Audit 383234

Finding 2025-002 - Compliance Over Major Federal Program Compliance Requirement: Equipment and real property Management Program: Education Stabilization Fund CFDA Number: 84.452 Criteria: OMB Uniform Guidance Section 200.313 states assets acquired with federal funds shall be maintained accurately and shall include a description of the asset, identification number, source of funding, acquisition date, cost, location, condition of the asset, and date the information was reported. A physical inventory of all federal funded assets shall be taken and the results reconciled with equipment records at least once evry two years. Any differences betwenn quantities determined by physical inspection and accounting records shall be investigated to determine cause. The existence, current utilization, and continued need shall be verified. Condition: The District did not provide a complete and updated asset inventory accounting report. Cause: The District did complete the physical inventury or update the inventory report. Effect: Federally funded assets could be inaccurately captured on the inventory records and not discovered and corrected. Improper disposition of assets could occur. Question Costs: None Noted. Repeat Finding: Yes, prior year Finding 2024-242. Recommendation: The District should complete a physical inventory of all federally funded assets. Asset inventory report should completed and updated. The district should provide training to ensure the appropriate personnel have an understanding of OMB Uniform Guidance requirements specific to asset inventory. Management Views: Management views and Corrective Action Plan are included at the end of this report.

Finding 2025-003 - Internal control over Major Federal Program Compliance Internal Control: Equipment and Real Property Management Compliance Program: Education Stabilization fund. CFDA Number: 84.425 Criteria: OMB Uniform Guidance requires the district to establish and maintan effective internal controls to ensure compliance with asset management. Condition: Federally funded asset acquisitions were not properly recorded, identified, and reported in an inventory system. Cause: The District did not implement procedures to inventory, record, and monitor federally funded asset acquisitions as required by 2 CFR 200.313 of Uniform Guidance. Repeat Finding: Yes, prior year Finding 2024-244. Recommendation: The District should review its policies and procedures for asset inventory management. The District should ensure the policies require asset inventory management to comply with Equipment and Real property Management compliance requirements. The District should provide training to personnel assigned to the inventory procedures. The District should implement specific inventory procedures to ensure compliance with the requirements of 2 CFR 200.313 of the Uniform Guidance. Management Views: Management's views and Corrective Action Plan are include at the end of this report.