Finding Text
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 - AMERICAN RESUCE PLAN - ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425U PASS-THROUGH NUMBER 4602 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-001. Equipment and Real Property Management Criteria or specific requirement: Property records should be maintained for equipment acquired with federal awards as specified in OMB 2 CFR section 200.313. Condition: A test of the Education Stabilization Fund disbursements and walkthrough procedures revealed that five equipment items purchased with a cost greater than $1,000 each were not recorded in the District's equipment subsidiary ledger. The total cost of the equipment was $61,553. Cause: Lack of internal controls over the equipment subsidiary ledger. Effect or potential effect: The District's equipment subsidiary records were not accurate. Context: As a result of an examination of 10 percent of equipment purchases and performing a walkthrough procedure on internal controls, it was determined that equipment purchases greater than $1,000 were not always properly added to the equipment subsidiary ledger, as a result we identified five pieces of equipment totaling $61,553. Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education (DESE) for guidance regarding this matter and implement proper controls over program expenditures. Views of responsible officials: The Strong-Huttig School District is commited to addressing and correcting these findings. The District will contact the Arkansas Division of Elementary and Secondary Education for guidance regarding this matter and implement proper controls over program expenditures. The District will also ensure all capital asset records are updated, and maintained moving forward.