFederal property managementInternal controlsInventory control systemsLogisticsNoncomplianceProperty disposalSurplus propertyU.S. Army