Audit Objective 

Determine whether Island Trees Union Free School District (District) officials maintained complete and accurate inventory records for and monitored the District’s capital assets.

Key Findings 

District officials did not accurately and completely record and account for all capital assets we reviewed (i.e., machinery, vehicles, equipment and computers). Additionally, officials have not conducted a physical inventory to properly monitor and account for assets since 2011.Therefore, officials cannot assure taxpayers that all of the District’s capital assets are safe and accounted for. As a result, the District had significant risk for capital assets to be lost, stolen or misused.

• 112 capital assets with an acquisition cost of $60,871 were not recorded on the District’s inventory list.
• Of the 7,229 capital assets on the District’s active and disposed inventory list, we reviewed 254 and found 195, (77 percent), were not properly accounted for or monitored.
• 21 assets with an acquisition cost of $16,931 and 48 information technology (IT) assets could not be located. The acquisition costs for the 48 IT assets were not recorded or available. See Appendix A for a list of missing assets.

Key Recommendations 

The report includes 10 recommendations that, if implemented, will improve the District’s accounting for and monitoring capital assets.

District officials generally agreed with our findings and recommendations and indicated they plan to initiate corrective action. Appendix C includes our comments on issues raised in the District’s response letter.