Finding Text
Criteria Section 75.320 Equipment
CFR pat 75.320 Equipment
Management requirements. Procedures for managing equipment (including
replacement equipment), when in whole or in part under a federal award, until
disposition takes place will, as a minimum, meet some of the following
requirements.
(1) 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 FAIN), who holds title, the acquisition date, and cost
property, percentage of federal participation in the project costs for the federal
award under which the property location, use and condition of the property, and
any ultimate disposition data including the date of disposal and sale price of
property.
(2) A physical inventory of the property must be taken, and the result reconciled
with the property records at least once every two years.
(3) A control system must be developed to ensure adequate safeguards to prevent
loss, damage, or theft of the property. Any loss, damage, or theft shall be
investigated.
Condition
The Municipality did not maintain adequate internal control over property and
equipment. The Municipality did not provide a real and personnel property record
of all the property and equipment acquired this year with federal funds and insurance.
The Municipality does not take an annual audit for real and personnel property. During our
audit the Municipality did not provide a subsidiary of capital assets that agree with the
amounts reported in governmental activities of the Government- Wide Financial Statements.
Cause
The Municipality does not have accurate property records of federal funds to trace
the real and tangible personal property activities that should be reported to federal
funds.
Effect:
The Municipality does not present fairly the financial position of the financial
statements in the Government-Wide Financial Statements.
Questioned cost:
Not determined
Identification of a repeated finding:
None repeating findings were found.
Recommendations:
A control system must be developed to ensure adequate safeguards to prevent loss,
damage, or theft of the property; loss, damage, of theft must be investigated.
Adequate maintenance procedures mut be developed to keep the property in good
condition. The program must identify all properties acquired with federal funds and
maintain adequate accounting records in accordance with federal regulations.
Management Response:
In all monitoring conducted by all required agencies, there have been no indications
of insufficient control over personal and capital properties associated with any of the
state or federal funds. Any clerical errors identified, as mentioned in the
Management Respond of finding 2024-002, will be addressed as a priority prior to
the upcoming audit.