Finding Text
2022 ? 001 ? Equipment/Real Property Management Federal Agency: U.S. Department of Education Federal Program Name: Elementary and Secondary School Emergency Relief Funds (ESSER) Assistance Listing Number: 84.425D and 84.425U Federal Award Identification Number and Year: Not Available. Pass-Through Agency: Massachusetts Department of Elementary and Secondary Education Pass-Through Number(s): 113-377682-2021-0292; 115-497747-2021-0292; 115-561133-2022-0292 Award Period: July 1, 2021-June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance (Modified Opinion) Criteria or specific requirement: The management requirements of Title 2 of the U.S. Code of Federal Regulations, ?200.313(d) indicate that property records must be maintained for equipment acquired under a federal award. Such property records should include the acquisition date, location, use, condition, identification number, and the cost and source of funding of the property. Condition: The Town?s ESSER grant awards included expenditures for heating, ventilation, and air conditioning (HVAC) building improvements at the Town?s various public schools. The Town did not maintain property records for such building improvements in accordance with the management requirements of ?200.313(d). Questioned costs: None identified. Context: Our testing of allowable costs/cost principles identified various expenditures for building improvements. While such costs were allowable and approved by the awarding agency, the related building improvements were not added to the property records based on our inquiries with management. Cause: The Town did not apply its standard procedures for other property and equipment purchased with federal awards in a similar manner to the HVAC building improvements. Effect: Material noncompliance with equipment and real property management compliance requirements occurred. Repeat Finding: No. Recommendation: We recommend the Town apply its procedures for the management of equipment and real property purchased with federal awards to all expenditures of this type; including HVAC and other building improvements. Views of responsible officials: All purchases that need to be identified as equipment and asset tagged will have the proper labeling.