[read complete report - pdf]

Audit Objective

Determine whether Little Flower Union Free School District (District) officials properly recorded and accounted for fixed assets.

Key Findings

The Board of Education (Board) and District officials did not ensure fixed assets were recorded and accounted for properly.

• A physical inventory check has not been performed since June 26, 2018. Poor fixed asset controls and the lack of regular inventory checks contributed to:
• 231 assets that cost $48,700 were not in the District’s inventory records.
• 175 assets that cost $179,000 were not accurately recorded in the inventory records and assigned tag numbers.
• 37 assets that cost $25,496 are lost and unaccounted for. These assets include nine desktop and 17 laptop computers.
• The fixed asset policy was not comprehensive or being followed, and there were no procedures to ensure asset tags were affixed to assets.

Key Recommendations

• Establish adequate controls to safeguard and account for the District’s fixed assets.
• Maintain accurate and up-to-date inventory records and perform physical inventories.

District officials disagreed with certain findings in our report. Appendix B includes our comments on issues District officials raised in their response.