Finding 613657 (2022-001)

Material Weakness
Requirement
F
Questioned Costs
-
Year
2022
Accepted
2023-05-10

AI Summary

  • Core Issue: The District did not record capital purchases and projects in their asset records, violating federal requirements.
  • Impacted Requirements: 2 CFR 200.313(d)(1) mandates detailed property records for assets funded by federal awards.
  • Recommended Follow-Up: The Treasurer and Superintendent must ensure all capital acquisitions are documented properly, including federal funding details.

Finding Text

2 CFR 200.313(d)(1) provides that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal award identification number), who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. The District purchased a bus in the amount of $102,963 and completed office renovations in the amount of $26,750 and an entrance brivo and aiphone project and in the amount of $15,100 using their Education Stabilization Fund (ESSER II) AL# 84.425D federal funding. Due to a lack of proper internal controls over Federal Grants management, the District failed to record these purchases and projects in their capital asset records. The Treasurer and Superintendent should ensure all capital acquisitions are added to the capital asset listing and include all required information in the listing, noting the assets were purchased with federal funds.

Categories

Procurement, Suspension & Debarment Equipment & Real Property Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 37215 2022-001
    Material Weakness
  • 37216 2022-002
    Material Weakness
  • 37217 2022-003
    Material Weakness
  • 613658 2022-002
    Material Weakness
  • 613659 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $530,383
84.027 Special Education_grants to States $271,376
10.553 School Breakfast Program $158,426
84.287 Twenty-First Century Community Learning Centers $144,688
84.425 Education Stabilization Fund $118,191
84.367 Improving Teacher Quality State Grants $43,770
84.424 Student Support and Academic Enrichment Program $17,372
84.010 Title I Grants to Local Educational Agencies $11,080
84.173 Special Education_preschool Grants $6,157
84.358 Rural Education $2,251