FAC Explorer

Finding 24168 (2022-002)

Significant Deficiency
Requirement
F
Questioned Costs
-
Year
2022
Accepted
2023-01-04
Audit: 20234
Organization: Steel City Academy, Inc. (IN)
Auditor: Donovan PC

AI Summary

  • Core Issue: The School failed to reconcile its physical inventory with federal property records, violating compliance requirements.
  • Impacted Requirements: 2 CFR part 200.313 mandates maintaining accurate property records and conducting reconciliations every two years.
  • Recommended Follow-Up: Implement internal controls to ensure regular reconciliation of physical inventory with property records.

Finding Text

SIGNIFICANT DEFICIENCY Federal Program: Education Stabilization Fund Elementary and Secondary School Emergency Relief Fund Assistance Listing Number: 84.425D Condition The School completed an inventory of its equipment for the year ended June 30, 2022. However, this inventory was not compared to the School?s record of equipment and real property purchased with federal funds. Criteria 2 CFR part 200.313 requires property records be maintained that include all property purchased using federal funds. 2 CFR part 200.313(d)(2) states: A physical inventory of the property must be taken, and the results reconciled with the property records at least once every two years. Cause The School was not aware of the requirements outlined in the Criteria section above. Effect The School did not comply with the requirements to reconcile its physical inventory with its property records. Recommendation We recommend the School develop internal controls to ensure the physical inventory is reconciled with its property records at least once every two years. Views of Responsible Officials and Planned Corrective Actions The School?s Corrective Action Plan is included on page 24.

Corrective Action Plan

The Managing Director of Operations will compile all current inventories into one document that includes all required identifiers. We will research, invest and implement an asset management inventory system to accelerate this process and ensure the efficiency of a sustainable system moving forward. The Executive Director will perform inventory audits, as needed, verifying, and updating the data contained in the Fixed Asset Tracking List. The Fixed Asset Tracking List will be reconciled to the General Ledger by the Director of Finance. The Finance Working Group will also work in partnership with the Executive Director and Director of Finance to review our current capitalization policy and make recommendations to begin implementation for FY24.

Categories

Equipment & Real Property Management

Other Findings in this Audit

  • 24167 2022-001
    Significant Deficiency
  • 24169 2022-001
    Significant Deficiency
  • 24170 2022-002
    Significant Deficiency
  • 24171 2022-001
    Significant Deficiency
  • 24172 2022-002
    Significant Deficiency
  • 600609 2022-001
    Significant Deficiency
  • 600610 2022-002
    Significant Deficiency
  • 600611 2022-001
    Significant Deficiency
  • 600612 2022-002
    Significant Deficiency
  • 600613 2022-001
    Significant Deficiency
  • 600614 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $1.08M
84.010 Title I Grants to Local Educational Agencies $426,770
84.377 School Improvement Grants $183,302
32.009 Emergency Connectivity Fund Program $128,212
10.553 School Breakfast Program $65,210
84.367 Improving Teacher Quality State Grants $56,733
10.555 National School Lunch Program $37,365
84.424 Student Support and Academic Enrichment Program $29,378
84.027 Special Education_grants to States $25,003
10.582 Fresh Fruit and Vegetable Program $9,300