Finding Text
2022-002 Equipment and Real Property Maintenance ? Education Stabilization Fund CFDA No. 84.425 Criteria: The Uniform Guidance requires non-federal entities other than states to develop a control system to ensure adequate safeguards to prevent loss, damage, or theft of property in accordance with 2 CFR Section 200.313 (d) (3). Condition: We inquired of District personnel regarding the procedures in place, specifically for inventorying and safe guarding of real property and equipment. The procedures put into place after the previous audit were not being followed after the change in personnel in the IT Department. Cause: The lack of procedures for safeguarding equipment caused the District to not be in compliance with 2 CFR Section 200.3 (d) (3) of the Uniform Guidance. Effect: Internal Controls are not functioning as designed and the District is not in compliance with equipment and real property management requirements of the program. Recommendation: The District has developed a specific set of procedures to ensure the proper inventorying and safeguarding of real property and equipment. We recommend the District adhere to these procedures, and have written policies in place to ensure this is not overlooked in the event of changes in personnel. Views of Responsible Officials and Planned Corrective Actions: We agree with the finding and have established written policies and procedures. The District has subsequently identified and maintained these assets to comply with federal property records. Now that the District has written policies in place, this should not occur again.