Determine if District officials had adequate controls to safeguard District assets.
- Although the District purchased fixed assets totaling $145,398 during our audit period, the District does not have a comprehensive policy or procedures to safeguard fixed assets.
- The District’s inventory list did not contain identifiable information for each asset including purchase date, purchase price, date placed in service and useful life. As a result, officials were not aware that equipment in their possession could have been sold or traded in to help offset the cost of new equipment purchases totaling $124,880.
- Twenty pieces of equipment purchased during the audit period totaling over $44,000 were not listed on the District’s inventory list.
The Board should:
- Adopt a comprehensive policy or procedures that include threshold values for recording and tagging assets and the persons responsible for maintaining records and comparing assets on hand to inventory records for discrepancies.
- Maintain up-to-date inventory records that include the purchase date, purchase price, date placed in service, useful life and serial numbers.
District officials generally agreed with our recommendations and indicated they planned to initiate corrective action.