Finding 1136428 (2024-002)

Criteria: Uniform Guidance ("UG") Section 200.313(d) states that "Procedures for managing equipment, including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (2) a physical inventory of the property must be taken and the results reconciled with the property records at least once every two years." Condition: The City did not perform the physical inventory required by UG Section 200.313(d). Cause: The City did not schedule or plan for a physical inventory. Effect or Potential Effect: The City did not comply with the requirement of UG Section 200.313(d) to take a physical inventory of equipment purchased with Federal awards at least once every two years. Context: We inquired whether the physical inventory of equipment required by UG Section 200.313 had been performed within the last two years and was told no such physical inventory had been performed. Repeat finding? No Recommendation: We recommend the City develop and implement policies and procedures to ensure compliance with UG Section 200.313, including a physical inventory of equipment purchased with Federal awards at least every two years. Views of Responsible Officials: Management agrees with the finding.