Federal Program Name and Year: COVID 19- Educational Stabilization Fund Project No.: 24-4998-E3 AL No.: 84.425U Passed Through: Illinois State Board of Education Federal Agency: United States Department of Education Criteria or specific requirement (including statutory, regulatory, or other citation): Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property (2 CFR section 200.313(d)(1)). Condition: The District did not maintain adequate property records to comply with 2 CFR section 200.313(d)(1). Questioned Costs: None Context: The District last updated its property records in 2021. Since 2021, the District has relied upon non-audit services from its accounting firm to assist with compiling capital asset values for external reporting. These non-audit services are not detailed enough to comply with Federal regulations because they are meant to satisfy Accounting Principles Generally Accepted in the United States of America. Effect: The District was out of compliance with Federal Equipment and Real Property Management regulations. Cause: The cause of the condition was a lack of a business office policy and procedure to ensure annual updating of property records, including the tagging and marking of items or Federal origin. Recommendation: It is recommended that the business office establish a policy and procedure to ensure annual updating of property records, including the tagging and marking of items of Federal origin. Management Response: See corrective action plan.
Statement of condition: Property records for equipment acquired under the Education Stabilization Fund program were not maintained. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) 200.313(d)(1) requires that property records be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. Per the School’s policies, property records should be maintained for all equipment and theft-sensitive assets. Cause of condition: Procedures are in place for property records to be maintained for all equipment acquired during the fiscal year. However, these procedures do not include maintaining all of the information required by 2 CFR 200.313(d)(1). Effect of condition: During testing, it was noted that property records including all required information were not maintained for capital assets acquired under the Education Stabilization Fund program. Context: Property including HVAC units and various other equipment and furniture and fixtures was acquired under the Education Stabilization Fund program. The audit testing found that for all property acquired during the fiscal year, records including a description of the property, the acquisition date, and the cost of the property are being maintained. However, the property records do not include various additional information as required by 2 CFR 200.313(d)(1). Recommendation: Procedures should be put in place to ensure that property records including all required information are maintained for all capital assets purchased by the School in accordance with 2 CFR 200.313(d)(1). Views of responsible officials and planned corrective actions: Management agrees with this finding and will put procedures in place to maintain adequate property records.
Statement of condition: A physical inventory of property was not performed within the last two years. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) 200.313(d)(2) requires that a physical inventory of property must be conducted, and the results must be reconciled with the property records at least once every two years. Cause of condition: A physical inventory of property was planned for the current fiscal year, however, due to employee turnover, this inventory was never performed. Effect of condition: The School was not in compliance with 2 CFR 200.313(d)(2) as a physical inventory of property had not been performed within the past two years. Context: Property including HVAC units and various other equipment and furniture and fixtures was acquired under the Education Stabilization Fund program. A physical inventory of this property has not been performed with the past two years as required by 2 CFR 200.313(d)(2). Recommendation: Procedures should be put in place to ensure that a physical inventory of property is being performed every two years in accordance with 2 CFR 200.313(d)(2). We also recommend that the Federal Program Director position is filled by an individual that has training and knowledge of the federal program they are administrating. Views of responsible officials and planned corrective actions: Management agrees with this finding and will put procedures in place to perform a physical inventory of property at least once very two years. See 2024-007 for management's detailed action plan surrounding the property findings.
Federal Agency: U.S. Department of Education Federal Program Name: Elementary and Secondary School Relief Fund Assistance Listing Number: 84.425U Federal Award Identification Number and Year: S425U210044 Federal Award Date 12/6/2021 and 3/13/2020 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Number(s): 2022-105726-DPI-ESSERFIII-165 Award Period: July 1, 2023 – June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Criteria or Specific Requirement: 2 CFR 200.313(d)(2) states "A physical inventory of the property must be conducted, and the results must be reconciled with the property records at least once every two years." 2 CFR 200.313(d)(1) states " Property records must include a description of the property, a serial number or another identification number, the source of funding for the property (including the FAIN), the title holder, the acquisition date, the cost of the property, the percentage of the Federal agency contribution towards the original purchase, the location, use and condition of the property, and any disposition data including the date of disposal and sale price of the property. The recipient and subrecipient are responsible for maintaining and updating property records when there is a change in the status of the property." Condition: District used ESSER funds in 2022-23 as one funding source for a van and a playground and building project. In 2023-24, the district purchased a second van with ESSER funds. The District has not completed a physical inventory of its capital assets as required by Uniform Guidance. The District did not include all of the required information in the property records maintained in its capital asset software. Questioned Costs: None. Context: While performing audit procedures, it was noted that the District did not have policies in place to ensure compliance with retaining information about capital asset purchases with federal funds for all assets in our sample. The District did not have adequate procedures in place to ensure that a physical inventory was conducted within the required timeframe. There was no review of the capital asset records by someone other than the person responsible for maintaining the list. Cause: The District has not historically used federal funds to purchase equipment and real property and was unaware of the requirements. Effect: Failure to conduct a physical inventory may result in inaccurate equipment records, which can lead to mismanagement of assets and potential loss or misuse of equipment. Equipment or real property purchased with federal funds may not have properly maintained property records and upon disposition of the asset the District may have failed to provide information and funds back to the federal government. Repeat Finding: No. Recommendation: We recommend that the District establish and implement procedures to ensure that a physical inventory of equipment is conducted at least once every two years. This should include assigning responsibility for the inventory process, setting a schedule for inventory counts, and ensuring that the results are reconciled with the equipment records. We also recommend the District review its capital asset tracking processes and implement internal controls to help ensure that all required documentation is entered into the capital asset software when federal funding is involved and there is adequate segregation of duties in regards to capital asset reporting. Views of Responsible Officials: There is no disagreement with the audit finding. The District will either do a self-inventory or hire a firm to do the inventory for us.
Federal Agency: U.S. Department of Education Federal Program Name: Elementary and Secondary School Relief Fund Assistance Listing Number: 84.425U Federal Award Identification Number and Year: S425U210044 Federal Award Date 12/6/2021 and 3/13/2020 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Number(s): 2022-105726-DPI-ESSERFIII-165 Award Period: July 1, 2023 – June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Criteria or Specific Requirement: 2 CFR 200.313(d)(2) states "A physical inventory of the property must be conducted, and the results must be reconciled with the property records at least once every two years." 2 CFR 200.313(d)(1) states " Property records must include a description of the property, a serial number or another identification number, the source of funding for the property (including the FAIN), the title holder, the acquisition date, the cost of the property, the percentage of the Federal agency contribution towards the original purchase, the location, use and condition of the property, and any disposition data including the date of disposal and sale price of the property. The recipient and subrecipient are responsible for maintaining and updating property records when there is a change in the status of the property." Condition: District used ESSER funds in 2022-23 as one funding source for a van and a playground and building project. In 2023-24, the district purchased a second van with ESSER funds. The District has not completed a physical inventory of its capital assets as required by Uniform Guidance. The District did not include all of the required information in the property records maintained in its capital asset software. Questioned Costs: None. Context: While performing audit procedures, it was noted that the District did not have policies in place to ensure compliance with retaining information about capital asset purchases with federal funds for all assets in our sample. The District did not have adequate procedures in place to ensure that a physical inventory was conducted within the required timeframe. There was no review of the capital asset records by someone other than the person responsible for maintaining the list. Cause: The District has not historically used federal funds to purchase equipment and real property and was unaware of the requirements. Effect: Failure to conduct a physical inventory may result in inaccurate equipment records, which can lead to mismanagement of assets and potential loss or misuse of equipment. Equipment or real property purchased with federal funds may not have properly maintained property records and upon disposition of the asset the District may have failed to provide information and funds back to the federal government. Repeat Finding: No. Recommendation: We recommend that the District establish and implement procedures to ensure that a physical inventory of equipment is conducted at least once every two years. This should include assigning responsibility for the inventory process, setting a schedule for inventory counts, and ensuring that the results are reconciled with the equipment records. We also recommend the District review its capital asset tracking processes and implement internal controls to help ensure that all required documentation is entered into the capital asset software when federal funding is involved and there is adequate segregation of duties in regards to capital asset reporting. Views of Responsible Officials: There is no disagreement with the audit finding. The District will either do a self-inventory or hire a firm to do the inventory for us.
