Department management of the Ross Aviation, Inc., contract aircraft major spare parts inventory, Albuquerque, New Mexico

摘要

The purpose of this audit was to determine whether the Department of Energy's (Department) management of its contract with Ross Aviation, Inc. (Ross) provided reasonable assurance that the inventory of aircraft major spare parts at Ross was economical and efficient. The audit disclosed that approximately $447,000 (acquisition and interest carrying costs) of low-use major spare parts was excessive. Internal control deficiencies which fostered the excessive inventory included: (1) Ross had set stock levels without considering such factors as consumption or projected needs; and (2) the Department had not reviewed inventory quantities when appraising Ross' property management. The Albuquerque Operations Office (AL) agreed to take the corrective actions recommended in the report.