FOR IMMEDIATE RELEASE
By Naval Supply Systems Command Fleet Logistics Center Yokosuka Public Affairs Office
YOKOSUKA, Japan — A specialized inventory team at Naval Supply Systems Command Fleet Logistics Center Yokosuka achieved an initial unofficial score of 100 percent accuracy during a recent high-stakes financial audit spanning multiple military installations across Japan.
The audit follows decades of legislative and federal oversight. In July of 2002, the U.S. Congress passed the Sarbanes-Oxley Act, establishing financial reporting and compliance requirements across government departments. Despite this mandate, the Department of the Navy and the Department of Defense have failed to pass their comprehensive financial audits for the past eight consecutive years.
At the start of 2025, the White House and the Pentagon placed renewed emphasis on passing the audit. The newly established Department of Government Efficiency further stressed the necessity of each military sector demonstrating strict financial accountability within its respective area of responsibility.
“It was really important we get this right,” said Capt. Tom Arnold, commanding officer of Naval Supply Systems Command Fleet Logistics Center Yokosuka. “There was a lot riding on this, but I had every confidence in our team. If any team could do this, it was this team.”
To meet these rigorous standards, Naval Supply Systems Command headquarters spent the past eight years developing compliance frameworks, which included establishing Regional Inventory Accuracy Office teams at each of its eight fleet logistics centers worldwide.
At the Yokosuka command, the regional office relies on a dedicated four-person team. The team consists of U.S. civilian employees Frank Shaffer and Crystal Clark, alongside Japanese host-nation employees Teruhiro Hano and Melinda Macaraeg. Since October of 2020, the team has worked to design and implement standardized accuracy processes and inventory tests across all regional stock points.
“This year, command headquarters targeted the entire enterprise to achieve audit readiness under the scrutiny of Ernst & Young, the independent public accounting firm contracted for the review,” said Frank Shaffer, the Regional Inventory Accuracy Officer for the command.
In support of the Ernst & Young audit from August 24 to September 4, Fleet Logistics Center Yokosuka leadership attended each site to provide presence, forceful backup, and undaunting support for its detachment sites and fellow supply personnel. The visiting leadership delegation included members from NAVSUP FLCY including Capt. Tom Arnold, Command Master Chief Petty Officer Denise Guerrero, Cmdr. Jeffrey Eom, Directorate Leading Chief Petty Officer Logistics Specialist Master Chief Rafael Mendez, and Lt. Zay Htet.
The active phase of the compliance push began in March with an enterprise-wide kickoff meeting that outlined target locations, testing windows, and evaluation criteria. Evaluators selected six sites across four Japanese municipalities. Beginning in March, the regional inventory team traveled to each designated testing site to conduct pre-tests and organize official documentation. By June, the team operated almost entirely on travel status to perform final evaluations immediately prior to the arrival of the independent auditors.
During the site visits, Capt. Arnold and his delegation met with on-ground personnel to receive direct feedback and discuss operational needs through formal office calls with local base leadership and All-Hands Calls across the detachments.
The formal audit presented significant operational hurdles. The rigorous travel schedule occurred late in the summer, beginning Aug. 24 and 25 in Okinawa, with visits to Commander, Fleet Activities Okinawa: Fleet Logistics Center Yokosuka Site Okinawa Headquarters, led by Officer in Charge Lt. j.g. Jude Bautista, and Marine Corps Air Station Futenma: Aviation Supply Department. The tour continued Aug. 27 and 28 in Atsugi at the Fleet Logistics Center Yokosuka Site Atsugi Material Warehouse, led by Officer in Charge Lt. Seng Chan.
The delegation and auditors then traveled Aug. 31 through Sept. 1 to Iwakuni, inspecting Aviation Supply Department Iwakuni and the Marine Corps Air Station Logistics Department. The audit concluded Sept. 3 and 4 in Misawa at Fleet Logistics Center Yokosuka Site Misawa, led by Officer in Charge Logistics Specialist Chief Petty Officer Ian Crisostomo, alongside Aviation Supply Department Misawa.
Independent public accountants allocated a strict two-day testing window for each site, requiring the inventory team to guide the auditors through physical counts while simultaneously preparing the next location on the itinerary. The team used Wednesdays and weekends exclusively for transit between locations.
Unforeseen weather systems added further operational complexity when Typhoon Saudel caused widespread flight cancellations out of Okinawa, forcing rapid, last-minute travel modifications. During the testing windows, team members arrived at local stock points at 6 a.m. for final preparations before the official audit commenced at 8 a.m. Depending on the duration of active testing, select members remained behind to fulfill auditor requests for additional documentation while others traveled ahead to initiate setup at the next installation.
“The initial, unofficial results yielded 100 percent accuracy at every single tested site, with zero exceptions or negative observations recorded,” Shaffer said.
“All sites collectively received a well-deserved 100 percent flawless audit score after months of preparation, perseverance, coordination, and teamwork with the audited sites across Okinawa, Atsugi, Iwakuni, and Misawa,” said Lt. Zay Htet, Naval Supply Systems Command Fleet Logistics Center Yokosuka Material Services Officer. “None of this could have happened without the cooperation of the sites regarding inventory preparations, presentability, and transportation coordination.”
Command leadership credited the successful outcome of the intense auditing cycle to the thorough groundwork and cooperative environment cultivated across the enterprise.
“This monumental success is a direct reflection of our team's meticulous preparation and an unwavering commitment to readiness,” said Arnold. “Passing an audit of this magnitude requires an all-hands approach. It succeeds because we have outstanding professionals who care deeply about their jobs, each other, and the overall success of the command's mission.”
While the initial results indicate total accuracy, the findings remain unofficial until all data and documentation undergo final review by secondary audit teams in the United States.
Naval Supply Systems Command Fleet Logistics Center Yokosuka is one of eight fleet logistics centers under Commander, Naval Supply Systems Command. The command oversees 13 sites across a 52-million-square-mile area of responsibility stretching from Misawa, Japan, to Stirling, Australia, and from Guam to Diego Garcia. Sailors and civilian employees provide supply and logistics support that enables maritime warfighter readiness throughout the Indo-Pacific region.
Headquartered in Mechanicsburg, Pennsylvania, Naval Supply Systems Command employs military and civilian personnel worldwide, providing global supply chain management, acquisition, operational logistics, and Sailor and family support in partnership with the fleet to sustain naval forces globally.
| Date Taken: | 09.14.2026 |
| Date Posted: | 09.14.2026 02:18 |
| Story ID: | 574589 |
| Location: | YOKOSUKA, KANAGAWA, JP |
| Web Views: | 26 |
| Downloads: | 0 |
This work, Accuracy and Accountability: NAVSUP Fleet Logistics Yokosuka Passes Rigorous Audit with Flawless Score, by Midoriko Morita, identified by DVIDS, must comply with the restrictions shown on https://www.dvidshub.net/about/copyright.
