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Short answer
Inventory accuracy is how closely the quantities in a stock record match what is physically on the shelf. Two VA Office of Inspector General audits of medical-supply inventories found records that were inaccurate, and their recommendations focus on counting, documenting, finding the cause of each difference, and only then adjusting the system.
Definition and scope
In plain terms, the record says a quantity is on hand, and a physical count either agrees or it does not. Federal rules for equipment bought with award funds use the same logic. 2 CFR 200.313(d)(2) requires that a physical inventory of the property be conducted and that the results be reconciled with the property records at least once every two years.
The same rule, at 200.313(d)(3), requires a control system to prevent loss, damage or theft and says any loss, damage or theft of equipment must be investigated. Accuracy, in other words, is not only a count: it includes asking why a record and a shelf disagree.
How accuracy is checked in practice
The check is a comparison of two things: the system quantity and a physical count. How often that comparison runs, and how much is counted each time, is covered in the guide to cycle counting. How a running record is kept between counts is covered in the guide to perpetual inventory systems. This page is about what the comparison revealed when auditors made it in medical-supply storage areas.
What two VA OIG audits found
East Orange, New Jersey (Report 15-01927-375, June 29, 2015)
The OIG reported that the inventory reports at the medical center were inaccurate, so the full extent of excess supplies could not be determined. By inspecting primary storage areas directly, it still found about 2,900 excess items. Logistics management had not effectively monitored how staff managed medical supply inventories, and when staff found inventory discrepancies they did not determine why the discrepancies were occurring.
Expendable inventory system migration (Report 17-05246-98, May 1, 2019)
The OIG found that significant discrepancies existed in inventory data for expendable medical supplies, and that proper inventory monitoring and management were lacking. It attributed this in part to inadequate oversight of the migration to a new inventory package and in part to inaccurate or nonexistent general inventory management practices.
Checklist drawn from the audit recommendations
The table lists each practice with the recommendation it comes from. These are recommendations the OIG made to VA organizations, not a standard for other settings.
| Practice | Source recommendation |
|---|---|
| Count every storage area and document the results | 15-01927-375: conduct a 100 percent wall-to-wall inventory of the storage areas and document results |
| Use the count to test the system, then adjust | 15-01927-375: use the wall-to-wall results to assess the accuracy of the inventory system and make adjustments as deemed appropriate |
| Find the cause of discrepancies before manual adjustments | 15-01927-375: implement measures to determine why discrepancies are occurring and take corrective action before technicians manually adjust the system |
| Use one model of barcode scanner | 15-01927-375: obtain and mandate one model of barcode scanner to track and maintain supply inventory |
| Label stored supplies with barcodes at their storage location | 17-05246-98: affix barcode labels for all expendable supplies at the locations where the inventory items are stored |
| Keep and use supply logs | 17-05246-98: supply logs available, with all required elements, and used by staff |
| Document physical inventory results and retain the records | 17-05246-98: sufficiently conduct and document physical inventory results and retain documentation as policy requires |
| Secure supplies consistently | 17-05246-98: strengthen controls so supplies are consistently secured |
Where it matters for labs and clinics
The audits concern hospital supply rooms, but the pattern applies wherever stock is recorded in a system: if the record cannot be trusted, nobody can tell how much is excess or how much is short. In the East Orange review, that was the reason the extent of excess could be found only by looking at the shelves. For how stocking levels are set once counts are reliable, see the guide to par levels for medical supplies. For tracking supply performance over time, see procurement KPIs and vendor scorecard metrics.
Common misunderstandings
“Finding a discrepancy means the job is done”
The East Orange audit says staff found discrepancies and did not determine why they occurred. Its fifth recommendation puts finding the reasons ahead of manual system adjustments, so an adjustment alone is not the fix.
“A new inventory system makes the data accurate”
The 2019 audit tied significant data discrepancies partly to inadequate oversight of a system migration, and partly to weak general inventory practices that a new system does not replace.
“The report’s quantity is the quantity”
In East Orange the reports were inaccurate; auditors learned the real position by physically inspecting storage areas.
FAQ
What does inventory accuracy mean?
It means the quantity in the record matches the quantity physically present. 2 CFR 200.313(d)(2) expresses this for federally funded equipment as a physical inventory whose results are reconciled with the property records at least once every two years.
Is there an official percentage target for inventory accuracy?
The federal equipment rule and the two VA OIG reports listed under Sources set no percentage target. They ask for a documented count, reconciliation with the records, and investigation of the cause of each difference.
Sources
- VA Office of Inspector General, Review of Alleged Mismanagement of Medical Supplies at the VA Medical Center, East Orange, New Jersey, Report 15-01927-375, issued June 29, 2015. Date checked: 2026-11-03.
- VA Office of Inspector General, Expendable Inventory Management System: Oversight of Migration from Catamaran to the Generic Inventory Package, Report 17-05246-98, issued May 1, 2019. Date checked: 2026-11-03.
- Legal Information Institute, 2 CFR 200.313, Equipment, paragraph (d). Date checked: 2026-11-03.
