Finding 2024-003 Reporting – Material Noncompliance and Material Weakness in Internal Control Over Compliance Identification of the Federal Program ALN 84.041- Impact Aid – U.S. Department of Education - Direct Program 2024 Criteria or Specific Requirement The Uniform Guidance in 2 CFR Section 200.303, Internal Controls requires that non-federal entities receiving federal awards establish and maintain internal control designed to reasonably ensure compliance with federal statues, regulations, and the terms and conditions of the federal award. Application for Impact Aid – Section 7003 (OMB No. 1810-0687) – Each year an LEA must submit this application, which provides the following information: counts of federally connected children in various categories, membership and average daily attendance data, and information on expenditures for children with disabilities. Condition The District failed to retain source check documentation to support the student count and information certification by federal representatives. Cause Internal control process for retention of the source documentation was not followed. Effect or potential effect We were unable to confirm the completeness and verification that the students that were reported for the program were federally connected children. Questioned Costs Questioned costs are not determinable based on the information available. Context For the testwork for reporting over impact aid we requested source check documentation for the students that were reported federally connected children and the District was not able to provide any evidence. Identification as a repeat finding Not a repeat finding. Recommendation We recommend that the District comply with the requirements of CFR section 200.313 and establish documentation retention policy and maintain records in accordance with the uniform guidance. Views of responsible officials Management agrees with this finding. Steps will be taken to correct the retention of source check documentation process and enhance internal controls to prevent similar occurrences in the future.
Information on the federal program: Subject: Education Stabilization Fund (ESSER) – 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 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) 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. . . ." 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. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: During the grant period, the School Corporation expended a total of $5,803,458 in Education Stabilization Funds (ESSER) for a building project. Although this project was included in the School Corporation's capital asset records, it was recorded at the estimated total project cost of $6,256,000 in a prior audit period prior to these costs being expended. In addition, the School Corporation did not designate the amount of the project that was paid with federal grant funds, complete an inventory in the two-year audit period, or record expenditures and report budgeted amounts in the proper object code. Identification as a repeat finding: Yes. See finding 2022-006 Recommendation: We recommend the School Corporation update the capital asset listing at least annually to include all equipment and real property acquisitions and review for potential capital asset dispositions. The capital asset listing should include all required information to track capital asset acquisitions purchased with federal funding. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
Information on the federal program: Subject: Education Stabilization Fund (ESSER) – 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 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) 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. . . ." 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. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: During the grant period, the School Corporation expended a total of $5,803,458 in Education Stabilization Funds (ESSER) for a building project. Although this project was included in the School Corporation's capital asset records, it was recorded at the estimated total project cost of $6,256,000 in a prior audit period prior to these costs being expended. In addition, the School Corporation did not designate the amount of the project that was paid with federal grant funds, complete an inventory in the two-year audit period, or record expenditures and report budgeted amounts in the proper object code. Identification as a repeat finding: Yes. See finding 2022-006 Recommendation: We recommend the School Corporation update the capital asset listing at least annually to include all equipment and real property acquisitions and review for potential capital asset dispositions. The capital asset listing should include all required information to track capital asset acquisitions purchased with federal funding. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
CONDITION The University of North Dakota has federally funded equipment that is not being properly identified with the corresponding major equipment asset tags on the asset. We tested a total of 21 capital assets and 10 of those were at the University of North Dakota where we found 5 assets without any major equipment identification tags on them for an error rate of 50%. CRITERIA 2 CFR section 200.313(d)(3) states in part that a control system must be in place to ensure safeguards for preventing property loss, damage, or theft. 2 CFR section 200.313(b) states in part that a State must use, manage and dispose of equipment acquired under a Federal award in accordance with State laws and procedures. The University of North Dakota Capital Asset policy states in part that the campus department is responsible for using correct chart field when acquiring all assets, tagging and tracking their major equipment, and completing annual inventory of all major equipment. CAUSE The departments and/or principal investigator (PI) purchasing the equipment did not correctly attach the major equipment tags to the asset as required by the University of North Dakota's Capital Asset policy. EFFECT There is noncompliance with federal rules and regulations as well as the University of North Dakota's Capital Asset policy, thus increasing the risk that federally funded equipment is not properly identified. CONTEXT For the audit period, the Research and Development Cluster had 207 equipment asset additions ($9,958,360). All the issues noted originated from one single department at the University of North Dakota. The insufficient tagging of capital asset deviations seems to be an isolated incident contained to this department, which in total for our audit period had 16 new additions totaling $419,060. Where sampling was performed, the audit used a non-statistical sampling method. IDENTIFICATION AS A REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the University of North Dakota ensure federally funded equipment is properly tagged. UNIVERSITY SYSTEM RESPONSE The University of North Dakota agrees with the finding. See “Management’s Response and Corrective Action” section of this report.
CONDITION The University of North Dakota has federally funded equipment that is not being properly identified with the corresponding major equipment asset tags on the asset. We tested a total of 21 capital assets and 10 of those were at the University of North Dakota where we found 5 assets without any major equipment identification tags on them for an error rate of 50%. CRITERIA 2 CFR section 200.313(d)(3) states in part that a control system must be in place to ensure safeguards for preventing property loss, damage, or theft. 2 CFR section 200.313(b) states in part that a State must use, manage and dispose of equipment acquired under a Federal award in accordance with State laws and procedures. The University of North Dakota Capital Asset policy states in part that the campus department is responsible for using correct chart field when acquiring all assets, tagging and tracking their major equipment, and completing annual inventory of all major equipment. CAUSE The departments and/or principal investigator (PI) purchasing the equipment did not correctly attach the major equipment tags to the asset as required by the University of North Dakota's Capital Asset policy. EFFECT There is noncompliance with federal rules and regulations as well as the University of North Dakota's Capital Asset policy, thus increasing the risk that federally funded equipment is not properly identified. CONTEXT For the audit period, the Research and Development Cluster had 207 equipment asset additions ($9,958,360). All the issues noted originated from one single department at the University of North Dakota. The insufficient tagging of capital asset deviations seems to be an isolated incident contained to this department, which in total for our audit period had 16 new additions totaling $419,060. Where sampling was performed, the audit used a non-statistical sampling method. IDENTIFICATION AS A REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the University of North Dakota ensure federally funded equipment is properly tagged. UNIVERSITY SYSTEM RESPONSE The University of North Dakota agrees with the finding. See “Management’s Response and Corrective Action” section of this report.
