Accession Number:

AD1100789

Title:

Financial Management: Uniform Policies Needed on DOD Financing of Repairable Inventory Items

Descriptive Note:

Technical Report

Corporate Author:

GENERAL ACCOUNTING OFFICE WASHINGTON DC WASHINGTON DC United States

Report Date:

1991-06-01

Pagination or Media Count:

20.0

Abstract:

In a .January 22, 1990, letter, you requested that we review Department of Defense DOI efforts to improve management of its repairable inventory items by financing these items through the military services stock funds. A repairable is an item that, if damaged, can be repaired for less than the cost of a new item. DOD refers to these items as repairable whether they are new or used. DOD currently estimates that these items are valued at 73 billion. In .June 1990, we briefed your office on the services plans to finance repairable items through the stock fund. At that time, your staff expressed concern about the inconsistencies of the services plans. These concerns were reiterated in the Committees October 1990 report. In its report House Report lOl-822, the Committee expressed concern about the services having different practices and procedures related to 1 the prices that the stock funds will charge their customers for repairable items and 2 the ownership and control that the stock funds will have over repairable items at the installations. The need to have reasonably consistent policies and procedures becomes increasingly important in view of several recent congressional and DCW initiatives. First, the Chief Financial Officers Act of 1990 provides for the preparation and audit of financial statements for revolving funds, which include stock funds. Second, DOD has initiated a comprehensive long-term effort, known as the Corporate Information Management CIM project, which is intended to improve financial and management information systems. As agreed with your office, we plan to continue monitoring DODs efforts to improve management of repairable items.

Subject Categories:

  • Economics and Cost Analysis
  • Logistics, Military Facilities and Supplies

Distribution Statement:

APPROVED FOR PUBLIC RELEASE