Finding: The District did not comply with Federal regulations by maintaining inventory records to identify the location of 333 laptops, resulting in ECF program questioned costs of $132,527. Criteria: Title 47, Section 54.1715, Code of Federal Regulations (CFR), requires equipment inventory records to identify the equipment type (e.g., laptop), make, and serial number; the school personnel responsible for that equipment or the person to whom the equipment was provided; and the dates the equipment was in service or dates the equipment was loaned out and returned to the school or when the equipment was missing, lost, or damaged. Condition: During the 2021-22 fiscal year, the District expended ECF program funds totaling $1,509,241.66 to acquire 4,597 laptops. As part of our audit, we requested for examination District inventory records to support the laptop acquisitions and the District provided records supporting 4,264 laptops. However, District personnel did not provide inventory records for, or locate, the remaining 333 laptops acquired with ECF program funds totaling $132,527. Cause: District personnel indicated that the missing inventory information was an oversight. Effect: Without effective accountability over Federal equipment, including the maintenance of appropriate inventory records, there is an increased risk that the equipment may be used for unauthorized purposes. As such, ECF program expenditures totaling $132,527 used to acquire the 333 unaccounted for laptops represent questioned costs. Recommendation: The District should locate the missing laptops and prepare and maintain appropriate inventory records for the laptops pursuant to Federal requirements. If the laptops are not located, the District should restore the questioned costs totaling $132,527 to the Federal Communications Commission and contact applicable law enforcement agencies regarding other necessary actions to help recover the laptops. District Response: The District will enhance inventory records and procedures to ensure that all property items are properly recorded in order to maintain accountability of items purchased with Federal funds. Additionally, the District will consult with the grantor agency regarding the allowability of the questioned costs.
Finding: The District did not always comply with Federal regulations by maintaining inventory records to identify the location of certain equipment, resulting in ESSER Fund questioned costs totaling $1,565,006.14. Criteria: Title 2, Section 200.313(d)(1), CFR, requires that for equipment, property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (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 the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. Title 2, Section 200.313(a), CFR, defines equipment as tangible property, including information technology systems, having a useful life of one year and a per-unit acquisition cost which equals or exceeds the lesser of the capitalization threshold established by District. Per Board Policy 7.77 ? Inventories and Property Records, the Superintendent or designee shall maintain an adequate and accurate record of all tangible personal property of the District. All equipment shall be listed that has a value or cost of $1,000 or more. Condition: During the 2021-22 fiscal year, District ESSER Fund expenditures totaled $7,086,240.23, including $3,423,497.39 expended for capital outlay. As part of our audit, we examined District records and noted equipment acquisitions totaling $1,565,006.14 for 513 items with costs exceeding the District?s $1,000 capitalization threshold. Although we requested, District personnel did not provide inventory records to identify the location of any of these items. Cause: District personnel indicated that the missing inventory information was an oversight as the employee responsible for recording property items in the inventory records was not timely provided with the appropriate acquisition information. Effect: Without effective accountability over Federal equipment, including the maintenance of appropriate inventory records, there is an increased risk that the equipment may be used for unauthorized purposes. Absent identification of the equipment location, the ESSER Fund equipment acquisitions totaling $1,565,006.14 represent questioned costs. Recommendation: The District should conduct a thorough investigation of the ESSER Fund capital outlay expenditures to identify equipment acquisitions with costs exceeding the District $1,000 capitalization threshold, locate the applicable items, and prepare and maintain appropriate inventory records for those items. In addition, the District should restore to the FDOE the questioned costs related to any unlocated items and contact applicable law enforcement agencies regarding other necessary actions to help recover the equipment. District Response: The District will enhance inventory records and procedures to ensure that all property items are properly recorded in order to maintain accountability of items purchased with Federal funds. Additionally, the District will consult with the grantor agency regarding the allowability of the questioned costs.
Finding: The District did not comply with Federal regulations by maintaining inventory records to identify the location of 333 laptops, resulting in ECF program questioned costs of $132,527. Criteria: Title 47, Section 54.1715, Code of Federal Regulations (CFR), requires equipment inventory records to identify the equipment type (e.g., laptop), make, and serial number; the school personnel responsible for that equipment or the person to whom the equipment was provided; and the dates the equipment was in service or dates the equipment was loaned out and returned to the school or when the equipment was missing, lost, or damaged. Condition: During the 2021-22 fiscal year, the District expended ECF program funds totaling $1,509,241.66 to acquire 4,597 laptops. As part of our audit, we requested for examination District inventory records to support the laptop acquisitions and the District provided records supporting 4,264 laptops. However, District personnel did not provide inventory records for, or locate, the remaining 333 laptops acquired with ECF program funds totaling $132,527. Cause: District personnel indicated that the missing inventory information was an oversight. Effect: Without effective accountability over Federal equipment, including the maintenance of appropriate inventory records, there is an increased risk that the equipment may be used for unauthorized purposes. As such, ECF program expenditures totaling $132,527 used to acquire the 333 unaccounted for laptops represent questioned costs. Recommendation: The District should locate the missing laptops and prepare and maintain appropriate inventory records for the laptops pursuant to Federal requirements. If the laptops are not located, the District should restore the questioned costs totaling $132,527 to the Federal Communications Commission and contact applicable law enforcement agencies regarding other necessary actions to help recover the laptops. District Response: The District will enhance inventory records and procedures to ensure that all property items are properly recorded in order to maintain accountability of items purchased with Federal funds. Additionally, the District will consult with the grantor agency regarding the allowability of the questioned costs.
Finding: The District did not always comply with Federal regulations by maintaining inventory records to identify the location of certain equipment, resulting in ESSER Fund questioned costs totaling $1,565,006.14. Criteria: Title 2, Section 200.313(d)(1), CFR, requires that for equipment, property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (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 the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. Title 2, Section 200.313(a), CFR, defines equipment as tangible property, including information technology systems, having a useful life of one year and a per-unit acquisition cost which equals or exceeds the lesser of the capitalization threshold established by District. Per Board Policy 7.77 ? Inventories and Property Records, the Superintendent or designee shall maintain an adequate and accurate record of all tangible personal property of the District. All equipment shall be listed that has a value or cost of $1,000 or more. Condition: During the 2021-22 fiscal year, District ESSER Fund expenditures totaled $7,086,240.23, including $3,423,497.39 expended for capital outlay. As part of our audit, we examined District records and noted equipment acquisitions totaling $1,565,006.14 for 513 items with costs exceeding the District?s $1,000 capitalization threshold. Although we requested, District personnel did not provide inventory records to identify the location of any of these items. Cause: District personnel indicated that the missing inventory information was an oversight as the employee responsible for recording property items in the inventory records was not timely provided with the appropriate acquisition information. Effect: Without effective accountability over Federal equipment, including the maintenance of appropriate inventory records, there is an increased risk that the equipment may be used for unauthorized purposes. Absent identification of the equipment location, the ESSER Fund equipment acquisitions totaling $1,565,006.14 represent questioned costs. Recommendation: The District should conduct a thorough investigation of the ESSER Fund capital outlay expenditures to identify equipment acquisitions with costs exceeding the District $1,000 capitalization threshold, locate the applicable items, and prepare and maintain appropriate inventory records for those items. In addition, the District should restore to the FDOE the questioned costs related to any unlocated items and contact applicable law enforcement agencies regarding other necessary actions to help recover the equipment. District Response: The District will enhance inventory records and procedures to ensure that all property items are properly recorded in order to maintain accountability of items purchased with Federal funds. Additionally, the District will consult with the grantor agency regarding the allowability of the questioned costs.