Finding Text
Equipment Management (Significant Deficiency/Compliance) ALN No. 16.922 - Equitable Sharing Program Criteria: The Equitable Sharing Guide requires participating agencies to maintain complete and accurate inventory records for all assets purchased with Equitable Sharing Program funds. The Guide specifies that all assets, not only high-dollar items, must be inventoried, and that records must include item-level detail sufficient to track each piece of equipment individually. Effective internal controls further require that inventory listings be accurate, complete, and periodically reviewed to ensure proper stewardship of program-funded assets. Condition: During our review of the City's inventory records for the Equitable Sharing Program, we noted multiple errors and omissions within the equipment tracking spreadsheet maintained by the City. Specifically: - Costs for multiple assets purchased together were combined into a single total preventing the City from tracking each asset on an item-by-item basis. - The listing did not reflect all program related equipment, resulting in incomplete inventory records. - The listing contained data entry errors, including incorrectly placed decimals that overstated the value of certain assets. - The City inventoried only larger items rather than all assets required to be tracked under the Equitable Sharing Guide. These issues were brought to the attention of City personnel and were subsequently corrected during the audit Effect: Incomplete or inaccurate inventory records increase the risk that program-funded assets may be misstated, lost, misused, or not properly safeguarded. Inaccurate data may also impair the City's ability to demonstrate compliance with federal asset management requirements and may result in questioned costs. Cause: Internal controls over equipment tracking and inventory management were not adequately designed or implemented. The City did not maintain item-level detail for all assets purchased with Equitable Sharing funds and lacked a formal review process to ensure the accuracy and completeness of its inventory records. Questioned Costs: $0 Recommendation: We recommend the City maintain a detailed, item by item inventory records for all assets purchased with Equitable Sharing Program funds, including descriptions, quantities, unit costs serial numbers (if applicable), and acquisition dates. We also recommend a periodic management review to verify that inventory records are accurate, complete, and properly valued. Repeat Finding from Prior Year(s): 2024-019 Views of Responsible Officials: See management's corrective action plan.