1. DLA Distribution San Joaquin / Audit Readiness
Independent Public Accountant (IPA) Audit Preparation Plan
20 July 2015
1
Command Focal Points
- Total Commitment
- Increased Supervision & Surveillance
- Higher Level Assessment
- Follow the JBS
- IPA Audit January 2016
ACTION DESIRED OUTCOME/BEHAVIOR
J3 F2B
Corrective
Actions
Satisfied
Branch
Chief
Ideas
Satisfied
OPR ECD
1
Inventory/Cleanse 5% of all Occupied Locations
- Follow J3 SOP on F2B counts
- Report weekly progress to J3 and during AR
Command Meetings
- Report monthly progress in MIMR
- Improve inventory accuracy
- Improve cleanliness/orderliness of
warehouses
- Better control of loose issue items
1, 2, 4 Inventory
Start Aug.3
On-going action
2
Mandatory 1 daily F2B spot-check
- Follow F2B JBS to inventory and perform COSIS
- Report results to Inventory for correction
- Totals reported during AR Command Meetings
(total completed/ total discrepancies)
- Improve inventory accuracy
- Improve cleanliness/orderliness of
warehouses
- Better control of loose issue items
1, 2, 4 2, 3, 4
Supervisors/Leads
in Warehousing &
MMG
On-going action
3
Mandatory 1 daily SAT (internal)
- Sample conducted on direct reports
- Supervisor takes immediate corrective action
- Totals reported during AR Command Meetings
- Supervisor documented accountability of
SATs
- Improved performance on QCs/TOEs
- Ease nervousness through practice
4, 5, 7, 11 Supervisors
On-going action
4
Mandatory 1 monthly SAT per employee (external)
- Supervisor must ensure/coordinate at least 1 SAT
for each of their employees is completed each
month by a Supervisor that is external to their
Division.
- Totals reported during AR Command Meetings
- Supervisor documented accountability of
SATs
- Improved performance on QCs/TOEs
- Ease nervousness through practice
4, 5, 7, 11 Supervisors
On-going action
5 Mandatory 1-hr weekly stand-down by managers
- Held no lower than Division level
Re-emphasize AR importance (including, but
not limited to AR improvement plan)
8 Division Chiefs
On-going action

2. DLA Distribution San Joaquin / Audit Readiness
Independent Public Accountant (IPA) Audit Preparation Plan
20 July 2015
2
6
Weekly Command Meetings& Audits
- Meetings:Gps report Training Status by
Supervisor (all members in P status by name, #
SATs completed, #passed,# failed, SAT trends,
and F2B spot-checks)
- Audits:Review AR Card info, QC boards,SOS
meeting feedback
Consistent Command-wide focus 2, 3, 4, 5, 7,
9
AR Team &
Command
On-going action
7
2d Level Assessments
- Branch Chiefs certify Supervisor Assessments
- Target all in “P” status,then re-look at all “T” on
QC test plan JBSs
Higher level accountability of SATs and QC
tests
Improved performance on QCs, TOEs
4, 5, 6, 9,
11
Discretionary On-going action
8
Audit Excellence Class
- Emphasize importance of cleanliness, how to
perform during an audit, and how to do a proper
introduction as Supervisor
- Encourage employees who fail a QC or QA
surveillance to attend; however, participation is
open to all.
- Held 2x Monthly
- Greater understanding and awareness of AR
best-practices.
- Supervisors/employees improve on controls-
based testing
6, 8 AR Team
On-going; 2x
monthly
9
Adopt a Row
- Employees will be responsible for the
cleanliness/orderliness of a specific row of stock.
- Improve inventory accuracy
- Improve cleanliness/orderliness of
warehouses
- Better control of loose issue items
- Increased employee ownership
2, 4 1 Discretionary On-going action
10
F2B QA surveillances
- QAE performs controls-based B2F surveillances
with IAT
- Perform F2B counts after B2F (similar to DoD
IG)
- Improve inventory accuracy
- Improve cleanliness/orderliness of
warehouses
- Better control of loose issue items
1, 2, 4 2, 3 QA and IAT On-going action
11
F2B Accuracy & Stock-Positioning/Bin Hub
Consolidation project
-Assign 4 FTEs (2 ea) to increase floor-to-book
accuracy
- Improve inventory accuracy; corrects
discrepancies
- Improve cleanliness/orderliness of
warehouses
- Better control of loose issue items
- Consolidates multiple locations & centralizes
material in the hub
1, 2, 3, 4 2, 3
Stock Positioning
and Bin Division
On-going action

3. DLA Distribution San Joaquin / Audit Readiness
Independent Public Accountant (IPA) Audit Preparation Plan
20 July 2015
3
12
Daily AR Discussion
- Every start of shift meeting
- Emphasize sense ofurgency
- Constant constructive AR discussion
- Increased knowledge sharing of AR best
practices
- Less non-conforming QC/QA surveillances
10
All 1st Line
Supervisors
On-going action
13 AR Weekly Minute Correspondence Mass AR publicity campaign 10 AR Team
On-going action
Attachment 1: Supervisor IPA Audit Preparation Ideas
Attachment 2: J3 F2B Corrective Actions
Attachment 3: DLA Distribution San Joaquin F2B Corrective Action Timeline