Finding 1094442 (2024-001)

SIGNIFICANT DEFICENCY Internal Controls and Compliance Criteria: Pursuant to the Code of Federal Regulations (CFR), Title 2 Grants and Agreements, Subpart D Post Federal Award Requirements, Section 200.303 “the non-federal entity must establish and maintain effective internal control over the Federal aware 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.” Condition: When investigating the controls related to equipment management, we became aware that the District has implemented an inbound procedure for recording newly purchased equipment. The current control system in place for the equipment does not include a yearly physical inventory. Cause: The internal control related to equipment maintenance after its initial receipt for Education Stabilization Fund is non-existent. Effect: There is a noncompliance and lack of internal control related to continued maintenance of the equipment for the Education Stabilization Fund. Recommendations: The District should, on at least a yearly basis, perform a physical inventory of the equipment. The procedure must be adequately recorded and disclosed to include the name of the individual performing the service, the date, condition of the equipment, and verify its location. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding. See separate document for planned corrective actions.