2024-007 Material Weakness and Noncompliance, Equipment and Real Property Management U.S. Department of Education Passed through the State of Connecticut Department of Education Education Stabilization Fund Assistance Listing Number: 84.425D Program Name: COVID-19 Elementary and Secondary School Relief Fund (ESSER) Assistance Listing Number: 84.425U Program Name: COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief Fund (ARP ESSER) Criteria: Non-federal entities other than states must follow 2 CFR sections 200.313 (c) through (e) which require that property records must be maintained that include a description of the property, a serial number or other identification number; the source of funding for the property (including the federal award identification number), who holds the 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 sales price of the property (2 CFR section 200.313(d)(1)) and a physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)). Condition: The Town could not provide property records including all required information as indicated in 2 CFR section 200.313(d)(1). The Town did not perform a physical inventory of the property. Cause: The Town does not have processes and procedures in place related to equipment management, tracking and required physical inventories. Effect: The Town is not in compliance with federal grant requirements over the tracking and physical inventory of equipment. Improper equipment procedures could result in actions taken by oversight agencies which could impact future funding. Questioned costs: None. Context: See condition above. Identification as a repeat finding if applicable: N/A Recommendation: We recommend the Town develop processes and procedures to tag and track equipment purchased with federal funding, and maintain support that physical inventory inventories were performed as required. View of responsible officials: We agree with the finding. See corrective action plan.
2024-007 Material Weakness and Noncompliance, Equipment and Real Property Management U.S. Department of Education Passed through the State of Connecticut Department of Education Education Stabilization Fund Assistance Listing Number: 84.425D Program Name: COVID-19 Elementary and Secondary School Relief Fund (ESSER) Assistance Listing Number: 84.425U Program Name: COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief Fund (ARP ESSER) Criteria: Non-federal entities other than states must follow 2 CFR sections 200.313 (c) through (e) which require that property records must be maintained that include a description of the property, a serial number or other identification number; the source of funding for the property (including the federal award identification number), who holds the 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 sales price of the property (2 CFR section 200.313(d)(1)) and a physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)). Condition: The Town could not provide property records including all required information as indicated in 2 CFR section 200.313(d)(1). The Town did not perform a physical inventory of the property. Cause: The Town does not have processes and procedures in place related to equipment management, tracking and required physical inventories. Effect: The Town is not in compliance with federal grant requirements over the tracking and physical inventory of equipment. Improper equipment procedures could result in actions taken by oversight agencies which could impact future funding. Questioned costs: None. Context: See condition above. Identification as a repeat finding if applicable: N/A Recommendation: We recommend the Town develop processes and procedures to tag and track equipment purchased with federal funding, and maintain support that physical inventory inventories were performed as required. View of responsible officials: We agree with the finding. See corrective action plan.
Finding No. 2024-044 Federal Awarding Agency: USDOI Impact: Material Weakness AL Number and Title: 15.605, 15.611 FWC Federal Award Number: Multiple Applicable Compliance Requirement: Equipment and Real Property Management Condition: Auditors could not obtain sufficient and appropriate evidence to verify compliance with FWC’s equipment and real property management requirements. Context: DFG is responsible for ensuring equipment, real property, and capital improvements, acquired with FWC funds, are used for an authorized purpose, sufficiently tracked, and appropriately disposed of in accordance with federal regulations. In FY 24, DFG staff did not maintain sufficient evidence to demonstrate compliance with equipment and real property management requirements. DFG equipment and real property records did not reliably catalog the universe of equipment, real property, and capital improvements funded with FWC grant monies. Equipment records were incomplete and not trackable by funding source in the accounting system. As a result, the audit was unable to determine the extent of equipment purchased with FWC funds. Real property records had not been reconciled since 2019 and could not be matched with DFG site visit logs. The audit could not identify the FWC assets to be monitored and the extent of site visits conducted during the audit period, and whether the site visits included monitoring for authorized uses. Cause: DFG management attributed the deficiencies to a lack of department-wide procedures, staff turnover, and insufficient training. Criteria: Title 2 CFR 200.303 requires the State to establish and maintain effective internal controls over the federal award that provides reasonable assurance that the State is managing the federal awards in compliance with federal statutes, regulations, and terms and conditions of the federal award. Title 2 CFR 200.311 and Title 50 CFR 80.134 requires the State to use real property for the purpose authorized in the grant for as long as it is needed for that purpose. When real property is no longer needed for the originally authorized purpose, property must be disposed of in accordance with federal requirements. Title 2 CFR 200.313 requires the State to use, manage and dispose of equipment acquired under a federal award in accordance with State laws and procedures. Such equipment must be used for the project or program for which it was acquired and for as long as needed. The State agency must maintain equipment property records, perform physical inventory of equipment, develop a control system, and perform regular maintenance of equipment. Title 50 CFR 80.133 requires the State to maintain acquired or completed capital improvements under FWC grants to ensure that each capital improvement continues to serve its authorized purpose during its useful life. Effect: The lack of department-wide procedures increases the risk that FWC funded assets are not used for authorized purposes and properly disposed of when no longer needed. Inadequate equipment tracking increases the risk of loss or theft. Further, noncompliance with federal regulations may result in the federal awarding agency imposing additional conditions or taking corrective action, including additional reporting requirements or withholding/terminating funding. Questioned Costs: Indeterminate Recommendation: DFG’s commissioner should ensure procedures are developed and training is implemented so that FWC funded equipment, real property and capital improvements are managed in compliance with federal requirements. Views of Responsible Officials: Management agrees with this finding.
Finding No. 2024-044 Federal Awarding Agency: USDOI Impact: Material Weakness AL Number and Title: 15.605, 15.611 FWC Federal Award Number: Multiple Applicable Compliance Requirement: Equipment and Real Property Management Condition: Auditors could not obtain sufficient and appropriate evidence to verify compliance with FWC’s equipment and real property management requirements. Context: DFG is responsible for ensuring equipment, real property, and capital improvements, acquired with FWC funds, are used for an authorized purpose, sufficiently tracked, and appropriately disposed of in accordance with federal regulations. In FY 24, DFG staff did not maintain sufficient evidence to demonstrate compliance with equipment and real property management requirements. DFG equipment and real property records did not reliably catalog the universe of equipment, real property, and capital improvements funded with FWC grant monies. Equipment records were incomplete and not trackable by funding source in the accounting system. As a result, the audit was unable to determine the extent of equipment purchased with FWC funds. Real property records had not been reconciled since 2019 and could not be matched with DFG site visit logs. The audit could not identify the FWC assets to be monitored and the extent of site visits conducted during the audit period, and whether the site visits included monitoring for authorized uses. Cause: DFG management attributed the deficiencies to a lack of department-wide procedures, staff turnover, and insufficient training. Criteria: Title 2 CFR 200.303 requires the State to establish and maintain effective internal controls over the federal award that provides reasonable assurance that the State is managing the federal awards in compliance with federal statutes, regulations, and terms and conditions of the federal award. Title 2 CFR 200.311 and Title 50 CFR 80.134 requires the State to use real property for the purpose authorized in the grant for as long as it is needed for that purpose. When real property is no longer needed for the originally authorized purpose, property must be disposed of in accordance with federal requirements. Title 2 CFR 200.313 requires the State to use, manage and dispose of equipment acquired under a federal award in accordance with State laws and procedures. Such equipment must be used for the project or program for which it was acquired and for as long as needed. The State agency must maintain equipment property records, perform physical inventory of equipment, develop a control system, and perform regular maintenance of equipment. Title 50 CFR 80.133 requires the State to maintain acquired or completed capital improvements under FWC grants to ensure that each capital improvement continues to serve its authorized purpose during its useful life. Effect: The lack of department-wide procedures increases the risk that FWC funded assets are not used for authorized purposes and properly disposed of when no longer needed. Inadequate equipment tracking increases the risk of loss or theft. Further, noncompliance with federal regulations may result in the federal awarding agency imposing additional conditions or taking corrective action, including additional reporting requirements or withholding/terminating funding. Questioned Costs: Indeterminate Recommendation: DFG’s commissioner should ensure procedures are developed and training is implemented so that FWC funded equipment, real property and capital improvements are managed in compliance with federal requirements. Views of Responsible Officials: Management agrees with this finding.
