FIXED ASSETS
OMB Super Circular Uniform Guidance (2 CFR PART 200) • Goals of the Reform: • Internal Controls: • Streamline guidance for • Must establish and Federal awards. maintain effective internal controls. • Strengthen oversight to • Maintain compliance. reduce risk of waste, fraud and abuse. • Take prompt action when • Increase efficiency and instances of effectiveness of Federal noncompliance are awards. identified including noncompliance identified • Focus on Performance in audit findings. over compliance for accountability.
Audit Finding 2014-006 • Specific Requirement The College shall follow the A-102 Common Rule for equipment acquired under Federal awards. Written policies and procedures for monitoring and tagging of Federal equipment must be established and maintained. The equipment listing must include serial number or other identification number, source, who holds title, acquisition date, cost, percentage of Federal participation in the cost, and location of equipment.
Finding 2014-006 (Continue) • CONDITION Significant Deficiency – The District is not following established written policies and procedures for monitoring Federal equipment. Equipment that is directly shipped to the sites rather than the District’s warehouse are potentially bypassing the established procedures for tagging them as Federal equipment and are not being included on the site’s inventory listing of the Federal program. One item tested was delivered directly to the Berkeley campus and was not properly tagged and identified as Federal.
Finding 2014-006 Cause, Effect, Recommendation • Effect Equipment purchased through the program may not be properly safeguarded and maintained for use within the program. • Cause The District has not implemented policies and procedures to ensure compliance with Federal requirements. • Recommendation Written procedures should be prepared that provide evidence of appropriate controls over inventory. The inventory results should be assessed by appropriate administrators to ensure that equipment purchased through the Federal programs is safeguarded and accounted for.
AP 65551 Inventory Policy and Procedures Based on Audit Finding 2014-006, AP6551 was implemented to ensure compliance with all State and Federal purchases to ensure consistency in the tracking of fixed assets with a dollar value of $500.00 or more. Whereas, each campus is required to assign staff to monitor and manage its fixed assets in accordance to AP 65551.
PROCEDURES
PROCEDURES In order to effectuate a more efficient process when tracking fixed assets District-wide, the following procedures have been established: • Purchase orders for equipment /furniture in excess of $500.00 or more, which is delivered directly to the campus will NOT be marked received in Promt until it has been tagged with an asset sticker. • Warehouse staff will conduct quarterly audits of equipment/furniture at each campus to ensure conformity with AP 65551. • Storekeepers shall be responsible for contacting Warehouse staff when orders are shipped directly to their campuses for items that require an asset tag. • Warehouse and the storekeeper should be informed by the approving manager and/or end user that a direct shipment will be delivered to the campus, in anticipation of tagging those items which are $500 or more. • Large equipment items with multiple components shall require an itemized line by line purchase order. Purchase orders where item descriptions are identified as a lot (one item) or Open purchase order is no longer acceptable. All equipment/furniture purchase must be itemized. • All items that will require an asset tag should be accompany with a room number so it will be easier to find when an audit takes place. • Campus storekeepers or designated personnel shall maintain an inventory list, identifying the tag#, location, cost of equipment to compare against the Master list, maintained by the District Purchasing Department. • The Warehouse staff in coordination with Finance will assist in providing training to campus storekeepers and/or designated staff.
QUESTIONS
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