ALEXANDRIA, Va.–An audit by NCUA’s technology equipment inventory by its Office of the Inspector General (OIG) has found the agency did not adequately monitor, account, and dispose of all its information technology (IT) equipment and that improvements are needed when it comes to disposing of IT equipment.
The OIG audit reviewed technology practices from Jan. 1, 2014, through June 30, 2017, and includes seven recommendations addressing identified deficiencies. The report said NCUA management had agreed to all of them.
“Our audit determined that although the NCUA has an instruction on the disposition of personal property, including the disposition of IT equipment, the instruction needs improvements, including broadening its application to the entire life cycle of IT equipment, not just its disposition,” the report reads. “In addition, procedures implementing the instruction are needed, including requiring employees to sign receipts when they are issued IT equipment and requiring performance plans for employees responsible for IT equipment inventory management to have that criterion reflecting that responsibility.”
No Fraud Detected
The OIG further concluded the “implementation of a comprehensive asset management system could provide NCUA management with reliable information to support decision-making and evaluate the performance of its inventory management program.”
The OIG said it did not identify any instances of fraud or any indicators of fraud during the audit, but added that given the significant information limitation, it believes the risk for fraud within the NCUA’s inventory systems is high due to an ineffective internal control environment and therefore make no judgments as to its existence.”
Seven Recommendations
The seven recommendations made by the OIG include:
- Finalizing a draft handbook on accountable property operations
- Developing a responsibility statement to the Record Receipt—Property Issued to Employee Form that all employees, contractors, and others who are issued IT equipment must acknowledge (electronically or in writing) issuance of NCUA equipment procedures
- Ensuring performance criteria are incorporated into performance plans for all employees who are responsible for managing the agency’s IT equipment
- Implementing a comprehensive asset management system that designated employees must update, within a specific number of days, upon acquisition, distribution, and disposition of IT equipment, in accordance with NCUA’s instruction, handbook, and related documents
- Surveying IT equipment at least annually to identify excess or exhausted equipment, and then sell, transfer, or donate within a specific timeframe, according to parameters established in NCUA’s instruction, handbook, and related documents
- Ensuring the new instruction, handbook, and related documents provide a specific number of days for the removal of assets from the NCUA’s financial system
- Considering in future contracts for IT equipment the ability to buy or lease assets on demand, which would reduce costs for equipment not needed
The full OIG report can be found here.