Improvements Needed in DOD System for Controlling Material Shipments to DLA Depots and Customers

Gao ID: PLRD-82-81 June 10, 1982

GAO reviewed the Department of Defense's (DOD) practices and procedures for controlling material shipments to Defense Logistics Agency (DLA) depots and shipments from DLA distribution activities and vendors to military customers. GAO was primarily interested in whether: (1) DOD customers were receiving proper shipments of requisitioned material; and (2) the government received what it paid for when fast payment procedures were used.

GAO found that policies and procedures followed at some supply centers do not ensure the receipt of materials requisitioned by the military services from DLA and those purchased by DLA from vendors and contractors. This condition has resulted in instances where: (1) the government was not receiving material for which it had paid and had forfeited its recovery rights; (2) customers were being charged for material they did not receive; and (3) overdue material shipments costing millions of dollars were either written off as inventory losses or remained on the books as items due in for a considerable period of time.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: Martin M. Ferber Team: General Accounting Office: National Security and International Affairs Division Phone: (202) 275-4032


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