Finding 366557 (2023-001)

Significant Deficiency
Requirement
F
Questioned Costs
-
Year
2023
Accepted
2024-02-08

AI Summary

  • Core Issue: The District failed to maintain complete inventory records for equipment purchased with Emergency Connectivity Fund (ECF) money, leading to significant deficiencies and non-compliance.
  • Impacted Requirements: Compliance with 2 CFR Part 200 mandates detailed inventory records, including equipment type, make, model, service details, and responsible personnel.
  • Recommended Follow-Up: The District should enhance its inventory policies and procedures to ensure all required information is documented and maintained throughout the equipment's lifecycle.

Finding Text

2023-001 ALN 32.009 Emergency Connectivity Fund Equipment/Real Property Management Type of Finding: Significant Deficiency and Non-Compliance Federal Communications Commission Criteria The 2023 2 CFR Part 200 (Compliance Supplement) identified Equipment/Real Property Management as an applicable compliance requirement for the Emergency Connectivity Fund (ECF). Specifically, recipients of ECF are required to maintain equipment and service inventories of the devices and services purchased with program funds. Inventories should contain information such as equipment or service type, make and model of equipment, equipment serial number, service plan details, names of person(s) (student or District employee) who is responsible for the equipment or service provided, and dates the equipment was in service. Condition The District was unable to support adherence to all of the various equipment and service inventory requirements under the federal program for fiscal year ending August 31, 2023. Specifically, the District’s inventory records did not include equipment type, equipment makes and models, and dates the equipment was in service for an order of iPads purchased under the program. This information was provided by the District at a later date from information obtained from the service/equipment provider. The iPad serial numbers and name of the school employee responsible for the device were correctly inventoried. In addition, the District’s inventory records did not include service plan details, name of the school employee responsible for the service, and descriptions of intended service areas for hotspot and iPad services when these services were put into place. The type of service provided was on file. The majority (70%) of the District’s purchases under ECF for the fiscal year were for Chromebooks. No exceptions were noted for the inventory records for these devices. Cause The District experienced turnover in the technology department, which oversaw the ECF application and document retention process, and did not have adequately documented policies and procedures in place to ensure compliance with the Equipment/Real Property Management requirement for this program. Effect or Potential Effect Noncompliance with the Equipment/Real Property Management requirement did occur and could continue to not be prevented, or detected and corrected, by the District’s system of internal control over compliance, leading to federally funded equipment and services not being properly maintained and tracked during the life of the equipment or service, and therefore potential loss of Federal award funding in the future. No questioned costs were identified as equipment and services under this program were deemed to be allowable and properly accounted for upon further discussion with the client. Recommendation The District should review its inventory policies and procedures, particularly those policies and procedures for federally funded equipment and services, and ensure records are maintained for the life of the use of equipment or service, and contain all the required information as specified by the grantor. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Corrective Action Plan

Finding 2023-001 Significant Deficiency in Internal Control and Non-Compliance over ECF Equipment and Real Property Management. Responsible Officials Response and Corrective Action: The District has updated its inventory records to include equipment type, equipment makes and models, and dates the equipment was in service for an order of iPads purchased under the Emergency Connectivity Fund. The District also is in the process of updating inventory records to include service plan details, name of the school employee responsible for the service, and descriptions of intended service areas for hotspot and iPad services when these services were put into place. Contact for Responsible Official: Tony Kingman, Chief Financial Officer. Anticipated Completion Date: 01/22/2024.

Categories

Equipment & Real Property Management

Other Findings in this Audit

  • 942999 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.553 School Breakfast Program $2.46M
32.009 Emergency Connectivity Fund Program $1.51M
84.367 Improving Teacher Quality State Grants $494,376
10.558 Child and Adult Care Food Program $470,261
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $361,829
84.425 Education Stabilization Fund $361,373
84.424 Student Support and Academic Enrichment Program $292,580
84.027 Special Education_grants to States $260,701
84.010 Title I Grants to Local Educational Agencies $236,722
93.600 Head Start $194,014
84.048 Career and Technical Education -- Basic Grants to States $167,132
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $144,463
10.555 National School Lunch Program $90,845
10.582 Fresh Fruit and Vegetable Program $80,280
10.579 Child Nutrition Discretionary Grants Limited Availability $76,000
93.778 Medical Assistance Program $46,357
12.000 Reserve Officers' Training Corps $46,037
21.027 Coronavirus State and Local Fiscal Recovery Funds $39,220
84.365 English Language Acquisition State Grants $13,690
84.011 Migrant Education_state Grant Program $13,678
84.173 Special Education_preschool Grants $9,854
84.196 Education for Homeless Children and Youth $5,776