Significant Deficiency 2024-001. Equipment and Real Property Management United States of Education, Passed Through New York State, Department of Education: Education Stabilization Fund COVID-19: Elementary and Secondary School Emergency Relief Fund ALN: 84.425D COVID-19: American Rescue Plan – Elementary and Secondary School Emergency Relief ALN: 84.425U COVID-19: American Rescue Plan – Elementary and Secondary School Emergency Relief – Homeless Children and Youth ALN: 84.425W Criteria: 2 CFR §200.313 of the Uniform Guidance issued by the U.S. Office of Management and Budget requires management to have procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a federal award, until disposition takes place. This includes maintaining property records 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 (FAIN), and who holds title. In addition, it requires the District to track 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. Condition: The District did not include all equipment purchased with federal grant funds in its current year additions in the District’s capital assets inventory records. Cause: The District uses specific codes to identify and track equipment purchased during the year. Since the District did not have procedures in place to timely review and reconcile the District’s equipment purchases codes to the annual capital assets additions, equipment purchased under the federal grants was inadvertently omitted from the current year capital assets inventory additions. Effect: The inability to include and differentiate capital assets acquired with federal awards in the capital assets inventory records could lead to improper procedures for disposal of those capital assets. Questioned Costs: None reported. Context: The District rarely uses federal grant funds for the purchase of equipment. As a result of this, when District staff was compiling the listing of equipment purchased during the year, to be provided to the District’s third-party capital assets management company, the equipment purchased using federal grant funds was inadvertently omitted from the listing. Identification of a Repeat Finding: This is a repeat finding from the previous year audit, 2023-002. Recommendation: The District should implement procedures where there is a formal reconciliation performed annually for all of the District’s equipment expenditure codes and the additions to the District’s capital assets inventory. This will ensure that all equipment purchased with federal funds is captured and included in the capital assets inventory records. Additionally, all capital assets additions purchased with federal funds should be managed in accordance with 2 CFR §200.313. Views of Responsible Officials of Auditee: Management agrees with the finding and will ensure that the equipment purchased with federal funds is identified and included in the District’s capital assets inventory records as part of the capital assets reconciliation process.
Significant Deficiency 2024-001. Equipment and Real Property Management United States of Education, Passed Through New York State, Department of Education: Education Stabilization Fund COVID-19: Elementary and Secondary School Emergency Relief Fund ALN: 84.425D COVID-19: American Rescue Plan – Elementary and Secondary School Emergency Relief ALN: 84.425U COVID-19: American Rescue Plan – Elementary and Secondary School Emergency Relief – Homeless Children and Youth ALN: 84.425W Criteria: 2 CFR §200.313 of the Uniform Guidance issued by the U.S. Office of Management and Budget requires management to have procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a federal award, until disposition takes place. This includes maintaining property records 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 (FAIN), and who holds title. In addition, it requires the District to track 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. Condition: The District did not include all equipment purchased with federal grant funds in its current year additions in the District’s capital assets inventory records. Cause: The District uses specific codes to identify and track equipment purchased during the year. Since the District did not have procedures in place to timely review and reconcile the District’s equipment purchases codes to the annual capital assets additions, equipment purchased under the federal grants was inadvertently omitted from the current year capital assets inventory additions. Effect: The inability to include and differentiate capital assets acquired with federal awards in the capital assets inventory records could lead to improper procedures for disposal of those capital assets. Questioned Costs: None reported. Context: The District rarely uses federal grant funds for the purchase of equipment. As a result of this, when District staff was compiling the listing of equipment purchased during the year, to be provided to the District’s third-party capital assets management company, the equipment purchased using federal grant funds was inadvertently omitted from the listing. Identification of a Repeat Finding: This is a repeat finding from the previous year audit, 2023-002. Recommendation: The District should implement procedures where there is a formal reconciliation performed annually for all of the District’s equipment expenditure codes and the additions to the District’s capital assets inventory. This will ensure that all equipment purchased with federal funds is captured and included in the capital assets inventory records. Additionally, all capital assets additions purchased with federal funds should be managed in accordance with 2 CFR §200.313. Views of Responsible Officials of Auditee: Management agrees with the finding and will ensure that the equipment purchased with federal funds is identified and included in the District’s capital assets inventory records as part of the capital assets reconciliation process.
Significant Deficiency 2024-001. Equipment and Real Property Management United States of Education, Passed Through New York State, Department of Education: Education Stabilization Fund COVID-19: Elementary and Secondary School Emergency Relief Fund ALN: 84.425D COVID-19: American Rescue Plan – Elementary and Secondary School Emergency Relief ALN: 84.425U COVID-19: American Rescue Plan – Elementary and Secondary School Emergency Relief – Homeless Children and Youth ALN: 84.425W Criteria: 2 CFR §200.313 of the Uniform Guidance issued by the U.S. Office of Management and Budget requires management to have procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a federal award, until disposition takes place. This includes maintaining property records 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 (FAIN), and who holds title. In addition, it requires the District to track 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. Condition: The District did not include all equipment purchased with federal grant funds in its current year additions in the District’s capital assets inventory records. Cause: The District uses specific codes to identify and track equipment purchased during the year. Since the District did not have procedures in place to timely review and reconcile the District’s equipment purchases codes to the annual capital assets additions, equipment purchased under the federal grants was inadvertently omitted from the current year capital assets inventory additions. Effect: The inability to include and differentiate capital assets acquired with federal awards in the capital assets inventory records could lead to improper procedures for disposal of those capital assets. Questioned Costs: None reported. Context: The District rarely uses federal grant funds for the purchase of equipment. As a result of this, when District staff was compiling the listing of equipment purchased during the year, to be provided to the District’s third-party capital assets management company, the equipment purchased using federal grant funds was inadvertently omitted from the listing. Identification of a Repeat Finding: This is a repeat finding from the previous year audit, 2023-002. Recommendation: The District should implement procedures where there is a formal reconciliation performed annually for all of the District’s equipment expenditure codes and the additions to the District’s capital assets inventory. This will ensure that all equipment purchased with federal funds is captured and included in the capital assets inventory records. Additionally, all capital assets additions purchased with federal funds should be managed in accordance with 2 CFR §200.313. Views of Responsible Officials of Auditee: Management agrees with the finding and will ensure that the equipment purchased with federal funds is identified and included in the District’s capital assets inventory records as part of the capital assets reconciliation process.
