Finding Text
U.S. Department of Education, Pass-Through Iowa Department of Education, Education Stabilization Fund: COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund; COVID-19 Governor’s Emergency Education Relief (GEER II) Fund; COVID-19 ARP-Elementary and Secondary School Emergency Relief (ARP ESSER); COVID-19 ARP-Elementary and Secondary School Emergency Relief-Homeless Children and Youth (ARP-HCY). Finding: The District does not have a process for monitoring compliance with pre-approval requests under the Education Stabilization Fund program for capital equipment. Criteria: Consistent with 2 CFR section 200.313 (equipment), Education Stabilization Funds (ESF) may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by Education Department (ED) or the pass-through entity. In addition, with prior approval by the ED or the pass-through entity, recipients and subrecipients may also use ESF funds to purchase real property, perform construction or minor remodeling, and for improvements to land, buildings, or equipment that meet the overall purpose of the ESF program, which is "to prevent, prepare for, and respond to" the COVID-19 pandemic. Condition: The District expended Education Stabilization Fund program funding to purchase weight room equipment at a price above the amount approved by the Iowa Department of Education. Cause: The District did not compare the actual cost of the weight room equipment to the Iowa Department of Education approval. Effect: The District overspent allowable funds as approved by the Iowa Department of Education for equipment by $16,707.62. Context: The District obtained approval to buy weight room equipment for the three high schools in the amount of $158,400. The District purchased items totaling $175,107.62 which exceeded the maximum approved amount and charged the program for the full purchase price. Identification as a repeat finding: This is a repeat finding. Recommendation: We recommend the District implement a system to compare actual costs charged to the program to preapproval amounts and request an amendment if the actual cost exceeds the prior approval limits or only charge the program for the approved portion. Response and Corrective Action Plan: The District will review current processes for purchasing equipment within Iowa Department of Education approval amounts or seek amendments when approval cost limits cannot be met.