Finding Text
Grant Title: Child Nutrition Cluster: National School Lunch Program Federal Award Number and Year: 2024 Assistance Listing #: 10.555 Federal Agency: US Department of Agriculture Pass-through Entity number: 88 Pass-through Agency: WV Department of Education Grant Title: Title I Grants to Local Educational Agencies (Title I) Federal Award Number and Year: 2024 Assistance Listing #: 84.010A Federal Agency: US Department of Education Pass-through Entity number: 43 Pass-through Agency: WV Department of Education Grant Title: Special Education Cluster: Special Education - Grants to States, Special Education -Preschool Grants, COVID-19 Special Education Preschool Grants Federal Award Number and Year: 2024 Assistance Listing #: 84.027A, 84.173, 84.173A and 84.173X Federal Agency: US Department of Education Pass-through Entity number: 43 Pass-through Agency: WV Department of Education CONDITION: The Board did not ensure that equipment purchased with funds from the Child Nutrition Cluster, Title I Grants to Local Educaitonal Agencies, and Special Education Cluster were properly tracked through an inventory list. CONTEXT: Specifically, we identified the following: Certain equipment purchased for the Child Nutrition Program was not placed on an equipment inventory listing maintained for each school. Equipment purchases totaling $10,565 could not be traced to an inventory report. The Special Education Program was unable to provide an adequate inventory listing for equipment that was purchased with federal funds. Computers purchased for the Title I Grants to Local Educational Agencies were not kept on an inventory listing or monitored by the Board. CRITERIA: "Recipient procedures for managing equipment shall, as a minimum, meet the following requirements (including replacement equipment) until such actions as transfer, replacement or disposal takes place: (a) Property records shall be maintained accurately. (Subpart D of this part contains retention and access requirements for these records.) The records shall include for each item of equipment the following: (1) A description of the equipment including manufacturer's serial numbers. (2) An identification number, such as the manufacturer's serial number (3) Identification of the grant under which the recipient acquired the equipment. (4) The information needed to calculate the Federal share of the equipment (see § 3015.172). (5) Acquisition date and unit acquisition cost. (6) Location, use and condition of the equipment and the date the information was reported. (7) All pertinent information on the ultimate transfer, replacement, or disposal of the equipment. (b) Every two years, at a minimum, a physical inventory shall be conducted and the results reconciled with the property records to verify the existence, current utilization, and continued need for the equipment. Any discrepancies between quantities determined by the physical inspection and those shown in the accounting records shall be investigated to determine the causes of the differences." In addition, the Handbook for School Finance in West Virginia , prepared by the West Virginia Department of Education states, in part, that: "J. INVENTORY CONTROL A data management system should exist that will maintain a perpetual inventory. To maintain such an inventory, the county should have a system that will allow for the additions and subtractions of equipment and supplies. The equipment inventory record for each piece of equipment should include the following information: a. Name of item, make, model and serial number; b. Date of acquisition; c. Purchase order/invoice number; d. Original cost; e. Location; f. Improvements and cost; g. Maintenance dates, if applicable; h. Estimated life, and i. Disposal date." "... Adequate accounting procedures and records for fixed assets are essential to the protective custody of school property. A good system will: (a) fix responsibility for custody and proper use, (b) provide data for management of fixed assets, and (c) provide data for financial control, developing financial reports and adequate insurance coverage." QUESTIONED COSTS: Unknown CAUSE: Management of the Board does not have controls in place to comply with the United States Department of Education's equipment management requirements or the WV Department of Education's inventory requirements. EFFECT: Board officials and management have not ensured compliance with The Handbook for School Finance in West Virginia, prepared by the West Virginia Department of Education or 7 CFR Section 3015.169. This issues contributed to this disclaimer of opinion on compliance for the Title 1, Special Education Cluster, and Child Nutrition Cluster. REPEAT FINDING: No RECOMMENDATION: The Upshur County Board of Education should establish and follow policies and procedures from The Handbook for School Finance in West Virginia, prepared by the West Virginia Department of Education and ensure compliance with 7 CFR §3015.169.