Audit Report

PURCHASING DEPARTMENT INVENTORY & STORES AUDIT 06-11 JANUARY 10, 2007 PURCHASING DEPARTMENT INVENTORY & STORES AUDIT 06-11 INTRODUCTION The Inventory and Stores Division is operated by the Purchasing Department and is charged with maintaining the City’s perpetual inventory system. The objectives of the Division are: • To verify and record the actual receipt and issue of materials. • To establish and maintain efficient on-hand inventory balances. • To provide the proper quantity and quality of materials when furnished with the proper authority. • To cooperate with other City Departments/Divisions to establish and maintain inventories at satisfactory and cost efficient levels. The detail perpetual inventory records are maintained on the Advance Purchasing and Inventory Control System (ADPICS). STATISTICS Following are inventory statistics for the period October 1, 2005 to September 30, 2006. Inventory Balance @ 10/1/2005 $ 2,855,837 Plus: Inventory Receipts 19,932,792 Inventory Adjustments (net) 7,595 Less: Inventory Issues 19,814,956 Inventory Balance @ 9/30/06 $ 2,981,268 As of September 30, 2006, there were nine inventory locations with 30 budgeted positions including an Inventory Manager and Inventory Field Supervisor. STATEMENT OF OBJECTIVES This audit was conducted in accordance with the Internal Audit Department's FY06 Audit ...