KINGSTON – An audit of
fixed assets in the Kingston City School District conducted by the state
comptroller’s office found that assets were not tagged as district
property, new assets were not added to the inventory list, and the contractor-generated
asset list did not correspond to the district’s information technology
department’s asset list.
The audit, conducted for the period of July 1, 2016 through June 30, 2017, recommended that the district ensure that all fixed assets above the established thresholds have a tag affixed identifying them as district property; ensure that new assets are added to the inventory software; and review and compare the contractor-generated asset list with the IT list to ensure the district has a complete and accurate inventory of computers.
As part of their investigation, auditors selected 46 computers from two locations to see if they had district tags. Eleven of them – 24 percent – did not have district tags. “We were not able to identify when these computers were purchased or their value as they were not recently acquired,” auditors wrote in their report. “Officials told us that the contractor was responsible for tagging these computers.”
The state officials also looked at asset additions during the audit period that totaled some $425,000. They included 62 computers valued at approximately $54,000. “We traced 20 computers valued at $17,500, and found that they were all tagged but none had been added to the asset list created by the contractor. The forms sent to the receiving departments were not returned to the business office for the assets to be properly added to the inventory record.”
Auditors said when assets are not properly tagged or added to inventory records timely, “they are more susceptible to loss or theft and district officials do not have assurance that all property can be accounted for.”
The state investigators also traced 22 computers from the contractor’s list, valued at $39,000, and could not locate two computers valued at $3,472 in a school building on the IT list. The IT director thought the devices may have been disposed of after the contractor’s inventory was completed, the audit reported.
In addition, the auditors examined 46 of the computers to determine if their service tag numbers and district numbers matched both the contract and IT lists. “Although all computers had a service tag number only 20 were on the IT list. District officials told us that they think the contractor may have grouped some computers together due to their age.”
Auditors said without accurate and up-to-date fixed asset records, “district officials cannot endure that district assets are properly accounted for and protected against loss.”
In response to the audit, Superintendent Dr. Paul Padalino wrote that the district “has a relatively new asset management system and procedures in place for tracking our fixed assets.” He said they are “working hard to perfect our operation in this area, in the face of personnel changes (since April 2017) on the district and support side.”
Information technology asset management is “a complicated matter,” Padalino wrote, noting that many assets are owned by Ulster BOCES rather than the school district.
The superintendent wrote that while the audit field work was being undertaken during the summer of 2017, “computers were being rearranged, moved around to support cleaning and construction, re-imaged, replaced – an annual renewal process and hectic period.” He said, though, that all 46 computers examined for asset tagging were located; all 20 computers traced to check asset additions were located; and all 22 computers surveyed under contract list were located – 20 by the auditor, and the other two later by us after we were made aware of the items being sought.”
