Finding Text
Finding Number: 2022-002 Federal Program: CFDA 14.850 ? Public and Indian Housing Condition: A physical inventory of property and equipment was not performed in order to reconcile it with the general ledger control accounts. The property and equipment subsidiary did not include certain information that is required by the Federal Regulation, as follows: o Serial numbers o Identification and/or tag number o Percentage of federal participation on cost of units o In addition, certain acquisition dates for some of the assets needs to be revised Criteria: 2 CFR 200.313 (d) (1) establishes that property records must be maintained and should include a description of the property, a serial number or other identification number, the source of funding for the property, who holds the title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Cause: The property and equipment subsidiary was not reviewed in order to ascertain that all required information is properly included. Effects or potential effect: Non inclusion of all applicable information as required by the Federal Regulation. Recommendation: We recommend that management update the property and equipment report with information required by federal government and performed a physical inventory observation to reconciliate the information with general ledger accounts.