Finding Text
2022-008 Federal Agency: U.S. Department of Education Pass Thru Entity: Oklahoma State Department of Education Program: COVID-19 Education Stabilization Fund Assistance Listing: COVID-19- 84.425D & 84.425U Grant Period: Year ending June 30, 2022 Condition: Property acquired with federal funds were not tracked in property records. Criteria: 2 CFR 200.313(d)(1) requires property records must be maintained that include a description of the property, serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, the cost of the property, percentage of the federal project costs under which property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Cause: Failure to identify construction in progress as capital outlay for property. Effect: The expenditures may be disallowed. Context: A sample of $2,908,079 was selected for audit from a population of $3,035,125. The test found $2,341,866 was not in compliance. Questioned Costs: $2,341,866 Repeat Finding from Prior Year: Yes; 2021-006 Recommendation We recommend that property be properly tracked. We also recommend reconciliations procedures be implemented of property paid with federal funds and federal property listing. Views of Responsible Officials And Planned Corrective Action: Lawton Public Schools failed to identify ?Construction in Progress? paid for with federal funds as federal. Procedures will be updated to ensure ?Construction in Progress? paid with federal funds is identified and recorded as federal immediately rather than at the completion of the construction. While this finding is identified as a repeat finding from FY2021 (2021-006), the prior year was in reference to fixed assets while this year?s finding is in reference to ?Construction in Progress?.