Finding Text
50000 - Equipment and Real Property Management (Material Weakness in Internal Control over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425U Award Identification Number: 15559 Award Year: 2021 Compliance Requirement: F. Equipment and Real Property Management Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.313 requires the District to maintain inventory of equipment purchased with federal awards and to conduct periodic inventory. Condition The District does not maintain an equipment listing. Cause The condition identified appears to have materialized due to the District's lack of awareness of requirements under Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.313. Effect The District currently assumes all the risk of non-compliance with requirements stated under Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.313 due to the lack of maintaining a capital asset inventory. Questioned Costs As a result of the condition identified above, a total of $720,018 in questioned costs were identified. Context/Sampling: A nonstatistical sample of four of 11 transactions were selected for testing. Repeat Finding Yes, see prior year finding 2024-004. Recommendation The District should review the requirements stated in Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.313 and implement procedures to address the deficiencies currently identified.