Finding 1182201 (2025-001)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-03-24

AI Summary

  • Core Issue: The District failed to record a $14,797 equipment purchase in their capital asset listing, violating federal property record requirements.
  • Impacted Requirements: Compliance with 2 CFR § 200.313(d)(1) regarding detailed property records is necessary to maintain accountability.
  • Recommended Follow-Up: The Treasurer should implement stronger controls to ensure all capital additions are documented accurately in asset records.

Finding Text

Finding Number: 2025-001 Assistance Listing Number and Title: AL#84.425U, Education Stabilization Fund Federal Award Identification Number / Year: 2024 Federal Agency: U.S. Department of Education Compliance Requirement: Equipment and Real Property Pass-Through Entity: Ohio Department of Education and Workforce Repeat Finding from Prior Audit? No Noncompliance and Significant Deficiency 2 CFR § 3474.1 gives regulatory effect to the Department of Education for 2 CFR § 200.313(d)(1) which provides that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal award identification number), who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. The District purchased equipment in the amount of $14,797 using their American Rescue Plan Elementary and Secondary School Emergency Education Relief (AL#84.425U) federal funding without adding this asset to their capital asset listing due to a failure in adequately designed controls. The failure to properly record assets can lead to difficulties maintaining accountability for the related assets. The Treasurer should monitor transactions and ensure that all capital additions are properly documented in the capital asset records.

Corrective Action Plan

Finding Number: 2024-001 Planned Corrective Action: The fixed asset in question was inadvertently coded from a supply account. The asset subsequently was not picked up on the pending fixed asset report. Therefore, it did not get recorded to the Equipment Inventory System until it was reported to the Treasurer by the Auditor of State. Moving forward, the Treasurer will scrutinize all purchases for the proper object coding to ensure fixed assets are reporting properly. The Treasurer will also review all purchases for the possibility of posting to the Equipment Inventory System. Anticipated Completion Date: 03/11/2026 Responsible Contact Person: Bruce Steenrod

Categories

Equipment & Real Property Management

Programs in Audit

ALN Program Name Expenditures
84.425 EDUCATION STABILIZATION FUND $370,979
10.555 NATIONAL SCHOOL LUNCH PROGRAM $302,020
10.553 SCHOOL BREAKFAST PROGRAM $187,162
84.287 TWENTY-FIRST CENTURY COMMUNITY LEARNING CENTERS $82,302
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $35,528
84.027 SPECIAL EDUCATION GRANTS TO STATES $34,344
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $12,207
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $7,185
84.358 RURAL EDUCATION $4,472
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $732