Navy Financial Management: Improved Management of Operating Materials and Supplies Could Yield Significant Savings

This report provides the results of our detailed assessment of the Navys financial reporting on and management of operating materials and supplies that are not part of DBOF inventories. Specifically, it provides the results of our assessment of 1 the adequacy of the Navys accountability and visibility over its approximately 5.7 billion in operating materials and supplies on board vessels and at the redistribution sites, 2 the Navys management of excess items of this type, and 3 the accuracy of operating unit records for operating materials and supplies that we tested. This report also contains recommendations that are directed at improving financial reporting and inventory management.