Finding 1078118 (2024-002)

Significant Deficiency 2024-002 Equipment and Real Property Management Information on Federal Program: U.S. Department of Education, Education Stabilization Funds (Federal Assistance Listing numbers 84.425D, 84.425U), Passed through the New York State Education Department. Criteria: 2 CFR Section 200.313(d) requires property records to be maintained including a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, cost of the property, percentage of federal participation in project costs, the location, use and condition of the property, and any ultimate disposition data. Additionally, it requires a physical inventory of the property be taken and results reconciled with the property records at least every two years. Statement of Condition: Record of equipment purchased under the federal program was not maintained in accordance with 2 CFR Section 200.313(d). Statement of Cause: The District did not review compliance requirements related to records maintenance outlined in 2 CFR Section 200.313(d). Statement of Cause: The District did not review compliance requirements related to records maintenance outlined in 2 CFR Section 200.313(d). Perspective Information: As part of the requirements under the Uniform Guidance we inquired of and attempted to review records maintained over property and equipment purchased with federal dollars under the major program. While purchases are tracked there is no identification of which purchases were made with federal dollars and under which federal program. Statement of Effect: The District is not in compliance with 2 CFR Section 200.313(d) and could fail to follow related disposition requirements. Questioned Cost: None. Repeat Finding: No Recommendation: We recommend the District review the above referenced requirements and implement procedures to ensure the District complies with relevant compliance requirements. Views of the Responsible Officials and Planned Corrective Actions: The Business Manager will review these requirements with the Account Clerk responsible for tracking fixed assets to ensure that purchases made with federal dollars are recorded in the database with all the necessary information to meet the compliance requirements. In addition, we will establish a process to perform a physical inventory as required every two years.