U.S. Department of Education, Pass-Through Iowa Department of Education, Education Stabilization Fund: COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund; COVID-19 Governor’s Emergency Education Relief (GEER II) Fund; COVID-19 ARP-Elementary and Secondary School Emergency Relief (ARP ESSER); COVID-19 ARP-Elementary and Secondary School Emergency Relief-Homeless Children and Youth (ARP-HCY). Finding: The District does not have a process for monitoring compliance with pre-approval requests under the Education Stabilization Fund program for capital equipment. Criteria: Consistent with 2 CFR section 200.313 (equipment), Education Stabilization Funds (ESF) may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by Education Department (ED) or the pass-through entity. In addition, with prior approval by the ED or the pass-through entity, recipients and subrecipients may also use ESF funds to purchase real property, perform construction or minor remodeling, and for improvements to land, buildings, or equipment that meet the overall purpose of the ESF program, which is "to prevent, prepare for, and respond to" the COVID-19 pandemic. Condition: The District expended Education Stabilization Fund program funding to purchase weight room equipment at a price above the amount approved by the Iowa Department of Education. Cause: The District did not compare the actual cost of the weight room equipment to the Iowa Department of Education approval. Effect: The District overspent allowable funds as approved by the Iowa Department of Education for equipment by $16,707.62. Context: The District obtained approval to buy weight room equipment for the three high schools in the amount of $158,400. The District purchased items totaling $175,107.62 which exceeded the maximum approved amount and charged the program for the full purchase price. Identification as a repeat finding: This is a repeat finding. Recommendation: We recommend the District implement a system to compare actual costs charged to the program to preapproval amounts and request an amendment if the actual cost exceeds the prior approval limits or only charge the program for the approved portion. Response and Corrective Action Plan: The District will review current processes for purchasing equipment within Iowa Department of Education approval amounts or seek amendments when approval cost limits cannot be met.
U.S. Department of Education, Pass-Through Iowa Department of Education, Education Stabilization Fund: COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund; COVID-19 Governor’s Emergency Education Relief (GEER II) Fund; COVID-19 ARP-Elementary and Secondary School Emergency Relief (ARP ESSER); COVID-19 ARP-Elementary and Secondary School Emergency Relief-Homeless Children and Youth (ARP-HCY). Finding: The District does not have a process for monitoring compliance with pre-approval requests under the Education Stabilization Fund program for capital equipment. Criteria: Consistent with 2 CFR section 200.313 (equipment), Education Stabilization Funds (ESF) may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by Education Department (ED) or the pass-through entity. In addition, with prior approval by the ED or the pass-through entity, recipients and subrecipients may also use ESF funds to purchase real property, perform construction or minor remodeling, and for improvements to land, buildings, or equipment that meet the overall purpose of the ESF program, which is "to prevent, prepare for, and respond to" the COVID-19 pandemic. Condition: The District expended Education Stabilization Fund program funding to purchase weight room equipment at a price above the amount approved by the Iowa Department of Education. Cause: The District did not compare the actual cost of the weight room equipment to the Iowa Department of Education approval. Effect: The District overspent allowable funds as approved by the Iowa Department of Education for equipment by $16,707.62. Context: The District obtained approval to buy weight room equipment for the three high schools in the amount of $158,400. The District purchased items totaling $175,107.62 which exceeded the maximum approved amount and charged the program for the full purchase price. Identification as a repeat finding: This is a repeat finding. Recommendation: We recommend the District implement a system to compare actual costs charged to the program to preapproval amounts and request an amendment if the actual cost exceeds the prior approval limits or only charge the program for the approved portion. Response and Corrective Action Plan: The District will review current processes for purchasing equipment within Iowa Department of Education approval amounts or seek amendments when approval cost limits cannot be met.
U.S. Department of Education, Pass-Through Iowa Department of Education, Education Stabilization Fund: COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund; COVID-19 Governor’s Emergency Education Relief (GEER II) Fund; COVID-19 ARP-Elementary and Secondary School Emergency Relief (ARP ESSER); COVID-19 ARP-Elementary and Secondary School Emergency Relief-Homeless Children and Youth (ARP-HCY). Finding: The District does not have a process for monitoring compliance with pre-approval requests under the Education Stabilization Fund program for capital equipment. Criteria: Consistent with 2 CFR section 200.313 (equipment), Education Stabilization Funds (ESF) may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by Education Department (ED) or the pass-through entity. In addition, with prior approval by the ED or the pass-through entity, recipients and subrecipients may also use ESF funds to purchase real property, perform construction or minor remodeling, and for improvements to land, buildings, or equipment that meet the overall purpose of the ESF program, which is "to prevent, prepare for, and respond to" the COVID-19 pandemic. Condition: The District expended Education Stabilization Fund program funding to purchase weight room equipment at a price above the amount approved by the Iowa Department of Education. Cause: The District did not compare the actual cost of the weight room equipment to the Iowa Department of Education approval. Effect: The District overspent allowable funds as approved by the Iowa Department of Education for equipment by $16,707.62. Context: The District obtained approval to buy weight room equipment for the three high schools in the amount of $158,400. The District purchased items totaling $175,107.62 which exceeded the maximum approved amount and charged the program for the full purchase price. Identification as a repeat finding: This is a repeat finding. Recommendation: We recommend the District implement a system to compare actual costs charged to the program to preapproval amounts and request an amendment if the actual cost exceeds the prior approval limits or only charge the program for the approved portion. Response and Corrective Action Plan: The District will review current processes for purchasing equipment within Iowa Department of Education approval amounts or seek amendments when approval cost limits cannot be met.
U.S. Department of Education, Pass-Through Iowa Department of Education, Education Stabilization Fund: COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund; COVID-19 Governor’s Emergency Education Relief (GEER II) Fund; COVID-19 ARP-Elementary and Secondary School Emergency Relief (ARP ESSER); COVID-19 ARP-Elementary and Secondary School Emergency Relief-Homeless Children and Youth (ARP-HCY). Finding: The District does not have a process for monitoring compliance with pre-approval requests under the Education Stabilization Fund program for capital equipment. Criteria: Consistent with 2 CFR section 200.313 (equipment), Education Stabilization Funds (ESF) may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by Education Department (ED) or the pass-through entity. In addition, with prior approval by the ED or the pass-through entity, recipients and subrecipients may also use ESF funds to purchase real property, perform construction or minor remodeling, and for improvements to land, buildings, or equipment that meet the overall purpose of the ESF program, which is "to prevent, prepare for, and respond to" the COVID-19 pandemic. Condition: The District expended Education Stabilization Fund program funding to purchase weight room equipment at a price above the amount approved by the Iowa Department of Education. Cause: The District did not compare the actual cost of the weight room equipment to the Iowa Department of Education approval. Effect: The District overspent allowable funds as approved by the Iowa Department of Education for equipment by $16,707.62. Context: The District obtained approval to buy weight room equipment for the three high schools in the amount of $158,400. The District purchased items totaling $175,107.62 which exceeded the maximum approved amount and charged the program for the full purchase price. Identification as a repeat finding: This is a repeat finding. Recommendation: We recommend the District implement a system to compare actual costs charged to the program to preapproval amounts and request an amendment if the actual cost exceeds the prior approval limits or only charge the program for the approved portion. Response and Corrective Action Plan: The District will review current processes for purchasing equipment within Iowa Department of Education approval amounts or seek amendments when approval cost limits cannot be met.
U.S. Department of Education, Pass-Through Iowa Department of Education, Education Stabilization Fund: COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund; COVID-19 Governor’s Emergency Education Relief (GEER II) Fund; COVID-19 ARP-Elementary and Secondary School Emergency Relief (ARP ESSER); COVID-19 ARP-Elementary and Secondary School Emergency Relief-Homeless Children and Youth (ARP-HCY). Finding: The District does not have a process for monitoring compliance with pre-approval requests under the Education Stabilization Fund program for capital equipment. Criteria: Consistent with 2 CFR section 200.313 (equipment), Education Stabilization Funds (ESF) may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by Education Department (ED) or the pass-through entity. In addition, with prior approval by the ED or the pass-through entity, recipients and subrecipients may also use ESF funds to purchase real property, perform construction or minor remodeling, and for improvements to land, buildings, or equipment that meet the overall purpose of the ESF program, which is "to prevent, prepare for, and respond to" the COVID-19 pandemic. Condition: The District expended Education Stabilization Fund program funding to purchase weight room equipment at a price above the amount approved by the Iowa Department of Education. Cause: The District did not compare the actual cost of the weight room equipment to the Iowa Department of Education approval. Effect: The District overspent allowable funds as approved by the Iowa Department of Education for equipment by $16,707.62. Context: The District obtained approval to buy weight room equipment for the three high schools in the amount of $158,400. The District purchased items totaling $175,107.62 which exceeded the maximum approved amount and charged the program for the full purchase price. Identification as a repeat finding: This is a repeat finding. Recommendation: We recommend the District implement a system to compare actual costs charged to the program to preapproval amounts and request an amendment if the actual cost exceeds the prior approval limits or only charge the program for the approved portion. Response and Corrective Action Plan: The District will review current processes for purchasing equipment within Iowa Department of Education approval amounts or seek amendments when approval cost limits cannot be met.
U.S. Department of Education, Pass-Through Iowa Department of Education, Education Stabilization Fund: COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund; COVID-19 Governor’s Emergency Education Relief (GEER II) Fund; COVID-19 ARP-Elementary and Secondary School Emergency Relief (ARP ESSER); COVID-19 ARP-Elementary and Secondary School Emergency Relief-Homeless Children and Youth (ARP-HCY). Finding: The District does not have a process for monitoring compliance with pre-approval requests under the Education Stabilization Fund program for capital equipment. Criteria: Consistent with 2 CFR section 200.313 (equipment), Education Stabilization Funds (ESF) may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by Education Department (ED) or the pass-through entity. In addition, with prior approval by the ED or the pass-through entity, recipients and subrecipients may also use ESF funds to purchase real property, perform construction or minor remodeling, and for improvements to land, buildings, or equipment that meet the overall purpose of the ESF program, which is "to prevent, prepare for, and respond to" the COVID-19 pandemic. Condition: The District expended Education Stabilization Fund program funding to purchase weight room equipment at a price above the amount approved by the Iowa Department of Education. Cause: The District did not compare the actual cost of the weight room equipment to the Iowa Department of Education approval. Effect: The District overspent allowable funds as approved by the Iowa Department of Education for equipment by $16,707.62. Context: The District obtained approval to buy weight room equipment for the three high schools in the amount of $158,400. The District purchased items totaling $175,107.62 which exceeded the maximum approved amount and charged the program for the full purchase price. Identification as a repeat finding: This is a repeat finding. Recommendation: We recommend the District implement a system to compare actual costs charged to the program to preapproval amounts and request an amendment if the actual cost exceeds the prior approval limits or only charge the program for the approved portion. Response and Corrective Action Plan: The District will review current processes for purchasing equipment within Iowa Department of Education approval amounts or seek amendments when approval cost limits cannot be met.
