Finding Text
2023-018 EQUIPMENT AND REAL PROPERTY MANAGEMENT - ESSER
Grant Title: COVID-19 American Rescue Plan Elementary and Secondary School Emergency Relief Fund - Education Stabilization Fund (ESSER)
Federal Award Number and Year: 2023
Assistance Listing #: 84.425D and 84.425U
Federal Agency: US Department of Education
Pass-through Entity number: 52110 and 52160
Pass-through Agency: WV Department of Education
CONDITION: The Monroe County Board of Education (the "Board") did not follow the federal requirements for equipment and real property management under the COVID-19 American Rescue Plan ESSER program. The Board maintained photographic evidence of the inventoried items but failed to maintain a detailed listing of the equipment and real property, as required by federal regulations.
CONTEXT: During the audit period, the Board was responsible for managing equipment and real property acquired under the COVID-19 American Rescue Plan ESSER program. However, the documentation reviewed during the audit revealed that the Board had not maintained a formal inventory listing. Instead, the Board relied on photographic records and a project manual to document the existence and condition of the equipment and real property, which is not sufficient to meet the federal requirements.
CRITERIA: In accordance with 2 CFR § 200.313(d), non-Federal entities must maintain accurate records for equipment acquired with federal funds, including a detailed listing that identifies each item, its location, its condition, and other pertinent details. This listing must be updated as needed and must be verified by a physical inventory at least once every two years.
QUESTIONED COSTS: None
CAUSE: The noncompliance appears to have been by a lack of awareness or understanding of the specific federal requirements for maintaining a detailed inventory listing for equipment and real property. The Board relied on photographic records without recognizing the necessity of a formal, detailed listing as mandated by federal regulations.
EFFECT: Failure to maintain a detailed inventory listing as required by federal regulations increases the risk of mismanagement or loss of equipment and real property and could impact the Board's ability to receive future federal funding.
REPEAT FINDING: No
RECOMMENDATION: We recommend that the Board establish and maintain a detailed inventory listing for all equipment and real property acquired with federal funds. This listing should include all information required by federal regulations and should be verified through a physical inventory at least once every two years. Additionally, the Board should provide training to staff responsible for equipment and real property management to ensure compliance with federal requirements.
VIEWS OF RESPONSIBLE OFFICIALS: The Board acknowledges the finding and agrees with the recommendation.