Finding 38400 (2022-007)

Significant Deficiency
Requirement
F
Questioned Costs
-
Year
2022
Accepted
2023-01-08
Audit: 36432
Organization: Rockford Area Public Schools (MN)

AI Summary

  • Core Issue: The District did not capitalize equipment valued over $5,000, violating federal guidelines.
  • Impacted Requirements: Uniform Guidance mandates maintaining records for tangible personal property exceeding $5,000 in acquisition cost.
  • Recommended Follow-Up: The District should evaluate and strengthen internal controls for managing federal funds and capital asset records.

Finding Text

Finding 2022-007 Equipment and Real Property Management Federal Program: Education Stabilization Fund (ALN 84.425) Condition: Independent School District No. 883 (the District) failed to capitalize equipment with a current per-unit fair market value in excess of $5,000. Criteria: Per the Uniform Guidance, property records must be maintained for tangible personal property having a useful life of more than one year and a per-unit acquisition cost which equals or exceeds $5,000 in program dollars. Cause: The District failed to add an equipment purchase to the District?s capital asset records. Effect: The failure to incorporate the asset into the capital asset records resulted in the District?s noncompliance with the program?s requirements. Questioned Costs: None identified. Recommendation: We recommend the District assess internal controls related to the District?s Federal dollars and controls over ensuring the completeness capital asset records. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the recommendation. See corresponding Corrective Action Plan.

Corrective Action Plan

Finding 2022-007 Equipment and Real Property Management 1. Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding. 2. Actions Planned in Response to Finding The District will assess internal controls over its Federal programs and implement controls to ensure future compliance with the requirements. 3. Official Responsible Mrs. Rhonda Dean, Superintendent, is the official responsible for ensuring corrective action. 4. Planned Completion Date June 30, 2023 5. Plan to Monitor Completion The Board of Education will be monitoring this Corrective Action Plan.

Categories

Equipment & Real Property Management Procurement, Suspension & Debarment

Other Findings in this Audit

  • 38399 2022-006
    Significant Deficiency
  • 614841 2022-006
    Significant Deficiency
  • 614842 2022-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.555 Covid-19 - National School Lunch Program $849,267
84.165 Magnet Schools Assistance $602,459
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $227,976
32.009 Covid-19 - Emergency Connectivity Fund Program $202,000
84.425 Covid-19 - Education Stabilization Fund $167,137
10.553 Covid-19 - School Breakfast Program $164,390
84.010 Title I Grants to Local Educational Agencies $106,311
84.027 Special Education_grants to States $86,022
93.323 Covid-19 - Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $62,015
84.367 Improving Teacher Quality State Grants $24,132
84.365 English Language Acquisition State Grants $16,204
84.173 Special Education_preschool Grants $11,720
84.424 Student Support and Academic Enrichment Program $4,204
84.048 Career and Technical Education -- Basic Grants to States $2,581