Finding Text
2023-005 Funding Source in Property Records (Material Weakness and Compliance) Federal Agency: U.S. Department of Education Federal Program: Education Stabilization Fund Assistance Listing #: 84.425D/84.425U Pass-through Entity: Montana Office of Public Instruction Criteria: Equipment and real property improvements funded with federal grants are required to include the funding source in the property records. This is to ensure the federal government is properly compensated for property that is sold. Condition: The District did not include the source of funding on their capital asset depreciation schedule. Cause: The District did not realize this information was required to be included on the capital asset depreciation schedule. Effect: If the equipment or property was sold, the District may not realize the additional requirements for federally funded items. Context: The District did not sell any federally funded capital assets in fiscal years 2022 or 2023. The District does not generally sell capital assets until their useful life has been exhausted. Repeat Finding: No. Recommendations: When federal grant funds are utilized for equipment and real property improvements, the funding source should be included on the capital asset depreciation schedule so if the asset is sold any additional requirements can be met. Views of Responsible Officials: The District will include the funding source on the capital asset depreciation schedule on future purchases. The District will make efforts to identify prior funding sources on prior capital assets and add that information to the capital asset depreciation schedule.