Federal Program Education Stabilization Fund ALN 84.425D - COVID-19 - Elementary Secondary School Emergency Relief Fund (ESSER II), contract #200-210215 ALN 84.425U - COVID-19 - Elementary Secondary School Emergency Relief Fund (ESSER III), contract #223-210215 Criteria In accordance with Uniform Guidance Title 2 CFR 200.313, a non-Federal entity may not encumber equipment without prior approval of the Federal awarding agency. Condition The District charged costs for server and firewall purchases which met the definitions and thresholds requiring prior written approval, however, the District’s grant applications did not include these purchases as part of the budget submitted and they did not obtain prior approval through other means. Cause The District revised their original plan for spending of the ESSER funds and there was oversight in completing a revised budget to reflect the changes which included purchases that required pre-approval. Information regarding the pre-approval requirement for equipment purchases was not properly communicated between federal program leadership and the business office. Controls in place over equipment and real property management did not detect the pre-approval requirement prior to encumbering the cost using federal funds. Effect Costs encumbered without required prior approval are unallowable. The District subsequently communicated with the Pennsylvania Department of Education (PDE), the passthrough agency, and submitted budget revisions including these costs which were approved by PDE and deemed allowable. Questioned Costs None. Context We examined all equipment purchases charged to the Education Stabilization Fund during the year. Two of the three invoices examined had purchases totaling $110,986 which required pre-approval. Pre-approval was not obtained for either purchase; however, they were subsequently approved via interim budget revisions. Repeat Finding No. Recommendation We recommend the District revisit procedures for reviewing program guidelines and requirements prior to approving and incurring costs for equipment and real property from federal funding sources. Management Response See corrective action plan included in this report package.
Federal Program Education Stabilization Fund ALN 84.425D - COVID-19 - Elementary Secondary School Emergency Relief Fund (ESSER II), contract #200-210215 ALN 84.425U - COVID-19 - Elementary Secondary School Emergency Relief Fund (ESSER III), contract #223-210215 Criteria In accordance with Uniform Guidance Title 2 CFR 200.313, a non-Federal entity may not encumber equipment without prior approval of the Federal awarding agency. Condition The District charged costs for server and firewall purchases which met the definitions and thresholds requiring prior written approval, however, the District’s grant applications did not include these purchases as part of the budget submitted and they did not obtain prior approval through other means. Cause The District revised their original plan for spending of the ESSER funds and there was oversight in completing a revised budget to reflect the changes which included purchases that required pre-approval. Information regarding the pre-approval requirement for equipment purchases was not properly communicated between federal program leadership and the business office. Controls in place over equipment and real property management did not detect the pre-approval requirement prior to encumbering the cost using federal funds. Effect Costs encumbered without required prior approval are unallowable. The District subsequently communicated with the Pennsylvania Department of Education (PDE), the passthrough agency, and submitted budget revisions including these costs which were approved by PDE and deemed allowable. Questioned Costs None. Context We examined all equipment purchases charged to the Education Stabilization Fund during the year. Two of the three invoices examined had purchases totaling $110,986 which required pre-approval. Pre-approval was not obtained for either purchase; however, they were subsequently approved via interim budget revisions. Repeat Finding No. Recommendation We recommend the District revisit procedures for reviewing program guidelines and requirements prior to approving and incurring costs for equipment and real property from federal funding sources. Management Response See corrective action plan included in this report package.
Federal Program Education Stabilization Fund ALN 84.425D - COVID-19 - Elementary Secondary School Emergency Relief Fund (ESSER II), contract #200-210215 ALN 84.425U - COVID-19 - Elementary Secondary School Emergency Relief Fund (ESSER III), contract #223-210215 Criteria In accordance with Uniform Guidance Title 2 CFR 200.313, a non-Federal entity may not encumber equipment without prior approval of the Federal awarding agency. Condition The District charged costs for server and firewall purchases which met the definitions and thresholds requiring prior written approval, however, the District’s grant applications did not include these purchases as part of the budget submitted and they did not obtain prior approval through other means. Cause The District revised their original plan for spending of the ESSER funds and there was oversight in completing a revised budget to reflect the changes which included purchases that required pre-approval. Information regarding the pre-approval requirement for equipment purchases was not properly communicated between federal program leadership and the business office. Controls in place over equipment and real property management did not detect the pre-approval requirement prior to encumbering the cost using federal funds. Effect Costs encumbered without required prior approval are unallowable. The District subsequently communicated with the Pennsylvania Department of Education (PDE), the passthrough agency, and submitted budget revisions including these costs which were approved by PDE and deemed allowable. Questioned Costs None. Context We examined all equipment purchases charged to the Education Stabilization Fund during the year. Two of the three invoices examined had purchases totaling $110,986 which required pre-approval. Pre-approval was not obtained for either purchase; however, they were subsequently approved via interim budget revisions. Repeat Finding No. Recommendation We recommend the District revisit procedures for reviewing program guidelines and requirements prior to approving and incurring costs for equipment and real property from federal funding sources. Management Response See corrective action plan included in this report package.
FINDING 2023-006 Information on the federal program: Subject: Education Stabilization Fund (ESSER) – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425C, 84.425D & 84.425U Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment Audit Finding: Material Weakness Criteria: 2 CFR 200.313(d) states in part: "The non-Federal entity must: (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Equipment compliance requirements. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: We noted that there was no inventory of the property and equipment owned by the School Corporation performed during the audit period. Identification as a repeat finding, if applicable: No. Recommendation: We recommended that the School Corporation perform a physical inventory as least once every two years and formally document the results of their inventory count. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
FINDING 2023-006 Information on the federal program: Subject: Education Stabilization Fund (ESSER) – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425C, 84.425D & 84.425U Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment Audit Finding: Material Weakness Criteria: 2 CFR 200.313(d) states in part: "The non-Federal entity must: (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Equipment compliance requirements. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: We noted that there was no inventory of the property and equipment owned by the School Corporation performed during the audit period. Identification as a repeat finding, if applicable: No. Recommendation: We recommended that the School Corporation perform a physical inventory as least once every two years and formally document the results of their inventory count. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
FINDING 2023-006 Information on the federal program: Subject: Education Stabilization Fund (ESSER) – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425C, 84.425D & 84.425U Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment Audit Finding: Material Weakness Criteria: 2 CFR 200.313(d) states in part: "The non-Federal entity must: (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Equipment compliance requirements. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: We noted that there was no inventory of the property and equipment owned by the School Corporation performed during the audit period. Identification as a repeat finding, if applicable: No. Recommendation: We recommended that the School Corporation perform a physical inventory as least once every two years and formally document the results of their inventory count. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
FINDING 2023-006 Information on the federal program: Subject: Education Stabilization Fund (ESSER) – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425C, 84.425D & 84.425U Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment Audit Finding: Material Weakness Criteria: 2 CFR 200.313(d) states in part: "The non-Federal entity must: (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Equipment compliance requirements. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: We noted that there was no inventory of the property and equipment owned by the School Corporation performed during the audit period. Identification as a repeat finding, if applicable: No. Recommendation: We recommended that the School Corporation perform a physical inventory as least once every two years and formally document the results of their inventory count. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
FINDING 2023-006 Information on the federal program: Subject: Education Stabilization Fund (ESSER) – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425C, 84.425D & 84.425U Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment Audit Finding: Material Weakness Criteria: 2 CFR 200.313(d) states in part: "The non-Federal entity must: (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Equipment compliance requirements. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: We noted that there was no inventory of the property and equipment owned by the School Corporation performed during the audit period. Identification as a repeat finding, if applicable: No. Recommendation: We recommended that the School Corporation perform a physical inventory as least once every two years and formally document the results of their inventory count. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
The District is required to track equipment purchased with federal funds. The Code of Federal Regulations (CFR) Title 2, part 200.313(d) states that non-Federal entities must maintain property records that include 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 the project costs for the Federal award under which the property was acquired, the location, use and condition of the property and any ultimate disposition data including the date of disposal and sale price of the property. The District does not currently maintain property records for federal funds as required under CFR Title 2, part 200.313(d).
The District is required to track equipment purchased with federal funds. The Code of Federal Regulations (CFR) Title 2, part 200.313(d) states that non-Federal entities must maintain property records that include 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 the project costs for the Federal award under which the property was acquired, the location, use and condition of the property and any ultimate disposition data including the date of disposal and sale price of the property. The District does not currently maintain property records for federal funds as required under CFR Title 2, part 200.313(d).
The District is required to track equipment purchased with federal funds. The Code of Federal Regulations (CFR) Title 2, part 200.313(d) states that non-Federal entities must maintain property records that include 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 the project costs for the Federal award under which the property was acquired, the location, use and condition of the property and any ultimate disposition data including the date of disposal and sale price of the property. The District does not currently maintain property records for federal funds as required under CFR Title 2, part 200.313(d).
Finding Number: 2023‐001 Repeat Finding: No Program Name/Assistance Listing Title: COVID‐19 Education Stabilization Fund Assistance Listing Number: 84.425U Federal Agency: U.S. Department of Education Federal Award Number: S425U210038 Pass‐Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Material Weakness Compliance Requirement: Equipment and Real Property Management Criteria Under 2CFR §200.313, the District is required to maintain property records that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Condition The District did not ensure all asset additions charged to the Education Stabilization Fund were included in the capital asset listing. Cause The District did not have sufficient review procedures in place to ensure federally‐funded capital assets were included in the capital asset listing. Effect The District did not initially comply with the equipment and real property management requirements of the grant. As a result of auditor inquiry, management updated the capital asset listing to include the federally‐funded capital asset project. Context The District utilized $485,801 of Education Stabilization Funds for HVAC upgrades, but failed to include the project in the initial capital asset listing provided to auditors. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should allocate the necessary resources to implement controls and review procedures over capital asset schedules to ensure they are prepared accurately. Specifically, the District controls should include a review of federally‐funded projects to determine if they have been properly reflected in the year‐end capital asset listing. Views of Responsible Officials See Corrective Action Plan.
