Comptroller notes deficiencies in the Federal Surplus Property Donation Program of the GSA
San Juan, Puerto Rico – (June 18, 2026) – The Comptroller of Puerto Rico, Attorney and CPA Carmen Vega Fournier, issued a qualified opinion on the operations of the Federal Surplus Property Donation Program of the General Services Administration (GSA), after identifying deficiencies related to the eligibility of a donee, delays in required inspections and the inoperability of the Program’s Advisory Board.
The Federal Surplus Property Donation Program allows federal goods that are no longer needed by federal government agencies to be transferred to municipalities, government agencies, educational institutions, nonprofit organizations and other eligible entities, in order to strengthen their services and operations.
The compliance audit covered the period from December 1, 2023 to December 31, 2025 and examined compliance with the processes related to the evaluation of donees, the delivery of federal surplus property and the inspections required to ensure the proper use of the donated goods.
“The processes established for the administration of public property must be complied with rigorously in order to guarantee transparency, fairness and the effective use of the resources available to the entities that serve the public,” said Comptroller Vega Fournier.
Among the audit’s findings, the Office of the Comptroller of Puerto Rico (OCPR) identified that the GSA delivered property valued at $46,785 to an entity whose eligibility certification to participate in the Program had expired. The transfer was approved eight days after the eligibility lapsed and the property was delivered 23 days after that expiration. The certification was updated 149 days after the delivery of the goods.
In addition, delays of 35 and 114 days were detected in carrying out inspections to verify that two entities had put the donated property into use within the one-year term required by federal regulations.
The audit also revealed that the Program’s Advisory Board did not hold regular or special meetings during the audited period. This body is responsible for promoting the program, recommending regulatory improvements and representing the interests of the participating entities.
According to the report, these situations may lead to the distribution of goods to entities that do not keep their eligibility current, limit the ability to promptly detect properties that are not being used in accordance with the established requirements and affect the effective promotion and development of the Program.
As a result of the findings, the OCPR recommended that the administrator and chief procurement officer of the GSA strengthen controls to ensure that the eligibility of donees is current before approving and delivering surplus property, carry out the required inspections in a timely manner and guarantee the functioning of the Advisory Board in accordance with Act No. 28 and the applicable regulations.
In its comments on the draft report, the GSA maintained that one of the observations related to the inspections was carried out in accordance with the applicable rules. However, the OCPR upheld the finding, concluding that Act No. 28 requires verifying the use of the property within the established period and adequately documenting those reviews.
During the audited period, the GSA received authorization to distribute 1,126 units of federal surplus property with an acquisition cost amounting to $1.84 million.
Audit Report OC-26-40 can be obtained on our website: www.ocpr.gov.pr.
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