Department of Labor Contractor-Held Property Management System

The Department of Labor's Contractor-Held Property Management System is designed to account for nonexpendable personal property that the Government furnishes to contractors and grantees to carry out training programs administered by the Employment and Training Administration (ETA), Department of Labor. In 1973, Labor's internal auditors found that $355,000 worth of property could not be located for which contractors were accountable. The auditors also reported that equipment valued at over $14.4 million in the contractors' custody was not recorded in the property accounting records of ETA. GAO examined the system for recording property in the custody of contractors, including the computerized processing of transactions performed by an outside firm, and evaluated the adequacy of controls over the processing of property transactions.