Finding 396146 (2023-001)

SIGNIFICANT DEFICENCY and NONCOMPLIANCE Equipment/Real Property Management Condition: Pursuant to the Code of Federal Regulations (CFR), Title 2 Grants and Agreements, Subpart D Post Federal Award Requirements, Section 200.303 “the non-federal entity must establish and maintain effective internal control over the Federal aware that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.” Condition: When investigating the controls and compliance related to equipment management, we became aware that the District does not have a inventory tracking managmenet system in place for non-technology items. Cause: The controls related to equipment maintenance for Education Stabilization Fund are non-existent. Effect: There is no internal control related to non-technology equipment maintenance. Recommendations: The Board of Directors, the Director and key positions of management should adequately document internal control procedures for equipment inventory, log maintenance, and dispositions requirements consistent with 2 CFR sections 200.313(c) through (e). Board should then periodically check that all procedures agreed upon are operational and effective, and adjust procedures as needed. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding. See separate document for planned corrective actions.