Finding Text
Assistance Listing Number 84.425 Education Stabilization Fund
Department of Education
Passed Through North Dakota Department of Public Instruction
Passed Through Turtle Mountain Band of Chippewa Indians
Equipment/Real Property Management
Criteria
2 CFR sections 200.313(c) and (e) includes a requirement for the non-federal entity to not
encumber the equipment without prior approval of the federal awarding agency. 2 CFR section
200.311 includes a requirement for the non-federal entity, with prior approval by the ED or passthrough
entity, may also use ESF funds to purchase real property, perform construction or minor
remodeling, and for improvements to land, buildings, or equipment.
Condition
The District did not obtain prior approval for equipment acquisition or construction projects.
Context
Per discussion with the District staff and review of program expenditures, there were 19 capital
asset acquisitions during the year, we tested all of them for prior state approval. One purchase
was approved by the state after the purchase was made. Seven purchases were made without
prior state approval.
Cause
The District did not properly submit for prior approval for equipment acquisition or construction
until after the expenditure had been incurred and in some instances there were no submissions
for prior approval.
Effect
The District may have purchased capital items that were not allowed by the State.
Questioned Costs
Undeterminable.
Repeat Finding
See prior year finding 2023-004.
Recommendation
We recommend the District to review all compliance requirements of federal programs to ensure
they have procedures to ensure compliance with those requirements and for the requests for
acquisition to be made timely and for the appropriate expenditure amount.
Management’s Response
See corrective action plan.