Finding 37181 (2022-003)

Material Weakness
Requirement
FN
Questioned Costs
$1
Year
2022
Accepted
2023-09-04

AI Summary

  • Core Issue: The District failed to keep proper asset inventories for devices funded by the ECF Program, missing key required details.
  • Impacted Requirements: The District did not comply with FCC guidelines on maintaining complete records for devices and substantiating unmet connectivity needs.
  • Recommended Follow-Up: Implement stronger internal controls to ensure compliance with ECF Program requirements and maintain accurate inventory records.

Finding Text

Federal Program Affected Program Name: COVID-19: Emergency Connectivity Fund (ECF) 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, COVID-19 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. In accordance with FCC Report and Order 21-58 paragraph 5, ECF Program support shall be used by schools to meet the otherwise unmet connectivity needs of students and school staff during the COVID-19 pandemic. In accordance with FCC Report and Order 21-58 paragraph 54, ECF Program support shall not be used to fund more than one connected device and more than one Wi-Fi hotspot per students or school staff member during the COVID-19 emergency period. Condition The District did not maintain adequate asset inventories for devices purchased using ECF support, as inventory records do not contain all of the aforementioned required elements. The District was not able to substantiate unmet need for all devices for which reimbursement was requested. Cause The condition identified appears to be due to lack of sufficient internal controls to ensure that program requirements are met.

Corrective Action Plan

The Board of Trustees has authorized a reorganization of the Fiscal Services department that includes adding Purchasing Manager and Purchasing Technician to ensure the District follows all purchasing guidelines and compliance requirements related to purchasing. The Purchasing Manager will also be responsible for our warehouse and inventory processes. This reorganization was approved effective July 1, 2023. Recruitment has begun for these positions.

Categories

Questioned Costs Equipment & Real Property Management Procurement, Suspension & Debarment Subrecipient Monitoring Cash Management Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 37180 2022-002
    Significant Deficiency
  • 37182 2022-004
    Significant Deficiency
  • 613622 2022-002
    Significant Deficiency
  • 613623 2022-003
    Material Weakness
  • 613624 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
32.009 Emergency Connectivity Fund Program $638,750
84.424 Student Support and Academic Enrichment Program $594,323
84.367 Improving Teacher Quality State Grants $447,667
84.048 Career and Technical Education -- Basic Grants to States $395,594
10.553 School Breakfast Program $384,588
84.010 Title I Grants to Local Educational Agencies $293,752
10.555 National School Lunch Program $217,267
84.425 Education Stabilization Fund $66,059
12.000 Junior Reserve Officer Training Corps - Air Force $63,014
10.558 Child and Adult Care Food Program $27,598
84.365 English Language Acquisition State Grants $5,687
84.027 Special Education_grants to States $300