DLA Distribution San Diego visit focuses on audit readiness as joint force readiness enabler

Defense Logistics Agency Distribution San Diego hosted senior Department of War sustainment and financial oversight officials, alongside Agency leadership, for a comprehensive discussion and first-hand look at the command's audit efforts and linkage to warfighter readiness Oct. 6.

Air Force Lt. Gen. Dave Sanford, director, DLA, and Joe Faris, deputy commander, DLA Distribution, welcomed a group led by Brian Birdwell, Assistant Secretary of War for Sustainment, Michael Powers, Deputy Under Secretary of War (Comptroller), and Tom Harker, Deputy Chief Financial Officer, Office of the Under Secretary of War (Comptroller).

"We at DLA, and especially on the Distribution side, understand that supporting the warfighter begins with knowing exactly how much material you have, in exactly what condition, and exactly where it is," Sanford said. The DLA Distribution engagement was the first for Sanford since assuming his role as DLA Director Oct. 2.

Faris and Navy Capt. Edelio Joloya, commander, DLA Distribution San Diego, provided an overview and first-hand look at the site's efforts in reinforcing inventory accuracy, protecting military service-owned custody stocks and item locations. The center operates facilities onboard Naval Base San Diego and Naval Air Station North Island.

"The team and leadership at San Diego have done an outstanding job at taking lessons learned and turning them into action," Faris said. "In just a matter of weeks, this team implemented a system of perpetual checks across every location and every item ensuring audit and warfighter readiness."

The command executes perpetual checks whenever personnel access an item or storage location, verifying both the quantity selected and the remaining stock. Under this standardized procedure, personnel conduct blind counts without prior knowledge of system-recorded balances. Operators report physical counts directly to supervisors for system reconciliation, preventing reporting bias and ensuring data integrity.

During the visit Birdwell acknowledged the teams' efforts in support of the warfighter.

"Thank you for your hard work and for keeping our joint forces equipped to execute their mission," Birdwell said.

The visit highlighted the Agency-wide effort to standardize processes and identify where additional resources and personnel are required to achieve audit compliance and inventory control.

Standardized data sets assist in evaluating inventory retention requirements for material in long-term storage. DLA currently manages approximately 2 million unique national item identification numbers, with just over 1.1 million currently classified as active.

"The process of determining what material is still needed and what we can get rid of will be long and meticulous work, but it needs to be done," Sanford said.

Inventory retention decisions must account for several operational dependencies, including active weapon system lifecycles, foreign military sales commitments and strategic contingency reserves. By methodically identifying slow-moving items, the Agency can prioritize inventory counts, audit sampling, and warehouse labor on high-velocity and high-dollar assets to maximize operational efficiency.

The visit concluded with a discussion on DLA's plans to support upcoming Defense Working Capital Fund and military service audits.

"Audit readiness has a direct link to the warfighter," Faris said. "By establishing absolute, physical-to-book accountability on our distribution center floors, we are ensuring our logistics network is fully transparent, resilient and ready to sustain joint operations and drive warfighter lethality."