Finding Text
Finding No.: 2025-014 – Equipment and Real Property Management Identification of the federal program: Federal Agency: U.S. Department of Education AL No. and Title: 84.425 Education Stabilization Fund 84.425X American Rescue Plan – Outlying Areas State Educational Agency (ARP-OA-SEA) Federal Award No.: S425X210003 Criteria or specific requirement (including statutory, regulatory or other citation): FY2025 U.S. Department of Education Specific Conditions, paragraph (5) states that “GDOE must ensure that all tangible personal property procured under Department grants is managed in accordance with the requirements of 2 CFR 200.313(a) and (c)-(e ) to ensure that such property is properly inventoried, maintained, and stored to prevent loss, damage, or theft of such property”. 2 CFR 200.313(d) states that regardless of whether equipment is acquired in part or its entirety under the Federal award, the recipient must manage equipment (including replacement equipment) utilizing procedures that meet the requirement of having property records that include a description of the property, a serial number or another identification number, the source of funding for the property (including the FAIN), the title holder, the acquisition date, the cost of the property, the percentage of the Federal agency contribution towards the original purchase, the location, use and condition of the property, and any disposition data including the date of disposal and sale price of the property. Condition: Cost of asset was incorrectly recorded in the property records. Asset # Description Cost per Property Record Cost per Invoice Variance Questioned Cost 103192 PIONEER 48000BTU A/C SPLIT UNIT $5,268 $4,684 $584 $5,268 Cause: Responsible personnel did not properly record the cost of the asset in the property records. Effect or potential effect: GDOE is in noncompliance with applicable equipment and real property management requirements. Questioned Costs: $5,268 Context: We identified 1,802 additions during the year totaling $4,841,569. We tested 40 additions totaling $86,980. The samples were statistically valid. Of 40 additions tested, one addition (or 3%) amounting $5,268 was recorded with incorrect unit cost. Questioned cost is calculated as the value of the asset that was accumulated in the equipment listing and recorded as expenditure in the current fiscal year. Identification as a repeat finding, if applicable: 2024-010 Recommendation: Responsible personnel should ensure that asset information is accurately captured in the property records. View of Responsible Officials: GDOE agrees with the finding and provides details in its Corrective Action Plan.