Finding 605936 (2022-004)

Material Weakness
Requirement
F
Questioned Costs
-
Year
2022
Accepted
2023-05-10
Audit: 25406
Organization: South Whittier School District (CA)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The District failed to keep proper inventory records for devices and services funded by the Emergency Connectivity Fund, leading to noncompliance.
  • Impacted Requirements: Inventory records must include specific details like device type, serial numbers, and service information as mandated by FCC guidelines.
  • Recommended Follow-Up: Review program requirements and establish stronger controls to ensure compliance before starting future federal program activities.

Finding Text

50000-Federal Programs ? Inventory Control (Noncompliance and Material Weakness in Internal Controls over Compliance) Federal Programs Affected COVID-19 Emergency Connectivity Fund Program Assistance Listing Number: 32.009 Pass-Through Entity: N/A ? Direct Award Federal Agency: Federal Communications Commission Criteria or Specific Requirements In accordance with Federal Communications Commission (FCC) Report and Order 21-58, paragraphs 116-118, Emergency Connectivity Fund (ECF) Program participants are required to maintain asset and service inventories of the devices and services purchased with ECF Program support. Asset inventories are required to contain the following elements: (a) device type, (b) device make/model, (c) equipment serial number, (d) the name of the person to whom the device was provided, and (e) the dates the device was loaned out and returned to the school. Service records must include the following elements: (a) type of service provided, (b) broadband plan details, including: upload and download speeds and monthly data cap, (c) the name(s) of the person(s) to whom the service was provided, and for fixed broadband service; (d) the service address, and (e) the installation date of service, and (f) the last date of service (as applicable). Condition The District did not maintain adequate inventory records for assets and services purchased with ECF funds. The inventory records were not adequately updated to reflect when and to whom the purchased items and services were provided, certain items did not contain indication of the associated serial number and make/model, and the total number of inventoried items could not be reconciled to the number of items purchased with ECF funds. Questioned Costs There were no questioned costs associated with this finding. Context The condition was identified through inquiries with District management and review of program records. Effect The District is not in compliance with the device and service inventory requirements of the program. Cause Due to the time-sensitive need to maintain connectivity for student learning, the District did not prioritize adequate record-keeping in accordance with program requirements. Repeat Finding No. Recommendation The District should ensure that program requirements are reviewed and adequate controls over compliance are in place prior to commencing program activities under federal programs.

Categories

Equipment & Real Property Management Procurement, Suspension & Debarment Subrecipient Monitoring Material Weakness Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 29486 2022-003
    Material Weakness
  • 29487 2022-003
    Material Weakness
  • 29488 2022-003
    Material Weakness
  • 29489 2022-003
    Material Weakness
  • 29490 2022-003
    Material Weakness
  • 29491 2022-003
    Material Weakness
  • 29492 2022-003
    Material Weakness
  • 29493 2022-003
    Material Weakness
  • 29494 2022-004
    Material Weakness
  • 29495 2022-005
    Material Weakness
  • 605928 2022-003
    Material Weakness
  • 605929 2022-003
    Material Weakness
  • 605930 2022-003
    Material Weakness
  • 605931 2022-003
    Material Weakness
  • 605932 2022-003
    Material Weakness
  • 605933 2022-003
    Material Weakness
  • 605934 2022-003
    Material Weakness
  • 605935 2022-003
    Material Weakness
  • 605937 2022-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $1.28M
10.556 Special Milk Program for Children $1.20M
32.009 Emergency Connectivity Fund Program $839,905
84.027 Special Education_grants to States $455,115
10.553 School Breakfast Program $413,067
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $338,789
84.367 Improving Teacher Quality State Grants $225,297
10.555 National School Lunch Program $172,907
84.287 Twenty-First Century Community Learning Centers $142,535
84.365 English Language Acquisition State Grants $107,416
84.424 Student Support and Academic Enrichment Program $64,688
10.579 Child Nutrition Discretionary Grants Limited Availability $50,685
84.196 Education for Homeless Children and Youth $25,681
10.558 Child and Adult Care Food Program $21,374
84.425 Education Stabilization Fund $11,565
10.582 Fresh Fruit and Vegetable Program $8,143