FINDING 2024-002 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: 84.425U Federal Award Numbers: S425U210013 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) 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.." 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. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: The School Corporation paid $2,135,000 for HVAC and flooring improvements and $92,301 in concrete work at various locations using COVID-19 - Education Stabilization Funds grant funds. These capital improvements were added to the detailed listing of capital improvements; however, did not include a detailed description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number (FAIN)), who holds the title, and percentage of federal participation in the project costs for the federal award under which the property was acquired. Identification as a repeat finding: Yes, see Finding 2022-008 in the prior period audit report. Recommendation: We recommend the School Corporation update the capital asset listing to include all required information to track capital asset acquisitions purchased with federal funding. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
Significant Deficiency Equipment And Real Property Management - ESSER Grant Title: COVID-19 American Rescue Plan Elementary and Secondary School Emergency Relief Fund - Education Stabilization Fund (ESSER) Federal Award Number and Year: 2023 Assistance Listing #: 84.425D and 84.425U Federal Agency: US Department of Education Pass-through Entity number 52160 Pass-through Agency: WV Department of Education The Monroe County Board of Education (the "Board") did not follow the federal requirements for equipment and real property management under the COVID-19 American Rescue Plan ESSER program. The Board maintained photographic evidence of the inventoried items but failed to maintain a detailed listing of the equipment and real property, as required by federal regulations. During the audit period, the Board was responsible for managing equipment and real property acquired under the COVID-19 American Rescue Plan ESSER program. However, the documentation reviewed during the audit revealed that the Board had not maintained a formal inventory listing. Instead, the Board relied on photographic records and a project manual to document the existence and condition of the equipment and real property, which is not sufficient to meet the federal requirements. In accordance with 2 CFR § 200.313(d), non-Federal entities must maintain accurate records for equipment acquired with federal funds, including a detailed listing that identifies each item, its location, its condition, and other pertinent details. This listing must be updated as needed and must be verified by a physical inventory at least once every two years. The noncompliance appears to have been by a lack of awareness or understanding of the specific federal requirements for maintaining a detailed inventory listing for equipment and real property. The Board relied on photographic records without recognizing the necessity of a formal, detailed listing as mandated by federal regulations. Failure to maintain a detailed inventory listing as required by federal regulations increases the risk of mismanagement or loss of equipment and real property and could impact the Board's ability to receive future federal funding. We recommend that the Board establish and maintain a detailed inventory listing for all equipment and real property acquired with federal funds. This listing should include all information required by federal regulations and should be verified through a physical inventory at least once every two years. Additionally, the Board should provide training to staff responsible for equipment and real property management to ensure compliance with federal requirements
Significant Deficiency Equipment And Real Property Management - ESSER Grant Title: COVID-19 American Rescue Plan Elementary and Secondary School Emergency Relief Fund - Education Stabilization Fund (ESSER) Federal Award Number and Year: 2023 Assistance Listing #: 84.425D and 84.425U Federal Agency: US Department of Education Pass-through Entity number 52160 Pass-through Agency: WV Department of Education The Monroe County Board of Education (the "Board") did not follow the federal requirements for equipment and real property management under the COVID-19 American Rescue Plan ESSER program. The Board maintained photographic evidence of the inventoried items but failed to maintain a detailed listing of the equipment and real property, as required by federal regulations. During the audit period, the Board was responsible for managing equipment and real property acquired under the COVID-19 American Rescue Plan ESSER program. However, the documentation reviewed during the audit revealed that the Board had not maintained a formal inventory listing. Instead, the Board relied on photographic records and a project manual to document the existence and condition of the equipment and real property, which is not sufficient to meet the federal requirements. In accordance with 2 CFR § 200.313(d), non-Federal entities must maintain accurate records for equipment acquired with federal funds, including a detailed listing that identifies each item, its location, its condition, and other pertinent details. This listing must be updated as needed and must be verified by a physical inventory at least once every two years. The noncompliance appears to have been by a lack of awareness or understanding of the specific federal requirements for maintaining a detailed inventory listing for equipment and real property. The Board relied on photographic records without recognizing the necessity of a formal, detailed listing as mandated by federal regulations. Failure to maintain a detailed inventory listing as required by federal regulations increases the risk of mismanagement or loss of equipment and real property and could impact the Board's ability to receive future federal funding. We recommend that the Board establish and maintain a detailed inventory listing for all equipment and real property acquired with federal funds. This listing should include all information required by federal regulations and should be verified through a physical inventory at least once every two years. Additionally, the Board should provide training to staff responsible for equipment and real property management to ensure compliance with federal requirements
Significant Deficiency Equipment And Real Property Management - ESSER Grant Title: COVID-19 American Rescue Plan Elementary and Secondary School Emergency Relief Fund - Education Stabilization Fund (ESSER) Federal Award Number and Year: 2023 Assistance Listing #: 84.425D and 84.425U Federal Agency: US Department of Education Pass-through Entity number 52160 Pass-through Agency: WV Department of Education The Monroe County Board of Education (the "Board") did not follow the federal requirements for equipment and real property management under the COVID-19 American Rescue Plan ESSER program. The Board maintained photographic evidence of the inventoried items but failed to maintain a detailed listing of the equipment and real property, as required by federal regulations. During the audit period, the Board was responsible for managing equipment and real property acquired under the COVID-19 American Rescue Plan ESSER program. However, the documentation reviewed during the audit revealed that the Board had not maintained a formal inventory listing. Instead, the Board relied on photographic records and a project manual to document the existence and condition of the equipment and real property, which is not sufficient to meet the federal requirements. In accordance with 2 CFR § 200.313(d), non-Federal entities must maintain accurate records for equipment acquired with federal funds, including a detailed listing that identifies each item, its location, its condition, and other pertinent details. This listing must be updated as needed and must be verified by a physical inventory at least once every two years. The noncompliance appears to have been by a lack of awareness or understanding of the specific federal requirements for maintaining a detailed inventory listing for equipment and real property. The Board relied on photographic records without recognizing the necessity of a formal, detailed listing as mandated by federal regulations. Failure to maintain a detailed inventory listing as required by federal regulations increases the risk of mismanagement or loss of equipment and real property and could impact the Board's ability to receive future federal funding. We recommend that the Board establish and maintain a detailed inventory listing for all equipment and real property acquired with federal funds. This listing should include all information required by federal regulations and should be verified through a physical inventory at least once every two years. Additionally, the Board should provide training to staff responsible for equipment and real property management to ensure compliance with federal requirements
FINDING 2024-001 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Numbers: 84.425D, 84.425U Federal Award Numbers and Years (or Other Identifying Numbers): S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Other Matters Condition and Context The School Corporation had not properly designed a system of internal controls in order to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management compliance requirement. A property record or capital asset listing is required to be maintained for all equipment purchased with the COVID-19 - Education Stabilization Fund grant award to ensure adequate safeguards are in place to prevent loss or damage of items. Equipment to be included in the listing is that which exceeds the School Corporation's capital asset threshold of $5,000. The School Corporation's capital asset listing did not include the following required information: The source of funding for the property (including the federal award identification number). The percentage of federal participation in the project costs for the federal award under which the property was acquired. In one instance, it did not include an identification number. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." INDIANA STATE BOARD OF ACCOUNTS 16 GREENSBURG COMMUNITY SCHOOLS SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) 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. . . ." Cause The School Corporation's management was not aware of all the items required to be included in the capital asset listing. Effect The failure to establish an effective system of internal controls placed the School Corporation in noncompliance with the grant agreement and the Equipment and Real Property Management compliance requirement. The School Corporation's capital asset listing did not include all information required for assets acquired with federal funds. Noncompliance with the grant agreement and the compliance requirement could result in the repayment of federal funds. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the School Corporation's management establish a proper system of internal controls that would ensure compliance with the Equipment and Real Property management records and update its capital asset listing to include all required information. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2024-001 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Numbers: 84.425D, 84.425U Federal Award Numbers and Years (or Other Identifying Numbers): S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Other Matters Condition and Context The School Corporation had not properly designed a system of internal controls in order to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management compliance requirement. A property record or capital asset listing is required to be maintained for all equipment purchased with the COVID-19 - Education Stabilization Fund grant award to ensure adequate safeguards are in place to prevent loss or damage of items. Equipment to be included in the listing is that which exceeds the School Corporation's capital asset threshold of $5,000. The School Corporation's capital asset listing did not include the following required information: The source of funding for the property (including the federal award identification number). The percentage of federal participation in the project costs for the federal award under which the property was acquired. In one instance, it did not include an identification number. