Budgeting for Secondary Supply Items in the Defense Logistics Agency
Abstract
As of March 31, 1990, the Defense Logistics Agency (DLA) managed approximately 926,000 replenishment line items, valued at $12.5 billion, at five Defense supply centers. Headquarters, DLA, requested from Comptroller, DOD, obligational authority for FY 1992 and FY 1993 of $3.7 billion and $3.5 billion, respectively. DLA's budget request is used by the Comptroller, DoD, in the development of the President's Budget. The objectives of the audit were to: 1) ascertain whether DLA was adequately determining and accurately stating funding requirements for secondary items in its annual budget submission; 2) determine whether DLA was requesting sufficient funds to buy the materiel required to adequately support the Services; and, 3) evaluate implementation of the Federal Managers' Financial Integrity Act as it relates to budgeting for secondary supply items. DLA's stock fund budget request for FY 1992 and FY 1993 was not a reliable estimate of future funding needs. The budget request was based primarily on prior sales, which alone may not be an accurate indicator of future requirements. Supporting documents necessary to reconcile budget data based on sales to line item stratifications (asset positions) were not prepared.
Document Details
- Document Type
- Technical Report
- Publication Date
- Feb 10, 1992
- Accession Number
- ADA378394
Entities
Organizations
- Office of the Inspector General, U.S. Department of Defense