Finding Text
Finding Number: 2023‐003
Repeat Finding: No
Program Name/Assistance Listing Title: COVID‐19 Education Stabilization Fund
Assistance Listing Number: 84.425
Federal Agency: U.S. Department of Education
Federal Award Number: A22AV00793
Pass‐Through Agency: Bureau of Indian Education
Questioned Costs: N/A
Type of Finding: Noncompliance, Significant Deficiency
Compliance Requirement: Equipment and Real Property Management
Criteria
Local governments and Indian tribes shall follow 2 CFR 200 for equipment acquired under federal
awards received directly from a federal awarding agency. Institutions of higher education, hospitals,
and other non‐profit organizations shall follow the provisions of Uniform Guidance. The Uniform
Guidance requires that equipment be used in the program for which it was acquired or, when
appropriate, other federal programs. Equipment records shall be maintained, a physical inventory of
equipment shall be taken at least once every two years and reconciled to the equipment records, an
appropriate control system shall be used to safeguard equipment, and equipment shall be adequately
maintained.
Condition
Documentation was not available to review equipment purchases or inventory listings and
procedures.
Cause
The School has not been able to devote proper resources and training to ensure capital assets are
accurate and up to date.
Effect
The School’s internal controls over capital assets were not adequate to ensure that a misstatement
would be prevented and/or detected. The School was not in compliance with requirements set by
the federal government.
Context
During our review of the School’s capital asset schedules we noted the following:
The capital asset listing does not include identification numbers for individual assets.
Capital asset policies appear outdated and need to be updated; this includes adding policies
related to finance purchases and lease recognition thresholds.
Physical inventory procedures are not documented and it is unable to be determined in
inventories are done periodically.
The sample was not intended to be, and was not, a statistically valid sample.
Recommendation
The School should design and implement effective internal control procedures to ensure the capital
assets schedules are prepared in accordance with GAAP and School policy. The School’s personnel
should obtain additional training as needed.
Views of Responsible Officials
See Corrective Action Plan.