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." INDIANA STATE BOARD OF ACCOUNTS 16 GREENSBURG COMMUNITY SCHOOLS SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) 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. . . ." Cause The School Corporation's management was not aware of all the items required to be included in the capital asset listing. Effect The failure to establish an effective system of internal controls placed the School Corporation in noncompliance with the grant agreement and the Equipment and Real Property Management compliance requirement. The School Corporation's capital asset listing did not include all information required for assets acquired with federal funds. Noncompliance with the grant agreement and the compliance requirement could result in the repayment of federal funds. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the School Corporation's management establish a proper system of internal controls that would ensure compliance with the Equipment and Real Property management records and update its capital asset listing to include all required information. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2024-001 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Numbers: 84.425D, 84.425U Federal Award Numbers and Years (or Other Identifying Numbers): S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Other Matters Condition and Context The School Corporation had not properly designed a system of internal controls in order to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management compliance requirement. A property record or capital asset listing is required to be maintained for all equipment purchased with the COVID-19 - Education Stabilization Fund grant award to ensure adequate safeguards are in place to prevent loss or damage of items. Equipment to be included in the listing is that which exceeds the School Corporation's capital asset threshold of $5,000. The School Corporation's capital asset listing did not include the following required information: The source of funding for the property (including the federal award identification number). The percentage of federal participation in the project costs for the federal award under which the property was acquired. In one instance, it did not include an identification number. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." INDIANA STATE BOARD OF ACCOUNTS 16 GREENSBURG COMMUNITY SCHOOLS SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) 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. . . ." Cause The School Corporation's management was not aware of all the items required to be included in the capital asset listing. Effect The failure to establish an effective system of internal controls placed the School Corporation in noncompliance with the grant agreement and the Equipment and Real Property Management compliance requirement. The School Corporation's capital asset listing did not include all information required for assets acquired with federal funds. Noncompliance with the grant agreement and the compliance requirement could result in the repayment of federal funds. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the School Corporation's management establish a proper system of internal controls that would ensure compliance with the Equipment and Real Property management records and update its capital asset listing to include all required information. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2024-001 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Numbers: 84.425D, 84.425U Federal Award Numbers and Years (or Other Identifying Numbers): S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Other Matters Condition and Context The School Corporation had not properly designed a system of internal controls in order to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management compliance requirement. A property record or capital asset listing is required to be maintained for all equipment purchased with the COVID-19 - Education Stabilization Fund grant award to ensure adequate safeguards are in place to prevent loss or damage of items. Equipment to be included in the listing is that which exceeds the School Corporation's capital asset threshold of $5,000. The School Corporation's capital asset listing did not include the following required information: The source of funding for the property (including the federal award identification number). The percentage of federal participation in the project costs for the federal award under which the property was acquired. In one instance, it did not include an identification number. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." INDIANA STATE BOARD OF ACCOUNTS 16 GREENSBURG COMMUNITY SCHOOLS SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) 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. . . ." Cause The School Corporation's management was not aware of all the items required to be included in the capital asset listing. Effect The failure to establish an effective system of internal controls placed the School Corporation in noncompliance with the grant agreement and the Equipment and Real Property Management compliance requirement. The School Corporation's capital asset listing did not include all information required for assets acquired with federal funds. Noncompliance with the grant agreement and the compliance requirement could result in the repayment of federal funds. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the School Corporation's management establish a proper system of internal controls that would ensure compliance with the Equipment and Real Property management records and update its capital asset listing to include all required information. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2024-001 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Numbers: 84.425D, 84.425U Federal Award Numbers and Years (or Other Identifying Numbers): S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Other Matters Condition and Context The School Corporation had not properly designed a system of internal controls in order to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management compliance requirement. A property record or capital asset listing is required to be maintained for all equipment purchased with the COVID-19 - Education Stabilization Fund grant award to ensure adequate safeguards are in place to prevent loss or damage of items. Equipment to be included in the listing is that which exceeds the School Corporation's capital asset threshold of $5,000. The School Corporation's capital asset listing did not include the following required information: The source of funding for the property (including the federal award identification number). The percentage of federal participation in the project costs for the federal award under which the property was acquired. In one instance, it did not include an identification number. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." INDIANA STATE BOARD OF ACCOUNTS 16 GREENSBURG COMMUNITY SCHOOLS SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) 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. . . ." Cause The School Corporation's management was not aware of all the items required to be included in the capital asset listing. Effect The failure to establish an effective system of internal controls placed the School Corporation in noncompliance with the grant agreement and the Equipment and Real Property Management compliance requirement. The School Corporation's capital asset listing did not include all information required for assets acquired with federal funds. Noncompliance with the grant agreement and the compliance requirement could result in the repayment of federal funds. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the School Corporation's management establish a proper system of internal controls that would ensure compliance with the Equipment and Real Property management records and update its capital asset listing to include all required information. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2024-001 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Numbers: 84.425D, 84.425U Federal Award Numbers and Years (or Other Identifying Numbers): S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Other Matters Condition and Context The School Corporation had not properly designed a system of internal controls in order to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management compliance requirement. A property record or capital asset listing is required to be maintained for all equipment purchased with the COVID-19 - Education Stabilization Fund grant award to ensure adequate safeguards are in place to prevent loss or damage of items. Equipment to be included in the listing is that which exceeds the School Corporation's capital asset threshold of $5,000. The School Corporation's capital asset listing did not include the following required information: The source of funding for the property (including the federal award identification number). The percentage of federal participation in the project costs for the federal award under which the property was acquired. In one instance, it did not include an identification number. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." INDIANA STATE BOARD OF ACCOUNTS 16 GREENSBURG COMMUNITY SCHOOLS SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) 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. . . ." Cause The School Corporation's management was not aware of all the items required to be included in the capital asset listing. Effect The failure to establish an effective system of internal controls placed the School Corporation in noncompliance with the grant agreement and the Equipment and Real Property Management compliance requirement. The School Corporation's capital asset listing did not include all information required for assets acquired with federal funds. Noncompliance with the grant agreement and the compliance requirement could result in the repayment of federal funds. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the School Corporation's management establish a proper system of internal controls that would ensure compliance with the Equipment and Real Property management records and update its capital asset listing to include all required information. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2024-002 Subject: Special Education Cluster (IDEA) - Equipment and Real Property Management Federal Agency: Department of Education Federal Programs: COVID-19 - Special Education Grants to States, COVID-19 - Special Education Preschool Grants Assistance Listings Numbers: 84.027X, 84.173X Federal Award Numbers and Years (or Other Identifying Numbers): 22611-144-ARP, 22619-144-ARP Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Other Matters Condition and Context 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 compliance requirements. A property record or capital asset listing is required to be maintained for all equipment purchased with the COVID-19 - Education Stabilization Fund grant award to ensure adequate safeguards are in place to prevent loss or damage of items. Equipment to be included in the listing is that which exceeds the School Corporation's capital asset threshold of $5,000. The School Corporation's capital asset listing did not include the following required information: The source of funding for the property (including the federal award identification number). The percentage of federal participation in the project costs for the federal award under which the property was acquired. The use and condition of the asset. