Contractor’s Property Accounting System Was Not Approved, and Required Reports Were Not Submitted - USAID Acquisition Regulation (AIDAR) 752.245-71 - AIDAR 752.245-70 - ADS 629.3.3.2

USAID Acquisition Regulation (AIDAR) 752.245-71, “Title to and Care of Property,” sets forth a contract clause under which contractors must prepare and establish a program, to be approved by the mission, for the receipt, use, maintenance, protection, custody, and care of nonexpendable property for which it has custodial responsibility, including the establishment of reasonable controls to enforce such a program.

AIDAR 752.245-70 also requires the contractor to submit an annual report on all nonexpendable property. The contractor needs to attest that physical inventories of government property are taken at least annually, accountability records for government property agree with inventories, and the total of the accountability records agrees with the property values.

ADS 629.3.3.2, “Property Accounting Systems for Contractors,” also states that USAID does not prescribe a specific system of property accounting for contractors. However, any system employed by a contractor requires written approval by the cognizant property administrator. This process ensures adequate contractor control, accuracy, and consistency in reported information. In addition, the USAID COTR is responsible for:

  • Monitoring the contractor’s management of government property.
  • Reporting annually on government property and any property acquired by the contractor for use in the contract.
  • Verifying the return or disposition of government property.

General Recommendations

Require the contractor to submit its property accounting system for approval and (2) determine whether that system is acceptable for managing government property according to USAID Acquisition Regulation requirements.

SOURCE: AUDIT REPORT NO. E-267-11-002-P MAY 16, 2011

The recommendations are derived from audit reports of the Office of the Inspector General. The source refers to the audit report, which is available on this site as part of the Audit Database Project: an educational tool for compliance with USAID regulations.  Please see the disclaimer of this site before using recommendations.

Tags: Asset Management and Transfer

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