UCAR BI-ANNUAL RESPONSIBLE PERSON PROPERTY UPDATE

(Please read this carefully, making sure you understand what is happening with this action.  If you do not understand, ask questions.  This will impact you and your division so be sure to call Janet (ext. 8858) or Chris (ext. 8573) if you need clarification.)

The 2001 external audit has run into some problems resulting in the need for additional measures to ensure that funding to UCAR scientific programs is not negatively impacted.

Of the 25 selections for the physical audit, 2 could not be produced.  This sampling is perceived as representative of the whole UCAR property population and suggests that UCAR is not controlling many UCAR-accountable assets as required by OMB A-110.

In addition to the physical audit, 25 selections were made to track UCAR’s disposal process and timing.  Of that 25, about 20% had been disposed in prior fiscal years but not removed from UCAR records in the year of disposal.  That resulted in errors on UCAR financial statements for the years between actual disposal and record disposal.

Either of these problems would be significant but both appearing in the same FY audit cast considerable doubt on how divisions manage their property.  What affects one division affects all since we are all under the corporate umbrella of UCAR.

I asked Deloitte & Touche how we could best address this before they return for the Final Audit mid-November and the following was their response.

“It is great that you want to talk to the DPAs about the audit.  As far as your meeting with the DPAs, I would suggest that every DPA verify that assets at their respective division really do exist, and any items that may be in question get resolved immediately.  In order to stress the importance of making sure the fixed assets are recorded properly, you could explain that the consequence of not having the assets properly recorded could cause a reportable condition [emphasis mine] to be reported which is available to all funding agencies.  If the funding agencies take a reportable condition seriously, they could potentially cut off funding, so asset schedule maintenance is very important and must be kept to date!”

Therefore, UCAR is conducting a mandatory Responsible Person Property Update during the month of October.  Lists, sorted by Responsible Person, will be distributed to all individuals assigned property in a division through inter office mail today, Thursday, September 27, 2001, and must be returned to their respective DPAs on or before October 31, verified, updated and signed by the Responsible Person.  DPAs will receive a copy of what has been sent to their division so they know what to track.

The Property Office will do a sampling after reports are received from a division to confirm  accuracy.  The DPA will be notified by e-mail when the sampling is to take place but probably will not need to participate unless we have difficulty locating an item. 

Copies of all reports must be in the Property Office by 9:00 AM, Thursday, November 1^st.  At 10AM, we will begin calling DPAs on late reports to ensure they will arrive that day.

As DPA, you must track progress throughout the month to make certain all reports will be returned to you in time to meet this deadline.  The earlier they are returned the easier it will be for all.

 Please note that this is not a Physical Inventory, nor is it anything new.  The Responsible Person has always been required to know where their assets are.  This action documents that knowledge.  In most cases, they will be able to review and correct the list at their desk in  5 to 30 minutes.

Certainly, if they don’t know where their assets are they must find out.  They are responsible for knowing where their assets are at all times.

If you updated your database records since last Thursday morning when the Data Warehouse dump was performed those changes will not appear on these lists.

If you have, for example, changed the Responsible Person field, you will need to let the previous responsible person know of the changes so they won’t have to verify those assets.  Also, give a copy of the list to the new responsible person, highlighting the items transferred to them, so they can do the update.

Returned forms must be:

   Signed by the Responsible Person or someone acting for them to verify the accuracy of the list and provide updated information.  Unsigned forms will be returned for signature.

   Returned to the DPA on or before October 31, 2001.  (Make a copy for your records.)

As with all Property issues in your division, you will field questions from your Responsible Persons.  If you do not know the answer to a question, call the Property Office for assistance and then get back to the Responsible Person who posed the question, with the answer.  If Responsible Persons call the Property Office directly, we will refer them back to you.

Nothing in this process is new.  The divisions have always been responsible for knowing where their assets are and ensuring that disposal intentions are conveyed to the Property Office through their DPA prior to disposal action.

Address difficulties as soon as they arise.  If Responsible Persons communicate to you that they do not intend to comply, address the issue with your Division Administrator and/or the Property Office so that we can encourage compliance well before the end of the month.  Do not wait until the final week of October and then realize your division will miss the deadline.

If you are not able, for any reason, to track this through the month to ensure timely completion, again, notify me immediately so I can communicate with your division administrator and find out how your division is going to get this done.

If you track this starting tomorrow or Monday, it should work.  If you wait until the end of the month to address it, your division will miss the deadline.

The Property Office is available to help you however we can.  Please call Chris or me at anytime with questions or concerns and we will do all we can to assist you.  This effort will benefit all of UCAR.  Thank you for your efforts!