San Joaquin achieves positive results during recent DoD IG Audit

By Annette Silva DLA Distribution Public Affairs

The DLA Distribution San Joaquin, Calif., team is doing their part in helping DLA remain on track to comply with DoD Financial Improvement and Audit Readiness, or FIAR, guidance. The team successfully completed their DoD Inspector General Audit, which focused on substantive testing on the Plan to Stock business cycle and San Joaquin’s inventory profile. 

The three-day audit began June 1 with San Joaquin showing positive results in each of the FIAR categories of Existence, Completeness, and Rights and Obligations.

Existence: Recorded transactions and events occurred during the given period, are properly classified, and pertain to the entity. An entity’s assets, liabilities, and net position exist at a given date. This was evaluated through the Book-to-Floor process in inventory. During this process, 111 locations were sampled.

Completeness: All transactions and events that should have been recorded are recorded in the proper period. All assets, liabilities, and net position that should have been recorded have been recorded in the proper period and properly included in the financial statements. This was evaluated through the Floor-to-Book process in inventory. In this area of evaluation, 55 locations were sampled.

Rights and Obligations: The entity holds or controls the rights to assets, and liabilities are the obligations of the entity at a given date. This was evaluated through examining evidentiary matter for 51 samples.

“This audit was successful through a team effort with DLA Distribution headquarters and the DLA Distribution San Joaquin team. I appreciate the long hours and employees following their job breakdown sheets to a tee,” said San Joaquin commander Marine Col. Keith Reventlow. “I appreciate what everyone has done in this round, but this is the first step in a long process.” 

According to the DoD IG Audit team, they plan to evaluate these areas among the other distribution centers across the DLA Distribution enterprise, and will give an overall assessment and recommendation on whether the vendor/service-managed inventory is ready for an Independent Public Accountant audit in 2016.

The next step for the DLA Distribution San Joaquin team is to continue refining their business cycle processes and associated job breakdown sheets.  “Strict adherence to the JBS is the key to not only passing an audit but in providing the best support to the warfighter while proving to the American public that we are good stewards of the taxpayer’s dollars,” said Reventlow.