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DOCUMENT RESUME
07813 - [C3128244IJ
rPhysical Inventory Programs of the Azmy and Navy Can Be
Improved]. LCD-78-247; B-146828. October 24. 1978. 6 pp.
Report to Secretary, Department of Defense; by Richerd V.
Gutmann, Director, Logistics and Communications Div.
Iss~ue Area: Facilities and Material Management (700).
Contact: Logistics and Communications Div.
Budqet Function: National Defense: Department of Defense -
Military (except procurement & contracts) (051).
Orqanization Concerned: Department of the Army; Department of
the Navy.
Authority: DOD Instruction 4140.35.
Controls over the physical inventories of the Army and
Navy were studied to determine if their objectives were being
accomplished and if performance standards mere being met.
Departmeat of Defense (DOD) Instruction 4140.35 prescribes the
basic elements of the physical inventory coutrcl prcgram and
allows the individual services to imEjoe more stringent
requirements which they have done in their implementing
instructions. However, the elements cf a good physical inventory
proqra often were not carried out. £eficiencies included:
nonperformance of the required number cf phy.:4cal inventories,
location surveys, or location audit reconciliations; inventory
adlustments in excess of the number and value allowed fc an
acceptable level of performance; failure to process receiits and
issues within the prescribed time; and inability to fi3i crders
because stock was not at the locaticns shcwn on the iuventory
records. Problems identified in carrying out tre physical
inventory proqram involved: lack of experienced personnel, high
employee turnover, incorrect first ccunts, poer control of
in-float documentation, storage practices, ineffective quality
control programs, and lack of reviezs by internal audit
orqanizations. (RRS)](ViewImageLocal?handle=hein.gao/gaobaaygo0001&div=1&collection=&method=preview&ext=.png&size=3)