Finding Text
2025-007—Material Weakness and Material Noncompliance, Equipment and Real Property Management U.S. Department of Education Passed through the State of Connecticut Department of Education Education Stabilization Fund Assistance Listing Number: 84.425U Program Name: COVID-19 American Rescue Plan – Elementary and Secondary School Emergency Relief Fund (ARP ESSER) Assistance Listing Number: 84.425W Program Name: COVID-19 American Rescue Plan – Elementary and Secondary School Emergency Relief – Homeless Children and Youth Criteria: Non-federal entities other than states must follow 2 CFR sections 200.313 (c) through (e) which require 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 the 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 (2 CFR section 200.313(d)(1)) and a physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)). Condition: The Town could not provide property records including all required information as indicated in 2 CFR section 200.313(d)(1). The Town did not perform a physical inventory of the property. Cause: The Town does not have processes and procedures in place related to equipment management, tracking and required physical inventories. Effect: The Town is not in compliance with federal grant requirements over the tracking and physical inventory of equipment. Improper equipment procedures could result in actions taken by oversight agencies which could impact future funding. Questioned costs: None. Context: See condition above. Identification as a repeat finding if applicable: 2024-007 Recommendation: We recommend the Town develop processes and procedures to tag and track equipment purchased with federal funding, and maintain support that physical inventories were performed as required. View of responsible officials: We agree with the finding. See corrective action plan.