Finding 508286 (2024-001)

FINDING 2024-001 EQUIPMENT AND REAL PROPERTY MANAGEMENT SIGNIFICANT DEFICIENCY Federal Program: Education Stabilization Fund Assistance Listing Number: 84.425 Criteria 2 CFR 200.313(d) contains equipment management requirements which dictate property records entities must maintain and the need for procedures to adequately safeguard and maintain assets acquired with federal funding. Condition A physical inventory of the property must be conducted, and the results must be reconciled with the property records at least once every two years. A physical inventory was completed, however, there is no record this inventory was reconciled with the property records. Cause The School does not have internal controls and procedures in place to ensure the physical inventory is reconciled to the property records. Effect Failing to complete the reconciliation could result in inaccurate records of assets. Recommendation We recommend the School develop internal controls to ensure an inventory reconciliation with property records is completed at least every two years. Views of Responsible Officials The School’s Corrective Action Plan is included on pages 22.