Finding No. 2024-082 Federal Awarding Agency: U.S. Department of Health and Human Services (USDHHS) Impact: Significant Deficiency, Noncompliance AL Number and Title: 93.859 RDC Federal Award Number: 5P20GM103395-23 Applicable Compliance Requirement: Equipment and Real Property Management Condition: One of the 40 sampled equipment had a lapse of greater than two years between physical inventories. Context: During the testing of equipment for real property management, one item of equipment was found to have an interval between physical inventories that was greater than two years. Inventory for this equipment was taken May 7, 2021, then again June 4, 2024. Cause: University of Alaska Anchorage (UAA) had a loss of information regarding compliance requirements through employee turnover at the responsible department level. Criteria: Per 2 CFR 200.313(d)(2), a physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Per Uniform Guidance 2 CFR 200.303, nonfederal entities receiving federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Effect: The equipment was not inventoried within the two-year timeframe. Questioned Costs: None Recommendation: UAA management should ensure proper policies and procedures are in place to monitor capital asset inventory observations. Views of Responsible Officials: Management agrees with this finding.
2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education Workforce for 2 C.F.R. §200.313(d)(1), which requires that property records must include a description of the property, a serial number or another identification number, the source of funding for the property (including the FAIN), the title holder, the acquisition date, the cost of the property, the percentage of the Federal agency contribution towards the original purchase, the location, use and condition of the property, and any disposition data including the date of disposal and sale price of the property. 2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education Workforce for 2 C.F.R. §200.313(d)(2), which states, a physical inventory of the property must be conducted, and the results must be reconciled with the property records at least once every two years. Due to a failure of internal controls and lack of review of District policy, the District did not maintain property records for assets acquired under the Education Stabilization Fund – Elementary and Secondary Education that identify all of the property record elements noted per 2 C.F.R. § 200.313(d)(1). Additionally, there was no indication that a physical inventory of the property acquired under the Education Stabilization Fund – Elementary and Secondary Education had been performed within the preceding two years. Failure to maintain property records and perform physical inspections over equipment and real property acquired with federal funds may result in asset misappropriation and a loss of future federal funding. To ensure proper oversight and accountability for equipment and real property, the District should review its policy and verify that property records are maintained in accordance with 2 C.F.R. §200.313(d). Additionally, physical inventories shoul e reconciled with the property records at least once every two years.
2024-002 (2023-001) – Equipment and Real Property Management – Material Weakness in Internal Controls over Compliance (Repeat Finding) Federal Program Information: Funding Agency: U. S. Department of Health and Human Services Title: Head Start CFDA Number: 93.600 Federal Award Identification number: 06CH012005 Pass Through Entity: N/A Award Year: 2024 & 2023 Condition: The Organization did not conduct a physical inventory in current year or prior year and, in additional, requested reimbursement from the Department of Health and Human services for repair costs for which insurance proceeds were received. Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non-federal entities must 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). Per 2 CFR 200.313(d)(2), a physical inventory of program property must be taken and the results reconciled with the property records at least once every 2 years. 2 CFR 200.406 requires that any recoveries on losses, such as insurance proceeds, be credited to the Federal award as a cost reduction or a cash refund. Questioned costs: $16,033 Effect: The Organization could dispose of, lose, or encumber federally funded equipment without following Federal guidelines. Cause: The Organization does not have policies and procedures to ensure that a physical inventory of equipment is performed at a minimum frequency of every two years. Additionally, the Entity filed a claim for damages to asset(s) purchased with Federal funds and did not offset the insurance proceeds against the repair costs charged to the Federal program, resulting in reimbursement of unallowable costs.
2024-002 (2023-001) – Equipment and Real Property Management – Material Weakness in Internal Controls over Compliance (Repeat Finding) Federal Program Information: Funding Agency: U. S. Department of Health and Human Services Title: Head Start CFDA Number: 93.600 Federal Award Identification number: 06CH012005 Pass Through Entity: N/A Award Year: 2024 & 2023 Condition: The Organization did not conduct a physical inventory in current year or prior year and, in additional, requested reimbursement from the Department of Health and Human services for repair costs for which insurance proceeds were received. Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non-federal entities must 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). Per 2 CFR 200.313(d)(2), a physical inventory of program property must be taken and the results reconciled with the property records at least once every 2 years. 2 CFR 200.406 requires that any recoveries on losses, such as insurance proceeds, be credited to the Federal award as a cost reduction or a cash refund. Questioned costs: $16,033 Effect: The Organization could dispose of, lose, or encumber federally funded equipment without following Federal guidelines. Cause: The Organization does not have policies and procedures to ensure that a physical inventory of equipment is performed at a minimum frequency of every two years. Additionally, the Entity filed a claim for damages to asset(s) purchased with Federal funds and did not offset the insurance proceeds against the repair costs charged to the Federal program, resulting in reimbursement of unallowable costs.
Finding Number: 2024-002 Assistance Listing Number and Title: AL # 84.425 Education Stabilization Fund Federal Award Identification Number / Year: 2024 Federal Agency: US Department of Education Compliance Requirement: Equipment and Real Property Management Pass-Through Entity: Ohio Department of Education and Workforce Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 CFR § 3474.1 gives regulatory effect to the Department of Education for 2 CFR § 200.313(d)(1) which provides that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal award identification number), who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. The School District purchased HVAC equipment in the amount of $1,032,599 using COVID 19: Elementary and Secondary School Emergency Relief Funds in FY 22; however, they failed to add these assets to their capital asset listing due to a failure in adequately designed controls and still have not updated this in the capital asset records as of June 30, 2024. The also have not performed an inventory count in the past 2 years. The failure to properly record assets can lead to difficulties maintaining accountability for the related assets. The Treasurer and Superintendent should monitor transactions and ensure that all capital additions are properly documented in the capital asset records.
Finding Number: 2024-002 Assistance Listing Number and Title: AL # 84.425 Education Stabilization Fund Federal Award Identification Number / Year: 2024 Federal Agency: US Department of Education Compliance Requirement: Equipment and Real Property Management Pass-Through Entity: Ohio Department of Education and Workforce Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 CFR § 3474.1 gives regulatory effect to the Department of Education for 2 CFR § 200.313(d)(1) which provides that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal award identification number), who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. The School District purchased HVAC equipment in the amount of $1,032,599 using COVID 19: Elementary and Secondary School Emergency Relief Funds in FY 22; however, they failed to add these assets to their capital asset listing due to a failure in adequately designed controls and still have not updated this in the capital asset records as of June 30, 2024. The also have not performed an inventory count in the past 2 years. The failure to properly record assets can lead to difficulties maintaining accountability for the related assets. The Treasurer and Superintendent should monitor transactions and ensure that all capital additions are properly documented in the capital asset records.
Finding Number: 2024-002 Assistance Listing Number and Title: AL # 84.425 Education Stabilization Fund Federal Award Identification Number / Year: 2024 Federal Agency: US Department of Education Compliance Requirement: Equipment and Real Property Management Pass-Through Entity: Ohio Department of Education and Workforce Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 CFR § 3474.1 gives regulatory effect to the Department of Education for 2 CFR § 200.313(d)(1) which provides that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal award identification number), who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. The School District purchased HVAC equipment in the amount of $1,032,599 using COVID 19: Elementary and Secondary School Emergency Relief Funds in FY 22; however, they failed to add these assets to their capital asset listing due to a failure in adequately designed controls and still have not updated this in the capital asset records as of June 30, 2024. The also have not performed an inventory count in the past 2 years. The failure to properly record assets can lead to difficulties maintaining accountability for the related assets. The Treasurer and Superintendent should monitor transactions and ensure that all capital additions are properly documented in the capital asset records.
