Finding Text
Criteria: Equipment property records must be maintained for equipment purchased with federal funds. A federal inventory log must include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. Condition: Equipment records were not maintained for all items purchased with federal funds. Questioned Costs: There are no questioned costs. Context: The District claimed several capital outlay purchases in the grant this year that are included within the fixed asset listing, but are not captured in a federal inventory log. This includes equipment for the Weight Room, Chiller Replacement, Gym Floor, Stage Floor, Ice Maker, and Scoreboard Replacement. Effect: The District did not comply with the equipment compliance requirement regarding the proper recordkeeping for equipment purchased with federal funds. Cause: The District does not maintain a capital asset listing made with federal funds that contains all pertinent purchase criteria. Recommendation: We recommend that the District attempts to put together an inventory log for equipment purchased with federal funds for the current year and continues to maintain the log going forward. Management's Response: Management agrees to take the necessary steps to ensure compliance requirements are met and will discuss implementing an inventory record-keeping process.