Finding 1113761 (2024-001)

Condition: The Organization has not properly maintained a capital asset listing and has not performed an inventory of capital assets within the last two years. Criteria: Per 2 CFR 200.313, 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, who holds title, the acquisition date, and 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 sale price of the property. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Effect – The Organization did not have a capital asset listing that properly identified and described assets purchased with federal grant funds. Any future disposition of assets may not be traced to the correct awarding agency. Cause – Management did not maintain a capital asset schedule and perform a physical inventory of assets at least once every two years. Repeat Finding: No. Recommendation: Management should maintain a capital asset schedule and perform a physical inventory of assets at least once every two years. Views of Responsible Official: Management of the Organization has performed a physical inventory of assets on March 12, 2025. Management will ensure that a physical inventory of assets is completed on a regular basis. Questioned Costs – None reported.