Finding 2218 (2023-002)

CONDITION: The District did not properly monitor all of the related equipment and services funded through the SPI ECF Program. CRITERIA: The grant recipient must keep asset and service inventories of the devices and services purchased with the ECF Program, and the grant recipient must ensure that per-location and per-user limitations are maintained so that no more than one connected device or fixed broadband connection per location is reimbursed with the ECF Program. CONTEXT AND EFFECT: The District was not initially aware that the SPI ECF Program was a federal award of the District. The District heavily relied on the service provider and a consultant to comply with the applicable compliance requirements. The District did not fully meet all of the requirements for maintaining inventory records and monitoring the per-user and per-location restrictions. The District did not monitor the eligible locations that were provided connectivity services and instead relied on the service providers through SPI ECF Program grants to track the addresses receiving services. The District also did not have historical records of the mobile connection devices that were provided to eligible users during the funding period. CAUSE: The District was not fully aware of all of the inventory documentation requirements for equipment and services funded through the SPI ECF Program. RECOMMENDATION: We recommend that the District keep adequate inventory records on file for the equipment and services to ensure compliance with program requirements. RESPONSE: The District agrees with this finding and will adhere to the corrective action plan on page 126 in this audit report.