Audit of USAID/Indonesia"s management of personal property

The audit covers FY89. Internal controls over personal property owned by USAID/I can be improved to ensure accountability. USAID/I"s tracking system accurately identified the location of only 102 of a sample of 141 nonexpendable items. Most of the other items had been transferred to residences without a computer update, while 5 items (4 air conditioners and 1 clothes washer) could not be located. This was due to insufficient controls over issuing, receiving, and recording procedures. USAID/I"s inventory of appliances exceeds its needs by an estimated 23% because four separate groupings of nonexpendable property with reserve stocks for each are being maintained. As a result, USAID/I owns an estimated 198 excess appliances, valued at about $100,000. Procedures for disposing of nonexpendable property are weak because the Mission has not established a system for tracking the condition of property, developed criteria for selecting appropriate disposal methods, or implemented procedures for documenting disposal actions. As a result, 1,444 items were disposed of with no assurance that they were not in working condition. The Mission does not have sufficient control over the procurement of office supplies. While some offices monitor their own usage, USAID/I does not oversee its total costs and consumption of office supplies or securely store computer supplies to prevent loss and theft. USAID/I also lacked verification that repair and maintenance of vehicles was done economically, since parts removed from vehicles were not consistently returned for inspection.