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Defense Inventory: Information on Fiscal Year 1992 Secondary Item Funding

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Report Type Reports and Testimonies
Report Date Nov. 21, 1991
Report No. NSIAD-92-34FS
Subject
Summary:

In March 1991, the Defense Department (DOD) estimated in its Inventory Reduction Plan Progress Report that its stock funds would spend $25 billion in fiscal year 1992 to buy secondary items and run supply centers. DOD also estimated in its Defense Business Operations Fund Overview that its stock funds would sell about $23 billion in secondary items to DOD components in fiscal year 1992. GAO found that DOD requested $21 billion in fiscal year 1992 appropriations: $2.4 billion to its stock funds to procure and repair Army and Air Force items at the depot level and purchase Air Force war reserves and $18.6 billion to DOD components to buy secondary items. Of the $18.6 billion requested for DOD components, $16.6 billion would be used to purchase secondary items from DOD stock funds. The $16.6 billion request was less than the $23.1 billion estimate because DOD budget documents did not always identify funds requested for secondary items and because stock fund sales included sales between stock funds, which do not affect the need for appropriations.

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