Finding Text
FINDING 2024-001
Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management
Federal Agency: Department of Education
Federal Program: COVID-19 - Education Stabilization Fund
Assistance Listings Numbers: 84.425C, 84.425D, 84.425U
Federal Award Numbers and Years (or Other Identifying Numbers): S425C200018, S425D210013,
S425U210013, 7000S425U210013,
3115
Pass-Through Entity: Indiana Department of Education
Compliance Requirement: Equipment and Real Property Management
Audit Findings: Material Weakness, Other Matters
Condition and Context
A property record or capital asset listing would include the following for each asset: 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 (FAIN)), who holds title, the acquisition date, 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 sales price of the property. The property record or capital asset listing
should be maintained for assets purchased that exceed the School Corporation's capitalization threshold.
The School Corporation maintained a detailed listing of capital assets; however, the capital asset
listing provided did not identify which assets were purchased with federal dollars, the FAIN, or the
percentage of federal participation in the project costs for the federal award under which the property was
acquired.
Criteria
2 CFR 200.303 states in part:
"The non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides
reasonable assurance that the non-Federal entity is managing the Federal award in
compliance with Federal statutes, regulations, and the terms and conditions of the Federal
award. These internal controls should be in compliance with guidance in 'Standards for
Internal Control in the Federal Government' issued by the Comptroller General of the
United States or the 'Internal Control Integrated Framework', issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO). . . ."
2 CFR 200.313(d) states in part:
". . . (1) Property records must be maintained that include a description of the property, a serial
number or other identification number, the source of funding for the property (including
the FAIN), 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.
INDIANA STATE BOARD OF ACCOUNTS 16
NEW PALESTINE COMMUNITY SCHOOLS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
(Continued)
(2) A physical inventory of the property must be taken and the results reconciled with the
property records at least once every two years.
(3) A control system must be developed to ensure adequate safeguards to prevent loss,
damage, or theft of the property. Any loss, damage, or theft must be investigated.
(4) Adequate maintenance procedures must be developed to keep the property in good
condition. . . ."
Cause
Management was not aware of the property record requirements for equipment and real property
purchased with federal awards.
Effect
The School Corporation may not recall all equipment and real property purchased with federal
awards, and, therefore, not use it for its designated purpose or follow disposal requirements for equipment
and real property purchased with federal awards.
Questioned Costs
There were no questioned costs identified.
Recommendation
We recommended that the School Corporation's management establish internal controls to ensure
compliance and comply with the grant agreement and the Equipment and Real Property Management
compliance requirement.
Views of Responsible Officials
For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.