Finding 1092117 (2024-002)

Federal Agency: Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 Elementary and Secondary School Emergency Relief III (ESSER III) Fund Federal Financial Assistance Listing: 84.425U Compliance Requirement: Equipment Type of Finding: Significant Deficiency in Internal Control Over Compliance, Noncompliance Criteria or Specific Requirements The Uniform Guidance in 2 CFR 200.313(d)(2) requires that a physical inventory of federally funded property be conducted at least every two years. The results of the inventory must be reconciled with the property records. Condition The District’s last physical inventory of federally funded property did not take place within the last two years. Cause The cause appears to be due to delays in the District arranging for a physical inventory. Effect The District is not in compliance with the provisions of 2 CFR 200.313(d)(2). Questioned Costs None reported. Context/Sampling The condition was identified through inquiry with District personnel and through review of available District records related to physical inventory of equipment. Repeat Finding No. Recommendation The District should implement internal controls to ensure that physical inventories are performed at least every two years. Corrective Action Plan and Views of Responsible Officials The District will re-implement bi-annual physical inventory of inventoriable items by an independent third-party vendor, as required under the provisions of 2 CFR 200.313. This process will be under the direction of the Purchasing Services Department and will begin in Fiscal Year 2024-2025.