Finding 995986 (2022-003)

Condition: Property purchased with federal funds was not tracked andmaintained as property in accordance as federal regulationsCriteria: 2 CFR 200.313(d)(1) requires property records must be maintainedthat include a description of the property, serial number or otheridentification number, the source of funding for the property, whoholds title, the acquisition date, the cost of the property, thepercentage of the federal project costs in which the property wasacquired, the location, use and condition of property and anultimate disposition data including the date of disposal and saleprice of the property.Context: All property/equipment expenditures were reviewed. Three out ofeleven were not properly identified and included on federal listing.Eleven out of eleven did not have all required elements required byregulations.Cause: Due to new COVID Funding, property expenditures were allowed,and District did not have functioning controls to ensure all requiredelements were tracked.Effect: Potential noncompliance with Uniform GuidanceRecommendation: We recommend that all property purchased with federal funds betracked as required by federal regulations. We recommend thatcontrols be implemented to properly maintain records for propertyobtained with federal funds.Views of Responsible Officialsand Planned CorrectiveAction: The District has reviewed all federal property inventory listingsand updated as necessary with additional information to bring theDistrict into compliance with Federal Regulations. Additionally,controls will be added to fiscal year end procedures to ensure allfederal property purchases have been identified and recorded onthe federal property inventory listing.