Finding SA2012 - 7: Physical Inventory of low Income Public Housing Equipment Federal Agency: Department of Housing and Urban Development (HUD) Program Affected: Low-Income Housing Program (CFDA #14.850) Criteria: The A-102 Common Rule for equipment acquired under Federal awards received directly from a Federal awarding agency states that equipment records shall be maintained, a physical inventory of equipment shall be taken at least once every two years and reconciled to the equipment records. Condition: Per our request, the Authority has been unable to provide current records or documents to verify a physical inventory has been completed for equipment. We also noted that per our tests of seven out of 66 Installation/Disposition Forms dated: July 7, 2011; November 16, 2011; January 4, 2012; February 10; 2012; March 1, 2012; April 4; 2012 and May 22; 2012 and noted there was no authorizing signature on the forms. SECTION 111 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS (Continued) Effect: The Authority is unable to verify compliance with the Common Rule for equipment acquired under Federal awards received directly from a Federal awarding agency. Cause: The Authority does not appear to have a procedure to maintain equipment records by funding source for the Low Income Public Housing Program (LIPH). Recommendation: The Authority should perform a physical inventory and reconciliation at least once every two years for equipment acquired with LTPH Federal funds. Corrective Action Plan (Prepared by Management): The Housing Authority will work with the City Finance Fixed As set Division to conduct comprehensive physical inventory of equipment. Name of Contact Person: Tony Taplin, Finance Manager, (510) 621?1320 . 11? I I ff?nf?l?