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OSI-93-8R 1 (1993-05-20)

handle is hein.gao/gaobackiy0001 and id is 1 raw text is: GAO United States General Accounting Office Washington, D.C. 20548 Office of Special investigations B-252992 May 20, 1993 The Honorable John D. Dingell Chairman, Subcommittee on Oversight and Investigations Committee on Energy and Commerce House of Representatives 149534 Dear Mr. Chairman: Su o o 4 As you may recall, Office of Special Investigations (OSI) staff members detailed to your Subcommittee testified on April 30, 1990, before the Subcommittee about criminal activity and weak internal controls at the National Institutes of Health (NIH). Among other items, the testimony discussed the National Cancer Institute's (NCI) Laboratory of Tumor Cell Biology and (1) its noncompliance with NCI requirements that an inventory of physical property be conducted annually, (2) the results of a spot inventory at the laboratory that indicated equipment valued at over $275,000 was missing and identified 285 pieces of equipment not previously recorded in inventory records, and (3) security deficiencies at the building that housed the laboratory. This letter responds to your request for additional information concerning inaccuracies in NIH inventory records, noted during the course of OSI work at NIH. In 1990, and again in 1991 and 1992, the Public Health Service reported deficiencies in NIH's inventory records, as a material weakness under the Federal Managers' Financial Integrity Act, to the Department of Health and Human Services. The act requires federal agencies to periodically report material weaknesses and to provide updates on its actions to resolve the weaknesses. According to its 1992 update, NIH plans to complete and reconcile the NIH-wide personal property physical inventory. In brief, although we did not attempt to assess the overall accuracy of NIH property inventory records during our 1992 work, we have determined that problems still exist with the NIH inventory. We selected a random sample from 18,203 inventory items that NIH previously listed as missing, but subsequently located. NIH could not locate 9 of the 35 items in our sample. Based on this result, we are 99 percent confident that at least 10 percent of the 18,203 Continued Problems With NIH Inventory GAO/OSI-93-8R 55 3,0

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