1. Preparing for a GSA
Operational Review
presented by
Joseph Hvorecky

2. An Old but Apt Adage “If you fail to plan, you are planning to fail.”
-Benjamin Franklin

3. Basic Preliminary Steps
Coordinate with GSA an appropriate time frame.
Dust off and reexamine the current State Plan and most recent GSA Review report.
Orient newer staff to the GSA review process.
Alert customers of any operational impact.
Respond timely to any GSA initial request(s).

4. Sample GSA Initial Letter
Complete the attached profit/loss statement.
Complete the attached non-donable surplus sales summary (if applicable)
Federal surplus program organization chart noting changes.
Listings of any aircraft and vessels still under restriction and any items under perpetual restriction.
Listing of all eligible donees on file.
Scan and send four to five complete and approved eligibility applications
Listing of fifty donees by name and greatest dollar amount of property received.
Copies of physical inventories completed by the state agency (if not previously provided) and proof of corresponding adjustments on the 3040 Report. (if applicable)
Copy of the most recent internal and external audit reports (if not previously provided) and any follow-up correspondence.
Listing of aging report of accounts receivable and/or listing of delinquent donees.
Copies of any financial reports used to monitor the financial viability of the agency.
Arrange the holding of service charge payments received for seven days prior to the start of the review date so that they can be analyzed by review team.
Scan and send four to five service charge payments

5. Understanding the Review’s Purpose
#1 – Ensure Compliance with Federal Regulations and State Plan of Operation
#2 – Minimize Risk
#3 – Fulfill the Donation Program Mission
(effective and efficient operation)

6. Focus on the “Big 5”* Property and Inventory Control Fiscal Management
Eligibility
Compliance and Utilization Reviews
Business Relationships*

7. Property Accountability/Control
Key Considerations:
When Maintaining a Warehouse Function
Security and safety
Inventory variance(s)
Property display and marketing process
Accurate and complete documentation
Transfer / distribution docs / shortages / cancellation

8. Fiscal Management Key Considerations: Service charge assessment
Methods of payment
“Surplus”/Loss Financial Statement
Tracking of a reserve amount (when applicable)

9. Eligibility Key Consideration: Appendix B of FMR 102-37
(2) Provide for donee eligibility records to include at a minimum:
(i) Legal name and address of the donee.
(ii) Status of the donee as a public agency or as an eligible nonprofit activity.
(iii) Details on the scope of the donee’s program.
(iv) Proof of tax exemption under section 501 of the Internal Revenue Code if the donee is nonprofit.
(v) Proof that the donee is approved, accredited, licensed, or meets any other legal requirement for operation of its program(s).
(vi) Financial information.
(vii) Written authorization by the donee’s governing body or chief administrative officer designating at least one person to act for the donee in acquiring property.
(viii) Assurance that the donee will comply with GSA’s regulations on nondiscrimination.
(ix) Types of property needed

10. Compliance Key Considerations: Utilization review process
Documentation
Coordination with GSA on noncompliance matters
This includes prompt follow-up action

11. Business Relationships
Key Considerations:
Fair and equitable distribution
Updated needs
Donee visit schedule based on geography and emphasis
“The Good, the Bad, and the Uneducated”

12. Seven Desired Reviewer Traits
#1 – Be a Relationship Builder
#2 – Be Detail-Oriented
#3 – Be Inquisitive
#4 – Be Organized
#5 – Be Familiar with Donation Program Regulations/Guidelines and State Plan
#6 – Be Familiar with the Prior Review Findings and Corrective Action
#7 – Be Reasonable with Assessments

13. Seven Desired Reviewee Traits
#1 – Be Familiar with Prior Review Findings and Corrective Action
#2 – Be Familiar with Donation Program Regulations/Guidelines and State Plan
#3 – Be Accessible and Cooperative
#4 – Possess an Organized Filing System
#5 – Document; Document; Document
#6 – Look for Collateral Benefits
#7 – Assume Positive Intent

14. Final Recommendation BE “GRITTY” (Angela Duckworth, 2016)
PASSION/ENTHUSIASM
PLUS
PERSEVERANCE/ENDURANCE

15. Brief Video

16. Possible Stretch Goals
An elevated distribution percentage
An elevated donation rate
A larger number of eligible recipients of all types
An efficient and effective donation process
A 4-year GSA review schedule