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089362 1 (1976-02-24)

handle is hein.gao/gaobacvih0001 and id is 1 raw text is: UNITED STATES GENERAL AccouNTING OFFICE WASHINGTON, D.C. 20548 GENERAL GOVERNMENT DIVISION Mr. Vincent Reed Acting Superintendent D. C. Public Schools District of Columbia Government Dear Mr. Reed: The General Accounting Office (GAO) has been studying District supply management operations to determine (1) if benefits would accrue from a more centrally managed supply system and (2) how effectively and economically materials are provided to City departments. We selected four major departments for review, including the District of Columbia Public Schools (DCPS). We reviewed the policies, procedures, records, and management controls used by DCPS in its supply operations. This report discusses the problems we observed during our study and corrective actions proposed or initiated by your staff. CENTRALIZING CITY-WIDE SUPPLY MANAGEMENT GAO and other groups, since 1912, have recommended that the District establish city-wide inventory control and centralize its supply management staff. The Nelsen Commissioni' in 1972, was the most recent group to make such recommendations. The Commission estimated that consolidation and centralization of the District procurement and supply management systems could save over $23 million, with annual recurring savings of over $12 million. The District's supply system is organizationally decentralized. Each department has its own supply management procedures. Before the benefits of centralization can be realized, each depart- ment must keep current, complete and accurate records showing inventory 1/ Report on the Procurement and Supply System for the Government of the District of Columbia, issued August 1972.

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