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As a result of a lack of consistent inventory training, employees did not count and record
<br />all materials, tools, and supplies by the required year-end cutoff period. Furthermore,
<br />other controlled assets (e.g., portable saws, impact drills, backpack sprayers, etc.) were
<br />also not recorded because the purchase cost was below the $250 threshold. However,
<br />the Department of Finance considers these controlled items as sensitive, portable, and
<br />theft -prone and these items should be recorded in the inventory system regardless of
<br />cost.
<br />• Some items were improperly disposed of without the required forms and not removed
<br />from the inventory records system
<br />The County's Code, Charter, and Inventory Procedures Manual all require prior
<br />authorization from the Finance Director before taking items off the County's inventory
<br />records system. Of the 414 items reviewed, we could not physically locate 24 items.
<br />These items included seven mobile radios, five chainsaws, three weedeaters, and one
<br />each of the following generator, mower, pole pruner, vacuum, digital camera, printer,
<br />calculator, backpack blower, and sprayer. We were unable to determine the replacement
<br />cost of these items, since the County's inventory system records items valued under
<br />$1,000 as fully depreciated and recorded as a value of $0.00 or $0.01. Original purchase
<br />records were outside the County's six-year records retention schedule.
<br />The Division claimed they disposed of these 24 items as they were believed to be in
<br />poor condition and not economical to repair. However, we could not verify this since the
<br />clerk did not prepare the required equipment disposal records, notify the
<br />overseer/division chief/director, or receive prior authorization from the Finance Director
<br />to dispose of county inventory as required by County law, the Inventory Procedures
<br />Manual, and the Finance Department inventory memorandums. These items were not
<br />properly removed from the inventory records.
<br />The Division should not throw away any County property without adequate justification
<br />or proper approval by the Finance Director. There is a potential for an increased
<br />perception of fraud, waste, and abuse for unauthorized disposals that are not properly
<br />documented.
<br />• Some items were not timely discovered as lost, missing, or stolen, supported by police
<br />reports, and taken off inventory records system
<br />Departments and agencies adjust their inventory records when County property items
<br />are missing or unaccounted for due to loss by fire, theft, or similar reasons. To remove
<br />property from the inventory records, County policy requires the department head to
<br />submit an equipment disposal form to the Finance Director for approval. The equipment
<br />disposal form requires the quantity, item number, description, serial number, date
<br />acquired (new or used), and cost. As part of the Department of Finance, Property
<br />Management Division processing requirements, departments are required to provide a
<br />description of the action(s) taken to locate the missing property, when the loss was
<br />discovered, and whether or not the loss was reported to the Police Department.
<br />DPW Highway Maintenance Division Inventory Management: Audit Results 115
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