Overview
The Middlesex Sheriff’s Office’s (MSO’s) inventory of non–generally accepted accounting principles (GAAP) fixed assets needed to be strengthened to ensure that all required asset data fields were included in MSO’s inventory system of record. The fixed asset inventory list MSO provided to us included 4,349 total items (183 vehicles, 266 weapons or ammunition stocks, and 3,900 other assets) located throughout MSO’s facilities. Our review of the fixed asset inventory indicated that although data fields for model, description, and asset tag identification number were present, the list lacked critical data fields for date of purchase, historical cost, and date of disposal. As a result, MSO may not be accurately reporting the total value of its inventory to the Comptroller of the Commonwealth (CTR).
Authoritative Guidance
The “Fixed Assets—Acquisition Policy” issued jointly by CTR and the state Operational Services Division (OSD), last revised November 1, 2006, states,
Non-GAAP Fixed Assets must be recorded in a Department’s inventory and reconciled at least annually. This inventory can be either electronic or on paper, as long as it records the date of purchase, amount, description, location and disposition of an item.
Reasons for Noncompliance
According to MSO management, it was not possible to add the required data fields because of the age of the current database.
Recommendation
MSO should update its non-GAAP inventory record to include the date of purchase, historical cost, and date of disposal for each item.
Auditee’s Response
The Middlesex Sheriff’s Office (MSO) has made the necessary adjustments to add the required data fields in our inventory software system for all future fixed asset acquisitions. This will ensure that the MSO is in compliance with the "Fixed Assets—Acquisition Policy" issued by the Comptroller of the Commonwealth (CTR) and state Operational Services Division (OSD).
| Date published: | February 21, 2020 |
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