Finding Text
Finding 2025-003 Information on the federal program: ARP-ESSER III/ARP-Accelerated Learning Coach and Educator Support/ARP-Evidence Based Summer Learning and Enrichment/ARP-Evidence Based Comprehensive Beyond the School Day/ARP-Homeless II/Governor’s Emergency Education & Relief, Assistance Listing numbers 84.425U and 84.425V - Grant Period 3/13/20-9/30/24 and 7/1/24-8/31/25. Criteria or specific requirement: Governmental Accounting Standards Board (GASB) Statement No. 34 requires school districts and other public entities to accurately track and account for capital assets. The District did not accurately account for all fixed assets purchased during the year. Any purchases of capital equipment, improvements to land, buildings or equipment that were purchased with grants funds are subject to applicable inventory control, log maintenance, and disposition requirements consistent with Part 3, Section F, of the compliance supplement. Condition: The District failed to properly report capital assets at historical cost and/or include purchases on the capital asset report that exceed the capitalization threshold of $2,000. In addition, depreciation was not being calculated for all eligible assets. Questioned Costs: None. Context: The district did not accurately update the capital asset report for fixed assets purchased during the year. Effect: The District is not in compliance with the Equipment/Real Property requirements under the ESSER-ARP grant compliance. Cause: The District did not account for various capital assets purchased during the year. Recommendation: Procedures should be established and implemented to ensure all eligible items purchased are included on the capital asset report and depreciation is properly calculated. All eligible items should be tagged as received. Also, all items included on the capital asset report should be reviewed to ensure the items are still in use. Management’s response: The Manager of Central Stores must review and ensure all eligible purchases made with ESSER-ARP funds are accurately recorded on the Capital Asset Report.