Due diligence should take place before purchasing property and equipment in order to ensure it is needed and is not already available within your organization.
Subrecipients must have and follow their property and equipment policy and maintain supporting documentation to avoid incurring property and equipment costs that are later disallowed (e.g., acquiring unreasonable, duplicative, or unnecessary property).
CVAD recommended inventory control include:
- Keep an up to date equipment inventory (For CVAD requirements see Management and Oversight of Equipment)
- Employ effective management techniques for determining property/equipment is needed.
- Initiate a screening process to ensure effective controls are in place for property management.