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 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: INDIANA STATE BOARD OF ACCOUNTS 18 GREENSBURG COMMUNITY SCHOOLS SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) (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. . . ." Cause The School Corporation's management was not aware of all the items required to be included in the capital asset listing. Effect The failure to establish an effective system of internal controls placed the School Corporation in noncompliance with the grant agreement and the Equipment and Real Property Management compliance requirement. The School Corporation's capital asset listing did not include all information required for assets acquired with federal funds. Noncompliance with the grant agreement and the compliance requirement could result in the repayment of federal funds. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the School Corporation's management establish a proper system of internal controls that would ensure compliance with the equipment and real property management records and update its capital asset listing to include all required information. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2024-002 Subject: Special Education Cluster (IDEA) - Equipment and Real Property Management Federal Agency: Department of Education Federal Programs: COVID-19 - Special Education Grants to States, COVID-19 - Special Education Preschool Grants Assistance Listings Numbers: 84.027X, 84.173X Federal Award Numbers and Years (or Other Identifying Numbers): 22611-144-ARP, 22619-144-ARP Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Other Matters Condition and Context 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 compliance requirements. A property record or capital asset listing is required to be maintained for all equipment purchased with the COVID-19 - Education Stabilization Fund grant award to ensure adequate safeguards are in place to prevent loss or damage of items. Equipment to be included in the listing is that which exceeds the School Corporation's capital asset threshold of $5,000. The School Corporation's capital asset listing did not include the following required information: The source of funding for the property (including the federal award identification number). The percentage of federal participation in the project costs for the federal award under which the property was acquired. The use and condition of the asset. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 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: INDIANA STATE BOARD OF ACCOUNTS 18 GREENSBURG COMMUNITY SCHOOLS SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) (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. . . ." Cause The School Corporation's management was not aware of all the items required to be included in the capital asset listing. Effect The failure to establish an effective system of internal controls placed the School Corporation in noncompliance with the grant agreement and the Equipment and Real Property Management compliance requirement. The School Corporation's capital asset listing did not include all information required for assets acquired with federal funds. Noncompliance with the grant agreement and the compliance requirement could result in the repayment of federal funds. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the School Corporation's management establish a proper system of internal controls that would ensure compliance with the equipment and real property management records and update its capital asset listing to include all required information. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2024-005 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Number: 84.425 Federal Award Number and Year (or Other Identifying Number): S425D210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Modified Opinion Repeat Finding This is a repeat finding from the immediately prior audit report. The prior audit finding number was 2022-004. INDIANA STATE BOARD OF ACCOUNTS 21 SCOTT COUNTY SCHOOL DISTRICT 1 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Condition and Context A property record or capital asset listing would include the following for each asset: 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 (FAIN)), who holds title, the acquisition date, 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. The property record or capital asset listing should be maintained for assets purchased that exceed the School Corporation's capitalization threshold. The School Corporation maintained a detailed listing of capital assets; however, the asset records provided for audit did not include all assets purchased with the COVID-19 - Education Stabilization Fund award. The School Corporation paid for the HVAC systems totaling $234,000 with Education Stabilization Funds during the audit period. These assets were not added to a detailed listing of capital assets that would include a description of the property, a serial number or other identification number, the source of the funding for the property (including the federal award identification number (FAIN)), who holds title, the acquisition date, cost of property, the location, and the use and condition of the property. In addition, a physical inventory had not been taken in the past two years and assets were not properly safeguarded and maintained. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 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 the funding of 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 date 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. INDIANA STATE BOARD OF ACCOUNTS 22 SCOTT COUNTY SCHOOL DISTRICT 1 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) (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. . . ." Cause A proper system of internal controls was not designed by management of the School Corporation to ensure that a physical inventory of all capital assets was conducted at least every two years and reconciled back to the detailed listing. The lack of physical inventory resulted in some assets purchased with federal funds to be omitted from the detailed listing. Policies and procedures were not in place to make sure that the detailed capital assets listing included all required information. Effect Without the proper implementation of an effectively designed system of internal controls, the internal control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. As a result, the School Corporation had not properly included real property purchased with federal dollars on the asset listing and the asset listing did not include all the required information. In addition, a physical inventory was not conducted every two years so that the asset listing could be verified. Noncompliance with the grant agreement and the compliance requirement could result in the loss of federal funds to the School Corporation. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the School Corporation's management establish a proper system of internal controls, and develop procedures to ensure asset records include all the necessary information and that a physical inventory is conducted every two years as required. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2024-005 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Number: 84.425 Federal Award Number and Year (or Other Identifying Number): S425D210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Modified Opinion Repeat Finding This is a repeat finding from the immediately prior audit report. The prior audit finding number was 2022-004. INDIANA STATE BOARD OF ACCOUNTS 21 SCOTT COUNTY SCHOOL DISTRICT 1 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Condition and Context A property record or capital asset listing would include the following for each asset: 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 (FAIN)), who holds title, the acquisition date, 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. The property record or capital asset listing should be maintained for assets purchased that exceed the School Corporation's capitalization threshold. The School Corporation maintained a detailed listing of capital assets; however, the asset records provided for audit did not include all assets purchased with the COVID-19 - Education Stabilization Fund award. The School Corporation paid for the HVAC systems totaling $234,000 with Education Stabilization Funds during the audit period. These assets were not added to a detailed listing of capital assets that would include a description of the property, a serial number or other identification number, the source of the funding for the property (including the federal award identification number (FAIN)), who holds title, the acquisition date, cost of property, the location, and the use and condition of the property. In addition, a physical inventory had not been taken in the past two years and assets were not properly safeguarded and maintained. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 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 the funding of 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 date 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. INDIANA STATE BOARD OF ACCOUNTS 22 SCOTT COUNTY SCHOOL DISTRICT 1 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) (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. . . ." Cause A proper system of internal controls was not designed by management of the School Corporation to ensure that a physical inventory of all capital assets was conducted at least every two years and reconciled back to the detailed listing. The lack of physical inventory resulted in some assets purchased with federal funds to be omitted from the detailed listing. Policies and procedures were not in place to make sure that the detailed capital assets listing included all required information. Effect Without the proper implementation of an effectively designed system of internal controls, the internal control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. As a result, the School Corporation had not properly included real property purchased with federal dollars on the asset listing and the asset listing did not include all the required information. In addition, a physical inventory was not conducted every two years so that the asset listing could be verified. Noncompliance with the grant agreement and the compliance requirement could result in the loss of federal funds to the School Corporation. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the School Corporation's management establish a proper system of internal controls, and develop procedures to ensure asset records include all the necessary information and that a physical inventory is conducted every two years as required. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
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: 84.425U Federal Award Numbers: S425U210013 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) 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. . . ." 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. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: The School Corporation expended $732,738 on building renovations which was charged to the ESSER III (84.425U) grant award. 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. Identification as a repeat finding: No. Recommendation: We recommend the School Corporation update the capital asset listing at least annually to include all equipment and real property acquisitions and review for potential capital asset dispositions. Additionally, we recommend the School Corporation update the capital asset listing to include 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 and has prepared a corrective action plan.