FINDING # 2023-001 U.S. Department of Education – Passed-through the NYS Education Department COVID-19 - American Rescue Plan - Elementary and Secondary School Emergency Relief (ARP ESSER) Fund; Assistance Listing Number 84.425U; Project #5880-21-1565; Grant Period – Fiscal Year Ended June 30, 2023 Significant Deficiency, Other Non-Compliance Compliance Requirement: Equipment and Real Property Management Criteria: According to 2 CFR section 200.313(d)(1), detailed property records must be maintained for equipment acquired under a federal grant award. Records should include a description of the property, a serial number or identification number, the source of funding (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 ultimate disposition data. Condition: During our audit, we noted the District’s capital asset records for some of the assets acquired with federal grant funding during the fiscal year were added to the District’s capital asset records and capitalized for the incorrect amounts. In addition, we noted that the District’s current practices surrounding the inventorying and capitalization of capital assets does not appear to align with the associated Board of Education policy on capital assets. Cause: The District did not fully reconcile its expenditure records when capitalizing equipment additions purchased with federal funds. Effect: If the District’s capital asset records are incomplete or inaccurate, they may not be properly safeguarded, and the District may not comply with the aforementioned federal regulations. Questioned Costs: None. Recommendation: We recommend that the District implement a system of communication and a review process surrounding capital asset additions to ensure the completeness and accuracy of capital asset records. In addition, we recommend the District update their capital asset Board of Education policy to expand on the capitalization of like-kind capital assets in order to properly align with their current practices. District’s Response: The District’s response is included in their corrective plan.
FINDING 2023-005 Subject: COVID-19 - Education Stabilization Fund - Equipment Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Number: 84.425U Federal Award Number and Year (or Other Identifying Number): S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Modified Opinion Condition and Context A property record or capital asset listing which would include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number (FAIN)), 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, and use and condition of the property is to be maintained for assets purchased that exceed the School Corporation's capitalization threshold. INDIANA STATE BOARD OF ACCOUNTS 24 CULVER COMMUNITY SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) The School Corporation maintained a detailed listing of capital assets; however, the asset records provided for audit did not reflect the additions paid with federal funds. The School Corporation utilized COVID-19 - Education Stabilization Fund awards, totaling $1,172,148, to partially pay for a large ventilation project; however, neither the federally purchased equipment nor the construction in progress was included in the capital asset records. Additionally, the capital asset listing provided did not identify which assets were purchased with federal dollars. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d)(1) states: "Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, 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." Cause A proper system of internal controls was not designed by management of the School Corporation. Embedded within a properly designed and implemented internal control system should be internal controls consisting of policies and procedures. Policies reflect the School Corporation's management statements of what should be done to effect internal controls, and procedures should consist of actions that would implement these policies. Effect Without the proper implementation of an effectively designed system of internal controls, the internal control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. As a result, assets purchased in whole or in part with federal dollars were not properly added to the School Corporation's asset listing. In addition, assets on the listing did not denote whether federal funds were used to acquire the asset. Noncompliance with the provisions of federal statutes, regulations, and the terms and conditions of the federal award could result in the loss of future federal funding to the School Corporation. Questioned Costs There were no questioned costs identified. INDIANA STATE BOARD OF ACCOUNTS 25 CULVER COMMUNITY SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Recommendation We recommended that management of the School Corporation establish a proper system of internal controls and develop policies and procedures to ensure asset records include all the necessary information and new assets are added. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2023-005 Subject: COVID-19 - Education Stabilization Fund - Equipment Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Number: 84.425U Federal Award Number and Year (or Other Identifying Number): S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Modified Opinion Condition and Context A property record or capital asset listing which would include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number (FAIN)), 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, and use and condition of the property is to be maintained for assets purchased that exceed the School Corporation's capitalization threshold. INDIANA STATE BOARD OF ACCOUNTS 24 CULVER COMMUNITY SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) The School Corporation maintained a detailed listing of capital assets; however, the asset records provided for audit did not reflect the additions paid with federal funds. The School Corporation utilized COVID-19 - Education Stabilization Fund awards, totaling $1,172,148, to partially pay for a large ventilation project; however, neither the federally purchased equipment nor the construction in progress was included in the capital asset records. Additionally, the capital asset listing provided did not identify which assets were purchased with federal dollars. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d)(1) states: "Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, 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." Cause A proper system of internal controls was not designed by management of the School Corporation. Embedded within a properly designed and implemented internal control system should be internal controls consisting of policies and procedures. Policies reflect the School Corporation's management statements of what should be done to effect internal controls, and procedures should consist of actions that would implement these policies. Effect Without the proper implementation of an effectively designed system of internal controls, the internal control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. As a result, assets purchased in whole or in part with federal dollars were not properly added to the School Corporation's asset listing. In addition, assets on the listing did not denote whether federal funds were used to acquire the asset. Noncompliance with the provisions of federal statutes, regulations, and the terms and conditions of the federal award could result in the loss of future federal funding to the School Corporation. Questioned Costs There were no questioned costs identified. INDIANA STATE BOARD OF ACCOUNTS 25 CULVER COMMUNITY SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Recommendation We recommended that management of the School Corporation establish a proper system of internal controls and develop policies and procedures to ensure asset records include all the necessary information and new assets are added. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2023-005 Subject: COVID-19 - Education Stabilization Fund - Equipment Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Number: 84.425U Federal Award Number and Year (or Other Identifying Number): S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Modified Opinion Condition and Context A property record or capital asset listing which would include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number (FAIN)), 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, and use and condition of the property is to be maintained for assets purchased that exceed the School Corporation's capitalization threshold. INDIANA STATE BOARD OF ACCOUNTS 24 CULVER COMMUNITY SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) The School Corporation maintained a detailed listing of capital assets; however, the asset records provided for audit did not reflect the additions paid with federal funds. The School Corporation utilized COVID-19 - Education Stabilization Fund awards, totaling $1,172,148, to partially pay for a large ventilation project; however, neither the federally purchased equipment nor the construction in progress was included in the capital asset records. Additionally, the capital asset listing provided did not identify which assets were purchased with federal dollars. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d)(1) states: "Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, 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." Cause A proper system of internal controls was not designed by management of the School Corporation. Embedded within a properly designed and implemented internal control system should be internal controls consisting of policies and procedures. Policies reflect the School Corporation's management statements of what should be done to effect internal controls, and procedures should consist of actions that would implement these policies. Effect Without the proper implementation of an effectively designed system of internal controls, the internal control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. As a result, assets purchased in whole or in part with federal dollars were not properly added to the School Corporation's asset listing. In addition, assets on the listing did not denote whether federal funds were used to acquire the asset. Noncompliance with the provisions of federal statutes, regulations, and the terms and conditions of the federal award could result in the loss of future federal funding to the School Corporation. Questioned Costs There were no questioned costs identified. INDIANA STATE BOARD OF ACCOUNTS 25 CULVER COMMUNITY SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Recommendation We recommended that management of the School Corporation establish a proper system of internal controls and develop policies and procedures to ensure asset records include all the necessary information and new assets are added. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
2023–058 EQUIPMENT AND REAL PROPERTY MANAGEMENT Federal Program Information: Federal Agency and Program Name Assistance Listing # U.S. Department of Health and Human Services Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) 93.323/COVID-19 93.323, Grant Award 6NU50CK000551-01-05, Grant Award 5NU50CK000551-C2-00, Grant Award 6NU50CK000551-02-01, Grant Award 6NU50CK000551-02-02, Grant Award 6NU50CK000551-03-05, Grant Award 6NU50CK000551-03-02, Grant Award 6NU50CK000551-02-04, Grant Award 6NU50CK000551-02-08, Grant Award 6NU50CK000551-02-06, Grant Award 6NU50CK000551-03-01, Grant Award 6NU50CK000551-01-07, Grant Award 6NU50CK000551-02-03, Grant Award 6NU50CK000551-01-06, Grant Award 5NU50CK000551-04-00, Grant Award 6NU50CK000551-04-02, Grant Award 6NU50CK000551-04-04 Criteria or specific requirement (including statutory, regulatory or other citation): 2 CFR 200.303 requires that a non-federal entity must “(a) establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the comptroller General of the United States and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). 2 CFR 200.313(b) requires a state use, manage and dispose of equipment acquired under a Federal award by the state in accordance with state laws and procedures. According to State Policy, “All agencies are required to take a physical inventory once every three years, and shall have completed such physical inventory by June 30th of the relevant year. The physical inventory shall include viewing of all Reportable Assets under the agency’s jurisdiction. The head of every spending unit of state government shall, on or before the fifteenth day of July of each year, file with the Purchasing Division director an inventory of all real and personal property, and of all equipment, supplies and commodities in its possession as of the close of the last fiscal year as stated in West Virginia Code §5A-3-35. Condition: During our testing of Epidemiology and Laboratory Capacity for Infectious Diseases, the West Virginia Department of Health and Human Resources (DHHR) was unable to provide adequate documentation supporting the most recent physical inventory of fixed assets for the agency. Cause: Adequate documentation supporting compliance with the State’s policies regarding physical inventory was not provided. Effect or Potential Effect: The Epidemiology and Laboratory Capacity for Infectious Diseases Program may not be in compliance with the requirements of F. Equipment & Real Property Management. Questioned Costs: Unknown Context: The total expenditures for the year ended June 30, 2023 were $23,002,255. Total equipment purchases for FY 2023 were $2,533,124. Identification as a Repeat Finding: This is not a repeat finding from prior year. Recommendation: We recommend that DHHR follow the State’s established policies and maintain documentation evidencing the internal control and oversight of fixed asset management. View of Responsible Officials: Management concurs with the findings and has developed a plan to correct the finding.
2023–058 EQUIPMENT AND REAL PROPERTY MANAGEMENT Federal Program Information: Federal Agency and Program Name Assistance Listing # U.S. Department of Health and Human Services Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) 93.323/COVID-19 93.323, Grant Award 6NU50CK000551-01-05, Grant Award 5NU50CK000551-C2-00, Grant Award 6NU50CK000551-02-01, Grant Award 6NU50CK000551-02-02, Grant Award 6NU50CK000551-03-05, Grant Award 6NU50CK000551-03-02, Grant Award 6NU50CK000551-02-04, Grant Award 6NU50CK000551-02-08, Grant Award 6NU50CK000551-02-06, Grant Award 6NU50CK000551-03-01, Grant Award 6NU50CK000551-01-07, Grant Award 6NU50CK000551-02-03, Grant Award 6NU50CK000551-01-06, Grant Award 5NU50CK000551-04-00, Grant Award 6NU50CK000551-04-02, Grant Award 6NU50CK000551-04-04 Criteria or specific requirement (including statutory, regulatory or other citation): 2 CFR 200.303 requires that a non-federal entity must “(a) establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the comptroller General of the United States and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). 2 CFR 200.313(b) requires a state use, manage and dispose of equipment acquired under a Federal award by the state in accordance with state laws and procedures. According to State Policy, “All agencies are required to take a physical inventory once every three years, and shall have completed such physical inventory by June 30th of the relevant year. The physical inventory shall include viewing of all Reportable Assets under the agency’s jurisdiction. The head of every spending unit of state government shall, on or before the fifteenth day of July of each year, file with the Purchasing Division director an inventory of all real and personal property, and of all equipment, supplies and commodities in its possession as of the close of the last fiscal year as stated in West Virginia Code §5A-3-35. Condition: During our testing of Epidemiology and Laboratory Capacity for Infectious Diseases, the West Virginia Department of Health and Human Resources (DHHR) was unable to provide adequate documentation supporting the most recent physical inventory of fixed assets for the agency. Cause: Adequate documentation supporting compliance with the State’s policies regarding physical inventory was not provided. Effect or Potential Effect: The Epidemiology and Laboratory Capacity for Infectious Diseases Program may not be in compliance with the requirements of F. Equipment & Real Property Management. Questioned Costs: Unknown Context: The total expenditures for the year ended June 30, 2023 were $23,002,255. Total equipment purchases for FY 2023 were $2,533,124. Identification as a Repeat Finding: This is not a repeat finding from prior year. Recommendation: We recommend that DHHR follow the State’s established policies and maintain documentation evidencing the internal control and oversight of fixed asset management. View of Responsible Officials: Management concurs with the findings and has developed a plan to correct the finding.
