Finding 386940 (2023-003)

FINDING 2023-003: US Department of Education and PA Department of Education – COVID-19 Education Stabilization Fund (ESF) – ALN #84.425 – Internal Control Over Compliance of Equipment and Real Property Management Material Weakness – See below. FINDING 2023-003: US Department of Education and PA Department of Education – COVID-19 Education Stabilization Fund (ESF) – ALN #84.425 - Equipment and Real Property Management Criteria: In accordance with Uniform Guidance requirements found in Part 3 Section F, “Equipment/Real Property Management” of the Compliance Supplement, the School District is required to receive prior approval from the Pennsylvania Department of Education (PDE) for capital expenditures for equipment acquisition or improvements to land, buildings, and equipment. Condition: The School District did not adequately obtain approval from PDE prior to purchasing equipment and building improvements with ESF funds. Cause: The School District did not have a formal procedure in place to obtain prior approval of applicable expenditures. Effect: The School District was not in compliance with the Equipment and Real Property Management requirements of the Uniform Guidance. Repeat Finding: No Questioned Costs: Unknown Recommendation: We recommend that the School District revise its purchasing policy to formally reflect the requirements of Equipment/Real Property Management. We recommend that the School District establish procedures to ensure that Equipment/Real Property Management requirements are met for applicable purchases. Views of Responsible Officials and Planned Corrective Action: The School District agrees with the recommendation. See separate Corrective Action Plan.