Summary: GAO reviewed the Navy's inventory management procedures and practices at naval air stations, focusing on the Norfolk, North Island, and Oceana Naval Air Stations.
GAO found that: (1) 38 percent of the Norfolk station's inventory records and 21 percent of the Oceana station's records included errors; (2) the Navy's system for inventory error evaluation and correction was inadequate, because it had only partially implemented its quality control programs and its inventory management oversight needed improvement; (3) the Oceana station often exceeded error preadjustment deadlines; (4) the Norfolk and Oceana stations often missed deadlines for causative research into inventory errors, but the North Island station generally conducted its error research within required time frames; (5) inventory accuracy indicators did not reflect the total error percentage, and management was therefore limited in its inventory analyses; (6) mandated internal control assessments revealed significant inventory management deficiencies and the need for further assessments; (7) the Department of Defense (DOD) was issuing new inventory evaluation reporting requirements; and (8) the Navy was planning to implement computer software designed for statistical inventory sampling.
