School district audit reveals fixed asset accounting mistake
January 03, 2012
Nevada's White Pine County school district recently discovered a fixed asset
accounting error that could have introduced a significant discrepancy onto its books if not identified, according to the Ely Times.
The mistake was uncovered during a fixed asset inventory
audit conducted by school district personnel, and involved a laptop computer that was erroneously capitalized at a cost of $1,594,358 thanks to a stray decimal point in a record of its actual estimated value - $1,594.58.
Corrective action of the error approved by trustees was deemed a violation of state law, according to a memo shown in the district's fiscal year 2011 report pertaining to its annual budget and fixed asset improvement plan. The company that carried out the audit made a recommendation that the district overhaul its policies in order to bring itself into compliance with state law.Asset accounting
mistakes can easily happen, especially when members of staff are keeping records updated using a manual system. Leveraging tools such as Sage FAS Fixed Asset Accounting
Software can help organizations mitigate mistakes and ensure compliance with accounting legislation.