Federal Award Findings and Questioned Costs Finding No. 2024-001 – Communication of Property Disposals Award Information Cluster: Research and Development Grantors: National Institutes of Health National Science Foundation Award Numbers: NIH 5R00CA158066-04, NIH 1R21-AI48561-01, NSF CHE-1362211 Award Years: 2013-2014, 2000-2001, 2014-2015 Assistance Listing Numbers: 93.396, 93.856, 47.049 Assistance Listing Titles: Cancer Biology Research, Microbiology and Infectious Diseases Research, Mathematical and Physical Sciences Criteria For equipment acquired under Federal awards, 2 CFR 200.313(d)(1) states that property records must be maintained by the recipient, including the location, use and condition of the property, and any disposition data including the date of disposal and sale price of the property. Recipients are additionally responsible for maintaining and updating property records when there is a change in the status of the property. Condition In performing a physical observation of 25 pieces of equipment purchased with federal R&D Cluster awards (with a net book value (NBV) totaling $1,954,317), we noted three items (with a NBV totaling $1,585) selected for physical observation were not able to be located for our testing, but were inventoried within the last two years as part of the University’s biennial count procedures during fiscal years 2023 and 2024. The three unobserved pieces of equipment were below the reportable disposition threshold under 2 CFR 200.313(e)(1), and the University therefore could retain, sell, or dispose of the equipment with no further responsibility to report to the Federal agency or pass-through entity. Cause University management believes these items were disposed of but not appropriately removed from the federal equipment listing. The University conducts research at multiple locations where equipment purchased with federal awards is utilized and maintained. Individual research locations and departments are to report changes in the status of property such that property records are maintained and updated timely. The decentralized nature of this process can result in delayed or missed reporting of asset disposals. Effect Inaccurate property records may prohibit the University from properly safeguarding and maintaining equipment, and may result in federal programs not receiving the appropriate entitled share of proceeds from the disposals of equipment purchased with federal awards. Questioned Costs None noted. Recommendation We recommend the University continue to train the individuals involved with handling assets purchased with federal awards on updating property records and reporting disposals timely to ensure they accurately reflect equipment information. Management’s Views and Corrective Action Plan Management concurs with the finding and has begun to address these concerns. Management’s views and corrective action plan are included at the end of this report after the summary schedule of prior year audit findings and status.
Federal Award Findings and Questioned Costs Finding No. 2024-001 – Communication of Property Disposals Award Information Cluster: Research and Development Grantors: National Institutes of Health National Science Foundation Award Numbers: NIH 5R00CA158066-04, NIH 1R21-AI48561-01, NSF CHE-1362211 Award Years: 2013-2014, 2000-2001, 2014-2015 Assistance Listing Numbers: 93.396, 93.856, 47.049 Assistance Listing Titles: Cancer Biology Research, Microbiology and Infectious Diseases Research, Mathematical and Physical Sciences Criteria For equipment acquired under Federal awards, 2 CFR 200.313(d)(1) states that property records must be maintained by the recipient, including the location, use and condition of the property, and any disposition data including the date of disposal and sale price of the property. Recipients are additionally responsible for maintaining and updating property records when there is a change in the status of the property. Condition In performing a physical observation of 25 pieces of equipment purchased with federal R&D Cluster awards (with a net book value (NBV) totaling $1,954,317), we noted three items (with a NBV totaling $1,585) selected for physical observation were not able to be located for our testing, but were inventoried within the last two years as part of the University’s biennial count procedures during fiscal years 2023 and 2024. The three unobserved pieces of equipment were below the reportable disposition threshold under 2 CFR 200.313(e)(1), and the University therefore could retain, sell, or dispose of the equipment with no further responsibility to report to the Federal agency or pass-through entity. Cause University management believes these items were disposed of but not appropriately removed from the federal equipment listing. The University conducts research at multiple locations where equipment purchased with federal awards is utilized and maintained. Individual research locations and departments are to report changes in the status of property such that property records are maintained and updated timely. The decentralized nature of this process can result in delayed or missed reporting of asset disposals. Effect Inaccurate property records may prohibit the University from properly safeguarding and maintaining equipment, and may result in federal programs not receiving the appropriate entitled share of proceeds from the disposals of equipment purchased with federal awards. Questioned Costs None noted. Recommendation We recommend the University continue to train the individuals involved with handling assets purchased with federal awards on updating property records and reporting disposals timely to ensure they accurately reflect equipment information. Management’s Views and Corrective Action Plan Management concurs with the finding and has begun to address these concerns. Management’s views and corrective action plan are included at the end of this report after the summary schedule of prior year audit findings and status.
Federal Award Findings and Questioned Costs Finding No. 2024-001 – Communication of Property Disposals Award Information Cluster: Research and Development Grantors: National Institutes of Health National Science Foundation Award Numbers: NIH 5R00CA158066-04, NIH 1R21-AI48561-01, NSF CHE-1362211 Award Years: 2013-2014, 2000-2001, 2014-2015 Assistance Listing Numbers: 93.396, 93.856, 47.049 Assistance Listing Titles: Cancer Biology Research, Microbiology and Infectious Diseases Research, Mathematical and Physical Sciences Criteria For equipment acquired under Federal awards, 2 CFR 200.313(d)(1) states that property records must be maintained by the recipient, including the location, use and condition of the property, and any disposition data including the date of disposal and sale price of the property. Recipients are additionally responsible for maintaining and updating property records when there is a change in the status of the property. Condition In performing a physical observation of 25 pieces of equipment purchased with federal R&D Cluster awards (with a net book value (NBV) totaling $1,954,317), we noted three items (with a NBV totaling $1,585) selected for physical observation were not able to be located for our testing, but were inventoried within the last two years as part of the University’s biennial count procedures during fiscal years 2023 and 2024. The three unobserved pieces of equipment were below the reportable disposition threshold under 2 CFR 200.313(e)(1), and the University therefore could retain, sell, or dispose of the equipment with no further responsibility to report to the Federal agency or pass-through entity. Cause University management believes these items were disposed of but not appropriately removed from the federal equipment listing. The University conducts research at multiple locations where equipment purchased with federal awards is utilized and maintained. Individual research locations and departments are to report changes in the status of property such that property records are maintained and updated timely. The decentralized nature of this process can result in delayed or missed reporting of asset disposals. Effect Inaccurate property records may prohibit the University from properly safeguarding and maintaining equipment, and may result in federal programs not receiving the appropriate entitled share of proceeds from the disposals of equipment purchased with federal awards. Questioned Costs None noted. Recommendation We recommend the University continue to train the individuals involved with handling assets purchased with federal awards on updating property records and reporting disposals timely to ensure they accurately reflect equipment information. Management’s Views and Corrective Action Plan Management concurs with the finding and has begun to address these concerns. Management’s views and corrective action plan are included at the end of this report after the summary schedule of prior year audit findings and status.
