Finding Text
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBERS 84.425D AND 84.425U PASS-THROUGH NUMBER 5440 AUDIT PERIOD - YEAR ENDED JUNE 30, 2025 2025-002. Equipment and Real Property Management Criteria or specific requirement: Proper records should be maintained for equipment acquired with federal awards as specified in Office of Management and Budget (OMB) 2 CFR part 200.313(d)(1). Specifically, the property records must include a serial number or another identification number and the source of the funding for the property (including the federal award identification number). Condition: During our examination of property records for equipment acquired under the Education Stabilization Fund program, we noted the capital asset listing did not include items purchased during the 2025 fiscal year nor serial numbers and/or identification tag numbers. A similar finding was issued in the prior year audit. Cause: Lack of internal controls and management oversight over property records. Effect or potential effect: Items purchased with Education Stabilization funds could not be identified for sighting and the asset listing was incomplete. Context: A test of three assets from the capital asset listing and one capital outlay purchase during the fiscal year. Identification as a repeat finding: Yes Recommendation: Internal controls should be implemented to ensure property records include all required information. Views of responsible officials: The School has since implemented an improved inventory control system that conducts inventory and records all information into APSCN as required.