Internal control deficiency and noncompliance over Equipment and Real Property Management related to the physical inventory of property. Identification of the federal program: Research and Development Cluster See the Schedule of Findings and Questioned Costs for table. Criteria or specific requirement (including statutory, regulatory or other citation): Title 2, Subtitle A, Chapter II, Part 200, Subpart D, 200.303 – Internal controls. The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Title 2, Subtitle A, Chapter II, Part 200, Subpart D, Property Standards, 200.313(d)(2) – Equipment. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Condition: During our testing over equipment and real property management, we observed management did not have effective internal controls in place to ensure a physical inventory of the property which must be taken and the results reconciled with property records was completed at least once every two years. Cause: Management did not have effective internal controls in place over the compliance requirement as stated in the criteria or specific requirement section above. Effect or potential effect: A physical inventory of the property which must be taken and the results reconciled with property records was not completed at least once every two years. This could potentially result in the property records not reconciling with the actual property present at the entity’s facilities. Questioned costs: None. Context: During our testing over equipment and real property management, we obtained a listing of property that had a net book value of $2,377,270. We observed management did not perform a physical inventory of this property. Identification as a repeat finding, if applicable: No. Recommendation: We recommend management develop and implement effective internal controls to ensure a physical inventory of property which must be taken and the results reconciled with property records is completed at least once every two years. Views of responsible officials: In response to this finding management will implement the following: An education session occurred on February 7, 2024, with the relevant parties across the Cedars-Sinai Research Facilities department. The session focused on the uniform guidance, more specifically the requirements to perform a physical inventory of property at least once every two years as set forth in CFR 200.313 (d) (2). We will schedule follow up sessions in March 2024 (first session scheduled for March 1st, second session TBD) to review and update existing policies and procedures to ensure future transfer of knowledge, as well as finalize a plan of action in order to complete a physical inventory of research equipment by the end of the fiscal year period, June 2024.
Internal control deficiency and noncompliance over Equipment and Real Property Management related to the physical inventory of property. Identification of the federal program: Research and Development Cluster See the Schedule of Findings and Questioned Costs for table. Criteria or specific requirement (including statutory, regulatory or other citation): Title 2, Subtitle A, Chapter II, Part 200, Subpart D, 200.303 – Internal controls. The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Title 2, Subtitle A, Chapter II, Part 200, Subpart D, Property Standards, 200.313(d)(2) – Equipment. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Condition: During our testing over equipment and real property management, we observed management did not have effective internal controls in place to ensure a physical inventory of the property which must be taken and the results reconciled with property records was completed at least once every two years. Cause: Management did not have effective internal controls in place over the compliance requirement as stated in the criteria or specific requirement section above. Effect or potential effect: A physical inventory of the property which must be taken and the results reconciled with property records was not completed at least once every two years. This could potentially result in the property records not reconciling with the actual property present at the entity’s facilities. Questioned costs: None. Context: During our testing over equipment and real property management, we obtained a listing of property that had a net book value of $2,377,270. We observed management did not perform a physical inventory of this property. Identification as a repeat finding, if applicable: No. Recommendation: We recommend management develop and implement effective internal controls to ensure a physical inventory of property which must be taken and the results reconciled with property records is completed at least once every two years. Views of responsible officials: In response to this finding management will implement the following: An education session occurred on February 7, 2024, with the relevant parties across the Cedars-Sinai Research Facilities department. The session focused on the uniform guidance, more specifically the requirements to perform a physical inventory of property at least once every two years as set forth in CFR 200.313 (d) (2). We will schedule follow up sessions in March 2024 (first session scheduled for March 1st, second session TBD) to review and update existing policies and procedures to ensure future transfer of knowledge, as well as finalize a plan of action in order to complete a physical inventory of research equipment by the end of the fiscal year period, June 2024.
Internal control deficiency and noncompliance over Equipment and Real Property Management related to the physical inventory of property. Identification of the federal program: Research and Development Cluster See the Schedule of Findings and Questioned Costs for table. Criteria or specific requirement (including statutory, regulatory or other citation): Title 2, Subtitle A, Chapter II, Part 200, Subpart D, 200.303 – Internal controls. The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Title 2, Subtitle A, Chapter II, Part 200, Subpart D, Property Standards, 200.313(d)(2) – Equipment. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Condition: During our testing over equipment and real property management, we observed management did not have effective internal controls in place to ensure a physical inventory of the property which must be taken and the results reconciled with property records was completed at least once every two years. Cause: Management did not have effective internal controls in place over the compliance requirement as stated in the criteria or specific requirement section above. Effect or potential effect: A physical inventory of the property which must be taken and the results reconciled with property records was not completed at least once every two years. This could potentially result in the property records not reconciling with the actual property present at the entity’s facilities. Questioned costs: None. Context: During our testing over equipment and real property management, we obtained a listing of property that had a net book value of $2,377,270. We observed management did not perform a physical inventory of this property. Identification as a repeat finding, if applicable: No. Recommendation: We recommend management develop and implement effective internal controls to ensure a physical inventory of property which must be taken and the results reconciled with property records is completed at least once every two years. Views of responsible officials: In response to this finding management will implement the following: An education session occurred on February 7, 2024, with the relevant parties across the Cedars-Sinai Research Facilities department. The session focused on the uniform guidance, more specifically the requirements to perform a physical inventory of property at least once every two years as set forth in CFR 200.313 (d) (2). We will schedule follow up sessions in March 2024 (first session scheduled for March 1st, second session TBD) to review and update existing policies and procedures to ensure future transfer of knowledge, as well as finalize a plan of action in order to complete a physical inventory of research equipment by the end of the fiscal year period, June 2024.
Internal control deficiency and noncompliance over Equipment and Real Property Management related to the physical inventory of property. Identification of the federal program: Research and Development Cluster See the Schedule of Findings and Questioned Costs for table. Criteria or specific requirement (including statutory, regulatory or other citation): Title 2, Subtitle A, Chapter II, Part 200, Subpart D, 200.303 – Internal controls. The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Title 2, Subtitle A, Chapter II, Part 200, Subpart D, Property Standards, 200.313(d)(2) – Equipment. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Condition: During our testing over equipment and real property management, we observed management did not have effective internal controls in place to ensure a physical inventory of the property which must be taken and the results reconciled with property records was completed at least once every two years. Cause: Management did not have effective internal controls in place over the compliance requirement as stated in the criteria or specific requirement section above. Effect or potential effect: A physical inventory of the property which must be taken and the results reconciled with property records was not completed at least once every two years. This could potentially result in the property records not reconciling with the actual property present at the entity’s facilities. Questioned costs: None. Context: During our testing over equipment and real property management, we obtained a listing of property that had a net book value of $2,377,270. We observed management did not perform a physical inventory of this property. Identification as a repeat finding, if applicable: No. Recommendation: We recommend management develop and implement effective internal controls to ensure a physical inventory of property which must be taken and the results reconciled with property records is completed at least once every two years. Views of responsible officials: In response to this finding management will implement the following: An education session occurred on February 7, 2024, with the relevant parties across the Cedars-Sinai Research Facilities department. The session focused on the uniform guidance, more specifically the requirements to perform a physical inventory of property at least once every two years as set forth in CFR 200.313 (d) (2). We will schedule follow up sessions in March 2024 (first session scheduled for March 1st, second session TBD) to review and update existing policies and procedures to ensure future transfer of knowledge, as well as finalize a plan of action in order to complete a physical inventory of research equipment by the end of the fiscal year period, June 2024.
Internal control deficiency and noncompliance over Equipment and Real Property Management related to the physical inventory of property. Identification of the federal program: Research and Development Cluster See the Schedule of Findings and Questioned Costs for table. Criteria or specific requirement (including statutory, regulatory or other citation): Title 2, Subtitle A, Chapter II, Part 200, Subpart D, 200.303 – Internal controls. The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Title 2, Subtitle A, Chapter II, Part 200, Subpart D, Property Standards, 200.313(d)(2) – Equipment. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Condition: During our testing over equipment and real property management, we observed management did not have effective internal controls in place to ensure a physical inventory of the property which must be taken and the results reconciled with property records was completed at least once every two years. Cause: Management did not have effective internal controls in place over the compliance requirement as stated in the criteria or specific requirement section above. Effect or potential effect: A physical inventory of the property which must be taken and the results reconciled with property records was not completed at least once every two years. This could potentially result in the property records not reconciling with the actual property present at the entity’s facilities. Questioned costs: None. Context: During our testing over equipment and real property management, we obtained a listing of property that had a net book value of $2,377,270. We observed management did not perform a physical inventory of this property. Identification as a repeat finding, if applicable: No. Recommendation: We recommend management develop and implement effective internal controls to ensure a physical inventory of property which must be taken and the results reconciled with property records is completed at least once every two years. Views of responsible officials: In response to this finding management will implement the following: An education session occurred on February 7, 2024, with the relevant parties across the Cedars-Sinai Research Facilities department. The session focused on the uniform guidance, more specifically the requirements to perform a physical inventory of property at least once every two years as set forth in CFR 200.313 (d) (2). We will schedule follow up sessions in March 2024 (first session scheduled for March 1st, second session TBD) to review and update existing policies and procedures to ensure future transfer of knowledge, as well as finalize a plan of action in order to complete a physical inventory of research equipment by the end of the fiscal year period, June 2024.
