Army Needs Greater Emphasis on Inventory Valuation

Submitting OIG:

Department of Defense OIG

Date Issued:

Tuesday, July 12, 2016

Agency Reviewed / Investigated:

Department of Defense

Submitting OIG-Specific Report Number:

DODIG-2016-108

Location(s):

United States

Type of Report:

Audit

Questioned Costs:

Funds for Better Use:

Number of Recommendations:

View Document:

Attachment	Size
DODIG-2016-108.pdf	3.08 MB

Related Open Recommendations

Recommendation Number	Recommendation Status	Significant Recommendation
D-2016-0108-D000FI-0001-0001.b	Open	No
Rec. 1.b: The DoD OIG recommended that the Commander of U.S. Army Materiel Command review and correct moving average cost valuation for all Inventory, Available and Purchased for Resale.
D-2016-0108-D000FI-0001-0001.e	Open	No
Rec. 1.e: The DoD OIG recommended that the Commander of U.S. Army Materiel Command implement continuous training for Army logistics and inventory management personnel involved with inventory movements that affect inventory valuation at moving average cost in the Logistics Modernization Program system. The training should cover how to properly record inventory receipt, acceptance, transfer, and sale transactions within the system to ensure that the historical costs of the inventory are properly captured for inventory valuation.
D-2016-0108-D000FI-0001-0001.j	Open	No
Rec. 1.j: The DoD OIG recommended that the Commander of U.S. Army Materiel Command implement controls, including management oversight, to review and approve all Material Master file data changes prior to implementing them within the Logistics Modernization Program system and issue guidance on how personnel should properly establish and maintain unit of measure elements in the Logistics Modernization Program system.

Department of Defense OIG

Department of Defense

The Department of Defense Office of Inspector General was established in 1982. The mission of the DoD OIG, as established by the Inspector General Act of 1978, as amended, (5 U.S.C. Appendix); and implemented by DoD Directive 5106.01, "Inspector General of the Department of Defense," is to serve as an independent and objective office in DoD to:

a) conduct, supervise, monitor, and initiate audits, evaluations, and investigations relating to programs and operations of the Department of Defense,

b) provide leadership and coordination and recommend policies for activities designed to promote economy, efficiency, and effectiveness in the administration of, and to prevent and detect fraud and abuse in, such programs and operations,

c) provide a means for keeping the Secretary of Defense and the Congress fully and currently informed about problems and deficiencies relating to the administration of such programs and operations and the necessity for and progress of corrective action

http://www.dodig.mil

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Army Needs Greater Emphasis on Inventory Valuation

Related Open Recommendations