Finding Text
2022-003 U.S. Department of Agriculture Pass-Through Iowa Department of Education Education Stabilization Funds: 84.425B COVID-19 Discretionary Grants: Rethink K-12 Education Models Grants 84.425D COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund 84.425U COVID-19 ARP-Elementary and Secondary School Emergency Relief (ARP-ESSER) Federal Award Year: 2022 Finding: The District overcharged the Education Stabilization Fund program for equipment. Criteria: Consistent with 2 CFR section 200.313 (equipment), Education Stabilization Funds (ESF) may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by Education Department (ED) or the pass-through entity. In addition, with prior approval by the ED or the pass-through entity, recipients and subrecipients may also use ESF funds to purchase real property, perform construction or minor remodeling, and for improvements to land, buildings, or equipment that meet the overall purpose of the ESF program, which is ?to prevent, prepare for, and respond to? the COVID-19 pandemic. Condition: The District expended Education Stabilization Fund program funding to purchase three vehicles at a price above the amount approved by the Iowa Department of Education. Cause: The District did not compare the actual cost of each vehicle to the Iowa Department of Education approval. Effect: The District overspent allowable funds as approved by the Iowa Department of Education for equipment by $19,750. Questioned Costs: $19,750 Context: The District obtained approval to buy up to two vehicles for up to $43,275 each. The District purchased two vehicles in the amounts of $50,150 and $56,150, respectively, which exceeded the maximum approved amount per vehicle and charged the program for the full purchase price. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the District request an amendment if the actual cost exceeds the prior approval limits or only charge the program for the approved portion. Response and Corrective Action Plan: The District will review current processes for purchasing equipment within Iowa Department of Education approval amounts or seek amendments when approval cost limits cannot be met.