Finding 20736 (2022-001)

Significant Deficiency
Requirement
F
Questioned Costs
-
Year
2022
Accepted
2023-03-28

AI Summary

  • Core Issue: The District could not account for three equipment items worth $4,079 purchased with federal COVID-19 funds.
  • Impacted Requirements: Failure to maintain proper records and follow federal guidelines for equipment management as outlined in 2 CFR section 200.313.
  • Recommended Follow-Up: Enhance monitoring of equipment records and provide training on proper disposal and management of federally funded assets.

Finding Text

U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID - 19 - EDUCATION STABILIZATION FUND - AL NUMBER 84.425D PASS-THROUGH NUMBER 4605 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022" 2022-001. Equipment and Real Property Management Criteria: Proper records should be maintained for equipment acquired with federal awards as specified in 2 CFR section 200.313. Additionally, the District should ensure that disposition of such equipment is in accordance with federal requirements, including the federal awarding agency is appropriately compensated for its share of any property sold or converted to non-federal use. Condition: The District could not account for three equipment items, costing $4,079, purchased from the COVID-19 - Education Stabilization Funds. Cause: Lack of internal controls over equipment subsidiary records. Effect or potential effect: The District's equipment subsidiary records were not accurate. Context: Selected 21 items with a total initial cost of $93,791 for inspection purposes from a population of 206 equipment items with a total initial cost of $4,283,051 recorded in the equipment subsidiary records for the Education Stabilization program. Recommendation: Proper records should be maintained for equipment acquired with federal awards. Views of responsible officials: District will more closely monitor the inventories of fixed assets and equipment and supplies purchased with Federal and non-Federal funding. More indepth training will be provided to campus leadership and departmental heads on the disposal process of fixed assets and items purchased under Federal funding. The District will take every precaution necessary to ensure that fixed assets and items purchased with Federal funds will be handled appropriately throughout the life-cycle and assure that proper records are maintained for equipment in accordance with Arkansas Department of Elementary and Secondary Education, as well as Federal, guidelines and procedures for program expenditures.

Categories

Equipment & Real Property Management Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 20735 2022-001
    Significant Deficiency
  • 597177 2022-001
    Significant Deficiency
  • 597178 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $2.53M
84.165 Magnet Schools Assistance $1.89M
84.425 Covid-19 - Education Stabilization Fund $948,841
10.553 School Breakfast Program $647,248
84.424 Student Support and Academic Enrichment Program $287,927
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $211,437
84.367 Supporting Effective Instruction State Grants $186,715
10.555 National School Lunch Program $185,952
84.027 Special Education_grants to States $136,013
84.048 Career and Technical Education -- Basic Grants to States $68,472
10.579 Child Nutrition Discretionary Grants Limited Availability $49,412
84.371 Comprehensive Literacy Development $48,238
12.U01 Rotc $33,709
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $25,967
16.710 Public Safety Partnership and Community Policing Grants $7,176
84.173 Special Education_preschool Grants $5,036