- DEFENSE INVENTORY: Actions Needed to Improve the Defense Logistics Agency’s Inventory Management, GAO-14-495: Published: Jun 19, 2014. Publicly Released: Jun 19, 2014: “The Defense Logistics Agency (DLA) developed and met goals for reducing on-hand inventory and on-order excess inventory (i.e., already purchased items that may be excess due to subsequent changes in the services’ requirements) and has made progress towards its goals for reducing backorders (shortages of spare parts), but challenges remain. DLA disposed of $4 billion in items for a net reduction of $2.5 billion to its on-hand inventory after continued replenishments to achieve its fiscal year 2013 goal of $11.7 billion. DLA used a risk-based approach to identify items to be disposed, resulting, for example, in a reduction of about $657 million in items with no demand in 5 years. Also, DLA has reduced on-order excess inventory from 6.7 percent of the total value of on-order inventory in 2011 to 5.6 percent in 2013, which is progress toward the Department of Defense’s (DOD) 4 percent goal by the end of fiscal year 2016. DLA has also reduced backorders by nearly 30 percent through monthly reviews. However, some challenges remain.”
- MANAGEMENT REPORT: Improvements Needed in Controls over the Processes Used to Prepare the U.S. Consolidated Financial Statements, GAO-14-543: Published: Jun 19, 2014. Publicly Released: Jun 19, 2014: “During its audit of the fiscal year 2013 consolidated financial statements of the U.S. government (CFS), GAO identified control deficiencies in the Department of the Treasury’s (Treasury) and the Office of Management and Budget’s (OMB) processes used to prepare the CFS. These control deficiencies contributed to material weaknesses in internal control over the federal government’s ability to adequately account for and reconcile intragovernmental activity and balances between federal entities; ensure that the federal government’s accrual-based consolidated financial statements were (1) consistent with the underlying audited entities’ financial statements, (2) properly balanced, and (3) in conformity with U.S. generally accepted accounting principles; and ensure the consistency of (1) information used by Treasury to compute the budget deficit reported in the consolidated financial statements, (2) Treasury’s records of cash transactions, and (3) information reported in federal entity financial statements and underlying financial information and records.”
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