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Audit Objective

Determine whether Gilbertsville-Mount Upton Central School District (District) officials properly monitored and accounted for fixed assets.

Key Findings

District officials did not properly monitor and account for 70 percent of the 60 fixed assets we examined, including computers, musical instruments and science equipment.

• 34 assets with combined purchase prices of approximately $46,400 did not have required asset tags and/or were not on the inventory list.
• Three assets with combined purchase prices of more than $2,000 could not be located.
• Seven assets (which included two of the 34 assets) with combined purchase prices of almost $14,400 did not have a location, or had an incorrect location indicated, on the inventory list.
• The Board did not approve the disposal of 28 of the 35 assets we examined. The disposal of District assets requires Board approval.
• Officials have not conducted a complete physical inventory in more than 10 years. As a result, the District has an increased risk that its assets could be lost, stolen or misused.

Key Recommendations

• Ensure the inventory list is accurate and up-to-date.
• Ensure that all assets on the inventory list are immediately and appropriately tagged.
• Ensure that periodic physical inventories are conducted at the frequency indicated in the District’s fixed asset inventory policy.

District officials agreed with our recommendations and have initiated or indicated they planned to initiate corrective action.