Finding Text
A material weakness was reported for a lack of internal controls over the School District's federal awards for the following compliance
requirements: procedures for managing equipment, whether acquired in whole or in part under a Federal award, until disposition takes
place will, as a minimum, meet the requirements of maintaining proper records that include a description of the property, a serial
number or other identification number, source of funding, who holds the title, acquisition date and cost of property; a physical
inventory of property must be taken at least every two years; and a control system to ensure adequate safeguards to prevent loss,
damage or theft; adequate maintenance procedures. This is undesirable from an internal control viewpoint, and could result in a loss of
control over compliance and noncompliance not being detected and corrected in a timely manner.