Audit 41422

2022 001 Assistance Listing Number, Federal Agency, and Program Name - Assistance Listing Number 16.922 - Department of Justice - Equitable Sharing Program Federal Award Identification Number and Year - Not available Pass through Entity - N/A Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR section 215.34 requires that a physical inventory of equipment purchased with federal funds be performed at least every two years. Condition - The Township did not perform a physical inventory of equipment purchased with federal funds during the fiscal year ended March 31, 2022 or in the previous two years. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - During the fiscal year under audit and in the preceding two years, the Township did not perform a physical inventory of equipment purchased with federal funds, as required under 2 CFR 215.34. However, certain other controls and procedures, such as physical safeguarding of federally funded equipment, security system monitoring, and annual review and reconciliation of vehicle titles to inventory reported in the financial records are performed. Cause and Effect - Lack of the required physical inventory of equipment, as required by 2 CFR section 215.34, may result in undetected loss or unidentified sale of federally funded equipment. Recommendation - We recommend the Township implement procedures and controls that ensure physical inventory counts are completed at least every two years and formal documentation is maintained to provide evidence that the physical inventory was completed timely. Views of Responsible Officials and Corrective Action Plan - The Township maintains a list of all assets purchased with federal funds and updates the list annually as assets are purchased or sold. Going forward, the list will be sent to department heads every other year for review and confirmation that the asset is still used.

2022 001 Assistance Listing Number, Federal Agency, and Program Name - Assistance Listing Number 16.922 - Department of Justice - Equitable Sharing Program Federal Award Identification Number and Year - Not available Pass through Entity - N/A Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR section 215.34 requires that a physical inventory of equipment purchased with federal funds be performed at least every two years. Condition - The Township did not perform a physical inventory of equipment purchased with federal funds during the fiscal year ended March 31, 2022 or in the previous two years. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - During the fiscal year under audit and in the preceding two years, the Township did not perform a physical inventory of equipment purchased with federal funds, as required under 2 CFR 215.34. However, certain other controls and procedures, such as physical safeguarding of federally funded equipment, security system monitoring, and annual review and reconciliation of vehicle titles to inventory reported in the financial records are performed. Cause and Effect - Lack of the required physical inventory of equipment, as required by 2 CFR section 215.34, may result in undetected loss or unidentified sale of federally funded equipment. Recommendation - We recommend the Township implement procedures and controls that ensure physical inventory counts are completed at least every two years and formal documentation is maintained to provide evidence that the physical inventory was completed timely. Views of Responsible Officials and Corrective Action Plan - The Township maintains a list of all assets purchased with federal funds and updates the list annually as assets are purchased or sold. Going forward, the list will be sent to department heads every other year for review and confirmation that the asset is still used.