The principal findings stemming from audits of stores inventory activities that were conducted at 22 ERDA (now DOE) contractor locations during FY 1977 are summarized. The primary purpose of the audits was to determine the adequacy of procedures and practices for assuring that stores inventories are being maintained at the most economical levels consistent with program requirements. Particular attention was given to the justification for adding new items and retaining existing items, and to the basis for the quantities of stores to be purchased. While weaknesses in procedures or practices, relating to particular elements of inventory management, were disclosed at some locations, the audit results, when viewed as a whole, indicated that most of the features of inventory management covered by the audit (adding new items, replenishment, financial controls, and physical controls) were being performed in a generally satisfactory manner. On the other hand, many contractors were not taking prompt action to determine the disposition of items that had been identified as slow-moving. The statistical data developed on long-supply and no-usage items strongly suggests that the number one problem is that items with little or no likelihood of future use continue to be retained in inventory. It is recommended that a concerted, one-time effort be undertaken to weed out and dispose of unnecessary stores inventory items which, past experience and current audits indicate, are likely to be many millions of dollars. (RWR)