Finding Text
Condition and Context: The School has not performed a comprehensive inventory of capital assets in several years. Accordingly, the School has not reconciled a physical observation to its detailed capital asset listing. Criteria: According to 2 CFR 200.313 Equipment, a physical inventory of the property must be performed and the results reconciled with the property records at least once every two years. Cause and Effect: The cause is a lack of resources to perform a physical inventory of the property and equipment. The effect is the possibility of purchasing assets using federal funds that are not properly accounted for in the accounting records. Recommendation: We recommend that the School perform a physical inventory of the School's capital assets on at least a biennial basis. In addition, the Finance Department should update the School's accounting records based on the results of the physical inventory. Management?s Response: The School?s responsible officials? views and planned corrective action are in its corrective action plan at the end of the report.