Finding Text
Finding Number: 2024-002
Assistance Listing Number and Title: AL # 84.425 Education Stabilization Fund
Federal Award Identification Number / Year: 2024
Federal Agency: US Department of Education
Compliance Requirement: Equipment and Real Property Management
Pass-Through Entity: Ohio Department of Education and Workforce
Repeat Finding from Prior Audit? No
Noncompliance and Material Weakness
2 CFR § 3474.1 gives regulatory effect to the Department of Education for 2 CFR § 200.313(d)(1) which provides 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.
The School District purchased HVAC equipment in the amount of $1,032,599 using COVID 19: Elementary and Secondary School Emergency Relief Funds in FY 22; however, they failed to add these assets to their capital asset listing due to a failure in adequately designed controls and still have not updated this in the capital asset records as of June 30, 2024. The also have not performed an inventory count in the past 2 years. The failure to properly record assets can lead to difficulties maintaining accountability for the related assets.
The Treasurer and Superintendent should monitor transactions and ensure that all capital additions are properly documented in the capital asset records.