Finding Text
Criteria or specific requirement: Equipment/Real Property Management. Condition: The District budgeted for and included items in capital outlay objects in both the general ledger and ISBE expenditure reports that were below the District's capitalization threshold of $5,000. Questioned Costs: None. Context: The ESSER III grant included items below the capitalization threshold of $5,000 in capital outlay objects. Effect: The District did not follow it's capitalization threshold as outlined in its Fixed Asset Policy. Cause: This was an oversight by management. Recommendation: The District should only include items greater than its $5,000 capitalization threshold in capital outlay objects in its general ledger, budgets, and expenditure reports filed with ISBE. Management's response: Management will communicate the District's capitalization policy and the proper recording of items that fall underneath the District's capitalization threshold with all District employees who are involved with grant writing, grant reporting, and posting to the general ledger system.