Finding Number: 2024-002 Assistance Listing Number and Title: AL # 84.425 Education Stabilization Fund Federal Award Identification Number / Year: 2024 Federal Agency: US Department of Education Compliance Requirement: Equipment and Real Property Management Pass-Through Entity: Ohio Department of Education and Workforce Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 CFR § 3474.1 gives regulatory effect to the Department of Education for 2 CFR § 200.313(d)(1) which provides that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal award identification number), who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. The School District purchased HVAC equipment in the amount of $1,032,599 using COVID 19: Elementary and Secondary School Emergency Relief Funds in FY 22; however, they failed to add these assets to their capital asset listing due to a failure in adequately designed controls and still have not updated this in the capital asset records as of June 30, 2024. The also have not performed an inventory count in the past 2 years. The failure to properly record assets can lead to difficulties maintaining accountability for the related assets. The Treasurer and Superintendent should monitor transactions and ensure that all capital additions are properly documented in the capital asset records.
Finding Number: 2024-002 Assistance Listing Number and Title: AL # 84.425 Education Stabilization Fund Federal Award Identification Number / Year: 2024 Federal Agency: US Department of Education Compliance Requirement: Equipment and Real Property Management Pass-Through Entity: Ohio Department of Education and Workforce Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 CFR § 3474.1 gives regulatory effect to the Department of Education for 2 CFR § 200.313(d)(1) which provides that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal award identification number), who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. The School District purchased HVAC equipment in the amount of $1,032,599 using COVID 19: Elementary and Secondary School Emergency Relief Funds in FY 22; however, they failed to add these assets to their capital asset listing due to a failure in adequately designed controls and still have not updated this in the capital asset records as of June 30, 2024. The also have not performed an inventory count in the past 2 years. The failure to properly record assets can lead to difficulties maintaining accountability for the related assets. The Treasurer and Superintendent should monitor transactions and ensure that all capital additions are properly documented in the capital asset records.
Finding Number: 2024-002 Assistance Listing Number and Title: AL # 84.425 Education Stabilization Fund Federal Award Identification Number / Year: 2024 Federal Agency: US Department of Education Compliance Requirement: Equipment and Real Property Management Pass-Through Entity: Ohio Department of Education and Workforce Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 CFR § 3474.1 gives regulatory effect to the Department of Education for 2 CFR § 200.313(d)(1) which provides that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal award identification number), who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. The School District purchased HVAC equipment in the amount of $1,032,599 using COVID 19: Elementary and Secondary School Emergency Relief Funds in FY 22; however, they failed to add these assets to their capital asset listing due to a failure in adequately designed controls and still have not updated this in the capital asset records as of June 30, 2024. The also have not performed an inventory count in the past 2 years. The failure to properly record assets can lead to difficulties maintaining accountability for the related assets. The Treasurer and Superintendent should monitor transactions and ensure that all capital additions are properly documented in the capital asset records.
2 CFR § 3474.1 gives regulatory effect to the Department of Education for 2 CFR § 200.313(d)(1) which provides that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal award identification number), who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. Additionally, 2 CFR § 200.313(d)(2) states that a physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Due to inadequate controls, the District failed to appropriately track a bus purchased in part with Special Education Cluster grants monies in September 2019. The bus is included on the District's capital asset listing; however, it is listed as being purchased from a fund other than the Special Education Cluster grant funds. Additionally, the District did not maintain support for the cost allocation information as required by the Ohio Department of Education and Workforce (DEW). Therefore, the District does not have support for the proportionate share of the cost covered by the grant as required upon disposition of the bus. The District also did not maintain documentation of the required physical inventory. The failure to properly record assets can lead to difficulties maintaining accountability for the related assets. The District should implement controls to ensure compliance with all DEW and Uniform Guidance requirements when purchasing equipment with Federal award funds.
2024-004 — Equipment and Real Property Management – Significant Deficiency in Internal Control Over Compliance and Noncompliance Federal program information: Funding agencies: U.S. Department of Education Titles: Higher Education Institutional Aid ALN Number: 84.031 Award years: Various Criteria: 2 CFR 200.313(c) through (e), requires that equipment be used in federal programs for which it was acquired for, when appropriate, other federal programs. Equipment records shall be maintained including required elements, a physical inventory of equipment be taken at least once every 2 years and reconciled to the equipment records, an appropriate control system shall be used to safeguard equipment, and equipment shall be adequately maintained. Condition: The College has not completed a physical inventory within the previous two fiscal years as required. In addition, the records were not detailed enough that program management is able to adequately and efficiently identify and locate any and all items. Questioned Costs: None Cause: The College is not enforcing their procedures to verify that the capital assets inventory has been taken annually and reconciled to the general ledger. Effect: Without a physical inventory, there is an increase in the probability that the capital asset listing will be incorrect, or assets listed may not exist. Auditor’s Recommendations: Enforce internal control procedures and complete an inventory of the school’s capital assets annually. Management’s Response: The College will take an inventory of its capital assets as required by policies.
2024-004 — Equipment and Real Property Management – Significant Deficiency in Internal Control Over Compliance and Noncompliance Federal program information: Funding agencies: U.S. Department of Education Titles: Higher Education Institutional Aid ALN Number: 84.031 Award years: Various Criteria: 2 CFR 200.313(c) through (e), requires that equipment be used in federal programs for which it was acquired for, when appropriate, other federal programs. Equipment records shall be maintained including required elements, a physical inventory of equipment be taken at least once every 2 years and reconciled to the equipment records, an appropriate control system shall be used to safeguard equipment, and equipment shall be adequately maintained. Condition: The College has not completed a physical inventory within the previous two fiscal years as required. In addition, the records were not detailed enough that program management is able to adequately and efficiently identify and locate any and all items. Questioned Costs: None Cause: The College is not enforcing their procedures to verify that the capital assets inventory has been taken annually and reconciled to the general ledger. Effect: Without a physical inventory, there is an increase in the probability that the capital asset listing will be incorrect, or assets listed may not exist. Auditor’s Recommendations: Enforce internal control procedures and complete an inventory of the school’s capital assets annually. Management’s Response: The College will take an inventory of its capital assets as required by policies.
Significant Deficiency 2024-002 Equipment and Real Property Management Information on Federal Program: U.S. Department of Education, Education Stabilization Funds (Federal Assistance Listing numbers 84.425D, 84.425U), Passed through the New York State Education Department. Criteria: 2 CFR Section 200.313(d) requires property records to be maintained including 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, cost of the property, percentage of federal participation in project costs, the location, use and condition of the property, and any ultimate disposition data. Additionally, it requires a physical inventory of the property be taken and results reconciled with the property records at least every two years. Statement of Condition: Record of equipment purchased under the federal program was not maintained in accordance with 2 CFR Section 200.313(d). Statement of Cause: The District did not review compliance requirements related to records maintenance outlined in 2 CFR Section 200.313(d). Statement of Cause: The District did not review compliance requirements related to records maintenance outlined in 2 CFR Section 200.313(d). Perspective Information: As part of the requirements under the Uniform Guidance we inquired of and attempted to review records maintained over property and equipment purchased with federal dollars under the major program. While purchases are tracked there is no identification of which purchases were made with federal dollars and under which federal program. Statement of Effect: The District is not in compliance with 2 CFR Section 200.313(d) and could fail to follow related disposition requirements. Questioned Cost: None. Repeat Finding: No Recommendation: We recommend the District review the above referenced requirements and implement procedures to ensure the District complies with relevant compliance requirements. Views of the Responsible Officials and Planned Corrective Actions: The Business Manager will review these requirements with the Account Clerk responsible for tracking fixed assets to ensure that purchases made with federal dollars are recorded in the database with all the necessary information to meet the compliance requirements. In addition, we will establish a process to perform a physical inventory as required every two years.
