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
Federal Award Numbers: S425D210013
Pass-Through Entity: Indiana Department...
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
Federal Award Numbers: S425D210013
Pass-Through Entity: Indiana Department of Education
Compliance Requirement: Equipment and Real Property Management
Audit Findings: 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. (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. (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. (4) Adequate maintenance procedures must be developed to keep the property in good condition.
. . ."
Condition: An effective internal control system was not in place at the School Corporation in order to
ensure compliance with requirements related to the grant agreement and the Equipment and Real Property
Management Requirements compliance requirements.
Context: For the one sample item tested in a population of two, we noted the School Corporation expended
$175,000 on baseball bleacher renovations which was charged to the ESSER II (84.425D) grant
award. The bleachers were not reported on the capital asset listing for the School Corporation as of
June 30, 2024.
Views of Responsible Official: Management agrees with the finding and will take the following
corrective action.
Description of Corrective Action Plan: Going forward, we will have multiple people verify the
appropriation budget account assigned to any purchase of a single item over the material threshold of
$5,000, to ensure accountability and accuracy in our process
We have set up an on-site physical inventory with Asset Control Solutions, Inc. They are contracted to
physically complete an update inventory of our assets biennially.
Anticipated Completion Date: 6/30/2025