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Audit Objective

Determine whether District officials ensured that fixed assets were properly recorded, accounted for and disposed of.

Key Findings

• The District does not have a comprehensive policy for identifying and recording fixed assets.
• District officials improperly appointed the purchasing agent as the Property Control Manager, resulting in an inadequate segregation of duties.
• Fixed assets were not tagged as District property for seven items valued at $42,669, out of 30 assets that we tested totaling $300,614.
• Assets disposed of were not removed from the master inventory list.

Key Recommendations

• The Board should adopt a comprehensive policy that includes threshold amounts for controlling inventory and procedures for maintaining fixed asset records.
• District officials should ensure all fixed assets with values that exceed the threshold carry a tag identifying them as District property.
• District officials should review fixed asset records each year and ensure they are accurate and up to date.

District officials generally agreed with our recommendations and indicated they will take corrective action.