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Audit Objective

Determine whether Chappaqua Central School District (District) officials properly monitored and accounted for fixed assets.

Key Findings

District officials did not properly monitor and account for the fixed assets that we tested. Officials maintained incomplete and inaccurate records and did not perform a physical inventory count since 2018.

• Of the 164 assets reviewed, 148 assets totaling $220,708 were not recorded on the District’soriginal asset list.
• 18 assets totaling $25,022 did not have asset tags, as required by the District’s fixed asset procedures.
• 25 disposed assets that we examined were not removed from the District’s original asset list. Also, officials could not determine whether four assets were disposed of (sold) or retired (obsolete).
• The District’s fixed asset policy did not require, and officials did not perform, a periodic inventory count or an unannounced asset count for District departments.

Key Recommendations

• Ensure the District’s new asset list is complete, accurate and up-to-date and that all fixed assets are tagged.
• Ensure that all disposed assets are removed from the District’s new asset list.
• Update the fixed asset policy to require periodic and unannounced inventory counts.

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