Finding 11384 (2023-002)

Significant Deficiency
Requirement
F
Questioned Costs
-
Year
2023
Accepted
2024-02-02

AI Summary

  • Core Issue: One out of five federally funded assets was missing during the review.
  • Impacted Requirements: The District failed to comply with 2 CFR 200.313, which mandates detailed property records.
  • Recommended Follow-Up: The District should enhance internal controls for asset management, ensuring proper tagging and regular physical inventories.

Finding Text

Program: Education Stabilization Fund Federal Assistance Listing Number: 84.425D Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Grantor Number: 21FESSII-111389-01A Questioned Costs: $-0- Type of Finding: Noncompliance (Other Matter), significant deficiency in internal control Compliance Requirement: F. Equipment/Real Property Management Condition/Context: During our review of property and equipment purchased with federal funding, one asset out of five tested, was unable to be found. Criteria: The District must follow 2 CFR sections 200.313 which requires that: Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. Cause: Management oversight. Effect: Noncompliance and internal control weakness. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the District to review its internal control procedures over property and equipment reporting to ensure assets are properly tagged, in the location identified on the corresponding listing, and a physical inventory is maintained to ensure all assets can be found. Views of Responsible Officials: The District concurs with this recommendation and will review its procedures over capital asset and property control. Contact Person: Ginger Stevens, Director of Finance and Business Services

Corrective Action Plan

2023-002 EQUIPMENT/REAL PROPERTY MANAGEMENT Program: Education Stabilization Fund Federal Assistance Listing Number: 84.425D Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Grantor Number: 21FESSII-111389-01A Questioned Costs: $-0- Type of Finding: Noncompliance (Other Matter), significant deficiency in internal control Compliance Requirement: F. Equipment/Real Property Management Condition/Context: During our review of property and equipment purchased with federal funding, one asset out of five tested, was unable to be found. Criteria: The District must follow 2 CFR sections 200.313 which requires that: Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. Cause: Management oversight. Effect: Noncompliance and internal control weakness. Recommendation: We recommend the District to review its internal control procedures over property and equipment reporting to ensure assets are properly tagged, in the location identified on the corresponding listing, and a physical inventory is maintained to ensure all assets can be found. Corrective Action Plan: The District has implemented property and equipment procedures to ensure all assets are tagged and an inventory is done to ensure assets are in the location identified on the applicable listing. Planned completion date for corrective action plan: For the period ending June 30, 2024. Name of the contact person responsible for corrective action: Ginger Stevens, Director of Finance and Business Services.

Categories

Equipment & Real Property Management

Other Findings in this Audit

  • 587826 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.041 Impact Aid $809,745
84.060 Indian Education_grants to Local Educational Agencies $619,204
10.665 Schools and Roads - Grants to States $516,519
10.553 School Breakfast Program $494,446
15.130 Indian Education_assistance to Schools $368,802
84.367 Improving Teacher Quality State Grants $342,338
84.027 Special Education_grants to States $327,894
10.555 National School Lunch Program $254,432
84.287 Twenty-First Century Community Learning Centers $253,410
84.048 Career and Technical Education -- Basic Grants to States $196,711
12.U00 Rotc $191,402
10.559 Summer Food Service Program for Children $116,112
93.778 Medical Assistance Program $85,586
84.365 English Language Acquisition State Grants $81,622
84.196 Education for Homeless Children and Youth $50,619
84.013 Title I State Agency Program for Neglected and Delinquent Children and Youth $29,787
84.173 Special Education_preschool Grants $29,271
84.010 Title I Grants to Local Educational Agencies $29,057
84.425 Education Stabilization Fund $12,537