Bar Code Technology: A Means To Improve Operational Efficiency And Internal Control

During the course of GAO's recent work on property accounting systems, GAO became aware of a trend among Federal agencies to utilize electronically readable markings, primarily bar codes, and reading devices for identification and control of property. Because of their apparent potential for improving productivity and strengthening internal control, GAO expanded their review in this area. GAO found that some agencies were considering, or had implemented, bar code applications outside the area of property management as well. Paramount among the many benefits realized or anticipated from all applications are increased accuracy of data input, increased speed and efficiency of operations, and the attendant dollar savings from reduced personnel expense.

In light of the increasing interest in the utilization of electronically readable markings and reading devices, the resources being expended on the development of related automated systems, and the potential benefits to be derived from such systems, GAO undertook a study of the fundamentals of bar code technology, including the current and planned applications of the technology by Government agencies. The study results are in this booklet.

Today's Federal manager is being asked to increase productivity while operating under tight budget constraints. Further, under OMB's Circular A-123, Internal Control Systems, managers are to be held personally responsible and accountable for the proper management of all resources under their control. GAO's study results indicate that the application of bar code technology in certain agency operations is a viable means to safeguard these resources, assure the accuracy and reliability of management information, and to promote operational economy and efficiency.