Dear Mr. Waguespack,
In conjunction with the Single Audit for FY 2023, we concur with the finding addressed in the letter dated January 26, 2024, concerning an unlocated asset on an oil rig in the Gulf of Mexico. Property Management has already begun addressing the finding by reviewing current writ...
Dear Mr. Waguespack,
In conjunction with the Single Audit for FY 2023, we concur with the finding addressed in the letter dated January 26, 2024, concerning an unlocated asset on an oil rig in the Gulf of Mexico. Property Management has already begun addressing the finding by reviewing current written procedures and training material.
As requested in the letter, the following responses are given regarding the finding.
Finding:
Noncompliance with Federal Equipment Management Regulations at LSU A&M
Compliance Efforts and Response to Finding:
As noted in the finding, one asset (LSU# 723337) could not be located during testing. This equipment is a GPS transmitter/receiver and part of a network of Continuously Operating Reference Stations (CORS) in Louisiana for the LSU Center for Geolnformatics, in the College of Engineering. It was deployed on an oil platform (EI337A) in the Eugene Island region of the Gulf of Mexico. Multiple factors contributed to the loss of this equipment, including:
• The isolation of the oil platform. Access is by chartered flight, and security clearance is required. Thus, LSU must rely upon employees of the operating company for completion of any on-site tasks.
• When operational, this equipment can be observed online in real time, and identified by serial number which corresponds to our asset records. This is sufficient for our annual inventory verification process. If the equipment is offline for any reason, then a representative of the operating company would be needed to provide in-person verification for inventory purposes.
• In 2020, the device began exhibiting intermittent connectivity issues. Plans to send a new antenna cable to be installed were interrupted by a pandemic-related shutdown of EI337A, the eventual bankruptcy of the platform operator, Fieldwood Energy, and turnover among Fieldwood staff related to same.
• Extensive efforts were made to identify and contact the current operator of El337A, including traveling to the Broussard and Lafayette areas and cold calling several oil platform operators. Once successful, a representative of Arena Offshore advised that someone recalled the equipment having been removed and sent to an onshore storage warehouse. LSU has been unsuccessful thus far in learning its location and recovering the equipment.
• As LSU continued to pursue retrieval of the equipment, the department incorrectly reported the asset as located for annual inventory purposes under the belief that (due to its isolated/remote installation) the equipment remained in its last known location.
LSU# 723337 has been reported as unlocated on our most recent inventory certification on December 12, 2023. Efforts continue to locate the asset and, if found, it will be reactivated and placed back in service, or properly disposed.
Inventory procedures are being re-written to provide greater clarity of the standards for reporting an asset located, including how to handle when there are extenuating circumstances. Campus departments will receive training on the revised standards.
Anticipated Completion Date: June 30, 2024.
Persons Responsible:
Toliver Bozeman, Director Property Management
Jason Whitfield, Associate Director of Property Management