Finding Text
Federal Agency: U.S. Department of Education
Federal Program Name: Elementary and Secondary School Relief Fund
Assistance Listing Number: 84.425D, 84.425U
Federal Award Identification Number and Year: S425D210044 Federal Award Date 1/6/2021, S425U210044 Federal Award Date 12/6/2021 and 3/13/2020
Pass-Through Agency: Wisconsin Department of Public Instruction
Pass-Through Number(s): 2022-714508-DPI-ESSERFII-163, 2022-714508-DPI-ESSERFIII-165, 2024-714508-DPI-LETRS-165
Award Period: July 1, 2023 – June 30, 2024
Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter
Criteria or Specific Requirement: 2 CFR 200.313(d)(2) states "A physical inventory of the property must be conducted, and the results must be reconciled with the property records at least once every two years."
Condition: The District has not completed a physical inventory of its capital assets as required by Uniform Guidance.
Questioned Costs: None.
Context: District used ESSER funds in 2021-22 as one funding source for a chem lab project. The project finished in 2022-23. The District has not historically used federal funds to purchase equipment and real property and were unaware of the requirements.
Cause: The District did not have adequate procedures in place to ensure that a physical inventory was conducted within the required timeframe.
Effect: Failure to conduct a physical inventory may result in inaccurate equipment records, which can lead to mismanagement of assets and potential loss or misuse of equipment.
Repeat Finding: No.
Recommendation: We recommend that the District establish and implement procedures to ensure that a physical inventory of equipment is conducted at least once every two years. This should include assigning responsibility for the inventory process, setting a schedule for inventory counts, and ensuring that the results are reconciled with the equipment records.
Views of Responsible Officials: There is no disagreement with the audit finding.