Finding 1140253 (2024-002)

U.S. DEPARTMENT OF EDUCATION MAGNET SCHOOLS ASSISTANCE - AL NUMBER 84.165A AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 2024-002. Equipment and Real Property Management Criteria or specific requirement: Proper records should be maintained for equipment acquired with federal awards as specified in 2 CFR section 200.313. Additionally, the District should ensure that disposition of such equipment is in accordance with federal requirements, including the federal awarding agency is appropriately compensated for its share of any property sold or converted to non-federal use. Condition: The District could not account for 2 of 25 Magnet School Assistance equipment items purchased in previous years costing $3,383. Cause: Lack of internal controls over capital asset subsidiary records. Effect or potential effect: The District's capital asset subsidiary records were not accurate. Context: Observation of 25 equipment items recorded on equipment subsidiary records at an initial cost of $52,900 from a total population of 1038 items at an initial cost of $3,111,161. Identification as a repeat finding: No Recommendation: The District should maintain proper records for equipment acquired with federal awards. Views of responsible officials: The district will develop written fixed/capital asset procedures that will require that all equipment over the capitalization threshold must include serial numbers in property records and be affixed with a unique asset identification tag. We will conduct a full physical inventory of equipment. As part of this process we will record serial numbers for all applicable items, affix asset tags to all untagged equipment, and record proper disposal of assets. We will provide staff training for all relevant staff on asset management procedures and responsibilities.