U.S. Department of Education – Passed-through the NYS Education Department
COVID-19 Elementary and Secondary School Emergency Relief Fund; Assistance Listing Number 84.425D; Grant Period – Fiscal Year Ended June 30, 2023
Non-Compliance
Criteria:
According to 2 CFR section 200.313(d)(1), detailed property records must be maintained for equipment acquired under a federal grant award. Records should include a description of the property, a serial number or identification number, the source of funding (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and ultimate disposition data.
Condition:
During our audit, we noted the District’s fixed asset records were incomplete for some of the assets acquired with federal grant funding during the fiscal year.
Cause:
The District did not appropriately review and reconcile its expenditure records in order to identify equipment additions purchased with federal funds for the purposes of updating their fixed asset records.
Effect:
If the District’s fixed asset records are incomplete, they may not be properly safeguarded, and the District may not comply with the aforementioned federal regulations.
Recommendation:
We recommend that the District update their fixed asset records to include required information for assets purchased with federal awards and that a system of communication and a review process be implemented to ensure completeness and timing of fixed asset addition records.
District’s Response:
The District reviewed the federal guidelines with the grant administrator, requisitioner, and newly hired purchasing agent/fixed asset keeper on capital asset acquisitions through grants. The District has placed new internal controls to identify capital asset acquisitions through grants; those internal controls include but are not limited to review of minor remodeling, supplies and materials and equipment account codes, identification upon requisition, approval from grant administrator, and review by grant administrator. Before finalizing capital assets reports, the purchasing agent, fixed asset keeper, and current accounting consultant will review the purchase orders for anything above the District's capitalization policy. These controls will ensure the District is compliant and within requirements for capital asset acquisitions through grants.
Individual Responsible for Implementing Corrective Action Plan:
Brigid Siena, Assistant Superintendent for Business and Operations
Implementation Date:
March 26, 2024