Finding Text
FEDERAL COMMUNICATIONS COMMISSIONEMERGENCY CONNECTIVITY FUND PROGRAM - AL NUMBER 32.009AUDIT PERIOD - YEAR ENDED JUNE 30, 2022Activities Allowed or UnallowedCriteria or specific requirement: Office of Management and Budget (OMB) 47 CFR ? 54.1706 (b) states that eligible schools cannot request and receive support for the purchase of eligible equipment and services for use solely at the school; however, some on-campus use is permitted for eligible equipment that was purchased primarily to provide off-campus access.Condition: During testing, we identified unallowable costs totaling $56,940 were paid from the Emergency Connectivity Fund Program for 157 connected devices that were purchased primarily for on-campus use.Cause: Lack of internal controls and management oversight of program expenditures.Effect: Unallowable costs of $56,940 were paid from the Emergency Connectivity Fund Program.Questioned costs: The amount of questioned costs was $56,940.Context: As a result of an examination of Emergency Connectivity Fund checks paid, review of inventory records maintained for connected devices purchased, and interviews of District personnel, it was determined the devices purchased were not primarily for off-campus use and resulted in unallowable costs.Recommendation: The District should contact the Federal Communications Commission for guidance regarding this matter and implement proper controls over program expenditures.