Source · Select Committees · Public Accounts Committee
Recommendation 8
8
Rejected
MoD's inventory data quality and system functionality limit a deeper understanding of stock
Conclusion
We remain concerned about the quality of the MoD’s inventory data; the MoD stated that while its visibility of its inventory is generally good, its system functionality can prevent staff from having a deeper understanding of it. For example, the Royal Navy’s base inventory system can record that an item is unserviceable, but not for what reason, meaning the MoD will not know what degree of repair it may need.16 The MoD’s short- term plan (known as ‘Bridging the Gap’, see below) is to move the Army and Royal Navy onto an upgraded version of the Royal Air Force’s inventory system, which is a more modern inventory management system with greater functionality. For example, the Royal Air Force inventory system has a much greater ability to recognise in more detail the repair status of individual items.17 12 Qq 4–5; C&AG’s Report para 1.12 13 Qq 4, 6, 10–11 14 Qq 5–6, 10–11, 20 15 Qq 12–13 ; C&AG’s Report para 9 16 Qq 24, 34–36 17 Qq 24–25, 34–36, 64 Improving Defence Inventory Management 11
Government Response Summary
The government acknowledges the committee's concern but states there was an error in previous reporting, providing corrected data that demonstrates greater success in managing inventory holdings and thus challenging the premise of the committee's concern.
Government Response
Rejected
HM Government
Rejected
2.1 The government agrees with the Committee’s recommendation. Target implementation date: July 2024 2.2 The Ministry of Defence (the department) will provide the recommended update, covering the topics listed above, within six months of the date of the Committee’s report. 2.3 In following up queries raised during the hearing, the Permanent Secretary has written to the Committee to notify it of error in the department’s reporting of inventory stockpile holdings on its systems, which has been reflected in the NAO report that underpinned the Committee’s work on this issue. The correct data, shown in the table below, demonstrates markedly more success in managing down its inventory holdings than have claimed. Financial Year Type of Items Number of Items 2022-23 517k 457m 2021-22 523k 507m 2020-21 528k 550m 2019-20 557k 559m 2018-19 598k 559m 2017-18 640k 740m