Finding Text
Reference # and title: 2022-007 Maintenance of Equipment Records AL#, Federal Award Title, Federal Agency, Federal Award # and Year, and the Name of the Pass-Through Entity: AL# 84.425D & U: Education Stabilization Fund: U. S. Department of Education: Passed Through the Louisiana Department of Education. Criteria or specific requirement: 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 federal award identification number), the acquisition date, cost of the property, location, and any ultimate disposition data. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Condition found: The depreciation schedule does not include all the required information for equipment and vehicles purchased with ESSER funds. No documentation was provided of a physical inventory of items on the schedule. Context: This condition pertains to equipment and vehicles.Possible asserted effect (cause and effect): Cause: There currently is no established procedure for maintenance of the depreciation schedule nor is there a procedure for conducting a physical inventory of capital assets. Effect: The depreciation schedule currently does not have all the necessary information for identification of each asset. Recommendation to prevent future occurrences: Someone should be assigned the responsibility of maintaining the schedule and completing the columns that are presently blank. A procedure should be established for maintenance of the schedule which would include review of the general ledger for items that need to be added to the schedule and for a physical inventory of capital assets which includes how often the inventory should be performed. The best practice would be to perform a physical inventory annually.Origination date and prior year reference (if applicable): This finding originated in the current fiscal year. View of Responsible Official: See Corrective Action Plan on pages 107-111.