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. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of an internal control system to ensure assets purchased with federal funds are added to the capital asset listing could have allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds, specifically with capital assets purchased with those funds. Questioned Costs: There were no questioned costs identified. 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. Identification as a repeat finding: No. Recommendation: We recommend the School Corporation implement a control system to ensure that capital assets are added to the capital asset listing at the time they are placed in service. An inventory of capital assets should be taken at least once every two years and reviewed for potential capital asset dispositions. The capital asset listing should include all required information to track capital asset acquisitions, including the federal funding source if applicable. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
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: 84.425U Federal Award Numbers: S425U210013 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) 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. . . ." 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. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: For 2 of 3 sample items tested, we noted the School Corporation expended approximately $22,000 and $67,000 on a new sign and servers, respectively. These assets were charged to the ESSER III (84.425U) grant award. 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. Identification as a repeat finding: No. Recommendation: We recommend the School Corporation update the capital asset listing at least annually to include all equipment and real property acquisitions and review for potential capital asset dispositions. The capital asset listing should include all required information to track capital asset acquisitions purchased with federal funding. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
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: 84.425U Federal Award Numbers: S425U210013 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) 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. . . ." 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. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: We noted the School Corporation expended approximately $63,000 and $44,000 on pump and HVAC replacements, respectively. These assets were charged to the ESSER III (84.425U) grant award. 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. Identification as a repeat finding: No. Recommendation: We recommend the School Corporation update the capital asset listing at least annually to include all equipment and real property acquisitions and review for potential capital asset dispositions. The capital asset listing should include all required information to track capital asset acquisitions purchased with federal funding. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
FINDING 2024-007 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: 84.425U Federal Award Numbers: S425U210013 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) 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. . . ." 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. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: The School Corporation expended $341,336 on building renovations which was charged to the ESSER III (84.425U) grant award. 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. Identification as a repeat finding: No. Recommendation: We recommend the School Corporation update the capital asset listing at least annually to include all equipment and real property acquisitions and review for potential capital asset dispositions. The capital asset listing should include all required information to track capital asset acquisitions purchased with federal funding. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
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 Number: S425D210013, S425U210013 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) 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. . . ." 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. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: For 3 of 3 sample items tested, we noted the School Corporation expended $556,400 on roof renovations and $4,280,891 on HVAC upgrades which was charged to the ESSER II (84.425D) and ESSER III (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 federal funding for the property, outlined in the criteria above. Identification as a repeat finding: This is a repeat finding from the immediately prior audit. The finding number was 2022-001. Recommendation: We recommend the School Corporation update the capital asset listing at least annually to include all equipment and real property acquisitions and review for potential capital asset dispositions. The capital asset listing should include all required information to track capital asset acquisitions purchased with federal funding. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
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 Number: S425D210013, S425U210013 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) 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. . . ." 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. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: For 3 of 3 sample items tested, we noted the School Corporation expended $556,400 on roof renovations and $4,280,891 on HVAC upgrades which was charged to the ESSER II (84.425D) and ESSER III (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 federal funding for the property, outlined in the criteria above. Identification as a repeat finding: This is a repeat finding from the immediately prior audit. The finding number was 2022-001. Recommendation: We recommend the School Corporation update the capital asset listing at least annually to include all equipment and real property acquisitions and review for potential capital asset dispositions. The capital asset listing should include all required information to track capital asset acquisitions purchased with federal funding. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
FINDING 2024-005 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Number: 84.425U Federal Award Number and Year (or Other Identifying Numbers): S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Other Matters INDIANA STATE BOARD OF ACCOUNTS 23 SCHOOL CITY OF HOBART SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Repeat Finding This is a repeat finding from the immediately prior audit report. The prior audit finding number was 2022-003. Condition and Context The School Corporation had not properly designed a system of internal controls to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management compliance requirement. A property record or capital asset listing is required to be maintained for all equipment, property improvements, and property purchased with the Education Stabilization Fund (ESF) grant awards to ensure adequate safeguards are in place to prevent loss or damage of items. The School Corporation hired a consultant to compile and provide a fixed asset report that contained all inventory and assets purchased that exceeded the School Corporation's capitalization threshold. The consultant prepared the report; however, the School Corporation did not have any policies or procedures in place to review the asset listing to ensure the listing was complete. The School Corporation's capital asset listing did not include all the required asset information for assets purchased with federal awards. The following information for each asset was not included in the School Corporations capital asset listing: the source of funding for the property (including the federal award identification number (FAIN)), and percentage of federal participation in the project costs for the federal award under which the property was acquired. The School Corporation purchased five capital assets totaling $118,845.73 with ESSER III funds. Of the five assets purchased, four were not included on the asset listing. The one asset that was included in the asset listing did not list the source of the federal funding including the federal award number. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d) states in part: ". . . (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. INDIANA STATE BOARD OF ACCOUNTS 24 SCHOOL CITY OF HOBART SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) (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. . . ." 2 CFR 200.313(e) states in part: "When original or replacement equipment acquired under a Federal award is no longer needed for the original project or program or for other activities currently or previously supported by a Federal awarding agency, except as otherwise provided in Federal statutes, regulations, or Federal awarding agency disposition instructions, the non-Federal entity must request disposition instructions from the Federal awarding agency if required by the terms and conditions of the Federal award. . . ." Cause The School Corporation did not develop a system of internal controls to ensure that all items over the capital asset threshold were added to the listing, the capital asset listing included all required information, and that items purchased were properly maintained and safeguarded. Effect Noncompliance with the grant agreement and the compliance requirement could result in the repayment of federal funds. Questioned Costs There were no questioned costs identified. Recommendation We recommended that management of the School Corporation establish a proper system of internal controls and develop policies and procedures to ensure asset records include all the necessary information, new assets are properly added, disposals are properly documented, and any discrepancies are reconciled. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2024-005 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Number: 84.425U Federal Award Number and Year (or Other Identifying Numbers): S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Other Matters INDIANA STATE BOARD OF ACCOUNTS 23 SCHOOL CITY OF HOBART SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Repeat Finding This is a repeat finding from the immediately prior audit report. The prior audit finding number was 2022-003. Condition and Context The School Corporation had not properly designed a system of internal controls to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management compliance requirement. A property record or capital asset listing is required to be maintained for all equipment, property improvements, and property purchased with the Education Stabilization Fund (ESF) grant awards to ensure adequate safeguards are in place to prevent loss or damage of items. The School Corporation hired a consultant to compile and provide a fixed asset report that contained all inventory and assets purchased that exceeded the School Corporation's capitalization threshold. The consultant prepared the report; however, the School Corporation did not have any policies or procedures in place to review the asset listing to ensure the listing was complete. The School Corporation's capital asset listing did not include all the required asset information for assets purchased with federal awards. The following information for each asset was not included in the School Corporations capital asset listing: the source of funding for the property (including the federal award identification number (FAIN)), and percentage of federal participation in the project costs for the federal award under which the property was acquired. The School Corporation purchased five capital assets totaling $118,845.73 with ESSER III funds. Of the five assets purchased, four were not included on the asset listing. The one asset that was included in the asset listing did not list the source of the federal funding including the federal award number. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d) states in part: ". . . (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. INDIANA STATE BOARD OF ACCOUNTS 24 SCHOOL CITY OF HOBART SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) (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. . . ." 2 CFR 200.313(e) states in part: "When original or replacement equipment acquired under a Federal award is no longer needed for the original project or program or for other activities currently or previously supported by a Federal awarding agency, except as otherwise provided in Federal statutes, regulations, or Federal awarding agency disposition instructions, the non-Federal entity must request disposition instructions from the Federal awarding agency if required by the terms and conditions of the Federal award. . . ." Cause The School Corporation did not develop a system of internal controls to ensure that all items over the capital asset threshold were added to the listing, the capital asset listing included all required information, and that items purchased were properly maintained and safeguarded. Effect Noncompliance with the grant agreement and the compliance requirement could result in the repayment of federal funds. Questioned Costs There were no questioned costs identified. Recommendation We recommended that management of the School Corporation establish a proper system of internal controls and develop policies and procedures to ensure asset records include all the necessary information, new assets are properly added, disposals are properly documented, and any discrepancies are reconciled. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
Condition: The Organization has not properly maintained a capital asset listing and has not performed an inventory of capital assets within the last two years. Criteria: Per 2 CFR 200.313, 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, 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. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Effect – The Organization did not have a capital asset listing that properly identified and described assets purchased with federal grant funds. Any future disposition of assets may not be traced to the correct awarding agency. Cause – Management did not maintain a capital asset schedule and perform a physical inventory of assets at least once every two years. Repeat Finding: No. Recommendation: Management should maintain a capital asset schedule and perform a physical inventory of assets at least once every two years. Views of Responsible Official: Management of the Organization has performed a physical inventory of assets on March 12, 2025. Management will ensure that a physical inventory of assets is completed on a regular basis. Questioned Costs – None reported.
