Inventory Tracking Systems Are In Some Cases At Least 30 Years Old

Recent reports from the Office of Inspector General (OIG) and an independent public accountant have found weaknesses in the FAA's internal controls for tracking inventory. In December 2019, the OIG reported that the Agency’s Logistics Center does not have a detailed aging report for tracking its inventory supporting the National Airspace System (NAS), which might include items that are 30 or more years old.

As such, the OIG could not determine if the FAA had overstated the inventory value, reported as $656 million in 2018. In addition, in a review of the FAA’s financial statements for fiscal years 2018 and 2017, KPMG LLP found that the Agency’s controls were not designed and implemented to ensure the accuracy of inventory data.

Accordingly, the OIG is initiating an audit of the FAA’s oversight of its NAS inventory. The audit objective will be to determine if FAA has effective oversight controls for managing the NAS inventory, including controls to appropriately account for excess, obsolete, or unserviceable items.

The audit will be conducted at FAA headquarters, AML in Oklahoma City, and other FAA locations, as necessary.

(Source: DOT OIG)

FMI: www.oig.dot.gov