Finding Text
Sound accounting practices include the implementation of control procedures designed to prevent, detect and correct errors in financial statement or compliance reporting. This includes a system to track assets purchased from Federal funds that documents who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property.
The School District purchased 134 assets with Elementary and Secondary School Emergency Relief Funds (ESSER), which is part of the Education Stabilization Fund, Assistance Listing 84.425. Three out of 134, or 2.24%, were either not tracked within the School District inventory management system or were tracked with the incorrect Federal participation percentage. This could result in assets not being tracked which increases the risk of misappropriation. In addition, tracking assets at the incorrect Federal participation rate could result improper disposal outside of Federal requirements.
The School District should implement procedures to ensure that all assets are properly accounted for within their inventory system, and that all Federal reporting requirements are performed and documented within the system. This will help to mitigate risks of misappropriation, with other inventory controls being implemented, and ensure that all assets include proper documentation.
Officials’ Response: See Corrective Action Plan