Significant Deficiency 2024-002 Equipment and Real Property Management Information on Federal Program: U.S. Department of Education, Education Stabilization Funds (Federal Assistance Listing numbers 84.425D, 84.425U), Passed through the New York State Education Department. Criteria: 2 CFR Section 200.313(d) requires property records to be maintained including 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, cost of the property, percentage of federal participation in project costs, the location, use and condition of the property, and any ultimate disposition data. Additionally, it requires a physical inventory of the property be taken and results reconciled with the property records at least every two years. Statement of Condition: Record of equipment purchased under the federal program was not maintained in accordance with 2 CFR Section 200.313(d). Statement of Cause: The District did not review compliance requirements related to records maintenance outlined in 2 CFR Section 200.313(d). Statement of Cause: The District did not review compliance requirements related to records maintenance outlined in 2 CFR Section 200.313(d). Perspective Information: As part of the requirements under the Uniform Guidance we inquired of and attempted to review records maintained over property and equipment purchased with federal dollars under the major program. While purchases are tracked there is no identification of which purchases were made with federal dollars and under which federal program. Statement of Effect: The District is not in compliance with 2 CFR Section 200.313(d) and could fail to follow related disposition requirements. Questioned Cost: None. Repeat Finding: No Recommendation: We recommend the District review the above referenced requirements and implement procedures to ensure the District complies with relevant compliance requirements. Views of the Responsible Officials and Planned Corrective Actions: The Business Manager will review these requirements with the Account Clerk responsible for tracking fixed assets to ensure that purchases made with federal dollars are recorded in the database with all the necessary information to meet the compliance requirements. In addition, we will establish a process to perform a physical inventory as required every two years.
Significant Deficiency 2024-002 Equipment and Real Property Management Information on Federal Program: U.S. Department of Education, Education Stabilization Funds (Federal Assistance Listing numbers 84.425D, 84.425U), Passed through the New York State Education Department. Criteria: 2 CFR Section 200.313(d) requires property records to be maintained including 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, cost of the property, percentage of federal participation in project costs, the location, use and condition of the property, and any ultimate disposition data. Additionally, it requires a physical inventory of the property be taken and results reconciled with the property records at least every two years. Statement of Condition: Record of equipment purchased under the federal program was not maintained in accordance with 2 CFR Section 200.313(d). Statement of Cause: The District did not review compliance requirements related to records maintenance outlined in 2 CFR Section 200.313(d). Statement of Cause: The District did not review compliance requirements related to records maintenance outlined in 2 CFR Section 200.313(d). Perspective Information: As part of the requirements under the Uniform Guidance we inquired of and attempted to review records maintained over property and equipment purchased with federal dollars under the major program. While purchases are tracked there is no identification of which purchases were made with federal dollars and under which federal program. Statement of Effect: The District is not in compliance with 2 CFR Section 200.313(d) and could fail to follow related disposition requirements. Questioned Cost: None. Repeat Finding: No Recommendation: We recommend the District review the above referenced requirements and implement procedures to ensure the District complies with relevant compliance requirements. Views of the Responsible Officials and Planned Corrective Actions: The Business Manager will review these requirements with the Account Clerk responsible for tracking fixed assets to ensure that purchases made with federal dollars are recorded in the database with all the necessary information to meet the compliance requirements. In addition, we will establish a process to perform a physical inventory as required every two years.
Significant Deficiency 2024-002 Equipment and Real Property Management Information on Federal Program: U.S. Department of Education, Education Stabilization Funds (Federal Assistance Listing numbers 84.425D, 84.425U), Passed through the New York State Education Department. Criteria: 2 CFR Section 200.313(d) requires property records to be maintained including 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, cost of the property, percentage of federal participation in project costs, the location, use and condition of the property, and any ultimate disposition data. Additionally, it requires a physical inventory of the property be taken and results reconciled with the property records at least every two years. Statement of Condition: Record of equipment purchased under the federal program was not maintained in accordance with 2 CFR Section 200.313(d). Statement of Cause: The District did not review compliance requirements related to records maintenance outlined in 2 CFR Section 200.313(d). Statement of Cause: The District did not review compliance requirements related to records maintenance outlined in 2 CFR Section 200.313(d). Perspective Information: As part of the requirements under the Uniform Guidance we inquired of and attempted to review records maintained over property and equipment purchased with federal dollars under the major program. While purchases are tracked there is no identification of which purchases were made with federal dollars and under which federal program. Statement of Effect: The District is not in compliance with 2 CFR Section 200.313(d) and could fail to follow related disposition requirements. Questioned Cost: None. Repeat Finding: No Recommendation: We recommend the District review the above referenced requirements and implement procedures to ensure the District complies with relevant compliance requirements. Views of the Responsible Officials and Planned Corrective Actions: The Business Manager will review these requirements with the Account Clerk responsible for tracking fixed assets to ensure that purchases made with federal dollars are recorded in the database with all the necessary information to meet the compliance requirements. In addition, we will establish a process to perform a physical inventory as required every two years.
Significant Deficiency 2024-002 Equipment and Real Property Management Information on Federal Program: U.S. Department of Education, Education Stabilization Funds (Federal Assistance Listing numbers 84.425D, 84.425U), Passed through the New York State Education Department. Criteria: 2 CFR Section 200.313(d) requires property records to be maintained including 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, cost of the property, percentage of federal participation in project costs, the location, use and condition of the property, and any ultimate disposition data. Additionally, it requires a physical inventory of the property be taken and results reconciled with the property records at least every two years. Statement of Condition: Record of equipment purchased under the federal program was not maintained in accordance with 2 CFR Section 200.313(d). Statement of Cause: The District did not review compliance requirements related to records maintenance outlined in 2 CFR Section 200.313(d). Statement of Cause: The District did not review compliance requirements related to records maintenance outlined in 2 CFR Section 200.313(d). Perspective Information: As part of the requirements under the Uniform Guidance we inquired of and attempted to review records maintained over property and equipment purchased with federal dollars under the major program. While purchases are tracked there is no identification of which purchases were made with federal dollars and under which federal program. Statement of Effect: The District is not in compliance with 2 CFR Section 200.313(d) and could fail to follow related disposition requirements. Questioned Cost: None. Repeat Finding: No Recommendation: We recommend the District review the above referenced requirements and implement procedures to ensure the District complies with relevant compliance requirements. Views of the Responsible Officials and Planned Corrective Actions: The Business Manager will review these requirements with the Account Clerk responsible for tracking fixed assets to ensure that purchases made with federal dollars are recorded in the database with all the necessary information to meet the compliance requirements. In addition, we will establish a process to perform a physical inventory as required every two years.
Equipment and Real Property Management Information on Federal Program: U.S. Department of Education, Education Stabilization Funds (Federal Assistance Listing numbers 84.425D, 84.425U, 84.425W), Passed through the New York State Education Department. Criteria: 2 CFR Section 200.313(d) requires property records to be maintained including 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, cost of the property, percentage of federal participation in project costs, the location, use and condition of the property, and any ultimate disposition data. Additionally, it requires a physical inventory of the property be taken and results reconciled with the property records at least every two years. Statement of Condition: Record of equipment purchased under the federal program was not maintained in accordance with 2 CFR Section 200.313(d). Statement of Cause: The district was not aware of the requirements. Statement of Effect: The District is not in compliance with 2 CFR Section 200.313(d) and could fail to follow related disposition requirements. Questioned Cost: None. Recommendation: We recommend the District review the above referenced requirements and implement procedures to ensure the District complies with relevant compliance requirements. Views of the Responsible Officials and Planned Corrective Actions: The District will follow up with Questar III BOCES to make sure these federally funded pieces of equipment are clearly denoted in our fixed asset inventory.
Equipment and Real Property Management Information on Federal Program: U.S. Department of Education, Education Stabilization Funds (Federal Assistance Listing numbers 84.425D, 84.425U, 84.425W), Passed through the New York State Education Department. Criteria: 2 CFR Section 200.313(d) requires property records to be maintained including 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, cost of the property, percentage of federal participation in project costs, the location, use and condition of the property, and any ultimate disposition data. Additionally, it requires a physical inventory of the property be taken and results reconciled with the property records at least every two years. Statement of Condition: Record of equipment purchased under the federal program was not maintained in accordance with 2 CFR Section 200.313(d). Statement of Cause: The district was not aware of the requirements. Statement of Effect: The District is not in compliance with 2 CFR Section 200.313(d) and could fail to follow related disposition requirements. Questioned Cost: None. Recommendation: We recommend the District review the above referenced requirements and implement procedures to ensure the District complies with relevant compliance requirements. Views of the Responsible Officials and Planned Corrective Actions: The District will follow up with Questar III BOCES to make sure these federally funded pieces of equipment are clearly denoted in our fixed asset inventory.
