Audit Enables NAVSUP's Reform Program

Story Number: NNS180730-04Release Date: 7/30/2018 10:07:00 AM
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By Joe Yanik, NAVSUP Office of Corporate Communications

MECHANICSBURG, PA. (NNS) -- Naval Supply System Command's (NAVSUP) first enterprise-wide audit is one of several enablers of the command's reform program to improve business processes and increase lethality of the force.

"NAVSUP's continuing reform and modernization efforts are focused on improving our business processes to increase the speed of support," said NAVSUP Commander Rear Adm. Michelle Skubic. "Every year, we will improve the capability of our naval and joint forces, make progress on audit, and devise solutions in the industrial mission set to accelerate the return of ships and aircraft to the fleet."

To meet U.S. defense leaders' call for fiscal and asset accountability throughout the Department of Defense, NAVSUP has been planning and rolling out the agency's audit, which encompasses every aspect of NAVSUP business operations, including acquisition, manpower, real and personal property, and financial reporting.

"Our goal with the audit is to enable NAVSUP's leaders to make better decisions and overcome challenges in balancing logistics, customer service and performing integrated strategic systems management," said NAVSUP Director of Audit Response, David Orr. "It's critical to determine the precise cost of warfighting requirements by streamlining our funds distribution, execution, and reporting processes."

NAVSUP's auditing process has involved performing financial assessments, driven both internally and at the direction of the office of the Assistant Secretary of the Navy Financial Management Comptroller. Physical inventories are currently being completed to ensure items reported in financial statements can be located in warehouses, and items in the warehouses can be located on financial statements.

NAVSUP's Audit Provides Transparency

Audits provide necessary insight of an organization's inventory and financial management processes, like funds distribution and reporting procedures. This transparency ultimately helps to accurately determine the cost of doing business and optimize how NAVSUP serves customers.

"In the case of NAVSUP, a successful audit means establishing a single, transparent point of accountability to ensure we have the correct material available to satisfy warfighter requirements while demonstrating good stewardship of taxpayer dollars," said Orr. "Equally important is ensuring we follow sound, clear business practices, like those that involve documenting processes and monitoring internal controls that will pass an independent public accountant audit."

NAVSUP's Audit Builds Confidence

"All of these assessments are in preparation for Independent Public Accountant (IPA) audits of our full financial statements in order for the IPA to grant the Navy a favorable audit in relationship to Generally Accepted Accounting Principles guidance and DoD policies and procedures," said Orr. "A favorable audit opinion increases public confidence in DoD's use of taxpayer dollars, improves DoD system integrity to the extent that senior leadership will be able to rely on timely and accurate data, and afford increased confidence from Congress and the audit community."

NAVSUP's Audit Identifies Opportunities for Improvements

"We expect this auditing process to expose deficiencies that will give us the opportunity to focus on the root causes that currently inhibit our ability to base decisions on verifiable data," said Orr. "We will use this knowledge to design repeatable and dependable processes that empower the fleet to make more informed risk calculations."

Headquartered in Mechanicsburg, Pennsylvania, and employing a diverse, worldwide workforce of more than 22,500 military and civilian personnel, NAVSUP's mission is to provide supplies, services, and quality-of-life support to the Navy and joint warfighter. Learn more at, and

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