Finding Text
2024 – 003 Equipment and Real Property Management
Federal Agency: U.S. Department Education
Federal Program Name: Education Stabilization Fund
Assistance Listing Number: 84.425U, 84.425D, 84.425W
Pass-Through Agency: Indiana Department of Education
Pass-Through Numbers: S425U210013, S425D210013, S425W210013
Award Period: July 1, 2023 – June 30, 2024
Type of Finding:
Significant Deficiency in Internal Control over Compliance
Other Matter
Criteria or specific requirement: Per 2 CFR 200.313(d)(2), a physical inventory of the property must
be taken and the results reconciled with the property records at least once every two years. Per
Uniform Guidance 2 CFR 200.303, nonfederal entities receiving federal awards are required to
establish and maintain internal controls designed to reasonably ensure compliance with federal laws,
regulations, and program compliance requirements.
Condition: The School has had a lapse of greater than two years between physical inventories.
Context: During the testing of Equipment for Real Property Management, we noted that the School had
an interval between physical inventories that was greater than two years.
Questioned costs: None
Cause: The School has gone through leadership changes over the past few years in the business
office that is responsible for compliance requirements and the inventory observation has not been
completed in the transition period.
Effect: The equipment was not inventoried within the two-year timeframe
Repeat finding: No
Recommendation: The School should ensure proper policies and procedures are in place to monitor
the physical inventory requirements and ensure the physical inventory is completed and documented.
Views of responsible officials: There is no disagreement with the audit finding.