The audit found that CDC also had added only 171 of the 200 items of newly acquired property into the property system. “For the 29 remaining items, CDC either had not added the items to the property system or had recorded the items in the property system at amounts less than the purchase costs,” OIG says. “Based on these sample results, we estimate that the property system was understated by approximately $1.5 million for purchases made in FY2007.”
• Adjust their property system based on annual physical inventory results and removing from the property system any lost or missing property, including the estimated $8.2 million in property OIG identified.
• Ensure that all newly acquired property items, including at least $1.5 million worth of items acquired in FY 2007, are bar coded and correctly added to the property system; and
• Reconcile the general ledger to the property system to identify any outstanding discrepancies and resolving such discrepancies.
In a letter to HHS Inspector General Daniel R. Levinson, CDC Director Thomas R. Frieden, MD, concurred with the findings and said many of the recommendations listed in the audit were already being implemented.