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Navy Supply: Excess Inventory Held at the Naval Aviation Depots

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Report Type Reports and Testimonies
Report Date July 22, 1992
Report No. NSIAD-92-216
Subject
Summary:

To provide materials for depot maintenance, the six Naval Aviation Supply Depots run retail supply stores. At the end of fiscal year 1991, the supply stores held $144 million in inventory, $40 million of which was considered excess. This report examines depot material management practices to: (1) evaluate depot efforts to minimize excess inventories and (2) determine whether the depots have complied with instructions prohibiting the accumulation of off-record, or unrecorded, inventory. Contrary to Navy guidance, the depots have generated and retained large inventories of excess material for many years. At times these excess inventory balances topped $53 million, despite the write-off of $138 million of excess material. Unrecorded material is also a long-standing depot problem, and GAO recommends that the Navy take steps to ensure that unrecorded material is identified, returned to inventory control, and not allowed to accumulate.

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