ANNISTON ARMY DEPOT, Ala. -- Throughout fiscal year 2018, Anniston Army Depot has been under a Department of Defense-wide audit, which was mandated by Congress.
"The DOD comprises a very large percentage, over half, of the country's budget," said Pam Robertson, the depot's director of Resource Management. "Congress needs assurance that we are being good stewards of those tax dollars."
For ANAD, inventory makes the larges impact on the balance sheet.
The depot's Directorate of Production Management controls the movements of most of that inventory.
"For inventory, an auditor will look at our Inventory Reconciliation Workbook, walk through our processes and test our controls," said Tonika Cunningham, a maintenance management specialist with DPM.
Any material movement posted in the Logistics Modernization Program during FY18 is subject to the audit.
Some of the expected procedures and tests of the depot's inventory will be:
• Reconciliations - The auditor will ask for a reconciliation between warehouse management and financial data.
• Goods Movement Controls - A sample of goods receipts, issues and other movements will be selected. Documentation will be requested to test the performance of the controls and accuracy of the transactions.
• Physical Inventory Counts - The auditor will bring a list of materials to be counted from LMP. This is called a book-to-floor audit. While they are on location, the auditor will then choose random samples of materials on the floor and verify the accuracy of their location in LMP. This is known as a floor-to-book audit.
There are various ways employees on the shop floor can assist with these audits, but the most important element of each is accuracy.
When sending or receiving inventory, employees must make sure the count, kind and condition of each item is correct.
If an item received is incorrect, the sender should be notified immediately, so corrections can be made.
When placing items in a location or pulling items from a location, they should be noted accurately and the location verified.
All movements must be completed in LMP the day they are made to ensure the correct location is displayed in the system.
For those who issue parts to the shops, goods issue reports must be performed on a daily basis to generate revenue in LMP.
Mechanics should not remove parts from a cage without notifying a parts expediter, to ensure the removal of the part is noted in LMP.
DPM performs checks monthly to reconcile inventory reports with financial data.
Additionally, DPM employees check physical inventory in the shops against the movements logged in LMP at least once every two months.
If employees have questions about audit readiness or their role in the process, they can e-mail USArmy.ANAD.TACOM.list.auditreadinessmessages@mail.mil or call Ext. 4730.
Additionally, it is recommended employees watch the audit readiness video, located on IPTV in the Training Videos for 2018.
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