Summary

Inventory Controls at the Long Island Rail Road MoW Repair Shop

MTA/OIG #2016-10


Inventory items for the Maintenance of Way Repair Shop are kept in multiple locations at the Long Island Rail Road's Holban Yard, including an enclosed building; several outdoor storage sheds and shipping containers; and open areas surrounding the buildings. The Repair Shop inventory, valued at approximately $6.7 million, is managed by a single Maintenance of Way Assistant Manager and operated on the “honor system”: The users of the materials or parts are allowed
to retrieve and return items themselves and are supposed to record such usage in a log book.

In November 2015, OIG conducted a physical count of 174 unique inventory items valued at almost $1.28 million or approximately 19 percent of the inventory value reported by the Repair Shop. While we were able to locate each item, the actual quantities for 47 (27%) of the sampled items did not match the inventory records. In addition, the outdoor storage yard appeared disorganized, poorly maintained, and not protected from the elements. The report makes recommendations to ensure appropriate controls are in place to safeguard the items and to accurately account for them both physically and in written inventory records.

 

 

Report
Fraud