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 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 HVAC units and various other 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). We also recommend that the Federal Program Director position is filled by an individual that has training and knowledge of the federal program they are administrating.
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 very two years. See 2024-007 for management's detailed action plan surrounding the property findings.