Finding Text
Program Information:
U.S. Department of the Interior
AL # Award Number Award Period Program Name
15.042 A19AV00888 7/1/2020-6/30/2021 Indian School Equalization Program
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)).
A physical inventory of the property must be taken and the results reconciled with the property records at
least once every two years (2 CFR section 200.313(d)(2)).
A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft
of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)).
2 CFR § 200.303 - Internal controls states, the recipient and subrecipient must:
Establish and maintain effective internal control over the Federal award that provides reasonable
assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award. These internal controls should be in
compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the
Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the
Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition/Context: During the audit, we noted that a physical inventory of the School’s property had
not been taken and reconciled with the property records within the last two years.
[ X ] Compliance Finding [ ] Significant Deficiency [ X ] Material Weakness
Cause: There was turnover in the School’s key accounting staff.
Effect: Property records may not be accurate and proper custodianship of the property is compromised.
Questioned Costs: N/A.
Repeat Finding: Yes, 2020-001.
Recommendation: We recommend that the School develop policies and procedures requiring a physical
inventory of the School’s property at least once every two years, and reconcile the results of the inventory
to the property records.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding
and has prepared corrective action as detailed in its Corrective Action Plan.