Internal control deficiency and noncompliance over Equipment and Real Property Management related to the physical inventory of property. Identification of the federal program: Research and Development Cluster See the Schedule of Findings and Questioned Costs for table. Criteria or specific requirement (including statutory, regulatory or other citation): Title 2, Subtitle A, Chapter II, Part 200, Subpart D, 200.303 – Internal controls. The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Title 2, Subtitle A, Chapter II, Part 200, Subpart D, Property Standards, 200.313(d)(2) – Equipment. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Condition: During our testing over equipment and real property management, we observed management did not have effective internal controls in place to ensure a physical inventory of the property which must be taken and the results reconciled with property records was completed at least once every two years. Cause: Management did not have effective internal controls in place over the compliance requirement as stated in the criteria or specific requirement section above. Effect or potential effect: A physical inventory of the property which must be taken and the results reconciled with property records was not completed at least once every two years. This could potentially result in the property records not reconciling with the actual property present at the entity’s facilities. Questioned costs: None. Context: During our testing over equipment and real property management, we obtained a listing of property that had a net book value of $2,377,270. We observed management did not perform a physical inventory of this property. Identification as a repeat finding, if applicable: No. Recommendation: We recommend management develop and implement effective internal controls to ensure a physical inventory of property which must be taken and the results reconciled with property records is completed at least once every two years. Views of responsible officials: In response to this finding management will implement the following: An education session occurred on February 7, 2024, with the relevant parties across the Cedars-Sinai Research Facilities department. The session focused on the uniform guidance, more specifically the requirements to perform a physical inventory of property at least once every two years as set forth in CFR 200.313 (d) (2). We will schedule follow up sessions in March 2024 (first session scheduled for March 1st, second session TBD) to review and update existing policies and procedures to ensure future transfer of knowledge, as well as finalize a plan of action in order to complete a physical inventory of research equipment by the end of the fiscal year period, June 2024.
Internal control deficiency and noncompliance over Equipment and Real Property Management related to the physical inventory of property. Identification of the federal program: Research and Development Cluster See the Schedule of Findings and Questioned Costs for table. Criteria or specific requirement (including statutory, regulatory or other citation): Title 2, Subtitle A, Chapter II, Part 200, Subpart D, 200.303 – Internal controls. The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Title 2, Subtitle A, Chapter II, Part 200, Subpart D, Property Standards, 200.313(d)(2) – Equipment. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Condition: During our testing over equipment and real property management, we observed management did not have effective internal controls in place to ensure a physical inventory of the property which must be taken and the results reconciled with property records was completed at least once every two years. Cause: Management did not have effective internal controls in place over the compliance requirement as stated in the criteria or specific requirement section above. Effect or potential effect: A physical inventory of the property which must be taken and the results reconciled with property records was not completed at least once every two years. This could potentially result in the property records not reconciling with the actual property present at the entity’s facilities. Questioned costs: None. Context: During our testing over equipment and real property management, we obtained a listing of property that had a net book value of $2,377,270. We observed management did not perform a physical inventory of this property. Identification as a repeat finding, if applicable: No. Recommendation: We recommend management develop and implement effective internal controls to ensure a physical inventory of property which must be taken and the results reconciled with property records is completed at least once every two years. Views of responsible officials: In response to this finding management will implement the following: An education session occurred on February 7, 2024, with the relevant parties across the Cedars-Sinai Research Facilities department. The session focused on the uniform guidance, more specifically the requirements to perform a physical inventory of property at least once every two years as set forth in CFR 200.313 (d) (2). We will schedule follow up sessions in March 2024 (first session scheduled for March 1st, second session TBD) to review and update existing policies and procedures to ensure future transfer of knowledge, as well as finalize a plan of action in order to complete a physical inventory of research equipment by the end of the fiscal year period, June 2024.
Internal control deficiency and noncompliance over Equipment and Real Property Management related to the physical inventory of property. Identification of the federal program: Research and Development Cluster See the Schedule of Findings and Questioned Costs for table. Criteria or specific requirement (including statutory, regulatory or other citation): Title 2, Subtitle A, Chapter II, Part 200, Subpart D, 200.303 – Internal controls. The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Title 2, Subtitle A, Chapter II, Part 200, Subpart D, Property Standards, 200.313(d)(2) – Equipment. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Condition: During our testing over equipment and real property management, we observed management did not have effective internal controls in place to ensure a physical inventory of the property which must be taken and the results reconciled with property records was completed at least once every two years. Cause: Management did not have effective internal controls in place over the compliance requirement as stated in the criteria or specific requirement section above. Effect or potential effect: A physical inventory of the property which must be taken and the results reconciled with property records was not completed at least once every two years. This could potentially result in the property records not reconciling with the actual property present at the entity’s facilities. Questioned costs: None. Context: During our testing over equipment and real property management, we obtained a listing of property that had a net book value of $2,377,270. We observed management did not perform a physical inventory of this property. Identification as a repeat finding, if applicable: No. Recommendation: We recommend management develop and implement effective internal controls to ensure a physical inventory of property which must be taken and the results reconciled with property records is completed at least once every two years. Views of responsible officials: In response to this finding management will implement the following: An education session occurred on February 7, 2024, with the relevant parties across the Cedars-Sinai Research Facilities department. The session focused on the uniform guidance, more specifically the requirements to perform a physical inventory of property at least once every two years as set forth in CFR 200.313 (d) (2). We will schedule follow up sessions in March 2024 (first session scheduled for March 1st, second session TBD) to review and update existing policies and procedures to ensure future transfer of knowledge, as well as finalize a plan of action in order to complete a physical inventory of research equipment by the end of the fiscal year period, June 2024.
Internal control deficiency and noncompliance over Equipment and Real Property Management related to the physical inventory of property. Identification of the federal program: Research and Development Cluster See the Schedule of Findings and Questioned Costs for table. Criteria or specific requirement (including statutory, regulatory or other citation): Title 2, Subtitle A, Chapter II, Part 200, Subpart D, 200.303 – Internal controls. The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Title 2, Subtitle A, Chapter II, Part 200, Subpart D, Property Standards, 200.313(d)(2) – Equipment. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Condition: During our testing over equipment and real property management, we observed management did not have effective internal controls in place to ensure a physical inventory of the property which must be taken and the results reconciled with property records was completed at least once every two years. Cause: Management did not have effective internal controls in place over the compliance requirement as stated in the criteria or specific requirement section above. Effect or potential effect: A physical inventory of the property which must be taken and the results reconciled with property records was not completed at least once every two years. This could potentially result in the property records not reconciling with the actual property present at the entity’s facilities. Questioned costs: None. Context: During our testing over equipment and real property management, we obtained a listing of property that had a net book value of $2,377,270. We observed management did not perform a physical inventory of this property. Identification as a repeat finding, if applicable: No. Recommendation: We recommend management develop and implement effective internal controls to ensure a physical inventory of property which must be taken and the results reconciled with property records is completed at least once every two years. Views of responsible officials: In response to this finding management will implement the following: An education session occurred on February 7, 2024, with the relevant parties across the Cedars-Sinai Research Facilities department. The session focused on the uniform guidance, more specifically the requirements to perform a physical inventory of property at least once every two years as set forth in CFR 200.313 (d) (2). We will schedule follow up sessions in March 2024 (first session scheduled for March 1st, second session TBD) to review and update existing policies and procedures to ensure future transfer of knowledge, as well as finalize a plan of action in order to complete a physical inventory of research equipment by the end of the fiscal year period, June 2024.
Internal control deficiency and noncompliance over Equipment and Real Property Management related to the physical inventory of property. Identification of the federal program: Research and Development Cluster See the Schedule of Findings and Questioned Costs for table. Criteria or specific requirement (including statutory, regulatory or other citation): Title 2, Subtitle A, Chapter II, Part 200, Subpart D, 200.303 – Internal controls. The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Title 2, Subtitle A, Chapter II, Part 200, Subpart D, Property Standards, 200.313(d)(2) – Equipment. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Condition: During our testing over equipment and real property management, we observed management did not have effective internal controls in place to ensure a physical inventory of the property which must be taken and the results reconciled with property records was completed at least once every two years. Cause: Management did not have effective internal controls in place over the compliance requirement as stated in the criteria or specific requirement section above. Effect or potential effect: A physical inventory of the property which must be taken and the results reconciled with property records was not completed at least once every two years. This could potentially result in the property records not reconciling with the actual property present at the entity’s facilities. Questioned costs: None. Context: During our testing over equipment and real property management, we obtained a listing of property that had a net book value of $2,377,270. We observed management did not perform a physical inventory of this property. Identification as a repeat finding, if applicable: No. Recommendation: We recommend management develop and implement effective internal controls to ensure a physical inventory of property which must be taken and the results reconciled with property records is completed at least once every two years. Views of responsible officials: In response to this finding management will implement the following: An education session occurred on February 7, 2024, with the relevant parties across the Cedars-Sinai Research Facilities department. The session focused on the uniform guidance, more specifically the requirements to perform a physical inventory of property at least once every two years as set forth in CFR 200.313 (d) (2). We will schedule follow up sessions in March 2024 (first session scheduled for March 1st, second session TBD) to review and update existing policies and procedures to ensure future transfer of knowledge, as well as finalize a plan of action in order to complete a physical inventory of research equipment by the end of the fiscal year period, June 2024.
Internal control deficiency and noncompliance over Equipment and Real Property Management related to the physical inventory of property. Identification of the federal program: Research and Development Cluster See the Schedule of Findings and Questioned Costs for table. Criteria or specific requirement (including statutory, regulatory or other citation): Title 2, Subtitle A, Chapter II, Part 200, Subpart D, 200.303 – Internal controls. The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Title 2, Subtitle A, Chapter II, Part 200, Subpart D, Property Standards, 200.313(d)(2) – Equipment. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Condition: During our testing over equipment and real property management, we observed management did not have effective internal controls in place to ensure a physical inventory of the property which must be taken and the results reconciled with property records was completed at least once every two years. Cause: Management did not have effective internal controls in place over the compliance requirement as stated in the criteria or specific requirement section above. Effect or potential effect: A physical inventory of the property which must be taken and the results reconciled with property records was not completed at least once every two years. This could potentially result in the property records not reconciling with the actual property present at the entity’s facilities. Questioned costs: None. Context: During our testing over equipment and real property management, we obtained a listing of property that had a net book value of $2,377,270. We observed management did not perform a physical inventory of this property. Identification as a repeat finding, if applicable: No. Recommendation: We recommend management develop and implement effective internal controls to ensure a physical inventory of property which must be taken and the results reconciled with property records is completed at least once every two years. Views of responsible officials: In response to this finding management will implement the following: An education session occurred on February 7, 2024, with the relevant parties across the Cedars-Sinai Research Facilities department. The session focused on the uniform guidance, more specifically the requirements to perform a physical inventory of property at least once every two years as set forth in CFR 200.313 (d) (2). We will schedule follow up sessions in March 2024 (first session scheduled for March 1st, second session TBD) to review and update existing policies and procedures to ensure future transfer of knowledge, as well as finalize a plan of action in order to complete a physical inventory of research equipment by the end of the fiscal year period, June 2024.
