Finding 1169600 (2024-005)

Material Weakness Repeat Finding
Requirement
F
Questioned Costs
-
Year
2024
Accepted
2026-01-19
Audit: 382583
Organization: Guam Department of Education (GU)

AI Summary

  • Core Issue: Four out of forty equipment items were missing, leading to a questioned cost of $1,391 due to inadequate safeguarding and outdated property records.
  • Impacted Requirements: Noncompliance with 2 CFR 200.313 regarding proper inventory management and safeguarding of equipment.
  • Recommended Follow-Up: Implement stronger monitoring controls to ensure compliance with equipment management requirements and prevent future losses.

Finding Text

Finding No.: 2024-005 Federal Agency: U.S. Department of Education AL Program: 84.027 Special Education Grants to States Area: Equipment and Real Property Management Questioned Costs: $1,391 Criteria: FY2024 U.S. Department of Education Special Conditions, paragraph (5) states that “GDOE must ensure that all tangible personal property procured under Department grants is managed in accordance with the requirements of 2 CFR 200.313(a) and (c)-(e ) to ensure that such property is properly inventoried, maintained, and stored to prevent loss, damage, or theft of such property”. 2 CFR 200.313(d) states that regardless of whether equipment is acquired in part or its entirety under the Federal award, the recipient must manage equipment (including replacement equipment) utilizing procedures that meet the requirement of having a control system in place to ensure safeguards for preventing property loss, damage, or theft. Any loss, damage, or theft of equipment must be investigated. The recipient or subrecipient must notify the Federal agency or pass-through entity of any loss, damage, or theft of equipment that will have an impact on the program. Condition: For four (or 10%) of forty items totaling with a net book value of $545,378 subjected to equipment safeguarding test, items were tagged as “A” or active in the property record, however, they were not physically inspected as it was noted to be missing during the audit. Item # Federal Award # Asset # Description Net Book Value Questioned Cost 1 H027A120013 14101 Insprio Premium with ILapel $ - $ - 2 H027A180013 39573 RIFTON SMALL PACER GAIT TRAINER (RED) $ 58 58 3 H027A190013-19A 78062 OTICON XCEED PLAY 2 HEARING AID $ 313 313 4 H027X210013 98153 OTICON XCEED 1 HEARING AIDE $1,020 1,020 $1,391 Cause: Responsible personnel did not properly safeguard the assets and were not made aware that assets are lost, hence, information on the property records were outdated. Finding No.: 2024-005, continued Federal Agency: U.S. Department of Education AL Program: 84.027 Special Education Grants to States Area: Equipment and Real Property Management Questioned Costs: $1,391 Effect: GDOE is in noncompliance with applicable equipment and real property management requirements. Questioned costs of $1,391 was calculated based on the net book value of the equipment identified in the condition. Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable equipment and real property management requirements, specifically, ensuring safeguards for preventing property loss, damage, or theft.

Corrective Action Plan

Views of Auditee and Corrective Actions: GDOE disagrees with the finding. During the audit fieldwork, the cited assets were in various stages of formal loss reporting, with police reports pending at that time. As of this response, all certificates of loss and corresponding police reports have been completed and finalized in accordance with GDOE SOP 200-015. The condition noted during audit testing was due to the timing of the audit coinciding with ongoing administrative processing and does not indicate a breakdown in internal controls or safeguarding responsibilities. Of the assets cited, one was recovered, and certificates of loss were completed for the remaining four assets, ensuring proper documentation and compliance with established procedures.

Categories

Subrecipient Monitoring Equipment & Real Property Management

Other Findings in this Audit

  • 1169595 2024-003
    Material Weakness Repeat
  • 1169596 2024-003
    Material Weakness Repeat
  • 1169597 2024-004
    Material Weakness Repeat
  • 1169598 2024-004
    Material Weakness Repeat
  • 1169599 2024-005
    Material Weakness Repeat
  • 1169601 2024-006
    Material Weakness Repeat
  • 1169602 2024-006
    Material Weakness Repeat
  • 1169603 2024-007
    Material Weakness Repeat
  • 1169604 2024-007
    Material Weakness Repeat
  • 1169605 2024-008
    Material Weakness Repeat
  • 1169606 2024-009
    Material Weakness Repeat
  • 1169607 2024-010
    Material Weakness Repeat
  • 1169608 2024-010
    Material Weakness Repeat
  • 1169609 2024-011
    Material Weakness Repeat
  • 1169610 2024-011
    Material Weakness Repeat
  • 1169611 2024-012
    Material Weakness Repeat
  • 1169612 2024-012
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 EDUCATION STABILIZATION FUND $105.41M
84.403 CONSOLIDATED GRANT TO THE OUTLYING AREAS $30.00M
84.181 SPECIAL EDUCATION-GRANTS FOR INFANTS AND FAMILIES $1.66M
10.558 CHILD AND ADULT CARE FOOD PROGRAM $648,102
84.027 SPECIAL EDUCATION GRANTS TO STATES $561,018
10.560 STATE ADMINISTRATIVE EXPENSES FOR CHILD NUTRITION $383,408
93.600 HEAD START $356,080
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $331,968
93.092 AFFORDABLE CARE ACT (ACA) PERSONAL RESPONSIBILITY EDUCATION PROGRAM $232,589
12.U01 ARMY JROTC $220,601
12.U02 AIR FORCE JROTC $190,116
84.371 COMPREHENSIVE LITERACY DEVELOPMENT $173,631
84.372 STATEWIDE LONGITUDINAL DATA SYSTEMS $167,485
84.323 SPECIAL EDUCATION - STATE PERSONNEL DEVELOPMENT $157,292
10.541 CHILD NUTRITION-TECHNOLOGY INNOVATION GRANT $148,409
10.555 NATIONAL SCHOOL LUNCH PROGRAM $125,219
10.579 CHILD NUTRITION DISCRETIONARY GRANTS LIMITED AVAILABILITY $79,076
12.U03 MARINE JROTC $42,462
10.574 TEAM NUTRITION GRANTS $26,237
15.875 ECONOMIC, SOCIAL, AND POLITICAL DEVELOPMENT OF THE TERRITORIES $19,840
10.645 FARM TO SCHOOL STATE FORMULA GRANT $14,242
10.568 EMERGENCY FOOD ASSISTANCE PROGRAM (ADMINISTRATIVE COSTS) $3,986