Finding 975038 (2023-001)

2023-1 Physical Inventory of Property not completed Criteria: 45 C.F.R. § 1631; LSC Financial Guide states that the auditee must perform a physical inventory of property listed in the property subsidiary ledger within the past two years. Cause: The Organization started to perform the physical inventory during the year, but due to the unforeseen absence of a key staff member of the Finance and Administration staff, the Organization was unable to finish the inventory by year-end. Effect: The Organization did not meet the LSC requirements related to property purchased with LSC funds. Questioned Costs: None. Repeated Finding: No. Recommendation: We recommend the Organization take the necessary steps to ensure that a physical inventory of property is taken at least every two years. Views of responsible officials and Planned Corrective Actions: The Organization agrees with the finding. The Organization will ensure that the appropriate steps are taken to make sure there is a physical inventory of property taken at least every two years.