Finding Text
Criteria: Equipment and Real Property Management in the FAR clause at 48 CFR 52.245-1 requires that the District maintain a system of internal controls to manage (control, use, preserve, protect, repair, and maintain) federal government property. This includes maintaining property records that include the name, part number and description, and other elements necessary and required in accordance with the terms and conditions of the contract. Condition: The District does not maintain a complete equipment and real property inventory that includes the previous Clarendon County School District Four and assets purchased since consolidation, to include noting the federal funding source for equipment and real property acquisitions. Effect: The District is not in compliance with federal Equipment and Real Property Management compliance requirements. Cause: The District has been attempting to resolve many issues that were carried forward into the County consolidated district from Clarendon County School District Four, including working to complete past due audits. As a result, the District has not been able to devote the necessary time to consolidating the capital asset databases and ensuring the captial assets purchased with federal funds are appropriately tagged in its inventory. During this time of transition, the District has had its auditing firm retain its complete capital asset listing and depreciation schedules as a nonattest service. Recommendation: Now that the District's past due audits are complete, we recommend that the District work to update its capital assets inventory to include all required information to properly account for all equipment and real property, to include specifically identifying capital assets purchased with federal funds.