Finding Text
FINDING 2022-002 SIGNIFICANT DEFICENCY and MATERIAL NONCOMPLIANCE Equipment/Real Property Management Condition: Equipment and property purchased were not subject to inventory management as required by federal guidelines. (2 CFR sections 200.313(c) through (e)) Criteria: Recommended Procedures Cause: During the course of the audit, we determined there lacked an internal control system and inventory management for items not related to technology. Effect: The HVAC repairs were not subject to applicable inventory control, log maintenance, and disposition requirements. Recommendations: The Board of Directors, the Director and key positions of management should adequately document internal control procedures for equipment inventory, log maintenance, and dispositions requirements consistent with 2 CFR sections 200.313(c) through (e). Board should then periodically check that all procedures agreed upon are operational and effective, and adjust procedures as needed. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding. See separate document for planned corrective actions.