Standard Army Financial Inventory Accounting And Reporting System Starfiars

The Army Supply Management business area of the Defense Business Operations Fund manages inventories held for sale valued at $13.4 billion. The Standard Army Intermediate Level Supply (SAILS) system is an automated system used to manage about $2.2 billion of the 13.4 billion. Another automated system, the Standard Army Financial Inventory Accounting and Reporting System (STARFIARS), is used by the Defense Finance and Accounting Service to generate financial statements from transactions captured by the SAILS system. The primary objective of the audit was to assess selected elements of the Application Change Testing and Evaluation proram for the SAILS system and that program's interface with the STARFIARS ial information system. The secondary objective was to assess related internal controls. The audit identified a need for improvements in reconciliations of inventory balances, management of in-transit inventories, and computer security.