Finding Text
2024-004 — Equipment and Real Property Management – Significant Deficiency in Internal Control Over Compliance and Noncompliance
Federal program information:
Funding agencies: U.S. Department of Education
Titles: Higher Education Institutional Aid
ALN Number: 84.031
Award years: Various
Criteria: 2 CFR 200.313(c) through (e), requires that equipment be used in federal programs for which it was acquired for, when appropriate, other federal programs. Equipment records shall be maintained including required elements, a physical inventory of equipment be taken at least once every 2 years and reconciled to the equipment records, an appropriate control system shall be used to safeguard equipment, and equipment shall be adequately maintained.
Condition: The College has not completed a physical inventory within the previous two fiscal years as required. In addition, the records were not detailed enough that program management is able to adequately and efficiently identify and locate any and all items.
Questioned Costs: None
Cause: The College is not enforcing their procedures to verify that the capital assets inventory has been taken annually and reconciled to the general ledger.
Effect: Without a physical inventory, there is an increase in the probability that the capital asset listing will be incorrect, or assets listed may not exist.
Auditor’s Recommendations: Enforce internal control procedures and complete an inventory of the school’s capital assets annually.
Management’s Response: The College will take an inventory of its capital assets as required by policies.