Internal control deficiency and noncompliance over Equipment and Real Property Management related to the physical inventory of property. Identification of the federal program: Research and Development Cluster See the Schedule of Findings and Questioned Costs for table. Criteria or specific requirement (including statutory, regulatory or other citation): Title 2, Subtitle A, Chapter II, Part 200, Subpart D, 200.303 – Internal controls. The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Title 2, Subtitle A, Chapter II, Part 200, Subpart D, Property Standards, 200.313(d)(2) – Equipment. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Condition: During our testing over equipment and real property management, we observed management did not have effective internal controls in place to ensure a physical inventory of the property which must be taken and the results reconciled with property records was completed at least once every two years. Cause: Management did not have effective internal controls in place over the compliance requirement as stated in the criteria or specific requirement section above. Effect or potential effect: A physical inventory of the property which must be taken and the results reconciled with property records was not completed at least once every two years. This could potentially result in the property records not reconciling with the actual property present at the entity’s facilities. Questioned costs: None. Context: During our testing over equipment and real property management, we obtained a listing of property that had a net book value of $2,377,270. We observed management did not perform a physical inventory of this property. Identification as a repeat finding, if applicable: No. Recommendation: We recommend management develop and implement effective internal controls to ensure a physical inventory of property which must be taken and the results reconciled with property records is completed at least once every two years. Views of responsible officials: In response to this finding management will implement the following: An education session occurred on February 7, 2024, with the relevant parties across the Cedars-Sinai Research Facilities department. The session focused on the uniform guidance, more specifically the requirements to perform a physical inventory of property at least once every two years as set forth in CFR 200.313 (d) (2). We will schedule follow up sessions in March 2024 (first session scheduled for March 1st, second session TBD) to review and update existing policies and procedures to ensure future transfer of knowledge, as well as finalize a plan of action in order to complete a physical inventory of research equipment by the end of the fiscal year period, June 2024.
Internal control deficiency and noncompliance over Equipment and Real Property Management related to the physical inventory of property. Identification of the federal program: Research and Development Cluster See the Schedule of Findings and Questioned Costs for table. Criteria or specific requirement (including statutory, regulatory or other citation): Title 2, Subtitle A, Chapter II, Part 200, Subpart D, 200.303 – Internal controls. The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Title 2, Subtitle A, Chapter II, Part 200, Subpart D, Property Standards, 200.313(d)(2) – Equipment. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Condition: During our testing over equipment and real property management, we observed management did not have effective internal controls in place to ensure a physical inventory of the property which must be taken and the results reconciled with property records was completed at least once every two years. Cause: Management did not have effective internal controls in place over the compliance requirement as stated in the criteria or specific requirement section above. Effect or potential effect: A physical inventory of the property which must be taken and the results reconciled with property records was not completed at least once every two years. This could potentially result in the property records not reconciling with the actual property present at the entity’s facilities. Questioned costs: None. Context: During our testing over equipment and real property management, we obtained a listing of property that had a net book value of $2,377,270. We observed management did not perform a physical inventory of this property. Identification as a repeat finding, if applicable: No. Recommendation: We recommend management develop and implement effective internal controls to ensure a physical inventory of property which must be taken and the results reconciled with property records is completed at least once every two years. Views of responsible officials: In response to this finding management will implement the following: An education session occurred on February 7, 2024, with the relevant parties across the Cedars-Sinai Research Facilities department. The session focused on the uniform guidance, more specifically the requirements to perform a physical inventory of property at least once every two years as set forth in CFR 200.313 (d) (2). We will schedule follow up sessions in March 2024 (first session scheduled for March 1st, second session TBD) to review and update existing policies and procedures to ensure future transfer of knowledge, as well as finalize a plan of action in order to complete a physical inventory of research equipment by the end of the fiscal year period, June 2024.
Internal control deficiency and noncompliance over Equipment and Real Property Management related to the physical inventory of property. Identification of the federal program: Research and Development Cluster See the Schedule of Findings and Questioned Costs for table. Criteria or specific requirement (including statutory, regulatory or other citation): Title 2, Subtitle A, Chapter II, Part 200, Subpart D, 200.303 – Internal controls. The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Title 2, Subtitle A, Chapter II, Part 200, Subpart D, Property Standards, 200.313(d)(2) – Equipment. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Condition: During our testing over equipment and real property management, we observed management did not have effective internal controls in place to ensure a physical inventory of the property which must be taken and the results reconciled with property records was completed at least once every two years. Cause: Management did not have effective internal controls in place over the compliance requirement as stated in the criteria or specific requirement section above. Effect or potential effect: A physical inventory of the property which must be taken and the results reconciled with property records was not completed at least once every two years. This could potentially result in the property records not reconciling with the actual property present at the entity’s facilities. Questioned costs: None. Context: During our testing over equipment and real property management, we obtained a listing of property that had a net book value of $2,377,270. We observed management did not perform a physical inventory of this property. Identification as a repeat finding, if applicable: No. Recommendation: We recommend management develop and implement effective internal controls to ensure a physical inventory of property which must be taken and the results reconciled with property records is completed at least once every two years. Views of responsible officials: In response to this finding management will implement the following: An education session occurred on February 7, 2024, with the relevant parties across the Cedars-Sinai Research Facilities department. The session focused on the uniform guidance, more specifically the requirements to perform a physical inventory of property at least once every two years as set forth in CFR 200.313 (d) (2). We will schedule follow up sessions in March 2024 (first session scheduled for March 1st, second session TBD) to review and update existing policies and procedures to ensure future transfer of knowledge, as well as finalize a plan of action in order to complete a physical inventory of research equipment by the end of the fiscal year period, June 2024.
Internal control deficiency and noncompliance over Equipment and Real Property Management related to the physical inventory of property. Identification of the federal program: Research and Development Cluster See the Schedule of Findings and Questioned Costs for table. Criteria or specific requirement (including statutory, regulatory or other citation): Title 2, Subtitle A, Chapter II, Part 200, Subpart D, 200.303 – Internal controls. The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Title 2, Subtitle A, Chapter II, Part 200, Subpart D, Property Standards, 200.313(d)(2) – Equipment. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Condition: During our testing over equipment and real property management, we observed management did not have effective internal controls in place to ensure a physical inventory of the property which must be taken and the results reconciled with property records was completed at least once every two years. Cause: Management did not have effective internal controls in place over the compliance requirement as stated in the criteria or specific requirement section above. Effect or potential effect: A physical inventory of the property which must be taken and the results reconciled with property records was not completed at least once every two years. This could potentially result in the property records not reconciling with the actual property present at the entity’s facilities. Questioned costs: None. Context: During our testing over equipment and real property management, we obtained a listing of property that had a net book value of $2,377,270. We observed management did not perform a physical inventory of this property. Identification as a repeat finding, if applicable: No. Recommendation: We recommend management develop and implement effective internal controls to ensure a physical inventory of property which must be taken and the results reconciled with property records is completed at least once every two years. Views of responsible officials: In response to this finding management will implement the following: An education session occurred on February 7, 2024, with the relevant parties across the Cedars-Sinai Research Facilities department. The session focused on the uniform guidance, more specifically the requirements to perform a physical inventory of property at least once every two years as set forth in CFR 200.313 (d) (2). We will schedule follow up sessions in March 2024 (first session scheduled for March 1st, second session TBD) to review and update existing policies and procedures to ensure future transfer of knowledge, as well as finalize a plan of action in order to complete a physical inventory of research equipment by the end of the fiscal year period, June 2024.
Internal control deficiency and noncompliance over Equipment and Real Property Management related to the physical inventory of property. Identification of the federal program: Research and Development Cluster See the Schedule of Findings and Questioned Costs for table. Criteria or specific requirement (including statutory, regulatory or other citation): Title 2, Subtitle A, Chapter II, Part 200, Subpart D, 200.303 – Internal controls. The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Title 2, Subtitle A, Chapter II, Part 200, Subpart D, Property Standards, 200.313(d)(2) – Equipment. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Condition: During our testing over equipment and real property management, we observed management did not have effective internal controls in place to ensure a physical inventory of the property which must be taken and the results reconciled with property records was completed at least once every two years. Cause: Management did not have effective internal controls in place over the compliance requirement as stated in the criteria or specific requirement section above. Effect or potential effect: A physical inventory of the property which must be taken and the results reconciled with property records was not completed at least once every two years. This could potentially result in the property records not reconciling with the actual property present at the entity’s facilities. Questioned costs: None. Context: During our testing over equipment and real property management, we obtained a listing of property that had a net book value of $2,377,270. We observed management did not perform a physical inventory of this property. Identification as a repeat finding, if applicable: No. Recommendation: We recommend management develop and implement effective internal controls to ensure a physical inventory of property which must be taken and the results reconciled with property records is completed at least once every two years. Views of responsible officials: In response to this finding management will implement the following: An education session occurred on February 7, 2024, with the relevant parties across the Cedars-Sinai Research Facilities department. The session focused on the uniform guidance, more specifically the requirements to perform a physical inventory of property at least once every two years as set forth in CFR 200.313 (d) (2). We will schedule follow up sessions in March 2024 (first session scheduled for March 1st, second session TBD) to review and update existing policies and procedures to ensure future transfer of knowledge, as well as finalize a plan of action in order to complete a physical inventory of research equipment by the end of the fiscal year period, June 2024.
Internal control deficiency and noncompliance over Equipment and Real Property Management related to the physical inventory of property. Identification of the federal program: Research and Development Cluster See the Schedule of Findings and Questioned Costs for table. Criteria or specific requirement (including statutory, regulatory or other citation): Title 2, Subtitle A, Chapter II, Part 200, Subpart D, 200.303 – Internal controls. The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Title 2, Subtitle A, Chapter II, Part 200, Subpart D, Property Standards, 200.313(d)(2) – Equipment. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Condition: During our testing over equipment and real property management, we observed management did not have effective internal controls in place to ensure a physical inventory of the property which must be taken and the results reconciled with property records was completed at least once every two years. Cause: Management did not have effective internal controls in place over the compliance requirement as stated in the criteria or specific requirement section above. Effect or potential effect: A physical inventory of the property which must be taken and the results reconciled with property records was not completed at least once every two years. This could potentially result in the property records not reconciling with the actual property present at the entity’s facilities. Questioned costs: None. Context: During our testing over equipment and real property management, we obtained a listing of property that had a net book value of $2,377,270. We observed management did not perform a physical inventory of this property. Identification as a repeat finding, if applicable: No. Recommendation: We recommend management develop and implement effective internal controls to ensure a physical inventory of property which must be taken and the results reconciled with property records is completed at least once every two years. Views of responsible officials: In response to this finding management will implement the following: An education session occurred on February 7, 2024, with the relevant parties across the Cedars-Sinai Research Facilities department. The session focused on the uniform guidance, more specifically the requirements to perform a physical inventory of property at least once every two years as set forth in CFR 200.313 (d) (2). We will schedule follow up sessions in March 2024 (first session scheduled for March 1st, second session TBD) to review and update existing policies and procedures to ensure future transfer of knowledge, as well as finalize a plan of action in order to complete a physical inventory of research equipment by the end of the fiscal year period, June 2024.
