Finding Text
2 C.F.R. ? 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. ? 200.313. 2 C.F.R. ? 200.313(d)(1) states, in part, that property records must be maintained for equipment and real property purchases using federal funds. The property records should include, but are not limited to, a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), and any ultimate disposition data including the date of disposal and sales price of the property. Additionally, 2 C.F.R. ? 200.313(d)(2) states that a physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. During testing over the capital outlay for both Education Stabilization Fund and Special Education Cluster, we found that the School District did not maintain documentation that a physical inventory inspection occurred at least once every two years. Additionally, testing over the District's Special Education Cluster capital outlay listing identified one item totaling $500, which projects to an error of $3,867, that could not be located as it was disposed and not properly removed from the listing. To effectively control equipment and to maintain accountability over expenditures, the School District should review its policy and ensure all equipment is properly identified and recorded on their capital outlay listing. Additionally, the School District should ensure that a physical inventory is performed at least once every two years and that adequate documentation is maintained to support that an inspection was performed.