Finding Text
Criteria
Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property (2 CFR section 200.313(d)(1)).
Condition
During our audit we noted a lack of required property records to support that compliance with equipment and real property management compliance requirements was being achieved.
Cause
Management was not aware of the governance compliance requirements specific to the Head Start Cluster, thus did not maintain a proper filing system for property records as required by equipment and real property management compliance requirements.
Effect
The effect of this condition is that equipment purchased with Head Start Cluster funds could be considered unallowed resulting in a request for the funds to be returned.
Recommendation
We recommend that a proper filing system that handles both hard copy and electronic supporting documents be implemented. We further recommend that document management software or application be utilized to help maintain supporting documentation of financial accounting records.
Management Response
See corrective action plan.