2022-003 Equipment and Property Management US Department of Education Passed Through NYS Education Dept. Education Stabilization Fund COVID 19 ARP ESSER 3 AL 84.425U COVID 19 CRRSA ESSER 2 AL 84.425D Criteria: 2CFR Section 200.313(d)(1) specifies detailed property records that must be maintained for equipment acquired under a federal grant award. Records include a description of the property, a serial number or identification number, the source of funding (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data. Condition: The District expended funds from the ARP ESSER 3 grant to acquire promethean boards and other technology equipment and to make various land improvements such as outdoor classrooms and a basketball court. The District expended funds from the CRRSA ESSER 2 grant to acquire desks and seating. District fixed asset records did not include the detailed information required by 2CFR Section 200.313(d)(1). Some of the assets were not on the District?s fixed asset records at all and some were included in the fixed asset records but required information was missing. Context: The audit identified approximately $350,000 of assets, consisting primarily of outdoor spaces and playground matting purchased with ESSER3 funds that were not on the fixed asset schedule. Approximately $147,000 of desks and seating purchased with ESSER 2 funds were not on the fixed asset schedule. Other assets purchased with ESSER 3 funds of approximately $1.25 million were on the fixed asset schedule but all the required information was not included. Effect: If assets are not on the District?s fixed asset records, they may not be properly safeguarded, and the District may not comply with the Federal disposal rules. Cause: The Federal government awarded new types of grant funding in response to the COVID 19 pandemic. This funding presented difficulties for recipients because of the uncertainties related to the pandemic and the changing guidance and funding levels. The District has typically not used Federal grant funds to acquire fixed assets. There was inadequate communication between the departments regarding grant purchases and no system in place to ensure that all assets were included in the fixed asset records. There was also confusion regarding the District?s capitalization policy. Some items were individually under the capitalization threshold but because they were purchased in bulk the entire purchase was over the threshold. Recommendation: We recommend that the District update their fixed asset records to include the required information for assets purchased with Federal awards. A system of communication and a review process should be implemented to ensure completeness of fixed asset records. Personnel should become familiar with the Federal regulations concerning asset purchases.
2022-003 Equipment and Property Management US Department of Education Passed Through NYS Education Dept. Education Stabilization Fund COVID 19 ARP ESSER 3 AL 84.425U COVID 19 CRRSA ESSER 2 AL 84.425D Criteria: 2CFR Section 200.313(d)(1) specifies detailed property records that must be maintained for equipment acquired under a federal grant award. Records include a description of the property, a serial number or identification number, the source of funding (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data. Condition: The District expended funds from the ARP ESSER 3 grant to acquire promethean boards and other technology equipment and to make various land improvements such as outdoor classrooms and a basketball court. The District expended funds from the CRRSA ESSER 2 grant to acquire desks and seating. District fixed asset records did not include the detailed information required by 2CFR Section 200.313(d)(1). Some of the assets were not on the District?s fixed asset records at all and some were included in the fixed asset records but required information was missing. Context: The audit identified approximately $350,000 of assets, consisting primarily of outdoor spaces and playground matting purchased with ESSER3 funds that were not on the fixed asset schedule. Approximately $147,000 of desks and seating purchased with ESSER 2 funds were not on the fixed asset schedule. Other assets purchased with ESSER 3 funds of approximately $1.25 million were on the fixed asset schedule but all the required information was not included. Effect: If assets are not on the District?s fixed asset records, they may not be properly safeguarded, and the District may not comply with the Federal disposal rules. Cause: The Federal government awarded new types of grant funding in response to the COVID 19 pandemic. This funding presented difficulties for recipients because of the uncertainties related to the pandemic and the changing guidance and funding levels. The District has typically not used Federal grant funds to acquire fixed assets. There was inadequate communication between the departments regarding grant purchases and no system in place to ensure that all assets were included in the fixed asset records. There was also confusion regarding the District?s capitalization policy. Some items were individually under the capitalization threshold but because they were purchased in bulk the entire purchase was over the threshold. Recommendation: We recommend that the District update their fixed asset records to include the required information for assets purchased with Federal awards. A system of communication and a review process should be implemented to ensure completeness of fixed asset records. Personnel should become familiar with the Federal regulations concerning asset purchases.
2022-004 Wage Rate Requirement US Department of Education Passed Through NYS Education Dept. Education Stabilization Fund COVID 19 CRRSA ESSER 3 AL 84.425U Criteria: According to 29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction and 2 CFR Section 200.327 Appendix IID to 2 CFR Part 200, nonfederal entities must include in construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and DOL regulations. Regulations include a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). Condition: The District expended funds from the CRRSA ESSER 3 grant to make various land improvements such as outdoor classrooms and a basketball court. The District had no construction contract with the contractors. The District did not obtain the required certified payrolls on a weekly basis as work was being performed. Context: The District personnel were under the impression that the projects were emergency projects due to the COVID 19 pandemic. Federal funding has typically not been used for construction projects. Effect: If payroll records are not reviewed, the District does not know that they were properly billed by the contractor. Noncompliance with Federal guidelines could result in the grantee declining to pay for these costs. Cause: District personnel were under the impression that these were emergency projects due to the COVID pandemic, therefore, formal contracts were not executed. There was no system in place for making sure that the proper payroll reports were obtained as work was being done. There was a lack of communication and an assumption that the accounts payable department took care of this. Accounts payable asked for the reports after the fact upon receipt of the bill. Recommendation: We recommend that the District develop a system to make sure that proper contracts are obtained for all pertinent work and that all reporting is obtained in a timely manner. Personnel should become familiar with the Federal regulations.
