Final Quick Reaction Report On Budgeting For War Reserve Stocks In The Defense Logistics Agency Project No 0la 007701

We started the Audit of Budgeting for Secondary Supply Items in the Defense Logistics Agency (Project No. OLA-0077) on July 16, 1990. The objective of the audit was to ascertain whether the Defense Logistics Agency (DLA) was adequately determining and accurately stating funding requirements for secondary items in its annual budget submission. War reserve requirements for secondary items are determined by the Services and consist of retail (pre-positioned) and wholesale (other war reserve) requirements. During the audit, we reviewed the policies and procedures related to the preparation of the FY 1992/FY 1993 Biennial Budget Estimates for the Defense Stock Fund that includes estimates for secondary items to meet peacetime operating requirements.