Finding Text
U.S. DEPARTMENT OF EDUCATION
PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION
COVID-19 - AMERICAN RESCUE PLAN - ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND AND HOMELESS CHILDREN AND YOUTH - AL NUMBERS 84.425U AND 84.425W PASS-THROUGH NUMBER 3505
AUDIT PERIOD - YEAR ENDED JUNE 30, 2023
2023-003. Equipment and Real Property Management
Criteria or specific requirement: Property records should be maintained for equipment acquired with federal awards as specified in OMB 2 CFR section 200.313.
Condition: A test of the COVID-19 Education Stabilization Fund disbursements and walkthrough procedures revealed that three equipment items purchased with a cost greater than $1,000 each were not recorded in the District's equipment subsidiary ledger. The total cost of the equipment was $45,468.
Cause: Lack of internal controls over the equipment subsidiary ledger.
Effect or potential effect: The District's equipment subsidiary records were not accurate.
Context: All equipment purchases (3) from the federal program were reviewed. The total population consisted of two invoices totaling $47,927 that contained three equipment items.
Identification as a repeat finding: No
Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education (DESE) for guidance regarding this matter and implement proper controls over program expenditures.
Views of responsible officials: The District concurs with this finding. Deficiencies in the internal control activities adversely affected the District's ability to record program expenditures in the District's equipment subsidiary ledger. District management recognizes the importance of recording such expenditures so that these assets can accurately be traced over time.