Finding Text
Education Stabilization Fund Equipment/Real Property Management Federal Agency: U.S. Department of Education Federal Program Title: Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund and Governor's Emergency Education Relief Fund Assistance Listing Number: 84.425C and 84.425D Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2022-102394-DPI-ESSERFII-163, 2021-102394-DPIGEERF-162, 2021-102394-DPIESSERF-160 Award period: July 1, 2021 ? June 30, 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or Specific Requirement: 2 CFR Section 200.131(d) states (1) property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and 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 including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: The District's controls identified and tracked assets that were paid for by grant dollars, however there needs to be improvements in the documentation of those controls. Questioned Costs: None. Context: While performing audit procedures, it was noted that the District did not have policies in place to ensure documentation of the District?s controls classifying and retaining information about capital asset purchases with federal funds for both assets in our sample. Cause: The District was not aware of the compliance requirements related to equipment and real property purchased with federal funding by the District. Effect: Equipment or real property purchased with federal funds may not have properly maintained property records and upon disposition of the asset the District may have failed to provide information and funds back to the federal government. Repeat Finding: No Recommendation: We recommended that the District implement proper documentation of controls over maintaining property records for equipment and real property purchased with federal funds and ensure documentation of a physical inventory of capital assets is completed at least every two years. Views of Responsible Officials: There is no disagreement with the audit finding.