Finding Text
50000 – COVID-19 - Education Stabilization Fund – Equipment/Real Property Management
(Material Weakness in Internal Control Over Compliance, Material Noncompliance)
Federal Agency: U.S. Department of Education
Pass-Through Entity: California Department of Education
Program Name: COVID-19 - Education Stabilization Fund
Federal Financial Assistance Listing: 84.425U
Compliance Requirements: F – Equipment/Real Property Management
Type of Finding: Material Weakness and Material Noncompliance
Criteria or Specific Requirements
Title 2, Code of Federal Regulations, Part 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 Title 2, Code of Federal Regulations, Part
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.