Finding Text
Condition: Equipment Listing Not Maintained (Material Weakness – Equipment) Information on the Federal Programs: ESSER Programs: 84.425, 84.425D, 84.425W Questioned Costs N/A We noted the School Department did not maintain a complete listing of equipment purchased with federal funds and did not maintain documentation of physical inventories performed every two years. Criteria: The Uniform Guidance 2 CFR §200.313 Equipment, states that records for equipment acquired with federal funds and federally owned equipment shall be maintained and include a description of the property, the source of funding, who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, any ultimate disposition data including the date of disposal and sales price of the property. Further, a physical inventory of all Federal equipment is required to be performed and results reconciled with the equipment records at least once every two years. Cause: Controls are not in place to ensure that equipment listings and physical inventory records are maintained and updated in a timely manner. Effect: Failure to maintain equipment and inventory records does not allow for proper tracking of equipment purchased with federal funds which could lead to improper disposition of federally funded equipment. Isolated Instance or Systemic Problem: We consider this to be a systemic problem. Repeat of Prior Year Finding: No. Recommendation: We recommend that management update records for equipment acquired with federal funds according to compliance requirements referenced above and communicate these requirements to employees responsible for managing federal programs.