UCSD
CAMPUS NOTICE
University of California, San Diego
 

OFFICE OF THE ASSISTANT VICE CHANCELLOR - BUSINESS AND FINANCIAL SERVICES
EQUIPMENT MANAGEMENT DIVISION
July 7, 1994
KEY ADMINISTRATORS/KEY STAFF (CAMPUS ONLY)
SUBJECT: Equipment Management Audit
Recently, the campus Equipment Management Division has been the subject of a federal audit conducted by representatives of the Office of Naval Research in response to the requirements of the Federal Acquisition Regulations (FAR), the Department of Defense Federal Acquisition Regulations (DFAR) and the Office of Management and Budget (OMB). Additionally, a second audit was conducted by the representatives of KPMG Peat Marwick relating to the University's annual A133 review.
While the results of the audits were favorable of UCSD's property system, the audit team noted two areas of primary concern in which the campus should expend maximum effort to meet the requirements of the previously mentioned regulations. The particular requirements identified by the audit teams are:
1. Physical Inventory, Article 34 Paragraph 3: The article states "A 
  physical inventory of equipment shall be taken and the results reconciled with 
  the equipment records at least once every two years." The auditors reiterated the need for departments to perform timely and accurate inventories of all property in their respective departments.
2. Reports of Property Disposition and Transfers, Article 34 Paragraph 1 (vii), 1 (ix) and paragraph 3: This article addresses the requirement that equipment transfer and disposition forms be submitted to the property system to assure accurate and timely record. The auditors uncovered higher than normal values of property write-off's resulting from what was logged as "lost- unable to locate." I cannot emphasize strongly enough the need for compliance with these requirements or the potential repercussions should we fail in our duty to comply. Therefore, I am asking all Department Chairs, Principal Investigators and Management Service Officers to expend every effort in support of the requirements referenced above.
Should you have any questions, or would like to discuss the details of these requirements, please contact Roy Brown, Equipment Management, X44436.
Don Larson
Assistant Vice Chancellor -
Business and Financial Services
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