Finding Text
2022-002 50000 ? Federal Programs ? Inventory Control (Noncompliance and Material Weakness in Internal Controls over Compliance) Federal Programs Affected COVID-19 Emergency Connectivity Fund Program Assistance Listing Number: 32.009 Pass-Through Entity: N/A ? Direct Award Federal Agency: Federal Communications Commission Criteria or Specific Requirements In accordance with Federal Communications Commission (FCC) Report and Order 21-58, paragraphs 116-118, Emergency Connectivity Fund (ECF) Program participants are required to maintain asset and service inventories of the devices and services purchased with ECF Program support. Asset inventories are required to contain the following elements: (a) device type, (b) device make/model, (c) equipment serial number, (d) the name of the person to whom the device was provided, and (e) the dates the device was loaned out and returned to the school. Service records must include the following elements: (a) type of service provided, (b) broadband plan details, including: upload and download speeds and monthly data cap, (c) the name(s) of the person(s) to whom the service was provided, and for fixed broadband service; (d) the service address, and (e) the installation date of service, and (f) the last date of service (as applicable). Condition The District did not maintain adequate inventory records for assets and services purchased with ECF funds. The inventory records were not adequately updated to reflect when and to whom the purchased items and services were provided and the total number of inventoried items could not be reconciled to the number of items purchased with ECF funds. Questioned Costs There were no questioned costs associated with this finding. Context The condition was identified through inquiries with District management and review of program records. Effect The District is not in compliance with the device and service inventory requirements of the program. Cause Due to the time-sensitive need to maintain connectivity for student learning, the District did not prioritize adequate record-keeping in accordance with program requirements. Repeat Finding No. Recommendation The District should ensure that program requirements are reviewed and adequate controls over compliance are in place prior to commencing program activities under federal programs.