Summary of Report 96-066

May 1996

Report Number 96-066

Overall Conclusion
The State Property Accounting System (System) contains reasonable policies and procedures for controlling and protecting the State's personal property. The System, which accounts for about $5.2 billion in personal property, is being administered in accordance with statutory provisions by the Comptroller of Public Accounts (Comptroller).

Key Facts and Issues
State agencies are responsible for an accurate and timely reporting of personal property information to the Comptroller. The Comptroller sets policies and procedures and maintains security and data integrity over electronic data processing for the System.

The State Property Accounting System contains reasonable policies and procedures for controlling the State's personal property. Although the 42 agencies reviewed are making a reasonable effort to comply with System policies, individual state agencies should make improvements in accounting, controlling, and reporting of personal property. The improvements can provide additional assurance that the data in the System is reliable.

The Comptroller of Public Accounts is requiring state agencies to resolve a $435 million personal property valuation difference involving 49 agencies by August 31, 1996. The difference occurred between an initial and a subsequent loading of personal property data by state agencies onto the System. Although the conditions which contributed to the valuation difference no longer exist, the Comptroller is requiring reconciliations to determine if any adjustments to data maintained by the System should be made.

Issues for future study concerning System policy and potential economy and efficiency savings were identified. With further study, resolution of these issues could lead to modification or improvements in the System.

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