Department of Human Resources' Property Accounting and Control System Is Ineffective

The property accounting and control system of the District of Columbia's Department of Human Resources (DHR) does not provide accurate and complete data on the quantities, location, use, and cost of accountable property. An effective property accountability and control system for DHR is essential because of the large amount of District and Federal grant funds invested in accountable property; the high cost to purchase, store, maintain, distribute, and control such property; and the potentially adverse effect on program results and resource management. DHR's system was ineffective because: acquisitions of accountable property were not always recorded on the Equipment Report Master List at the time of receipt; annual physical inventories of property were often not done; and physical inventory results, when reported, were used to validate the master list without any independent review to insure that the data were accurate and complete. DHR could not accurately determine how much property was owned, where it was located, or how effectively it was used; it could also not determine how much property had been lost, stolen, or destroyed. The Director of DHR should: monitor the implementation of new procedures requiring all warehouse and program personnel to promptly report all property receipts and relocations, insure that annual physical inventory requirements are met, and independently verify or have an independent group verify the results of physical inventories.