FAA Lacks Effective Internal Controls for Oversight of Accountable Personal Property
The effective, efficient use of property is the responsibility of all Federal Aviation Administration (FAA) employees. As of March 31, 2014, FAA reportedly owned approximately $733 million of non-capitalized accountable personal property (personal property), such as personal computers, servers, digital cameras, utility vehicles, heavy equipment, and tools. We initiated this audit as a follow-up to our 2013 audit purchase card audit, which found that FAA purchase cardholders and property control officials did not always follow agency policy for tracking personal property acquired with Government purchase cards, increasing the risk that Government property could be lost or stolen.
Overall, we found that FAA (1) has not fully implemented effective internal controls for managing personal property and (2) did not perform required inventories, record newly acquired IT equipment, or update records upon transfer from property records. As a result, we estimate that FAA may be unable to locate approximately 15,000 personal property assets on record, with a combined acquisition value of more than $32.5 million. We made eight recommendations to improve FAA’s controls for safeguarding and tracking personal property. FAA concurred with all 8 recommendations and provided acceptable actions to address our recommendations. Accordingly, we consider them as resolved but open pending completion of all planned actions.