Finding 1214888 (2023-006)

Material Weakness Repeat Finding
Requirement
F
Questioned Costs
-
Year
2023
Accepted
2026-05-18

AI Summary

  • Core Issue: The Board did not categorize over $813,000 in expenditures as capital outlay and failed to record $636,000 in purchases as capital assets.
  • Impacted Requirements: Records did not meet the requirements of 2 CFR 200.313(d) for identifying and documenting federally-funded property and expenditures.
  • Recommended Follow-Up: Ensure proper classification of expenditures and update property records to include all required information for capital assets.

Finding Text

Title 2 U. S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), specifically 2 CFR 200.313(d), require records to adequately identify the source and application of federally-funded activities and property records must be maintained that include a description of the property, a serial number or other identification number, source of funding for the property (including the FAIN), title holder, acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. The Board failed to properly categorize as capital outlay $813,445.83 of Education Stabilization Fund expenditures. Additionally, the Board failed to record purchases totaling $636,930.43 from the Education Stabilization Fund as capital assets. Property records of the Board did not contain the required information for capital expenditures from the COVID-19 Education Stabilization Fund. The Board failed to ensure expenditures were properly classified and capital assets were added to the capital asset listing. As a result, COVID-19 Education Stabilization Fund expenditures were not properly classified, and all property was not accurately reflected on the property records.

Corrective Action Plan

Develop and implement a comprehensive capital asset and inventory management system. Ensure all federally funded equipment includes required documentation: Funding source (FAIN); Acquisition date and cost; Location, use, and condition. Conduct a full inventory of all federally funded equipment. Establish procedures to ensure proper classificaiton of expenditures as capital outlay. Provide training on Unidorm Guidance (2 CFR 200) requirements to all relevant staff. Inventory and system implementation: Within 90 days. Full compliance: By end of fiscal year.

Categories

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Equipment & Real Property Management

Other Findings in this Audit

  • 1214886 2023-006
    Material Weakness Repeat
  • 1214887 2023-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $1.59M
84.027 SPECIAL EDUCATION GRANTS TO STATES $1.06M
10.553 SCHOOL BREAKFAST PROGRAM $760,581
10.555 NATIONAL SCHOOL LUNCH PROGRAM $237,976
32.009 EMERGENCY CONNECTIVITY FUND PROGRAM $214,573
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $201,206
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $118,275
10.665 SCHOOLS AND ROADS - GRANTS TO STATES $50,976
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $47,338
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $11,497
84.425 EDUCATION STABILIZATION FUND $9,274
96.001 SOCIAL SECURITY DISABILITY INSURANCE $780