Metropolitan Transportation Authority

Long Island Rail Road: Selected Inventory Practices

At the time of our audit, the LIRR reported an inventory with a cost of $45 million. We examined the appropriateness of the LIRR's inventory levels and found excess numbers of some items and insufficient numbers of other items. For example, the LIRR reported a four-year supply of 400 items costing more than $12 million. We recommended that the LIRR establish comprehensive guidelines to help staff determine when orders should be placed and how many items should be ordered. We also noted that items were often delivered late, which increased the chances of stock shortages. We recommended that the LIRR terminate contracts with unreliable vendors. 94-S-73