FAC Explorer

Finding 3382 (2023-004)

Significant Deficiency
Requirement
F
Questioned Costs
-
Year
2023
Accepted
2023-12-05
Audit: 5290
Organization: St. Ignace Area School District (MI)
Auditor: Rehmann Robson LLC

AI Summary

  • Core Issue: The District failed to conduct required physical inventories of equipment purchased with federal funds.
  • Impacted Requirements: This noncompliance with the Uniform Guidance could lead to future issues when disposing of assets.
  • Recommended Follow-Up: The District should perform physical inventory counts every two years for all federally funded equipment and property.

Finding Text

The Uniform Guidance requires entities that purchase equipment and real property to maintain records which indicate which of those assets were purchased with federal funds, and to conduct a physical inventory of equipment purchased with federal funds at least once every two years. The District has not conducted a physical inventory of equipment in accordance with the requirements. This condition was caused by a lack of complete understanding of the requirements associated with equipment and real property management. The District did not comply with the requirements of the Uniform Guidance, which could also result in further noncompliance when equipment and real property are disposed in future years as a result of not having inventory taking. No costs have been questioned as a result of this finding inasmuch as no disallowed costs were identified. We recommend that the District take physical inventory counts of all equipment and real property purchased with federal funds at least once every two years.

Corrective Action Plan

The district will continue to annually update our physical inventory count of all equipment and real property purchased with federal funds. Our current inventories include our technology purchases, our transportation purchase, and our door replacement project purchases. In addition to continuing to update these physical inventories, we will be sure that our business officials are aware of and involved in active review of these inventories that are already being updated through our technology consortium, our transportation director, and our building/site director annually.

Categories

Equipment & Real Property Management

Other Findings in this Audit

  • 3383 2023-004
    Significant Deficiency
  • 3384 2023-004
    Significant Deficiency
  • 3385 2023-004
    Significant Deficiency
  • 3386 2023-003
    Material Weakness
  • 579824 2023-004
    Significant Deficiency
  • 579825 2023-004
    Significant Deficiency
  • 579826 2023-004
    Significant Deficiency
  • 579827 2023-004
    Significant Deficiency
  • 579828 2023-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.041 Impact Aid $154,738
84.010 Title I Grants to Local Educational Agencies $107,899
84.013 Title I State Agency Program for Neglected and Delinquent Children and Youth $55,800
84.060 Indian Education_grants to Local Educational Agencies $55,547
10.665 Schools and Roads - Grants to States $48,564
84.358 Rural Education $38,127
10.553 School Breakfast Program $35,147
84.027 Special Education_grants to States $33,750
84.424 Student Support and Academic Enrichment Program $10,000
84.425 Education Stabilization Fund $7,827
93.778 Medical Assistance Program $5,319
10.559 Summer Food Service Program for Children $4,551
10.649 Pandemic Ebt Administrative Costs $628
10.555 National School Lunch Program $492