Finding Text
Finding - District property records did not demonstrate compliance with Federal regulations by identifying the location of certain equipment funded by the ES Fund, resulting in questioned costs totaling $213,936.
Criteria - Title 2, Section 200.313(d)(1), Code of Federal Regulations, requires that property records for equipment be maintained that include various details, such as a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal award identification number), the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property.
Title 2, Section 200.313(a), CFR, defines equipment as tangible property, including information technology systems, having a useful life of one year and a per-unit acquisition cost which equals or exceeds the lesser of the capitalization threshold established by District. According to Board Policy 7.77 – Inventories and Property Records, the Superintendent or designee must maintain an adequate and accurate record of all tangible personal property of the District. All equipment must be listed that has a value or cost of $1,000 or more.
Condition - During the 2022-23 fiscal year, District ES Fund expenditures totaled $9,501,131, including $213,936 expended for capitalized equipment with a value or cost of $1,000 or more. As part of our audit, we requested for examination District records supporting 14 selected items with costs exceeding the District $1,000 capitalization threshold and totaling $213,936. However, no records were provided to identify the equipment serial number, source of funding, condition, location, or otherwise properly account for the 14 items.
Cause - District personnel indicated that the missing property information was an oversight as the employee responsible for recording property items was not timely provided with the appropriate acquisition information.
Effect - Without effective accountability over Federal equipment, including the maintenance of appropriate property records, there is an increased risk that the equipment may be used for unauthorized purposes or not be readily located or identified as missing. Absent the required detailed property records, the ES Fund equipment acquisitions totaling $213,936 represent questioned costs.
Recommendation - The District should conduct a thorough investigation of the ESSER Fund capital outlay expenditures to identify equipment acquisitions with costs exceeding the District $1,000 capitalization threshold, locate the applicable items, and prepare and maintain appropriate property records for those items. In addition, the District should restore to the FDOE the questioned costs related to any unlocated items and contact applicable law enforcement agencies regarding other necessary actions to help recover unlocated equipment.
District Response - The District confirms the audit finding and will implement policies and procedures, as well as staff training, to ensure compliance with the ES Fund.