Finding Text
Criteria or specific requirement (including statutory, regulatory, or other citation) - F. Equipment & Real Property Management - Per 2 CFR 200.313(d)(2), "A physical inventory of the property must be conducted, and the results must be reconciled with the property records at least once every two years." Condition - The District was unable to demonstrate that a physical inventory was performed over the past two years. Questioned Costs - N/A. Context - The District maintains that a physical inventory takes place annually, but was unable to produce documentation to support when the last inventory took place. Effect - Failure to perform an inventory of equipment purchased by the District could result in the inability to detect a potential loss of assets and noncompliance with federal regulations regarding the proper disposal of equipment purchased with federal funding. Cause - The inability to maintain documentation for the performance of physical inventories of equipment does not exhibit compliance with Federal regulations. Recommendation - The District should create procedures to document and maintain records related to physical inventories of equipment to exhibit compliance with Federal regulations. Management's Response - The District has a physical inventory scheduled for 2025. The purchase order has been generated.