Finding Text
Finding 2022-003: Equipment and Real Property Management Identification of the federal program: Federal Equitable Sharing, ALN 16.922 Criteria: Compliance Requirement F Equipment /Real Property Management in in Part 4 of the 2022 Compliance Supplement for this program states that, ?Although 2 CFR Sections 200.311 and 313 are not applicable, the Guide, Section VI, details requirements for tangible property. Property purchased with equitable sharing funds, or obtained for official use, is subject to inventory control, log maintenance, and disposal requirements.? The Guide states the local law enforcement agency must ?maintain and follow written policies for accounting, bookkeeping and inventory control?? The requirement for inventory control in 2 CFR 200.313 (d)((1) states procedures for managing equipment include, ?Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and the cost percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property.? Condition: The County maintains an inventory of equipment, however that inventory does not include the acquisition date, the source of funding, the cost percentage of Federal participation or federal award data. Disposed assets are deleted from the inventory and disposition data is not maintained. The inventory record is not complete enough to determine compliance with the Guide. Source documents supporting entries in the inventory record have not been retained. Cause: The county had an existing asset management software but developed its own inventory system exclusively using an Excel spreadsheet in 2022. The compliance requirements were not adequately considered when developing the spreadsheet and there was no effective internal control over its development and use. Effect: Denial or extinguishment of sharing requests; temporary or permanent exclusion from the Program; freeze on receipt and/or expenditure of shared funds; return of funds or offsets from future sharing. Questioned Costs: Not applicable Context: The inventory record does identify the equipment, its serial or other number and its location. Assets purchased using federal funds from other programs would also be subject to the same condition. Recommendation: The existing system should be modified be compliant with the Uniform Guidance requirements, or a specifically designed software should be used. Source documents supporting inventory records should be retained. Disposition data should be maintained. Views of Responsible Officials: Management concurs with this finding and recommendation.