State audits suggest changes for ISU, regents

Iowa State University will look into using an inventory tracking system after a state audit showed that it was not properly documenting the sale of some surplus equipment.

ISU Surplus is responsible for selling and disposing of university equipment and other property. Disposals were not consistently supported with documentation, the audit says, and cash receipts did not always identify the items sold.

The audit for 2010-11, released Monday by the State Auditor's Affice, recommends that ISU Surplus maintain proper documentation authorizing the disposal of equipment, and ensure that sales documentation properly identifies the specific equipment sold. The audit also recommends that all equipment items sold or disposed of be removed from the inventory tracking system on a timely basis.

In a response in the audit, ISU Surplus officials said use of an inventory tracking system will be investigated to determine its costs and potential benefits. In the interim, other efforts will be used to better track inventory and sales. Spot checks will be conducted monthly for higher-value items, officials said.

A separate state audit of the state Board of Regents office found an overestimate of motor vehicle insurance for fiscal 2011. An actuary developed the initial estimate of nearly $1.8 million, which was reported in a financial package, but a subsequent estimate provided by the actuary was about $1.3 million.

The audit recommends that the board office work with the actuary to obtain a timely estimate for the insurance fund.