Finding 555209 (2024-005)

Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires that the District have internal controls in place to ensure an asset listing and a physical inventory is performed for all equipment and real property acquired with federal funds. Condition: There was a lack of internal controls related to federal award requirements, specifically as it relates to equipment and real property. Context/Cause: During the year ended June 30, 2024, the District failed to maintain an asset listing and perform a physical inventory for all equipment and real property acquired with federal funds. Effect: Failure to review all requirements under Uniform Guidance as well as all other grant requirements can lead to noncompliance with federal funds. Questioned Costs: None. Recommendation: We recommend the District implement internal controls to ensure compliance with all requirements under Uniform Guidance. Auditee’s Response: We concur with the finding. The District will take the necessary steps to ensure compliance with all requirements under Uniform Guidance.