Equipment and Real Property Management Information on Federal Program: U.S. Department of Education, Education Stabilization Funds (Federal Assistance Listing numbers 84.425D, 84.425U, 84.425W), Passed through the New York State Education Department. Criteria: 2 CFR Section 200.313(d) requires property records to be maintained including 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, cost of the property, percentage of federal participation in project costs, the location, use and condition of the property, and any ultimate disposition data. Additionally, it requires a physical inventory of the property be taken and results reconciled with the property records at least every two years. Statement of Condition: Record of equipment purchased under the federal program was not maintained in accordance with 2 CFR Section 200.313(d). Statement of Cause: The district was not aware of the requirements. Statement of Effect: The District is not in compliance with 2 CFR Section 200.313(d) and could fail to follow related disposition requirements. Questioned Cost: None. Recommendation: We recommend the District review the above referenced requirements and implement procedures to ensure the District complies with relevant compliance requirements. Views of the Responsible Officials and Planned Corrective Actions: The District will follow up with Questar III BOCES to make sure these federally funded pieces of equipment are clearly denoted in our fixed asset inventory.
Equipment and Real Property Management Information on Federal Program: U.S. Department of Education, Education Stabilization Funds (Federal Assistance Listing numbers 84.425D, 84.425U, 84.425W), Passed through the New York State Education Department. Criteria: 2 CFR Section 200.313(d) requires property records to be maintained including 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, cost of the property, percentage of federal participation in project costs, the location, use and condition of the property, and any ultimate disposition data. Additionally, it requires a physical inventory of the property be taken and results reconciled with the property records at least every two years. Statement of Condition: Record of equipment purchased under the federal program was not maintained in accordance with 2 CFR Section 200.313(d). Statement of Cause: The district was not aware of the requirements. Statement of Effect: The District is not in compliance with 2 CFR Section 200.313(d) and could fail to follow related disposition requirements. Questioned Cost: None. Recommendation: We recommend the District review the above referenced requirements and implement procedures to ensure the District complies with relevant compliance requirements. Views of the Responsible Officials and Planned Corrective Actions: The District will follow up with Questar III BOCES to make sure these federally funded pieces of equipment are clearly denoted in our fixed asset inventory.
Equipment and Real Property Management Information on Federal Program: U.S. Department of Education, Education Stabilization Funds (Federal Assistance Listing numbers 84.425D, 84.425U, 84.425W), Passed through the New York State Education Department. Criteria: 2 CFR Section 200.313(d) requires property records to be maintained including 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, cost of the property, percentage of federal participation in project costs, the location, use and condition of the property, and any ultimate disposition data. Additionally, it requires a physical inventory of the property be taken and results reconciled with the property records at least every two years. Statement of Condition: Record of equipment purchased under the federal program was not maintained in accordance with 2 CFR Section 200.313(d). Statement of Cause: The district was not aware of the requirements. Statement of Effect: The District is not in compliance with 2 CFR Section 200.313(d) and could fail to follow related disposition requirements. Questioned Cost: None. Recommendation: We recommend the District review the above referenced requirements and implement procedures to ensure the District complies with relevant compliance requirements. Views of the Responsible Officials and Planned Corrective Actions: The District will follow up with Questar III BOCES to make sure these federally funded pieces of equipment are clearly denoted in our fixed asset inventory.
FINDING 2024-001 EQUIPMENT AND REAL PROPERTY MANAGEMENT SIGNIFICANT DEFICIENCY Federal Program: Education Stabilization Fund Assistance Listing Number: 84.425 Criteria 2 CFR 200.313(d) contains equipment management requirements which dictate property records entities must maintain and the need for procedures to adequately safeguard and maintain assets acquired with federal funding. Condition A physical inventory of the property must be conducted, and the results must be reconciled with the property records at least once every two years. A physical inventory was completed, however, there is no record this inventory was reconciled with the property records. Cause The School does not have internal controls and procedures in place to ensure the physical inventory is reconciled to the property records. Effect Failing to complete the reconciliation could result in inaccurate records of assets. Recommendation We recommend the School develop internal controls to ensure an inventory reconciliation with property records is completed at least every two years. Views of Responsible Officials The School’s Corrective Action Plan is included on pages 22.
FINDING 2024-001 EQUIPMENT AND REAL PROPERTY MANAGEMENT SIGNIFICANT DEFICIENCY Federal Program: Education Stabilization Fund Assistance Listing Number: 84.425 Criteria 2 CFR 200.313(d) contains equipment management requirements which dictate property records entities must maintain and the need for procedures to adequately safeguard and maintain assets acquired with federal funding. Condition A physical inventory of the property must be conducted, and the results must be reconciled with the property records at least once every two years. A physical inventory was completed, however, there is no record this inventory was reconciled with the property records. Cause The School does not have internal controls and procedures in place to ensure the physical inventory is reconciled to the property records. Effect Failing to complete the reconciliation could result in inaccurate records of assets. Recommendation We recommend the School develop internal controls to ensure an inventory reconciliation with property records is completed at least every two years. Views of Responsible Officials The School’s Corrective Action Plan is included on pages 22.
2024-004: Equipment Management—Material Weakness U.S. Department of Education Passed through Missouri Department of Elementary and Secondary Education Education Stabilization Fund, Assistance Listing No. 84.425C (COVID-19 - Governor’s Emergency Education Relief Fund), 84.425D (COVID-19 - Elementary and Secondary School Emergency Relief Fund), 84.425U (COVID-19 - American Rescue Plan-Elementary and Secondary School Emergency Relief), 84.425W (COVID-19 - American Rescue Plan-Elementary and Secondary School Emergency Relief-Homeless Children and Youth) Federal award year 2023-2024 Criteria: The Uniform Guidance (2 CFR 200.303) requires nonfederal entities receiving federal awards to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance retirements. Also, in accordance with 2 CFR section 200.313(d)(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 federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. In accordance with 2 CFR section 200.313(d)(2), a physical inventory of equipment and property must be taken, and the results reconciled with the property records at least once every two years. Condition: The District’s controls were not operating effectively to reasonably ensure the District had maintained property records with the above required information, and performed the required physical inventory of equipment within the two previous years. As a result, the District did not comply with the compliance requirements for equipment and property. Cause: The District does not have processes and procedures in place related to equipment management, tracking and required physical inventories. Effect or potential effect: The District is not in compliance with federal grant requirements over the tracking and physical inventory of equipment. Improper equipment procedures could result in actions taken by oversight agencies which could impact future funding. Questioned costs: None Context: For all sample selections tested in the major program, there was no process of tagging and tracking equipment purchased with federal funding, nor evidence that any physical inventories had been performed. Identification as a repeat finding, if applicable: Not applicable. Recommendation: We recommend the District develop processes and procedures to tag and track equipment purchased with federal funding, and maintain support that physical inventory inventories were performed as required. View of responsible officials: Management agrees with this finding.
2024-004: Equipment Management—Material Weakness U.S. Department of Education Passed through Missouri Department of Elementary and Secondary Education Education Stabilization Fund, Assistance Listing No. 84.425C (COVID-19 - Governor’s Emergency Education Relief Fund), 84.425D (COVID-19 - Elementary and Secondary School Emergency Relief Fund), 84.425U (COVID-19 - American Rescue Plan-Elementary and Secondary School Emergency Relief), 84.425W (COVID-19 - American Rescue Plan-Elementary and Secondary School Emergency Relief-Homeless Children and Youth) Federal award year 2023-2024 Criteria: The Uniform Guidance (2 CFR 200.303) requires nonfederal entities receiving federal awards to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance retirements. Also, in accordance with 2 CFR section 200.313(d)(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 federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. In accordance with 2 CFR section 200.313(d)(2), a physical inventory of equipment and property must be taken, and the results reconciled with the property records at least once every two years. Condition: The District’s controls were not operating effectively to reasonably ensure the District had maintained property records with the above required information, and performed the required physical inventory of equipment within the two previous years. As a result, the District did not comply with the compliance requirements for equipment and property. Cause: The District does not have processes and procedures in place related to equipment management, tracking and required physical inventories. Effect or potential effect: The District is not in compliance with federal grant requirements over the tracking and physical inventory of equipment. Improper equipment procedures could result in actions taken by oversight agencies which could impact future funding. Questioned costs: None Context: For all sample selections tested in the major program, there was no process of tagging and tracking equipment purchased with federal funding, nor evidence that any physical inventories had been performed. Identification as a repeat finding, if applicable: Not applicable. Recommendation: We recommend the District develop processes and procedures to tag and track equipment purchased with federal funding, and maintain support that physical inventory inventories were performed as required. View of responsible officials: Management agrees with this finding.
