Finding 204808 (2022-003)

Significant Deficiency
Requirement
F
Questioned Costs
-
Year
2022
Accepted
2022-11-20

AI Summary

  • Core Issue: The District's fixed asset records are incomplete, missing required details for equipment acquired with federal grant funds.
  • Impacted Requirements: Non-compliance with 2CFR Section 200.313(d)(1) could lead to improper safeguarding of assets and issues with federal disposal rules.
  • Recommended Follow-Up: Update fixed asset records, establish a communication system for grant purchases, and ensure staff understand federal regulations on asset management.

Finding Text

2022-003 Equipment and Property Management US Department of Education Passed Through NYS Education Dept. Education Stabilization Fund COVID 19 ARP ESSER 3 AL 84.425U COVID 19 CRRSA ESSER 2 AL 84.425D Criteria: 2CFR Section 200.313(d)(1) specifies detailed property records that must be maintained for equipment acquired under a federal grant award. Records include a description of the property, a serial number or identification number, the source of funding (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data. Condition: The District expended funds from the ARP ESSER 3 grant to acquire promethean boards and other technology equipment and to make various land improvements such as outdoor classrooms and a basketball court. The District expended funds from the CRRSA ESSER 2 grant to acquire desks and seating. District fixed asset records did not include the detailed information required by 2CFR Section 200.313(d)(1). Some of the assets were not on the District?s fixed asset records at all and some were included in the fixed asset records but required information was missing. Context: The audit identified approximately $350,000 of assets, consisting primarily of outdoor spaces and playground matting purchased with ESSER3 funds that were not on the fixed asset schedule. Approximately $147,000 of desks and seating purchased with ESSER 2 funds were not on the fixed asset schedule. Other assets purchased with ESSER 3 funds of approximately $1.25 million were on the fixed asset schedule but all the required information was not included. Effect: If assets are not on the District?s fixed asset records, they may not be properly safeguarded, and the District may not comply with the Federal disposal rules. Cause: The Federal government awarded new types of grant funding in response to the COVID 19 pandemic. This funding presented difficulties for recipients because of the uncertainties related to the pandemic and the changing guidance and funding levels. The District has typically not used Federal grant funds to acquire fixed assets. There was inadequate communication between the departments regarding grant purchases and no system in place to ensure that all assets were included in the fixed asset records. There was also confusion regarding the District?s capitalization policy. Some items were individually under the capitalization threshold but because they were purchased in bulk the entire purchase was over the threshold. Recommendation: We recommend that the District update their fixed asset records to include the required information for assets purchased with Federal awards. A system of communication and a review process should be implemented to ensure completeness of fixed asset records. Personnel should become familiar with the Federal regulations concerning asset purchases.

Corrective Action Plan

The District will update the fixed asset policy to include required information purchased with Federal awarded monies. The District will communicate the new policy to all staff to ensure fixed assets will be recorded in the correct manner.

Categories

Equipment & Real Property Management Procurement, Suspension & Debarment

Other Findings in this Audit

  • 204809 2022-003
    Significant Deficiency
  • 204810 2022-004
    Significant Deficiency
  • 781250 2022-003
    Significant Deficiency
  • 781251 2022-003
    Significant Deficiency
  • 781252 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $881,006
84.027 Special Education_grants to States $615,197
84.367 Improving Teacher Quality State Grants $108,892
84.424 Student Support and Academic Enrichment Program $61,671
10.555 National School Lunch Program $47,899
10.559 Summer Food Service Program for Children $39,553
84.173 Special Education_preschool Grants $38,225
84.425 Education Stabilization Fund $8,894
10.649 Pandemic Ebt Administrative Costs $3,005
84.358 Rural Education $813