The Logistics Management Audit Process (New Window) consists of activities which can be classified as Asset Control or Audit activities. Asset control activities consist of self-audits periodic sampling (New Window) and physical inventory (New Window). If there are discrepancies between property records and the actual physical inventory count, these discrepancies are reconciled, a Report of Survey is filed and the PMIS/AMS records are adjusted. Next, the process of balancing the property records in the Property Management Office to the General Ledger in the Finance Office is begun. Auditing focuses on making sure the records in both locations are accurate.
As the audit begins a property baseline for the period being audited is established. Dates for the audit are identified and a Management Representation Letter of the organization's financial position is provided to the auditors. The Property Management Officer (PMO) assigns audit responsibilities to the Property Management Team. The PCO/ACR is focuses on the accuracy of the records and documentation for all property in his/her custodial area; the Property Accountable Officer/Accountable Property Officer (PAO/APO) does the same for his/her accountable area; and the Property Administrator (PA) focuses on the contracts and grants property records.
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As the audit begins (New Window), the auditors develop a flowchart and cycle memo of the organization's property management process. The auditors identify process controls and the auditor focuses on the accuracy and timeliness of reconciliations between the Property Management Information System/Asset Management System (PMIS/AMS) and the General Ledger.
The auditors then trace summary schedules of property, equipment and related depreciation to include additions and subtractions to inventory to the General Ledger. The auditor then tests the reasonableness of depreciation, reviews charges to maintenance and repair accounts, determines that no capitalized property has been expensed and reviews lease agreements.
The auditors then provide their findings noting any exceptions or material weaknesses. Management develops a corrective action plan to remedy the exceptions and material weaknesses. When this is accomplished, the Federal Property Management Team meets with the auditors to discuss control versus audit results. The Federal Property Management Team then compiles lessons learned
