Section Topics
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Common Situations |
Property Management Office (PMO) Phone 736-0006 |
Internal Audit Phone 5-0074 |
| Re: Internal Audit | X | |
| Re: External Property Audit | X |
The key to an approved property control system and a successful audit is timely and accurate record keeping throughout the year, as well as compliance with all established policies and procedures. This includes inputting property into the Capital Asset Management System (CAMS) as soon as possible but no later than within 30 days of receipt of equipment. The Department Property Administrator (DPA) is responsible for entering CAMS records. Maintaining physical copies of essential property and receiving documents.
Auditing against property procedures is standard business practice. Several organizations routinely audit property processes; these may include the Office of Naval Research (ONR), Defense Contract Audit Agency (DCAA), Internal Audit, and sponsors. If an outside agency contacts a Department Property Administrator (DPA) or department directly regarding an audit, refer the auditor to your Property Service Representative (PSR) for coordination.
Note: It is General Stanford University policy that all external audits be coordinated through the Internal Audit Department; however, Property Management Office (PMO) assumes the role of primary liaison for property-related audits.When audits are scheduled, PMO will give as much advance notice to the department as possible. The DPA should be actively involved and an escort. They must be able to locate and identify property as requested by auditors, and must be able to provide property-related documentation upon request.
The government conducts broad, procedural and system audits at Stanford on a consistent basis. The purpose of these is to determine whether the policies and procedures which reflect government and Stanford requirements are documented and followed. Successful completion of these audits are critica;l to ensure continued approval of Stanford's property system.
Property audits examine many areas including:
- Purchase approvals
- Screening
- Procurement
- Receiving and Identification
- CAMS Record completeness, accuracy and timeliness
- Record retention
- Disposals and Excess Property
- Subcontract management
- Physical Inventory
- Other facets of property management (i.e.: maintenance of equipment and subcontractor property control)
- Availability and Completeness of Supporting Documentation
- Compliance with Procedures
What is the impact of an audit?
The results of a satisfactory property audit mean that new proposals and on-going research can continue unimpeded. Sponsors want assurance that research dollars for equipment which they reimburse Stanford for are used for the purpose for which they were acquired, are tracked and the equipment is managed properly. If there are deficiencies, the University and PMO are notified and a schedule is set for corrective actions within a reasonable period of time.
It is very important that Stanford have an approved property system in order to maintain the ability to receive reimbursement for IDCR for equipment depreciation and to be able to Purchase equipment using federally-sponsored funds.
Stanford Internal Audit has the right to conduct random audits to ensure system-wide database integrity as well as confirming that detailed transactions are accurate and timely. PMO should be informed in advance, however, Internal Audit may contact department heads directly when an internal audit is scheduled. In addition, as a central office self-audit and as part of the DPA training, PMO will conduct property audits throughout the year. These audits will be conducted in the same manner as external audits so DPAs who have never been in an audit situation will have an opportunity to experience one in an environment which will enable you to learn about how audits are conducted.
Audit results are provided in written reports. Audit findings and recommendations may affect business processes and require changes in policies and procedures. DPAs are informed of changes via Property Forums and information will be posted on the DPA Update Webpage.