Finding 560964 (2024-005)

Finding No. 2024-005 Significant Deficiency: Equipment and Real Property Management – Compliance and Control Finding ALN 84.425 – COVID-19: Education Stabilization Fund Federal Agency: U.S. Department of Education Pass-Through Entity: Missouri Department of Elementary and Secondary Education Criteria Or Specific Requirement: According to Uniform Guidance, 2 CFR Section 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. Condition: The District did not perform a physical inventory over a two-year period. The District does not have controls in place to ensure bi-annual inventories will be performed to capture equipment purchase with federal funds. Cause: The District did maintain a property and equipment listing for federally funded purchases, however, there was no supporting documentation to demonstrate that a bi-annual inventory was performed. The District has two inventory technicians and equipment is maintained at over sixty locations. The staffing was not sufficient to ensure bi-annual could be completed within the proper timeframe. Effect Or Potential Effect: The District is not in compliance with the Uniform Guidance compliance requirements regarding equipment management. Questioned Costs: Not applicable. Context: No evidence could be obtained to verify a bi-annual inventory was performed. Identification As A Repeat Finding: 2023-004 Recommendation: We recommend that the District implement procedures and controls to ensure bi-annual inventories are performed in accordance with the Uniform Guidance. Views Of Responsible Officials: The District capitalization policy requires a periodic inventory of all capital assets. Inadequate staffing prevented the physical inventory for the fiscal year, but the district will seek assistance of an asset services firm for the next fiscal year and thereafter as needed.