Description of Finding: During testing it was noted the School purchased fixed assets over the capitalization threshold using ARP ES-SER funds for assets which differed from the ones previously approved. No revised budgets were submitted to receive approval for these fixed assets. Statement of Concurrence or Nonconcurrence: The School acknowledges the findings related to equipment purchases funded with ARP ESSER funds and recognizes the importance of complying with federal procurement, prior approval, inventory, and reporting requirements for equipment and capita lexpenditures. The School understands that capital expensitures for equipment require proper review and, when applicable, prior written approval from the federal awarding agency or pass-thorugh entity before purchase. Corrective Action: To address the finding, the School, with assistance from its contracted accounting and management firm, will strenghen procedures for identifying equipment and capital assests purchases funded with federal funds. The contracted accounting and management firm has a process in place for identifying equipment purhcases funded with federal awards and will assist the School in applying this process to federal grant purchases. Because the contracted accounting and management firm assists the School with the management of its federal grants, the firm will also assist the School with procurement, inventory, and reporting requirements related to federally funded equipment purchases. This sup-port will include reviewing proposed equipment purchases before purchase, identifying whether the purchase is included in an approved grant budget, determining whether budget revisions or prior approvals are required, and helping ensure that required approvals are obtained and documented before the purchase is made. The School will maintain property records for equipment purchased with federal funds. The School will also implement procedures to ensure that a physical inventory of federally funded equipment is performed at least once eve-ry two years, or more frequently if required by the applicable grant or School policy. The results of the inventory will be compared to the property records, and any discrepancies will be researched and resolved in a timely manner. For future federally funded equipment purchases, the School and the contracted accounting and management firm will review the approved grant budget and supporting grant documentation before the purchase is made. If the proposed equipment differs from the items previously approved, the School will submit any required budget revision or request for prior approval to the applicable pass-through entity before proceeding with the purchase.