Finding Text
Finding No. 2022-06
Major Federal Award Program Audit
Reporting under Government Auditing Standards
U.S. Department of Justice
Equitable Sharing Program - ALN 16.922
Equipment and Real Property Management
Statement of Condition: Three vehicles purchased with equitable sharing funds were not recorded on an inventory control log.
Criteria: The 0MB Uniform Guidance and Guide To Equitable Sharing For State, Local, and Tribal Law Enforcement Agencies ("the Guide") specifies that property purchased with equitable sharing funds is subject to inventory control, log maintenance, and disposal requirements. The Guide specifies that participating state and local law enforcement agencies must implement standard accounting procedures and internal controls consistent with the guidelines noted in Section VI to track equitably shared funds and tangible property. Property purchased with the Department of Justice equitable sharing funds must be tracked and maintained separately.
Cause of Condition: Inventory controls requiring the maintenance of an equipment log to track and record equipment purchased with equitable sharing funds separately have not been established.
Effect of Condition: Management lacks a systemic process to ensure that equipment records adequately indicate purchase, disposition, and location of equipment purchased with federal funds.
Recommendation: We recommend the City enhance its policies and procedures to ensure that adequate controls are in place to establish compliance with inventory control, log maintenance, and disposal requirements for equipment purchased with federal funds.
Management's Response: The City concurs with the finding.
The City will continue to recognize assets purchased with restricted funds in the capital asset module of the ERP system. The City will work with its various Departments to ensure that their respective inventory listings accurately document the source of funds used to obtain assets. This process will include log maintenance reviews, adherence to disposal requirements, and overall enhanced controls within each Department with relating assets. Additionally, the City plans to implement the use of asset tags to further recognize and distinguish assets obtained with Federal or other restricted funds.