Internal control deficiency and noncompliance over Equipment and Real Property Management related to the physical inventory of property. Identification of the federal program: Research and Development Cluster See the Schedule of Findings and Questioned Costs for table. Criteria or specific requirement (including statutory, regulatory or other citation): Title 2, Subtitle A, Chapter II, Part 200, Subpart D, 200.303 – Internal controls. The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Title 2, Subtitle A, Chapter II, Part 200, Subpart D, Property Standards, 200.313(d)(2) – Equipment. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Condition: During our testing over equipment and real property management, we observed management did not have effective internal controls in place to ensure a physical inventory of the property which must be taken and the results reconciled with property records was completed at least once every two years. Cause: Management did not have effective internal controls in place over the compliance requirement as stated in the criteria or specific requirement section above. Effect or potential effect: A physical inventory of the property which must be taken and the results reconciled with property records was not completed at least once every two years. This could potentially result in the property records not reconciling with the actual property present at the entity’s facilities. Questioned costs: None. Context: During our testing over equipment and real property management, we obtained a listing of property that had a net book value of $2,377,270. We observed management did not perform a physical inventory of this property. Identification as a repeat finding, if applicable: No. Recommendation: We recommend management develop and implement effective internal controls to ensure a physical inventory of property which must be taken and the results reconciled with property records is completed at least once every two years. Views of responsible officials: In response to this finding management will implement the following: An education session occurred on February 7, 2024, with the relevant parties across the Cedars-Sinai Research Facilities department. The session focused on the uniform guidance, more specifically the requirements to perform a physical inventory of property at least once every two years as set forth in CFR 200.313 (d) (2). We will schedule follow up sessions in March 2024 (first session scheduled for March 1st, second session TBD) to review and update existing policies and procedures to ensure future transfer of knowledge, as well as finalize a plan of action in order to complete a physical inventory of research equipment by the end of the fiscal year period, June 2024.
Internal control deficiency and noncompliance over Equipment and Real Property Management related to the physical inventory of property. Identification of the federal program: Research and Development Cluster See the Schedule of Findings and Questioned Costs for table. Criteria or specific requirement (including statutory, regulatory or other citation): Title 2, Subtitle A, Chapter II, Part 200, Subpart D, 200.303 – Internal controls. The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Title 2, Subtitle A, Chapter II, Part 200, Subpart D, Property Standards, 200.313(d)(2) – Equipment. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Condition: During our testing over equipment and real property management, we observed management did not have effective internal controls in place to ensure a physical inventory of the property which must be taken and the results reconciled with property records was completed at least once every two years. Cause: Management did not have effective internal controls in place over the compliance requirement as stated in the criteria or specific requirement section above. Effect or potential effect: A physical inventory of the property which must be taken and the results reconciled with property records was not completed at least once every two years. This could potentially result in the property records not reconciling with the actual property present at the entity’s facilities. Questioned costs: None. Context: During our testing over equipment and real property management, we obtained a listing of property that had a net book value of $2,377,270. We observed management did not perform a physical inventory of this property. Identification as a repeat finding, if applicable: No. Recommendation: We recommend management develop and implement effective internal controls to ensure a physical inventory of property which must be taken and the results reconciled with property records is completed at least once every two years. Views of responsible officials: In response to this finding management will implement the following: An education session occurred on February 7, 2024, with the relevant parties across the Cedars-Sinai Research Facilities department. The session focused on the uniform guidance, more specifically the requirements to perform a physical inventory of property at least once every two years as set forth in CFR 200.313 (d) (2). We will schedule follow up sessions in March 2024 (first session scheduled for March 1st, second session TBD) to review and update existing policies and procedures to ensure future transfer of knowledge, as well as finalize a plan of action in order to complete a physical inventory of research equipment by the end of the fiscal year period, June 2024.
Finding 2023-002: Equipment Inventory Management (50000) Assistance Listing No. 84.425 – Education Stabilization Funds (ESSER) U.S. Department of Treasury Passed through California Department of Education Criteria: The LEA must maintain documentation to substantiate that all equipment purchases are reasonable, necessary, and allowable in accordance with federal state and program requirements. Also, an LEA must establish and maintain a historical inventory system for equipment with an acquisition cost of $500 or more per unit, which contains all required elements as specified in 2 CFR 200.313(d)(1) and the LEA must conduct a physical inventory of the property and the results must be reconciled with the property records at least once every two years. In addition, the LEA must obtain prior written approval from CDE for capital expenditures to be allowable; and the LEA must follow applicable construction regulations. The LEA must ensure heating, ventilation, and air conditioning (HVAC) systems require the use of American Society of Heating, Refrigeration, and Air Conditioning Engineer (ASHRAE) standards and the LEA must ensure every contract for minor remodeling, renovation, repair, or construction contracts in excess of $2,000 contains a provision stating the prevailing wages that must be paid to laborers and mechanics that are not less than those established for the locality of the project. The LEA is required to have a system of internal control which provides reasonable assurance that all costs charged to the programs are reasonable, necessary, and allowable in accordance with applicable statutes, regulations, and program requirements. Condition: The LEA failed to provide documentation to show a complete inventory that includes all required elements and all equipment purchased with Federal Stimulus funds. For example, the LEA purchased markerboard, Dell Latitude computers, and tables using Federal Stimulus funds with ESSER II (Resource 3212) and ESSER III (Resource 3213); however, the items were not properly documented on the LEA’s inventory to substantiate the total of $28,330.66 in equipment purchased with Federal stimulus funds. In addition, the LEA failed to provide evidence of the physical check at least once every two years. Additionally, the LEA’s procedures for the equipment inventory does not contain all required elements in the asset tag - Percent of Federal Award; Transfer; Disposition; Replacement; Use and Current Condition; Fund Source; and Evidence of the physical check. Cause: The LEA has experienced significant employee turnover, which has caused a lack of oversight of certain compliance requirements. Effect: Equipment purchased with federal funds may not be specifically identified. Questioned Costs: $28,330.66 Context: The finding was the result of Federal Program Monitoring (FPM) procedures performed by the CDE. Recommendation: The County has already cleared this finding with CDE. No further action is needed. Views of Responsible Officials: The County has already cleared this finding with CDE. In addition, we have updated the procurement policies to match Uniform Guidance requirements.
Finding 2023-002: Equipment Inventory Management (50000) Assistance Listing No. 84.425 – Education Stabilization Funds (ESSER) U.S. Department of Treasury Passed through California Department of Education Criteria: The LEA must maintain documentation to substantiate that all equipment purchases are reasonable, necessary, and allowable in accordance with federal state and program requirements. Also, an LEA must establish and maintain a historical inventory system for equipment with an acquisition cost of $500 or more per unit, which contains all required elements as specified in 2 CFR 200.313(d)(1) and the LEA must conduct a physical inventory of the property and the results must be reconciled with the property records at least once every two years. In addition, the LEA must obtain prior written approval from CDE for capital expenditures to be allowable; and the LEA must follow applicable construction regulations. The LEA must ensure heating, ventilation, and air conditioning (HVAC) systems require the use of American Society of Heating, Refrigeration, and Air Conditioning Engineer (ASHRAE) standards and the LEA must ensure every contract for minor remodeling, renovation, repair, or construction contracts in excess of $2,000 contains a provision stating the prevailing wages that must be paid to laborers and mechanics that are not less than those established for the locality of the project. The LEA is required to have a system of internal control which provides reasonable assurance that all costs charged to the programs are reasonable, necessary, and allowable in accordance with applicable statutes, regulations, and program requirements. Condition: The LEA failed to provide documentation to show a complete inventory that includes all required elements and all equipment purchased with Federal Stimulus funds. For example, the LEA purchased markerboard, Dell Latitude computers, and tables using Federal Stimulus funds with ESSER II (Resource 3212) and ESSER III (Resource 3213); however, the items were not properly documented on the LEA’s inventory to substantiate the total of $28,330.66 in equipment purchased with Federal stimulus funds. In addition, the LEA failed to provide evidence of the physical check at least once every two years. Additionally, the LEA’s procedures for the equipment inventory does not contain all required elements in the asset tag - Percent of Federal Award; Transfer; Disposition; Replacement; Use and Current Condition; Fund Source; and Evidence of the physical check. Cause: The LEA has experienced significant employee turnover, which has caused a lack of oversight of certain compliance requirements. Effect: Equipment purchased with federal funds may not be specifically identified. Questioned Costs: $28,330.66 Context: The finding was the result of Federal Program Monitoring (FPM) procedures performed by the CDE. Recommendation: The County has already cleared this finding with CDE. No further action is needed. Views of Responsible Officials: The County has already cleared this finding with CDE. In addition, we have updated the procurement policies to match Uniform Guidance requirements.
Finding 2023-002: Equipment Inventory Management (50000) Assistance Listing No. 84.425 – Education Stabilization Funds (ESSER) U.S. Department of Treasury Passed through California Department of Education Criteria: The LEA must maintain documentation to substantiate that all equipment purchases are reasonable, necessary, and allowable in accordance with federal state and program requirements. Also, an LEA must establish and maintain a historical inventory system for equipment with an acquisition cost of $500 or more per unit, which contains all required elements as specified in 2 CFR 200.313(d)(1) and the LEA must conduct a physical inventory of the property and the results must be reconciled with the property records at least once every two years. In addition, the LEA must obtain prior written approval from CDE for capital expenditures to be allowable; and the LEA must follow applicable construction regulations. The LEA must ensure heating, ventilation, and air conditioning (HVAC) systems require the use of American Society of Heating, Refrigeration, and Air Conditioning Engineer (ASHRAE) standards and the LEA must ensure every contract for minor remodeling, renovation, repair, or construction contracts in excess of $2,000 contains a provision stating the prevailing wages that must be paid to laborers and mechanics that are not less than those established for the locality of the project. The LEA is required to have a system of internal control which provides reasonable assurance that all costs charged to the programs are reasonable, necessary, and allowable in accordance with applicable statutes, regulations, and program requirements. Condition: The LEA failed to provide documentation to show a complete inventory that includes all required elements and all equipment purchased with Federal Stimulus funds. For example, the LEA purchased markerboard, Dell Latitude computers, and tables using Federal Stimulus funds with ESSER II (Resource 3212) and ESSER III (Resource 3213); however, the items were not properly documented on the LEA’s inventory to substantiate the total of $28,330.66 in equipment purchased with Federal stimulus funds. In addition, the LEA failed to provide evidence of the physical check at least once every two years. Additionally, the LEA’s procedures for the equipment inventory does not contain all required elements in the asset tag - Percent of Federal Award; Transfer; Disposition; Replacement; Use and Current Condition; Fund Source; and Evidence of the physical check. Cause: The LEA has experienced significant employee turnover, which has caused a lack of oversight of certain compliance requirements. Effect: Equipment purchased with federal funds may not be specifically identified. Questioned Costs: $28,330.66 Context: The finding was the result of Federal Program Monitoring (FPM) procedures performed by the CDE. Recommendation: The County has already cleared this finding with CDE. No further action is needed. Views of Responsible Officials: The County has already cleared this finding with CDE. In addition, we have updated the procurement policies to match Uniform Guidance requirements.
