Finding Text
2022-002 ? Equipment/Real Property Management ? Prior Approval for Capital Expenditures Finding Type. Immaterial Noncompliance; Significant Deficiency in Internal Controls over Compliance. Federal program U.S. Department of Education ? Education Stabilization Fund (ALN 84.425D); Passed through MDE; All project numbers. Criteria. The Uniform Guidance requires that recipients of grant funds receive prior approval for capital expenditures for equipment acquisition or improvements to land, buildings, or equipment. Condition. The District was unable to provide support for prior approval for certain capital expenditures for equipment purchased with federal funds. Cause. The District does not have the proper internal controls in place to ensure that prior approval for capital expenditures is obtained. Effect. The District did not follow federal requirements to obtain prior approval for capital expenditures. Questioned Costs. No costs have been questioned as a result of this finding. Recommendation. We recommend that the District reviews its policies to ensure that prior approval for capital expenditures is obtained whenever federal funds are used. View of Responsible Officials. The District misinterpreted the approval of ESSER funds used for air purification equipment and will comply with all federal procurement regulations in the future. Responsible Officials. Julie Campbell, Chief Financial Officer Estimated Completion Date. June 30, 2023