RECOMMENDATIONS:

A detailed fixed asset policy would improve the controls over recording,
reporting, monitoring and disposing of assets. Such a policy would help
standardize and improve the fixed asset internal controls process
throughout the Company.


The policies should probably require that the Company:
Perform monthly reconciliations
Tag assets
Record assets with meaningful descriptions
Conduct physical inventories
Reconcile the physical inventories to the accounting records
Perform impairment tests
Provide supporting documentation before removing disposed assets and
Transfer CIP timely

The Office of Inspector General will conduct a follow-up review to determine the
status of findings stated in various accounting statements and reports.