Information on the federal program:
Subject: Education Stabilization Fund – Internal Controls
Federal Agency: Department of Education
Federal Program: COVID-19 – Education Stabilization Fund
Assistance Listing Number: 84.425D, 84.425U
Federal Award Numbers: S425D210013, S425U210013
Pass-Through Enti...
Information on the federal program:
Subject: Education Stabilization Fund – Internal Controls
Federal Agency: Department of Education
Federal Program: COVID-19 – Education Stabilization Fund
Assistance Listing Number: 84.425D, 84.425U
Federal Award Numbers: S425D210013, S425U210013
Pass-Through Entity: Indiana Department of Education
Compliance Requirement: Equipment and Real Property Management
Audit Finding: Material Weakness
Criteria: 2 CFR 200.313(d) states in part:
"Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in
whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements:
(1) 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 FAIN), who holds title, the acquisition
date, and 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 including the date of disposal and sale price of the property.
(2) A physical inventory of the property must be taken and the results reconciled with the property records at least
once every two years.
(3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the
property. Any loss, damage, or theft must be investigated.
(4) Adequate maintenance procedures must be developed to keep the property in good condition.. . ."
Context: We noted the School Corporation expended approximately $7.1 million on HVAC projects which was charged to
the ESSER II and ESSER III (84.425D and 84.425U) grant awards. It was noted these capital asset acquisitions were not
reported on the capital asset listing for the School Corporation as of June 30, 2024. Additionally, we noted the School
Corporation’s capital asset listing did not contain all the required information, including the source of funding for the
property, outlined in the criteria above.
Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. Even though
infrastructure items themselves are not to be listed separately on a capital asset detail, we will modify the value of the
buildings themselves.
Responsible party and timeline for completion: The Director of Business Services, Rob James, will modify the
building values during the annual capital asset update done in July 2025.