Finding Text
The Uniform Guidance requires entities that purchase equipment and real property to maintain records which indicate which of those assets were purchased with federal funds, and to conduct a physical inventory of equipment purchased with federal funds at least once every two years.
The District has not conducted a physical inventory of equipment in accordance with the requirements.
This condition was caused by a lack of complete understanding of the requirements associated with equipment and real property management.
The District did not comply with the requirements of the Uniform Guidance, which could also result in further noncompliance when equipment and real property are disposed in future years as a result of not having inventory taking.
No costs have been questioned as a result of this finding inasmuch as no disallowed costs were identified.
We recommend that the District take physical inventory counts of all equipment and real property purchased with federal funds at least once every two years.