This audit focused on the Pohnpei DOE’s inventory management, textbook procurement, and budgeting processes during fiscal years 2006, 2007 and 2008.
The objectives of the audit were to determine whether Pohnpei DOE adequately safeguarded its assets, provided a sufficient number of textbooks to the schools in a timely manner, and gave each school a fair share of the funds budgeted for operating supplies and fixed assets.
The results of the audit reveal that continued improvement in the areas of centralized management and oversight are needed.
The audit revealed that inventory management controls are not operating as designed, the department did not adhere to its textbook procurement plan, and there is no assurance that each school gets a fair and equitable share of funding.
In the present condition, the department does not adequately safeguard its assets nor are its inventory records accurate.
Audit tests revealed that listed assets such as laptop computers are missing. In conducting its last physical inventory, the department did not complete the process.
Approximately 28 percent of assets were not inspected to verify that the department still had possession of the assets and the results of the physical inventory were not reconciled with the existing inventory listing to produce an updated and accurate inventory listing. In its current state, the existing inventory listing is not accurate.
To protect against the loss of assets that are vulnerable to theft and misplacement such as laptops, DOE designed a loan agreement form which is meant to hold staff accountable when they are given laptops to use.
However, no one makes sure the form is completed when assets are assigned, that the completed forms are retained, or that assets are returned when an employee resigns or retires. At least one employee did not return a laptop when he resigned. An additional 14 laptops could not be accounted for.
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