Finding Text
Equipment Management Finding Number: 2022-002 Assistance Listing Number and Title: AL # 93.600, Head Start Cluster Federal Award Identification Number / Year: 2022 Federal Agency: U.S. Department of Health And Human Services Compliance Requirement: Section F: Equipment and Real Property Management Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 45 CFR ? 75.320(d)(1) provides that 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 (including the FAIN), 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. The Center sold fully depreciated buses with an original cost of $403,468 from Head Start (AL #93.600); however, they failed to remove these assets from their capital asset listing due to a failure in adequately designed controls. The failure to properly record assets can lead to difficulties maintaining accountability for the related assets. The Treasurer and Superintendent should monitor transactions and ensure that all capital disposals are properly documented and removed from capital assert records.