Finding 2023-002: Equipment Inventory Management (50000) Assistance Listing No. 84.425 – Education Stabilization Funds (ESSER) U.S. Department of Treasury Passed through California Department of Education Criteria: The LEA must maintain documentation to substantiate that all equipment purchases are reasonable, necessary, and allowable in accordance with federal state and program requirements. Also, an LEA must establish and maintain a historical inventory system for equipment with an acquisition cost of $500 or more per unit, which contains all required elements as specified in 2 CFR 200.313(d)(1) and the LEA must conduct a physical inventory of the property and the results must be reconciled with the property records at least once every two years. In addition, the LEA must obtain prior written approval from CDE for capital expenditures to be allowable; and the LEA must follow applicable construction regulations. The LEA must ensure heating, ventilation, and air conditioning (HVAC) systems require the use of American Society of Heating, Refrigeration, and Air Conditioning Engineer (ASHRAE) standards and the LEA must ensure every contract for minor remodeling, renovation, repair, or construction contracts in excess of $2,000 contains a provision stating the prevailing wages that must be paid to laborers and mechanics that are not less than those established for the locality of the project. The LEA is required to have a system of internal control which provides reasonable assurance that all costs charged to the programs are reasonable, necessary, and allowable in accordance with applicable statutes, regulations, and program requirements. Condition: The LEA failed to provide documentation to show a complete inventory that includes all required elements and all equipment purchased with Federal Stimulus funds. For example, the LEA purchased markerboard, Dell Latitude computers, and tables using Federal Stimulus funds with ESSER II (Resource 3212) and ESSER III (Resource 3213); however, the items were not properly documented on the LEA’s inventory to substantiate the total of $28,330.66 in equipment purchased with Federal stimulus funds. In addition, the LEA failed to provide evidence of the physical check at least once every two years. Additionally, the LEA’s procedures for the equipment inventory does not contain all required elements in the asset tag - Percent of Federal Award; Transfer; Disposition; Replacement; Use and Current Condition; Fund Source; and Evidence of the physical check. Cause: The LEA has experienced significant employee turnover, which has caused a lack of oversight of certain compliance requirements. Effect: Equipment purchased with federal funds may not be specifically identified. Questioned Costs: $28,330.66 Context: The finding was the result of Federal Program Monitoring (FPM) procedures performed by the CDE. Recommendation: The County has already cleared this finding with CDE. No further action is needed. Views of Responsible Officials: The County has already cleared this finding with CDE. In addition, we have updated the procurement policies to match Uniform Guidance requirements.
Finding 2023-002: Equipment Inventory Management (50000) Assistance Listing No. 84.425 – Education Stabilization Funds (ESSER) U.S. Department of Treasury Passed through California Department of Education Criteria: The LEA must maintain documentation to substantiate that all equipment purchases are reasonable, necessary, and allowable in accordance with federal state and program requirements. Also, an LEA must establish and maintain a historical inventory system for equipment with an acquisition cost of $500 or more per unit, which contains all required elements as specified in 2 CFR 200.313(d)(1) and the LEA must conduct a physical inventory of the property and the results must be reconciled with the property records at least once every two years. In addition, the LEA must obtain prior written approval from CDE for capital expenditures to be allowable; and the LEA must follow applicable construction regulations. The LEA must ensure heating, ventilation, and air conditioning (HVAC) systems require the use of American Society of Heating, Refrigeration, and Air Conditioning Engineer (ASHRAE) standards and the LEA must ensure every contract for minor remodeling, renovation, repair, or construction contracts in excess of $2,000 contains a provision stating the prevailing wages that must be paid to laborers and mechanics that are not less than those established for the locality of the project. The LEA is required to have a system of internal control which provides reasonable assurance that all costs charged to the programs are reasonable, necessary, and allowable in accordance with applicable statutes, regulations, and program requirements. Condition: The LEA failed to provide documentation to show a complete inventory that includes all required elements and all equipment purchased with Federal Stimulus funds. For example, the LEA purchased markerboard, Dell Latitude computers, and tables using Federal Stimulus funds with ESSER II (Resource 3212) and ESSER III (Resource 3213); however, the items were not properly documented on the LEA’s inventory to substantiate the total of $28,330.66 in equipment purchased with Federal stimulus funds. In addition, the LEA failed to provide evidence of the physical check at least once every two years. Additionally, the LEA’s procedures for the equipment inventory does not contain all required elements in the asset tag - Percent of Federal Award; Transfer; Disposition; Replacement; Use and Current Condition; Fund Source; and Evidence of the physical check. Cause: The LEA has experienced significant employee turnover, which has caused a lack of oversight of certain compliance requirements. Effect: Equipment purchased with federal funds may not be specifically identified. Questioned Costs: $28,330.66 Context: The finding was the result of Federal Program Monitoring (FPM) procedures performed by the CDE. Recommendation: The County has already cleared this finding with CDE. No further action is needed. Views of Responsible Officials: The County has already cleared this finding with CDE. In addition, we have updated the procurement policies to match Uniform Guidance requirements.
Finding 2023-002: Equipment Inventory Management (50000) Assistance Listing No. 84.425 – Education Stabilization Funds (ESSER) U.S. Department of Treasury Passed through California Department of Education Criteria: The LEA must maintain documentation to substantiate that all equipment purchases are reasonable, necessary, and allowable in accordance with federal state and program requirements. Also, an LEA must establish and maintain a historical inventory system for equipment with an acquisition cost of $500 or more per unit, which contains all required elements as specified in 2 CFR 200.313(d)(1) and the LEA must conduct a physical inventory of the property and the results must be reconciled with the property records at least once every two years. In addition, the LEA must obtain prior written approval from CDE for capital expenditures to be allowable; and the LEA must follow applicable construction regulations. The LEA must ensure heating, ventilation, and air conditioning (HVAC) systems require the use of American Society of Heating, Refrigeration, and Air Conditioning Engineer (ASHRAE) standards and the LEA must ensure every contract for minor remodeling, renovation, repair, or construction contracts in excess of $2,000 contains a provision stating the prevailing wages that must be paid to laborers and mechanics that are not less than those established for the locality of the project. The LEA is required to have a system of internal control which provides reasonable assurance that all costs charged to the programs are reasonable, necessary, and allowable in accordance with applicable statutes, regulations, and program requirements. Condition: The LEA failed to provide documentation to show a complete inventory that includes all required elements and all equipment purchased with Federal Stimulus funds. For example, the LEA purchased markerboard, Dell Latitude computers, and tables using Federal Stimulus funds with ESSER II (Resource 3212) and ESSER III (Resource 3213); however, the items were not properly documented on the LEA’s inventory to substantiate the total of $28,330.66 in equipment purchased with Federal stimulus funds. In addition, the LEA failed to provide evidence of the physical check at least once every two years. Additionally, the LEA’s procedures for the equipment inventory does not contain all required elements in the asset tag - Percent of Federal Award; Transfer; Disposition; Replacement; Use and Current Condition; Fund Source; and Evidence of the physical check. Cause: The LEA has experienced significant employee turnover, which has caused a lack of oversight of certain compliance requirements. Effect: Equipment purchased with federal funds may not be specifically identified. Questioned Costs: $28,330.66 Context: The finding was the result of Federal Program Monitoring (FPM) procedures performed by the CDE. Recommendation: The County has already cleared this finding with CDE. No further action is needed. Views of Responsible Officials: The County has already cleared this finding with CDE. In addition, we have updated the procurement policies to match Uniform Guidance requirements.
Finding 2023-002: Equipment Inventory Management (50000) Assistance Listing No. 84.425 – Education Stabilization Funds (ESSER) U.S. Department of Treasury Passed through California Department of Education Criteria: The LEA must maintain documentation to substantiate that all equipment purchases are reasonable, necessary, and allowable in accordance with federal state and program requirements. Also, an LEA must establish and maintain a historical inventory system for equipment with an acquisition cost of $500 or more per unit, which contains all required elements as specified in 2 CFR 200.313(d)(1) and the LEA must conduct a physical inventory of the property and the results must be reconciled with the property records at least once every two years. In addition, the LEA must obtain prior written approval from CDE for capital expenditures to be allowable; and the LEA must follow applicable construction regulations. The LEA must ensure heating, ventilation, and air conditioning (HVAC) systems require the use of American Society of Heating, Refrigeration, and Air Conditioning Engineer (ASHRAE) standards and the LEA must ensure every contract for minor remodeling, renovation, repair, or construction contracts in excess of $2,000 contains a provision stating the prevailing wages that must be paid to laborers and mechanics that are not less than those established for the locality of the project. The LEA is required to have a system of internal control which provides reasonable assurance that all costs charged to the programs are reasonable, necessary, and allowable in accordance with applicable statutes, regulations, and program requirements. Condition: The LEA failed to provide documentation to show a complete inventory that includes all required elements and all equipment purchased with Federal Stimulus funds. For example, the LEA purchased markerboard, Dell Latitude computers, and tables using Federal Stimulus funds with ESSER II (Resource 3212) and ESSER III (Resource 3213); however, the items were not properly documented on the LEA’s inventory to substantiate the total of $28,330.66 in equipment purchased with Federal stimulus funds. In addition, the LEA failed to provide evidence of the physical check at least once every two years. Additionally, the LEA’s procedures for the equipment inventory does not contain all required elements in the asset tag - Percent of Federal Award; Transfer; Disposition; Replacement; Use and Current Condition; Fund Source; and Evidence of the physical check. Cause: The LEA has experienced significant employee turnover, which has caused a lack of oversight of certain compliance requirements. Effect: Equipment purchased with federal funds may not be specifically identified. Questioned Costs: $28,330.66 Context: The finding was the result of Federal Program Monitoring (FPM) procedures performed by the CDE. Recommendation: The County has already cleared this finding with CDE. No further action is needed. Views of Responsible Officials: The County has already cleared this finding with CDE. In addition, we have updated the procurement policies to match Uniform Guidance requirements.