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

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.

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Document Details

Document Type
Technical Report
Publication Date
Jun 01, 1991
Accession Number
AD1100789

Entities

People

  • Darby Smith
  • Gregory Pugnetti
  • Jeffrey C. Steinhoff
  • Jeffrey Carr
  • Marie Bollenbach
  • Mike Piskai
  • William Hill

Organizations

  • United States Government Accountability Office

Tags

Communities of Interest

  • Weapons Technologies

DTIC Thesaurus Topics

  • Accounting
  • Acquisition
  • Air Force
  • Business Administration
  • Comptrollers
  • Corporate Information Management
  • Department Of Defense
  • Finance
  • Financial Management
  • Fuel Pumps
  • Governments
  • Helicopter Rotors
  • Information Systems
  • Inventory
  • Inventory Control
  • Management Information Systems
  • Procurement
  • Standardization
  • Standards
  • United States
  • Weapon Systems

Readers

  • Logistics and Supply Chain Management.
  • Public Financial Management and Budgeting