Excess and Surplus Personal Property Transfer Program

GAO discussed the program for transferring excess personal property and donations of surplus personal property to nonfederal recipients through state agencies for surplus property. GAO found that: (1) the basic objectives of Public Law 94-519 have been met; (2) the law reduced the proportion of total excess property that was being transferred to nonfederal organizations; and (3) surplus property donated through state agencies to eligible recipients was being used for a wide range of purposes, including conservation, economic development, and parks and recreation. GAO believes that: (1) there are several concerns regarding the future health and viability of state agencies; (2) property and inventory control problems were the most pervasive; and (3) state agencies had problems with the adequacy of their fiscal accounting systems, eligibility of recipient organizations, performance of compliance and utilization reviews, and failure to correct problems identified in prior audits and reviews.