Finding 48744 (2022-005)

Federal Program: Charter School Program CFDA No.: 84.282 Federal Agency: U.S. Department of Education Pass-Through Entity: N/A Award No.: As listed on the Schedule of Expenditures of Federal Awards Award Period: Various Compliance Requirement: Equipment and real property management Criteria: Uniform Guidance requires a physical inventory to be taken every 2 years and records of property purchased under federal programs to including certain items including the following: ? Description ? Serial number or identification number ? Source of funding including federal award ? Acquisition date ? Cost including federal cost or percentage ? Location ? Use ? Condition ? Disposition data ? Control system to ensure adequate safeguards to prevent loss ? Adequate maintenance procedure to keep property in good condition Condition: A physical inventory of property purchased under federal programs is not being performed and the records of capitalized property, plant and equipment do not contain several of the items required under Uniform guidance. Cause: The School?s policies and procedures do not address physical inventory of property, plant and equipment nor the information that should be tracked as part of property purchased under federal programs. Effect: Lack of controls could result in inaccurate equipment and real property management for purchase under federal programs resulting in limited future federal funding for such costs. Recommendation: We recommend School review current policies and procedures surrounding equipment and real property management and establish procedures related to physical inventory and retention of data required under Uniform Guidance. Management Response: The current management team was not employed with the School during this audit period but agrees with the auditors findings and recommendations. Management of the School has implemented procedures and are training staff on industry best practices on property management. The management team is also reviewing best practices on physical inventory and retention of data required under Uniform Guidance.