Finding Text
Finding 2022-05 Capital Outlay Compliance Type of Finding: Material Weakness AL Title: Education Stabilization Fund (ESF) AL Number: 84.425 Federal Award Year: 2022 Federal Agency: Department of Education Pass Through Agency: Oregon Department of Education Category of Finding: Equipment/Real Property Management Questioned Costs: $28,007 Criteria: According to the 2022 Uniform Guidance Compliance Supplement, subrecipients may use ESF funds to purchase equipment only if they obtain prior approval by the pass through entity. Condition: Two equipment purchases were made without prior approval from Oregon Department of Education out of a total population of 11 invoices. We tested all 11 invoices?no sample was created. Cause: Controls over federal awards were not adequate to ensure compliance with all grant requirements. Effect: The lack of adequate controls contributed to material noncompliance with Equipment/Real Property Management compliance requirements for the Education Stabilization Fund grant, which was a major program during the fiscal year. Questioned Costs: Equipment purchased without prior approval from the pass through entity totaled $28,007. This was the total known questioned costs with no additional amount for likely questioned costs. Repeat Finding?: No Recommendation: We recommend procedures be strengthened to ensure grant requirement adherence. View of Responsible Official: We accept this finding and acknowledge we missed getting prior approval. Steps have been taken, with the adding of additional fiscal staff, that greater care will be taken with future grants.