Finding Text
EXCEPTIONAL CHILDREN HAVE OPPORTUNITIES 07-016-1710-61 SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ending June 30, 2025 SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 1. FINDING NUMBER:14 2025 - 005 2. THIS FINDING IS: 3. Federal Program Name and Year: Education Stabilization Fund 4. Project No.: 24-4998-CO, 25-4998-ES 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) The Uniform Guidance requires non-Federal entities to maintain property records for equipment acquired with Federal funds. Property records must include, at a minimum, a description of the property, serial number or other identification number, source of funding, title holder, acquisition date, cost, percentage of Federal participation, location, use and condition, and ultimate disposition data. 9. Condition ECHO did not maintain a listing of capital equipment acquired with Federal funds. During testing of equipment purchased under the Education Stabilization Program, we noted that management was unable to provide a complete inventory identifying equipment purchased with Federal awards or documenting the information required by the Uniform Guidance. As a result, ECHO could not demonstrate that equipment acquired with Federal funds was properly tracked and monitored. 10. Questioned Costs None noted 11. Context This condition was identified through our testing of equipment and capital asset records related to expenditures charged to the federal award. No comprehensive inventory of federally funded equipment was maintained. 12. Effect The absence of a complete inventory of federally funded equipment increases the risk that equipment may be lost, stolen, misused, improperly disposed of, or otherwise not managed in accordance with Federal requirements. Additionally, ECHO is unable to demonstrate compliance with the equipment management requirements of Uniform Guidance. 13. Cause Management has not established procedures to identify, record, and track equipment purchased with Federal funds. Responsibility for maintaining federally required property records has not been assigned, and monitoring controls over compliance with Federal equipment management requirements have not been implemented. 14. Recommendation We recommend that management develop and implement procedures to identify and track all equipment acquired with Federal funds. The joint agreement should establish and maintain a complete inventory of federally funded equipment containing all information required by the Uniform Guidance, perform periodic physical inventories, reconcile inventory records to accounting records, and assign responsibility for ongoing maintenance of equipment records. 15. Management's response See corrective action plan.