2022-003 Equipment and Property Management US Department of Education Passed Through NYS Education Dept. Education Stabilization Fund COVID 19 ARP ESSER 3 AL 84.425U COVID 19 CRRSA ESSER 2 AL 84.425D Criteria: 2CFR Section 200.313(d)(1) specifies detailed property records that must be maintained for equipment acquired under a federal grant award. Records include a description of the property, a serial number or identification number, the source of funding (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data. Condition: The District expended funds from the ARP ESSER 3 grant to acquire promethean boards and other technology equipment and to make various land improvements such as outdoor classrooms and a basketball court. The District expended funds from the CRRSA ESSER 2 grant to acquire desks and seating. District fixed asset records did not include the detailed information required by 2CFR Section 200.313(d)(1). Some of the assets were not on the District?s fixed asset records at all and some were included in the fixed asset records but required information was missing. Context: The audit identified approximately $350,000 of assets, consisting primarily of outdoor spaces and playground matting purchased with ESSER3 funds that were not on the fixed asset schedule. Approximately $147,000 of desks and seating purchased with ESSER 2 funds were not on the fixed asset schedule. Other assets purchased with ESSER 3 funds of approximately $1.25 million were on the fixed asset schedule but all the required information was not included. Effect: If assets are not on the District?s fixed asset records, they may not be properly safeguarded, and the District may not comply with the Federal disposal rules. Cause: The Federal government awarded new types of grant funding in response to the COVID 19 pandemic. This funding presented difficulties for recipients because of the uncertainties related to the pandemic and the changing guidance and funding levels. The District has typically not used Federal grant funds to acquire fixed assets. There was inadequate communication between the departments regarding grant purchases and no system in place to ensure that all assets were included in the fixed asset records. There was also confusion regarding the District?s capitalization policy. Some items were individually under the capitalization threshold but because they were purchased in bulk the entire purchase was over the threshold. Recommendation: We recommend that the District update their fixed asset records to include the required information for assets purchased with Federal awards. A system of communication and a review process should be implemented to ensure completeness of fixed asset records. Personnel should become familiar with the Federal regulations concerning asset purchases.
2022-003 Equipment and Property Management US Department of Education Passed Through NYS Education Dept. Education Stabilization Fund COVID 19 ARP ESSER 3 AL 84.425U COVID 19 CRRSA ESSER 2 AL 84.425D Criteria: 2CFR Section 200.313(d)(1) specifies detailed property records that must be maintained for equipment acquired under a federal grant award. Records include a description of the property, a serial number or identification number, the source of funding (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data. Condition: The District expended funds from the ARP ESSER 3 grant to acquire promethean boards and other technology equipment and to make various land improvements such as outdoor classrooms and a basketball court. The District expended funds from the CRRSA ESSER 2 grant to acquire desks and seating. District fixed asset records did not include the detailed information required by 2CFR Section 200.313(d)(1). Some of the assets were not on the District?s fixed asset records at all and some were included in the fixed asset records but required information was missing. Context: The audit identified approximately $350,000 of assets, consisting primarily of outdoor spaces and playground matting purchased with ESSER3 funds that were not on the fixed asset schedule. Approximately $147,000 of desks and seating purchased with ESSER 2 funds were not on the fixed asset schedule. Other assets purchased with ESSER 3 funds of approximately $1.25 million were on the fixed asset schedule but all the required information was not included. Effect: If assets are not on the District?s fixed asset records, they may not be properly safeguarded, and the District may not comply with the Federal disposal rules. Cause: The Federal government awarded new types of grant funding in response to the COVID 19 pandemic. This funding presented difficulties for recipients because of the uncertainties related to the pandemic and the changing guidance and funding levels. The District has typically not used Federal grant funds to acquire fixed assets. There was inadequate communication between the departments regarding grant purchases and no system in place to ensure that all assets were included in the fixed asset records. There was also confusion regarding the District?s capitalization policy. Some items were individually under the capitalization threshold but because they were purchased in bulk the entire purchase was over the threshold. Recommendation: We recommend that the District update their fixed asset records to include the required information for assets purchased with Federal awards. A system of communication and a review process should be implemented to ensure completeness of fixed asset records. Personnel should become familiar with the Federal regulations concerning asset purchases.
2022-004 Wage Rate Requirement US Department of Education Passed Through NYS Education Dept. Education Stabilization Fund COVID 19 CRRSA ESSER 3 AL 84.425U Criteria: According to 29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction and 2 CFR Section 200.327 Appendix IID to 2 CFR Part 200, nonfederal entities must include in construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and DOL regulations. Regulations include a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). Condition: The District expended funds from the CRRSA ESSER 3 grant to make various land improvements such as outdoor classrooms and a basketball court. The District had no construction contract with the contractors. The District did not obtain the required certified payrolls on a weekly basis as work was being performed. Context: The District personnel were under the impression that the projects were emergency projects due to the COVID 19 pandemic. Federal funding has typically not been used for construction projects. Effect: If payroll records are not reviewed, the District does not know that they were properly billed by the contractor. Noncompliance with Federal guidelines could result in the grantee declining to pay for these costs. Cause: District personnel were under the impression that these were emergency projects due to the COVID pandemic, therefore, formal contracts were not executed. There was no system in place for making sure that the proper payroll reports were obtained as work was being done. There was a lack of communication and an assumption that the accounts payable department took care of this. Accounts payable asked for the reports after the fact upon receipt of the bill. Recommendation: We recommend that the District develop a system to make sure that proper contracts are obtained for all pertinent work and that all reporting is obtained in a timely manner. Personnel should become familiar with the Federal regulations.