Finding 32074 (2022-005)

Material Weakness
Requirement
F
Questioned Costs
$1
Year
2022
Accepted
2023-02-27
Audit: 28062
Auditor: Rto & Company

AI Summary

  • Core Issue: Two equipment purchases totaling $28,007 were made without prior approval from the Oregon Department of Education, violating grant requirements.
  • Impacted Requirements: Compliance with the 2022 Uniform Guidance, which mandates prior approval for equipment purchases using Education Stabilization Fund (ESF) money.
  • Recommended Follow-Up: Strengthen procedures and controls to ensure all grant requirements are met and prevent future noncompliance.

Finding Text

Finding 2022-05 Capital Outlay Compliance Type of Finding: Material Weakness AL Title: Education Stabilization Fund (ESF) AL Number: 84.425 Federal Award Year: 2022 Federal Agency: Department of Education Pass Through Agency: Oregon Department of Education Category of Finding: Equipment/Real Property Management Questioned Costs: $28,007 Criteria: According to the 2022 Uniform Guidance Compliance Supplement, subrecipients may use ESF funds to purchase equipment only if they obtain prior approval by the pass through entity. Condition: Two equipment purchases were made without prior approval from Oregon Department of Education out of a total population of 11 invoices. We tested all 11 invoices?no sample was created. Cause: Controls over federal awards were not adequate to ensure compliance with all grant requirements. Effect: The lack of adequate controls contributed to material noncompliance with Equipment/Real Property Management compliance requirements for the Education Stabilization Fund grant, which was a major program during the fiscal year. Questioned Costs: Equipment purchased without prior approval from the pass through entity totaled $28,007. This was the total known questioned costs with no additional amount for likely questioned costs. Repeat Finding?: No Recommendation: We recommend procedures be strengthened to ensure grant requirement adherence. View of Responsible Official: We accept this finding and acknowledge we missed getting prior approval. Steps have been taken, with the adding of additional fiscal staff, that greater care will be taken with future grants.

Corrective Action Plan

Finding: 2022-05 CFDA Number: 84.425 Award Name and years: Education Stabilization Fund (ESF), 2022 Federal Agency: Department of Education ? Oregon Department of Education Category of Finding: Equipment/Real Property Management Questioned Cost: $28,007 Criteria: According to the 2022 Uniform Guidance Compliance Supplement, subrecipients may use ESF funds to purchase equipment only if the obtain prior approval by the pass-through entity. Condition: Two equipment purchase were made without prior approval from Oregon Department of Education out of a total population of 11 invoices. We tested all 11 invoices ? no sample was created. Cause and Effect: The lack of adequate controls contributed to material noncompliance with Equipment/Real Property Management compliance requirements for the Education Stabilization Fund grant, which was a major program during the fiscal year. Recommendation: We recommend procedures be strengthened to ensure grant adherence. Agency Response: We accept this finding and acknowledge we missed getting prior approval. Internal control steps have been taken, with the adding of additional fiscal staff. Greater care will be taken with future grants.

Categories

Questioned Costs Equipment & Real Property Management Procurement, Suspension & Debarment Subrecipient Monitoring Material Weakness

Other Findings in this Audit

  • 32075 2022-006
    Significant Deficiency
  • 608516 2022-005
    Material Weakness
  • 608517 2022-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $444,948
10.555 National School Lunch Program $196,924
10.553 School Breakfast Program $114,154
84.010 Title I Grants to Local Educational Agencies $112,346
10.579 Child Nutrition Discretionary Grants Limited Availability $47,314
84.358 Rural Education $27,892
10.556 Special Milk Program for Children $19,789
10.559 Summer Food Service Program for Children $11,423
84.367 Improving Teacher Quality State Grants $11,099
84.424 Student Support and Academic Enrichment Program $10,000
84.027 Special Education_grants to States $2,335
45.310 Grants to States $1,321
10.582 Fresh Fruit and Vegetable Program $1,061
10.649 Pandemic Ebt Administrative Costs $614