Finding 375772 (2023-004)

Federal Agency - United States Department of Education Federal Program - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund (84.425D) Federal Award Years - 2023 State Agency - Department of Education Reference - 2023-004 Criteria - Equipment and real property purchased with federal funds is required to be tracked separately and a physical inventory performed every two years. Condition - The District has not performed a physical inventory of federally purchased property in the past two years. As a result, equipment claimed under Education Stabilization Funds were not properly tracked and reconciled. Cause - The District does not have a process in place to ensure that a physical inventory is taken and the results reconciled with property records at least once every two years. Effect of Condition - The District was unable to verify that equipment purchased using federal funds was still in place and operating in good condition. Questioned Costs - None. Perspective - A physical inventory was not completed within the last two years and as a result, the property records of the District were not able to be reconciled to ensure that property obtained with federal funds were maintained and in good condition. Recommendation - We recommend that the District obtain a physical inventory of their capital asset records. Views of Responsible Officials and Planned Corrective Actions - (a) Comments on the finding and recommendation: The District agrees with the finding. The District also agrees with the recommendation. See below for actions taken. (b) Actions Taken: Management will contract with a third party organization to have a physical inventory performed. (c) Anticipated Completion Date: Management anticipates this finding will be resolved by June 30, 2024.