Finding Text
Criteria:According to 2 CFR 200.313(d)(1) property records must be maintained that include a description of the property, a serial number or other identification number the source of funding for the property, who holds title, the acquisition date, and 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 sale price of the property. Condition: During the purchasing process accessory fit out equipment that was purchased under the grant was not identified and entered in the property records. Effect: The grantee is not in compliance with the requirements of 2 CFR 200.313(d)(1). Cause: The grantee did not identify accessory fit out equipment that was purchased under the grant in the property records. Questioned Costs: None Context/Sampling Property purchased was traced back to the property records maintained by the City and six of the eight items purchased were not identified as fixed assets and included in those records. Prior Year None Finding: Recommendation: The grantee needs to put a process in place to ensure that all capital equipment including accessory fit out equipment is captured at time of purchase and receipt and is entered in the property records. Client Response: The City recognizes the importance of internal controls and plans to enhance procedures to ensure that all capital equipment is captured at time of purchase and receipt and properly entered in the property records. The City has actively reviewed its procedures for purchasing and disposition of fixed assets and will make the necessary adjustment to ensure the fixed assets system remains up to date. Covid interruptions with related illnesses, early retirements and hiring difficulties all contributed to a negative impact on productivity