Finding Text
2022-002 Department of Education and Passed through State of South Dakota Department of Education Federal Financial Assistance Listing #84.425C, 2021G-797, 03/13/2020 ? 09/30/2022 COVID-19 Education Stabilization Fund - Governor?s Emergency Education Relief (GEER) Fund Equipment and Real Property Management Significant Deficiency in Internal Control over Compliance and Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. The non-Federal entity must conform with equipment and real property management procedures identified in 2 CFR 200.313 (c) through (e). Condition: In our sample of expenditures selected for testing, we noted the following items: a) No support to substantiate a physical inventory of federal-funded equipment was performed within the last two years. b) Federal-funded equipment is not distinguished separately from non-federal-funded equipment within the Club?s fixed asset listing. Cause: The Club has not implemented controls over equipment and real property management to comply with federal requirements. Effect: Without established controls over equipment and real property management, the risk is increased that equipment could be misappropriated or that the federal agency would not be reimbursed if federal funded equipment was disposed. Questioned Costs: None reported Context: There were two fixed asset purchases, totaling $444,129, charged to the federal award, which were both tested. Repeat Finding from Prior Year: No Recommendation: We recommend that management implement control processes to conform with the Uniform Guidance equipment and real property management requirements noted above. Views of Responsible Officials: Management is in agreement.