Finding Text
2022-006 Property Management
Material Weakness
CONDITION: It was noted during the audit that documentation for a detailed listing of fixed assets, a depreciation schedule and periodic inventories for fixed assets have not been maintained. CRITERIA: Federal funding agencies require maintenance of a property management system to meet statutory requirements set forth under funding contracts 2 CFR 200.313(d)(1) outline the requirements of a property management system. CAUSE: Lack of existing policies & procedures and staffing issues have contributed to this condition. EFFECT: Weak internal controls over fixed assets limits the School’s ability to properly report and safeguard its assets. Assets could be taken from the School, and it go undetected for a long period of time or never be detected at all. Weak controls also significantly increase the risk of financial misstatement occurring. Insufficient or excessive insurance coverage could result as well.