School district audit recommends improved fixed asset tracking
February 21, 2012
A recent independent audit of California's Lompoc Unified School District's financial records from the 2010-2011 fiscal year revealed a need for better fixed asset
management and inventory tracking
, the Lompoc Record reports.
Auditors did not uncover any instances of accounting noncompliance, but suggested more careful fixed asset tracking
of items purchased with federal funding. They identified approximately $52 million in assets and value from construction improvement projects that had not been properly documented, and recommended that a physical inventory of the district's fixed asset holdings should be taken every two years. Previously, the district's policy was considerably more lax, as it last audited its fixed assets
in 2003, according to the news source.
"When equipment moves from one school site to the next, we need to record it," said Sheldon Smith, assistant superintendent of business services, as quoted by the media outlet.
Smith did not seem unduly concerned about the findings, noting, "Receiving recommendations from an auditor happens every year. It's part of the process in keeping abreast with general accounting principals and government auditing standards."
Solutions such as Sage FAS Government and Schools Accounting can help school districts automate their tracking processes, ensuring accuracy and reducing the amount of time staff dedicate to keeping tabs on fixed assets.