Finding Text
SIGNIFICANT DEFICENCY Internal Controls and Compliance Criteria: Pursuant to the Code of Federal Regulations (CFR), Title 2 Grants and Agreements, Subpart D Post Federal Award Requirements, Section 200.303 “the non-federal entity must establish and maintain effective internal control over the Federal aware that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.” Condition: When investigating the controls related to equipment management, we became aware that the District has implemented new procedures to track and maintain an inventory list adequately. However, the infrastructure items bought were not inventoried. Only non-infrastructure items were being inventoried and tracked. Cause: The internal control-related infrastructure items for the Education Stabilization Fund are nonexistent. Effect: There is noncompliance and a lack of internal control regarding the infrastructure items for the Education Stabilization Fund. Recommendations: The District should include infrastructure items in the current inventory system. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding. See the separate document for planned corrective actions.