FINDING 2024-004 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 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) 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. . . ." 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. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: For four sample items tested, we noted the School Corporation expended approximately $86,300 on a 72-passenger bus, $670,600 on roof replacement, $19,000 on an intercom package for the high school, and $21,000 on admin building improvements, which were charged to the ESSER II (84.425D) and ESSER III (84.425U) grant awards. For three of the four sample items (all except the bus purchase), it was noted the capital asset acquisitions could not be traced to the capital asset listing for the School Corporation as of June 30, 2024. We noted the acquisitions were properly approved by IDOE in the grant application, management completed a physical inventory in the 2-year audit period, and the assets were properly maintained and safeguarded. Identification as a repeat finding: No. Recommendation: We recommend the School Corporation update the capital asset listing at least annually to include all equipment and real property acquisitions and review for potential capital asset dispositions. The capital asset listing should include all required information to track capital asset acquisitions purchased with federal funding. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
FINDING 2024-004 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 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) 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. . . ." 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. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: For four sample items tested, we noted the School Corporation expended approximately $86,300 on a 72-passenger bus, $670,600 on roof replacement, $19,000 on an intercom package for the high school, and $21,000 on admin building improvements, which were charged to the ESSER II (84.425D) and ESSER III (84.425U) grant awards. For three of the four sample items (all except the bus purchase), it was noted the capital asset acquisitions could not be traced to the capital asset listing for the School Corporation as of June 30, 2024. We noted the acquisitions were properly approved by IDOE in the grant application, management completed a physical inventory in the 2-year audit period, and the assets were properly maintained and safeguarded. Identification as a repeat finding: No. Recommendation: We recommend the School Corporation update the capital asset listing at least annually to include all equipment and real property acquisitions and review for potential capital asset dispositions. The capital asset listing should include all required information to track capital asset acquisitions purchased with federal funding. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
FINDING 2024-003 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: 84.425U Federal Award Numbers: S425U210013 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) 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. . . ." 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. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: For one item in a sample of two capital asset additions tested, we noted the School Corporation expended approximately $153,000 for a gym floor project which was charged to the ESSER III (84.425U) grant award. 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. Identification as a repeat finding: This is a repeat finding from the immediately prior audit report. The prior audit finding number was 2022-005. Recommendation: We recommend the School Corporation update the capital asset listing at least annually to include all equipment and real property acquisitions and review for potential capital asset dispositions. The capital asset listing should include all required information to track capital asset acquisitions purchased with federal funding. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
2024-008 Federal Agency: U.S. Department of Education Pass Thru Entity: Oklahoma State Department of Education Program: COVID-19 Education Stabilization Fund Assistance Listing: COVID-19- 84.425U Grant Period: Year ending June 30, 2024 Compliance Requirement: F. Equipment and Real Property Management Type of Finding: Non-Compliance & Material Weakness Condition: Property was not tracked and maintained as property in accordance as federal regulations. Criteria: 2 CFR 200.313(d)(1) requires property records must be maintained that include a description of the property, serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, the cost of the property, percentage of the federal project costs under which 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. Context: All equipment expenditures claimed were reviewed. There were leasehold improvement purchased that should have been captured in the federal inventory listing. Cause: District was unaware those equipment items would need to be on the District property records of federal programs. Effect: Potential noncompliance with Uniform Guidance. Repeat Finding from Prior Year: No Recommendation: We recommend that all property purchased with federal funds be properly tracked. We also recommend reconciliation procedures be implemented of property paid with federal funds and federal inventory listing. Views of Responsible Officials and Planned Corrective Action: District will review federal claims for equipment purchases items greater than $5,000 and life longer than a year and capture equipment items into the property records as they are received.
2024-008 Federal Agency: U.S. Department of Education Pass Thru Entity: Oklahoma State Department of Education Program: COVID-19 Education Stabilization Fund Assistance Listing: COVID-19- 84.425U Grant Period: Year ending June 30, 2024 Compliance Requirement: F. Equipment and Real Property Management Type of Finding: Non-Compliance & Material Weakness Condition: Property was not tracked and maintained as property in accordance as federal regulations. Criteria: 2 CFR 200.313(d)(1) requires property records must be maintained that include a description of the property, serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, the cost of the property, percentage of the federal project costs under which 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. Context: All equipment expenditures claimed were reviewed. There were leasehold improvement purchased that should have been captured in the federal inventory listing. Cause: District was unaware those equipment items would need to be on the District property records of federal programs. Effect: Potential noncompliance with Uniform Guidance. Repeat Finding from Prior Year: No Recommendation: We recommend that all property purchased with federal funds be properly tracked. We also recommend reconciliation procedures be implemented of property paid with federal funds and federal inventory listing. Views of Responsible Officials and Planned Corrective Action: District will review federal claims for equipment purchases items greater than $5,000 and life longer than a year and capture equipment items into the property records as they are received.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: 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. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: 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. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: 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. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: 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. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: 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. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: 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. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: 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. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: 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. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: 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. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: 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. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.