2024-004: Equipment Management—Material Weakness U.S. Department of Education Passed through Missouri Department of Elementary and Secondary Education Education Stabilization Fund, Assistance Listing No. 84.425C (COVID-19 - Governor’s Emergency Education Relief Fund), 84.425D (COVID-19 - Elementary and Secondary School Emergency Relief Fund), 84.425U (COVID-19 - American Rescue Plan-Elementary and Secondary School Emergency Relief), 84.425W (COVID-19 - American Rescue Plan-Elementary and Secondary School Emergency Relief-Homeless Children and Youth) Federal award year 2023-2024 Criteria: The Uniform Guidance (2 CFR 200.303) requires nonfederal entities receiving federal awards to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance retirements. Also, in accordance with 2 CFR section 200.313(d)(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 federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. In accordance with 2 CFR section 200.313(d)(2), a physical inventory of equipment and property must be taken, and the results reconciled with the property records at least once every two years. Condition: The District’s controls were not operating effectively to reasonably ensure the District had maintained property records with the above required information, and performed the required physical inventory of equipment within the two previous years. As a result, the District did not comply with the compliance requirements for equipment and property. Cause: The District does not have processes and procedures in place related to equipment management, tracking and required physical inventories. Effect or potential effect: The District is not in compliance with federal grant requirements over the tracking and physical inventory of equipment. Improper equipment procedures could result in actions taken by oversight agencies which could impact future funding. Questioned costs: None Context: For all sample selections tested in the major program, there was no process of tagging and tracking equipment purchased with federal funding, nor evidence that any physical inventories had been performed. Identification as a repeat finding, if applicable: Not applicable. Recommendation: We recommend the District develop processes and procedures to tag and track equipment purchased with federal funding, and maintain support that physical inventory inventories were performed as required. View of responsible officials: Management agrees with this finding.
2024-004: Equipment Management—Material Weakness U.S. Department of Education Passed through Missouri Department of Elementary and Secondary Education Education Stabilization Fund, Assistance Listing No. 84.425C (COVID-19 - Governor’s Emergency Education Relief Fund), 84.425D (COVID-19 - Elementary and Secondary School Emergency Relief Fund), 84.425U (COVID-19 - American Rescue Plan-Elementary and Secondary School Emergency Relief), 84.425W (COVID-19 - American Rescue Plan-Elementary and Secondary School Emergency Relief-Homeless Children and Youth) Federal award year 2023-2024 Criteria: The Uniform Guidance (2 CFR 200.303) requires nonfederal entities receiving federal awards to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance retirements. Also, in accordance with 2 CFR section 200.313(d)(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 federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. In accordance with 2 CFR section 200.313(d)(2), a physical inventory of equipment and property must be taken, and the results reconciled with the property records at least once every two years. Condition: The District’s controls were not operating effectively to reasonably ensure the District had maintained property records with the above required information, and performed the required physical inventory of equipment within the two previous years. As a result, the District did not comply with the compliance requirements for equipment and property. Cause: The District does not have processes and procedures in place related to equipment management, tracking and required physical inventories. Effect or potential effect: The District is not in compliance with federal grant requirements over the tracking and physical inventory of equipment. Improper equipment procedures could result in actions taken by oversight agencies which could impact future funding. Questioned costs: None Context: For all sample selections tested in the major program, there was no process of tagging and tracking equipment purchased with federal funding, nor evidence that any physical inventories had been performed. Identification as a repeat finding, if applicable: Not applicable. Recommendation: We recommend the District develop processes and procedures to tag and track equipment purchased with federal funding, and maintain support that physical inventory inventories were performed as required. View of responsible officials: Management agrees with this finding.
Reference Number: 2024-003 Description: Written Procedures Condition and Criteria: At the beginning of the audit period, the District did not have a Federal Funds Manual in place to document policies and procedures for managing federal awards in compliance 2 CFR 200, Subparts D and E. The Uniform Guidance requires the following written procedures: Written procedures for grant financial management (2 CFR 200.302 and 2 CFR 200.305) Written procurement policy (2 CFR 200.318a) Written procedures for allowable costs (2 CFR 200.403) Written procedures for managing and safeguarding property or equipment acquired with federal funds (2 CFR 200.313) During the course of the audit, the District developed and implemented a Federal Funds Manual to address this deficiency. Cause: There was an administrative oversight of ensuring the District had these written procedures in place. Effect: The absence of a documented Federal Funds Manual increased the risk of noncompliance with federal requirements and ineffective management of federal funds. However, the district’s subsequent implementation of the manual before the audit’s completion reduced this risk. Recommendation: We recommend that the District continue to utilize and periodically review the Federal Funds Manual to ensure it remains comprehensive and up-to-date with changes in federal requirements. Views of Responsible Officials and Corrective Action: See Corrective Action Plan.
Reference Number: 2024-003 Description: Written Procedures Condition and Criteria: At the beginning of the audit period, the District did not have a Federal Funds Manual in place to document policies and procedures for managing federal awards in compliance 2 CFR 200, Subparts D and E. The Uniform Guidance requires the following written procedures: Written procedures for grant financial management (2 CFR 200.302 and 2 CFR 200.305) Written procurement policy (2 CFR 200.318a) Written procedures for allowable costs (2 CFR 200.403) Written procedures for managing and safeguarding property or equipment acquired with federal funds (2 CFR 200.313) During the course of the audit, the District developed and implemented a Federal Funds Manual to address this deficiency. Cause: There was an administrative oversight of ensuring the District had these written procedures in place. Effect: The absence of a documented Federal Funds Manual increased the risk of noncompliance with federal requirements and ineffective management of federal funds. However, the district’s subsequent implementation of the manual before the audit’s completion reduced this risk. Recommendation: We recommend that the District continue to utilize and periodically review the Federal Funds Manual to ensure it remains comprehensive and up-to-date with changes in federal requirements. Views of Responsible Officials and Corrective Action: See Corrective Action Plan.
Reference Number: 2024-003 Description: Written Procedures Condition and Criteria: At the beginning of the audit period, the District did not have a Federal Funds Manual in place to document policies and procedures for managing federal awards in compliance 2 CFR 200, Subparts D and E. The Uniform Guidance requires the following written procedures: Written procedures for grant financial management (2 CFR 200.302 and 2 CFR 200.305) Written procurement policy (2 CFR 200.318a) Written procedures for allowable costs (2 CFR 200.403) Written procedures for managing and safeguarding property or equipment acquired with federal funds (2 CFR 200.313) During the course of the audit, the District developed and implemented a Federal Funds Manual to address this deficiency. Cause: There was an administrative oversight of ensuring the District had these written procedures in place. Effect: The absence of a documented Federal Funds Manual increased the risk of noncompliance with federal requirements and ineffective management of federal funds. However, the district’s subsequent implementation of the manual before the audit’s completion reduced this risk. Recommendation: We recommend that the District continue to utilize and periodically review the Federal Funds Manual to ensure it remains comprehensive and up-to-date with changes in federal requirements. Views of Responsible Officials and Corrective Action: See Corrective Action Plan.
