Finding Text
Statement of condition: A physical inventory of property was not performed within the last two years. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) 200.313(d)(2) requires that a physical inventory of property must be conducted, and the results must be reconciled with the property records at least once every two years. Cause of condition: A physical inventory of property was planned for the current fiscal year, however, due to high employee turnover, this inventory was never performed. Effect of condition: The School was not in compliance with 2 CFR 200.313(d)(2) as a physical inventory of property had not been performed within the past two years. Context: Property including school buses and various computer equipment and furniture and fixtures was acquired under the Education Stabilization Fund program. A physical inventory of this property has not been performed with the past two years as required by 2 CFR 200.313(d)(2). Recommendation: Procedures should be put in place to ensure that a physical inventory of property is being performed every two years in accordance with 2 CFR 200.313(d)(2). Views of responsible officials and planned corrective actions: Management agrees with this finding and will put procedures in place to perform a physical inventory of property at least once every two years. See 2023-004 for management’s detailed action plan, timeline, and the responsible parties for all Education Stabilization Fund findings.