Audit 398846

Criteria Section 200.313(d) of the Cost Principles of the Title 2 U.S. Code of Federal Regulations Part 200—Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the Florida Single Audit Act, Section 215.97, Florida Statutes, requires an entity to maintain identifying records for property acquired with federal and state awards. Additional equipment and real property requirements are contained in 2 CFR 200.311 and 48 CFR 52.245-1. These requirements state property records must include a description of the property, a serial number or another identification number, the funding source (including the federal or state award identification number), the title holder, the acquisition date, the cost of the property, the percentage of the federal or state agency contribution towards the original purchase, the location, use and condition of the property, and any disposition data including the date of disposal and sale price of the property. Condition The fixed asset listing maintained by the County for assets acquired with federal and state awards did not contain all required elements. Cause The County has an established policy that meets the requirements of the criteria noted above. The policy was not consistently implemented during the period under audit. Effect Equipment, infrastructure, buildings and real property acquired with federal and state awards is not consistently tracked to ensure compliance with federal and state regulations. Questioned Costs None noted Repeat Finding No Context The County tracks property acquisitions using internal property records spreadsheets, which has the capability to retain grant specific identifying information for assets acquired with federal or state awards. However, this information is not entered into the records on a consistent basis. Infrastructure and building additions acquired with federal and state awards are tracked and identified while the project in progress; however, once projects are completed and placed into service, grant specific identifying information is not maintained. As a result, infrastructure and building records do not independently indicate whether an asset was federally or state funded or reference key grant details, such as the funding source or award identification number. Audit testing also identified grant funded equipment purchases that did not include required information within the fixed asset record. Recommendation The County should consistently follow their policy established for tracking and identifying fixed assets acquired with federal and state grant awards. Views of Responsible Officials Okaloosa County Management concurs with the finding and recommendation. While the County maintains a policy for tracking equipment and real property acquired with federal and state awards, we acknowledge that it was not consistently implemented during the audit period, resulting in missing grant-specific information (e.g., funding source, award ID, percentage of contribution) within our fixed asset records and on certain infrastructure/building records.