Finding 564608 (2024-007)

Significant Deficiency Repeat Finding
Requirement
F
Questioned Costs
-
Year
2024
Accepted
2025-06-12

AI Summary

  • Core Issue: Property records for equipment acquired under the Education Stabilization Fund program are incomplete.
  • Impacted Requirements: Records lack essential details as mandated by 2 CFR 200.313(d)(1), including funding source and condition of the property.
  • Recommended Follow-up: Implement procedures to ensure all required property information is accurately maintained for compliance.

Finding Text

Statement of condition: Property records for equipment acquired under the Education Stabilization Fund program were not maintained. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) 200.313(d)(1) requires that property records 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 federal award identification number), 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. Per the School’s policies, property records should be maintained for all equipment and theft-sensitive assets. Cause of condition: Procedures are in place for property records to be maintained for all equipment acquired during the fiscal year. However, these procedures do not include maintaining all of the information required by 2 CFR 200.313(d)(1). Effect of condition: During testing, it was noted that property records including all required information were not maintained for capital assets acquired under the Education Stabilization Fund program. Context: Property including HVAC units and various other equipment and furniture and fixtures was acquired under the Education Stabilization Fund program. The audit testing found that for all property acquired during the fiscal year, records including a description of the property, the acquisition date, and the cost of the property are being maintained. However, the property records do not include various additional information as required by 2 CFR 200.313(d)(1). Recommendation: Procedures should be put in place to ensure that property records including all required information are maintained for all capital assets purchased by the School in accordance with 2 CFR 200.313(d)(1). Views of responsible officials and planned corrective actions: Management agrees with this finding and will put procedures in place to maintain adequate property records.

Corrective Action Plan

Views of responsible officials and planned corrective actions: Management agrees with this finding and will put procedures in place to maintain adequate property records. Action Plan:  Develop a workbook to document all property records in compliance with CFR requirements. o Create a spreadsheet with the required fields (i.e., item description, acquisition date, cost, funding source, location, condition, disposal status). o Align data fields with CFR property requirements. o The anticipated completion date is May 30, 2025, with an updated monthly review.Extract fixed asset purchase records from eFinance and compare them to the latest audit fixed asset listing. o Pull all of the fixed asset account codes since the last completed audit (FY22). o Priority- focus on items purchased with federal funds. o The anticipated completion date is May 30, 2025, with an updated monthly review.  Conduct a physical inventory to verify the present of all listed assets. o Use the workbook developed above as the inventory list to begin physical inventory. o Designate staff to conduct physical verification. o Check each item’s presence, condition, and tag number against records o Use asset tags or serial numbers for tracking. o Note missing, unrecorded, or damaged assets for follow-up. o Adjust the property workbook as needed. o Submit a summary of discrepancies and corrective actions to the Executive Director. o The anticipated completion date is June 30, 2025, with an updated monthly review.  Update the workbook with required details for assets still in possession. o Record all property purchased with federal funds, ensuring accuracy and completeness. o Regularly review, update, and reconcile records with physical inventory. o Save in a shared, secure cloud location for easy access and audit readiness. o Anticipated completion date of July 15, 2025, with an updated monthly review.  Write off any assets listed by not physically accounted for. o Follow the proper steps to write off assets in eFinance. For assistance, refer to the eFinance instructions and APSCN help desk. o Anticipated completion date of July 15, 2025, with an updated monthly review.  Establish procedures for conducting this process and maintaining records annually. o Set up a recurring annual timeline for physical asset verification. o Develop consistent forms and tracking sheets for inventory records. o Designate personnel to conduct, review, and reconcile inventory. o Conduct physical audits regularly. o Update and maintain records. o Annually assess and refine procedures for efficiency and compliance. o Anticipated completion date of July 31, 2025, with an updated monthly review.

Categories

Equipment & Real Property Management Procurement, Suspension & Debarment

Other Findings in this Audit

  • 564605 2024-004
    Material Weakness Repeat
  • 564606 2024-005
    Material Weakness Repeat
  • 564607 2024-006
    Material Weakness Repeat
  • 564609 2024-008
    Significant Deficiency Repeat
  • 564610 2024-009
    Significant Deficiency Repeat
  • 564611 2024-010
    Significant Deficiency
  • 564612 2024-011
    Significant Deficiency
  • 1141047 2024-004
    Material Weakness Repeat
  • 1141048 2024-005
    Material Weakness Repeat
  • 1141049 2024-006
    Material Weakness Repeat
  • 1141050 2024-007
    Significant Deficiency Repeat
  • 1141051 2024-008
    Significant Deficiency Repeat
  • 1141052 2024-009
    Significant Deficiency Repeat
  • 1141053 2024-010
    Significant Deficiency
  • 1141054 2024-011
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $4.68M
84.010 Title I Grants to Local Educational Agencies $1.70M
10.553 School Breakfast Program $484,343
84.027 Special Education Grants to States $322,144
10.555 National School Lunch Program $50,164
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $39,384
84.173 Special Education Preschool Grants $11,872
10.582 Fresh Fruit and Vegetable Program $1,342