Finding Text
Finding Number: 2023-004
Federal Agency: U.S. Department of Education
Cluster/Program: Education Stabilization Fund
AL Number(s): 84.425
Award Year: 2023
Compliance Requirement: Equipment/Real Property Management
Type of Finding
Compliance
Internal Control over Compliance – Significant Deficiency
Criteria or Specific Requirement
According to federal regulations, recipients of federal funds under the Education Stabilization Fund are required to maintain accurate records and logs for equipment purchased with such funds. These logs should include detailed information about the acquisition, use, maintenance, and disposition of the equipment.
Condition and Context
Upon review, it was noted that equipment logs were not maintained for equipment purchased with funds from the Education Stabilization Fund.
Cause
The absence of equipment logs could be attributed to lack of awareness of federal requirements.
Effect or Potential Effect
Failure to keep equipment logs jeopardizes the Town’s accountability for federal assets and potentially could lead to misuse or misappropriation of federally funded equipment.
Recommendation
The Town should initiate the process of creating and maintain detailed equipment logs for all federally funded equipment purchases and train relevant personnel on the proper procedures for equipment recordkeeping, emphasizing the importance of these logs in federal fund management.
Views of Responsible Official
Management agrees with the finding.
Planned Corrective Action
Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.