WEST VIRGINIA COMPUTER SECURITY http://wvgazette.com/News/201206260136

June 26, 2012

MU medical school assets at risk of theft

By Phil Kabler

CHARLESTON, W.Va. -- Lax inventory management standards at Marshall's Joan C. Edwards School of Medicine potentially leaves hundreds of thousands of dollars' worth of assets untrackable -- including more than $600,000 of computers purchased in the past three years.

A legislative audit released Tuesday concluded that medical school staff failed to put inventory tracking tags on all equipment, improperly disposed of surplus items -- including throwing items away in trash bins -- and failed to inventory computers with purchase prices of less than $5,000.

It recommended that the School of Medicine follow the state Purchasing Division requirement to inventory all computers valued at $500 or more, rather than the $5,000 threshold.

"Computers, both desktop and laptop, by nature are especially susceptible to the risk of theft due to their portability and relatively high value," the audit notes.

The audit found that the school had purchased $641,366 worth of computers in fiscal years 2009, 2010 and 2011, but none were tracked as inventory.

"We cannot determine how many computers they have," audit manager Trent Morton told the legislative Post Audits Committee.

In a spot-check of 45 items of equipment, the audit also found that seven lacked inventory tracking tags, with the untagged items ranging in value from a $5,009 Isotemp refrigerator to a $16,500 pickup truck and a $18,012 copy machine.

If the sample holds true to the school's entire inventory, as much as $1.8 million worth of equipment may not be tagged, the audit concluded.

"The lack of inventory tags and updated item location increases the risk that items may be stolen and go unnoticed by management," the audit found.

The audit also found that the school had improperly disposed of obsolete or unwanted equipment. In some cases, that involved throwing items away in Dumpsters, in violation of Marshall inventory control policies, state Purchasing Division laws and, potentially, federal environmental laws.

No one from Marshall addressed the committee, but James Schneider, senior associate dean for finance and administration, submitted a letter pledging that the school would comply with the recommendations in the audit.

"This is the first examination in recent memory that focuses on internal control and compliance issues, and, as such, we believe it provides an excellent opportunity for performance improvements in these important areas," Schneider stated.

The school's response indicated that school officials were unaware of any improper disposal of equipment, but they said it would provide in-service training to staff on proper disposal of surplus equipment, as well as proper inventory control and management procedures.

School officials went on to say that the $5,000 threshold for computers is appropriate from a financial accounting standpoint, but they recognize that computers are particularly susceptible to loss or theft.

The response pointed out that Marshall's information technology office tracks all computers connected to the school's IT network, noting, "It is possible, although unlikely, for an individual department to order and receive computers without attaching them to the network."

The response indicated that the IT office and School of Medicine would work to develop a more comprehensive computer equipment tracking system.

Reach Phil Kabler at ph...@wvgazette.com or 304-348-1220.