Audit 17433

Finding 2022-001 Significant Deficiency: Equipment and Real Property Management ? Control and Compliance Finding; Special Test and Control Provisions - Control and Compliance Finding ALN 32.009 ? Emergency Connectivity Fund Federal Agency: Federal Communication Commission Pass-Through Entity: Universal Service Administrative Co. Criteria Or Specific Requirement: Uniform Guidance requires that controls over compliance be properly designed, in place and operating effectively to ensure compliance with the requirements of the federal program. Condition: The signed application related to the checking out of either a hotspot or Chromebook offered by the Library was not retained. This application should be retained and information used to determine eligibility and proper inclusion in the system. Cause: Controls over compliance put in place by management were not operating effectively as it relates to these compliance requirements and therefore the compliance with equipment and real property and special tests and provision requirements were not met. Effect: The possibility exists that noncompliance with federal requirements could go undetected without proper controls over compliance. Questioned Costs: Not applicable. Context: Internal controls as designed by the Library were to ensure patrons signed the relevant application depending on the type of equipment requested. A signed application was not retained for 4 of 40 patrons tested for equipment and real property and special test and provision requirements. Identification As A Repeat Finding: Not applicable. Recommendation: We recommend that management review its processes and controls surrounding applicable compliance requirements to improve the existing system such that it will ensure compliance with the requirements of federal grants. Views Of Responsible Officials: Management will review current procedures and implement tightened procedures to assure that all applications are completed, signed, dated and retained correctly for any equipment loan to Library patrons.

Finding 2022-002 Significant Deficiency: Equipment and Real Property Management ? Control and Compliance Finding ALN 32.009 ? Emergency Connectivity Fund Federal Agency: Federal Communication Commission Pass-Through Entity: Universal Service Administrative Co. Criteria Or Specific Requirement: The compliance provisions of the federal program require the dates the device or other piece of equipment was loaned out and returned to the school or library, or the date the school or library was notified that the device or other piece of equipment was missing, lost, or damaged be retained for program records. Provisions of the federal program also restrict use to no more than one connected device per patron and no more than one fixed broadband connection per location. Uniform Guidance requires that controls over compliance be properly designed, in place and operating effectively to ensure compliance with the requirements of the federal program related to service and equipment inventory requirements. Condition: For one of 40 patrons that had checked out equipment, one patron was noted as checking out two Chromebooks during the year. Upon investigation by the Library, the patron claimed a Chromebook was returned, but no record of that return is noted within the system. The Library shut off all connectivity to the Chromebook within their system. Cause: Controls over compliance put in place by management were not operating effectively as it relates to these compliance requirements and therefore there was no compliance with the recording and maintenance of equipment and real property and with special tests and provisions. Effect: The possibility exists that noncompliance with federal requirements could go undetected without proper controls over compliance. Questioned Costs: Not applicable. Context: Internal controls as designed by the Library were to ensure equipment that is loaned to the Library?s patron is properly recorded in the system and tracked through the return process were not operating effectively. Of the 40 patrons tested, 1 patron noted that equipment, specifically a Chromebook, was returned but the Library has no proof of such return. Identification As A Repeat Finding: Not applicable. Recommendation: We recommend that management review its processes and controls surrounding applicable compliance requirements to improve the existing system such that it will ensure compliance with the requirements of federal grants. Views Of Responsible Officials: Management will strengthen and implement revised procedures to assure that all records of loan equipment are accurate based on the retained signed applications and electronic transaction history.

Finding 2022-001 Significant Deficiency: Equipment and Real Property Management ? Control and Compliance Finding; Special Test and Control Provisions - Control and Compliance Finding ALN 32.009 ? Emergency Connectivity Fund Federal Agency: Federal Communication Commission Pass-Through Entity: Universal Service Administrative Co. Criteria Or Specific Requirement: Uniform Guidance requires that controls over compliance be properly designed, in place and operating effectively to ensure compliance with the requirements of the federal program. Condition: The signed application related to the checking out of either a hotspot or Chromebook offered by the Library was not retained. This application should be retained and information used to determine eligibility and proper inclusion in the system. Cause: Controls over compliance put in place by management were not operating effectively as it relates to these compliance requirements and therefore the compliance with equipment and real property and special tests and provision requirements were not met. Effect: The possibility exists that noncompliance with federal requirements could go undetected without proper controls over compliance. Questioned Costs: Not applicable. Context: Internal controls as designed by the Library were to ensure patrons signed the relevant application depending on the type of equipment requested. A signed application was not retained for 4 of 40 patrons tested for equipment and real property and special test and provision requirements. Identification As A Repeat Finding: Not applicable. Recommendation: We recommend that management review its processes and controls surrounding applicable compliance requirements to improve the existing system such that it will ensure compliance with the requirements of federal grants. Views Of Responsible Officials: Management will review current procedures and implement tightened procedures to assure that all applications are completed, signed, dated and retained correctly for any equipment loan to Library patrons.

Finding 2022-002 Significant Deficiency: Equipment and Real Property Management ? Control and Compliance Finding ALN 32.009 ? Emergency Connectivity Fund Federal Agency: Federal Communication Commission Pass-Through Entity: Universal Service Administrative Co. Criteria Or Specific Requirement: The compliance provisions of the federal program require the dates the device or other piece of equipment was loaned out and returned to the school or library, or the date the school or library was notified that the device or other piece of equipment was missing, lost, or damaged be retained for program records. Provisions of the federal program also restrict use to no more than one connected device per patron and no more than one fixed broadband connection per location. Uniform Guidance requires that controls over compliance be properly designed, in place and operating effectively to ensure compliance with the requirements of the federal program related to service and equipment inventory requirements. Condition: For one of 40 patrons that had checked out equipment, one patron was noted as checking out two Chromebooks during the year. Upon investigation by the Library, the patron claimed a Chromebook was returned, but no record of that return is noted within the system. The Library shut off all connectivity to the Chromebook within their system. Cause: Controls over compliance put in place by management were not operating effectively as it relates to these compliance requirements and therefore there was no compliance with the recording and maintenance of equipment and real property and with special tests and provisions. Effect: The possibility exists that noncompliance with federal requirements could go undetected without proper controls over compliance. Questioned Costs: Not applicable. Context: Internal controls as designed by the Library were to ensure equipment that is loaned to the Library?s patron is properly recorded in the system and tracked through the return process were not operating effectively. Of the 40 patrons tested, 1 patron noted that equipment, specifically a Chromebook, was returned but the Library has no proof of such return. Identification As A Repeat Finding: Not applicable. Recommendation: We recommend that management review its processes and controls surrounding applicable compliance requirements to improve the existing system such that it will ensure compliance with the requirements of federal grants. Views Of Responsible Officials: Management will strengthen and implement revised procedures to assure that all records of loan equipment are accurate based on the retained signed applications and electronic transaction history.