Criteria: Per 2 CFR § 200.313 (Uniform Guidance) for managing federally funded property, recipients must: maintain records of capital assets purchased with federal funds including detailed descriptions, serial numbers, acquisition dates, and funding sources. The recipients must also perform physical inventories at least every two years to ensure assets are accounted for, and establish internal controls to safeguard assets from loss, damage, or unauthorized use. Condition: During the audit, we noted that the Town did not segregate capital assets acquired utilizing federal funds in its capital asset software, including records of asset locations and condition. Since federally funded capital assets were not separately tracked in the capital asset system, we were unable to determine which disposals during the current year, if any were federally purchased assets. Lastly, the Town did not maintain records of any federally purchased asset inventory counts completed during the last two years. Cause: The Town lacked sufficient internal controls and formalized procedures to track federally funded assets. Effect or Potential Effect: Inadequate records increase the risk of asset misappropriation, misuse or loss. Failure to account for disposals could lead to questioned costs during federal audits. Sale of federally purchased assets could result in a gain and the requirement for the Town to perform program income procedures with the pass-through entity or the related federal agency. Recommendation: We recommend the Town update their capital asset tracking schedule to include information on which assets are purchased using federal funds. Furthermore, we suggest the Town begin to keep records of any inventory count taken and begin scheduling inventory counts to be completed at least once every two years. Management's Response: Management concurs with the finding and has already begun taking steps to address the issue. They plan on updating their capital asset tracking module to include documentation of federally purchased assets. Additionally, the Town is in the process of scheduling inventory counts to be completed at least once every two years, and to maintain documentation of any inventory count completed.
Criteria: 2 CFR 200.313 (d) contains equipment management requirements which include a physical inventory of research funded property and reconciliation with the property records at least once every two years. Condition: A physical inventory of the research funded property must be conducted and the results must be reconciled with the property records at least once every two years. The last physical inventory was conducted in FY2022. Cause: Management did not perform the physical inventory in FY2023 or FY2024 of the research funded property due to timing constraints. Management’s process includes other procedures such as an internal fixed asset confirmation over equipment and real property, however such procedures are not comprehensive or at a sufficient level of detail to meet the compliance requirement. Effect: Not performing the physical inventory could result in an inaccurate record of assets purchased with federal funds. Questioned Costs: None; Reccomendation: Management should ensure the physical inventory is scheduled early in the two year cycle to ensure completeness within the required two year timeframe. Managements's View and Corrective Action Plan: Management agrees with the finding. Refer to the Management Corrective Action Plan on page 81.
Criteria: 2 CFR 200.313 (d) contains equipment management requirements which include a physical inventory of research funded property and reconciliation with the property records at least once every two years. Condition: A physical inventory of the research funded property must be conducted and the results must be reconciled with the property records at least once every two years. The last physical inventory was conducted in FY2022. Cause: Management did not perform the physical inventory in FY2023 or FY2024 of the research funded property due to timing constraints. Management’s process includes other procedures such as an internal fixed asset confirmation over equipment and real property, however such procedures are not comprehensive or at a sufficient level of detail to meet the compliance requirement. Effect: Not performing the physical inventory could result in an inaccurate record of assets purchased with federal funds. Questioned Costs: None; Reccomendation: Management should ensure the physical inventory is scheduled early in the two year cycle to ensure completeness within the required two year timeframe. Managements's View and Corrective Action Plan: Management agrees with the finding. Refer to the Management Corrective Action Plan on page 81.
Criteria: 2 CFR 200.313 (d) contains equipment management requirements which include a physical inventory of research funded property and reconciliation with the property records at least once every two years. Condition: A physical inventory of the research funded property must be conducted and the results must be reconciled with the property records at least once every two years. The last physical inventory was conducted in FY2022. Cause: Management did not perform the physical inventory in FY2023 or FY2024 of the research funded property due to timing constraints. Management’s process includes other procedures such as an internal fixed asset confirmation over equipment and real property, however such procedures are not comprehensive or at a sufficient level of detail to meet the compliance requirement. Effect: Not performing the physical inventory could result in an inaccurate record of assets purchased with federal funds. Questioned Costs: None; Reccomendation: Management should ensure the physical inventory is scheduled early in the two year cycle to ensure completeness within the required two year timeframe. Managements's View and Corrective Action Plan: Management agrees with the finding. Refer to the Management Corrective Action Plan on page 81.
Criteria: 2 CFR 200.313 (d) contains equipment management requirements which include a physical inventory of research funded property and reconciliation with the property records at least once every two years. Condition: A physical inventory of the research funded property must be conducted and the results must be reconciled with the property records at least once every two years. The last physical inventory was conducted in FY2022. Cause: Management did not perform the physical inventory in FY2023 or FY2024 of the research funded property due to timing constraints. Management’s process includes other procedures such as an internal fixed asset confirmation over equipment and real property, however such procedures are not comprehensive or at a sufficient level of detail to meet the compliance requirement. Effect: Not performing the physical inventory could result in an inaccurate record of assets purchased with federal funds. Questioned Costs: None; Reccomendation: Management should ensure the physical inventory is scheduled early in the two year cycle to ensure completeness within the required two year timeframe. Managements's View and Corrective Action Plan: Management agrees with the finding. Refer to the Management Corrective Action Plan on page 81.
Criteria: 2 CFR 200.313 (d) contains equipment management requirements which include a physical inventory of research funded property and reconciliation with the property records at least once every two years. Condition: A physical inventory of the research funded property must be conducted and the results must be reconciled with the property records at least once every two years. The last physical inventory was conducted in FY2022. Cause: Management did not perform the physical inventory in FY2023 or FY2024 of the research funded property due to timing constraints. Management’s process includes other procedures such as an internal fixed asset confirmation over equipment and real property, however such procedures are not comprehensive or at a sufficient level of detail to meet the compliance requirement. Effect: Not performing the physical inventory could result in an inaccurate record of assets purchased with federal funds. Questioned Costs: None; Reccomendation: Management should ensure the physical inventory is scheduled early in the two year cycle to ensure completeness within the required two year timeframe. Managements's View and Corrective Action Plan: Management agrees with the finding. Refer to the Management Corrective Action Plan on page 81.
Criteria: 2 CFR 200.313 (d) contains equipment management requirements which include a physical inventory of research funded property and reconciliation with the property records at least once every two years. Condition: A physical inventory of the research funded property must be conducted and the results must be reconciled with the property records at least once every two years. The last physical inventory was conducted in FY2022. Cause: Management did not perform the physical inventory in FY2023 or FY2024 of the research funded property due to timing constraints. Management’s process includes other procedures such as an internal fixed asset confirmation over equipment and real property, however such procedures are not comprehensive or at a sufficient level of detail to meet the compliance requirement. Effect: Not performing the physical inventory could result in an inaccurate record of assets purchased with federal funds. Questioned Costs: None; Reccomendation: Management should ensure the physical inventory is scheduled early in the two year cycle to ensure completeness within the required two year timeframe. Managements's View and Corrective Action Plan: Management agrees with the finding. Refer to the Management Corrective Action Plan on page 81.
Criteria: 2 CFR 200.313 (d) contains equipment management requirements which include a physical inventory of research funded property and reconciliation with the property records at least once every two years. Condition: A physical inventory of the research funded property must be conducted and the results must be reconciled with the property records at least once every two years. The last physical inventory was conducted in FY2022. Cause: Management did not perform the physical inventory in FY2023 or FY2024 of the research funded property due to timing constraints. Management’s process includes other procedures such as an internal fixed asset confirmation over equipment and real property, however such procedures are not comprehensive or at a sufficient level of detail to meet the compliance requirement. Effect: Not performing the physical inventory could result in an inaccurate record of assets purchased with federal funds. Questioned Costs: None; Reccomendation: Management should ensure the physical inventory is scheduled early in the two year cycle to ensure completeness within the required two year timeframe. Managements's View and Corrective Action Plan: Management agrees with the finding. Refer to the Management Corrective Action Plan on page 81.
Criteria: 2 CFR 200.313 (d) contains equipment management requirements which include a physical inventory of research funded property and reconciliation with the property records at least once every two years. Condition: A physical inventory of the research funded property must be conducted and the results must be reconciled with the property records at least once every two years. The last physical inventory was conducted in FY2022. Cause: Management did not perform the physical inventory in FY2023 or FY2024 of the research funded property due to timing constraints. Management’s process includes other procedures such as an internal fixed asset confirmation over equipment and real property, however such procedures are not comprehensive or at a sufficient level of detail to meet the compliance requirement. Effect: Not performing the physical inventory could result in an inaccurate record of assets purchased with federal funds. Questioned Costs: None; Reccomendation: Management should ensure the physical inventory is scheduled early in the two year cycle to ensure completeness within the required two year timeframe. Managements's View and Corrective Action Plan: Management agrees with the finding. Refer to the Management Corrective Action Plan on page 81.