Finding Text
1. FINDING NUMBER: 2025 - 003 2. THIS FINDING IS: New Repeat from Prior yearX Year originally reported? 2024 3. Federal Program Name and Year:Elementary and Secondary School Emergency Relief (ESSER) - 2024 and 2025 4. Project No.: 2024-4998-HL, 2024-4998-E3, 2025-4998-C3, 2025-4998-E2 5. AL No.: 84.425D, 84.425U, 84.425W 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation): Per 2 CFR 200.313(d)(2), "A physical inventory of the property must be conducted, and the results must be reconciled with the property records at least once every two years." 9. Condition: The District was unable to demonstrate that a physical inventory was performed over the past two years. This is considered a material weakness in internal control over compliance and an instance of noncompliance over equipment and real property management. This is a repeat of finding 2024-003. 10. Questioned Costs: None 11. Context: The District has contracted with an outside vendor to perform the annual inventory but that inventory is not scheduled to take place until summer 2026. 12. Effect: Failure to perform an inventory of equipment purchased by the District could result in the inability to detect a potential loss of assets and noncompliance with federal regulations regarding the proper disposal of equipment purchased with federal funding. 13. Cause: The District did not timely engage its third party contractor to complete the capital asset inventory in time for the 2025 audit. 14. Recommendation: In addition to the District ensuring that the upcoming capital asset inventory is completed timely, we recommend that the District enact procedures to ensure future inventory updates are scheduled in a timely manner. 15. Management's response: A comprehensive physical inventory and asset verification is officially scheduled for completion during the Summer of 2026. This initiative will reconcile existing records with physical counts to ensure accurate financial reporting.