Finding Text
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. Additionally, 2 CFR § 200.313(d)(2) states that a physical inventory of the property must be taken and the results reconciled with the property records at least once every two years.
Due to inadequate controls, the District failed to appropriately track a bus purchased in part with Special Education Cluster grants monies in September 2019. The bus is included on the District's capital asset listing; however, it is listed as being purchased from a fund other than the Special Education Cluster grant funds. Additionally, the District did not maintain support for the cost allocation information as required by the Ohio Department of Education and Workforce (DEW). Therefore, the District does not have support for the proportionate share of the cost covered by the grant as required upon disposition of the bus. The District also did not maintain documentation of the required physical inventory.
The failure to properly record assets can lead to difficulties maintaining accountability for the related assets.
The District should implement controls to ensure compliance with all DEW and Uniform Guidance requirements when purchasing equipment with Federal award funds.