HomeResourcesAudit Database Project Compliance RecommendationsAsset Management and TransferProperty Transfers Were Not Appropriate - Title 22 Code of Federal Regulations Part 226, Administration of Assistance Awards to U.S. Non-Governmental Organizations, Section 226.34, Equipment - U.S. Government Accountability Office issued Standards for Int

Property Transfers Were Not Appropriate - Title 22 Code of Federal Regulations Part 226, Administration of Assistance Awards to U.S. Non-Governmental Organizations, Section 226.34, Equipment - U.S. Government Accountability Office issued Standards for Int

The U.S. Government and its Federal agencies have documented specific guidance regarding property use and disposal. Title 22 Code of Federal Regulations Part 226, Administration of Assistance Awards to U.S. Non-Governmental Organizations, Section 226.34, Equipment, states when the recipient no longer needs equipment, the equipment may be used for other activities in accordance with the following standards for equipment with a current per unit fair market value of $5,000 or more:

  • A recipient may retain the equipment for other uses provided that compensation is made to the original federal awarding agency or its successor.
  • If the recipient has no need for the USAID-financed equipment, the recipient shall request disposition instructions from the USAID AO.
  • USAID shall determine whether equipment can be used to meet the Agency’s requirements.
  • If there is no Agency need, USAID shall report the availability of the equipment to the General Services Administration to determine whether a requirement for the equipment exists in other Federal agencies.

In addition, the U.S. Government Accountability Office issued Standards for Internal Control in the Federal Government (the Standards) in November 1999.

One of the five standards for internal control is information and communication. The Standards state that information should be recorded and communicated to management and others within the entity who need it, in a form and within a time frame that enables them to carry out their internal control and other responsibilities.

General Recommendations

  • Submit planned replacement needs to and request disposition instructions from the agreement officer for USAID-financed equipment in excess of $5,000 for which the recipient has no need.

SOURCE: AUDIT REPORT NO. 6-279-11-005-P February 28, 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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