Recently, as part of the A2B Tracking’s Webinar Series, Sharrieff Christmas and I, Dan Faria, discussed Reporting Assets to the IUID Registry and how it can impact a government audit. For this post I want to talk about how to be fully prepared for a government property audit.
The Department of Defense (DoD) is being held accountable by Congress to achieve and maintain full audit readiness of all DoD assets and property. In order to achieve this audit readiness initiative, this year the DCMA is performing audits much more frequently and with greater intensity. There are presently over 1,200 DCMA auditors conducting audits to insure all assets are accounted for. As a government contractor you could be next! Are you ready? What should you be doing to be fully prepared in order to pass an audit and not jeopardize future contract awards?
Without question, whether the assets you are dealing with are End items, Government Furnished Property (GFP) or Legacy items you need to look at how you are managing these assets. As you may know, End Items and GFP must be reported to the IUID Registry. How are you doing this? What tools are you using to be audit ready? Would these tools be looked on favorably by the auditor? If you are using spreadsheets an auditor will look at that option as very time consuming and error prone. Unless you are only managing a few assets, you need to be using a tool that tracks and reports the assets accurately, timely and with full compliance.
Auto-ID Technology
The most effective way to be fully prepared to pass a DCMA audit is to implement Auto-ID technology to support your management of the assets. Marking the assets with MIL-STD-130 compliant IUID labels and then reporting those assets electronically will show the auditor that your organization is committed to audit preparation. Automated reporting will show an auditor you will be able to maintain full accountability of the assets, complete fast and sustainable inventories and facilitate audit readiness as needed. This will help make your audit go smoothly.
In contrast, processing your data manually will easily lead to inaccurate or incomplete data, time consuming and error prone inventories which will make your audit much more difficult to complete and pass.
Prepared for a Government Property Audit
To learn more about how your organization can be better prepared for a government property audit watch this short video. Passing a government audit and maintaining your compliance requirements is critical to winning future contract awards and getting paid on time. Failing an audit is not an option so it’s best to make the investment and take the time to be prepared.
