Finding 614842 (2022-007)

Significant Deficiency
Requirement
F
Questioned Costs
-
Year
2022
Accepted
2023-01-08
Audit: 36432
Organization: Rockford Area Public Schools (MN)

AI Summary

  • Core Issue: The District did not capitalize equipment valued over $5,000, violating federal guidelines.
  • Impacted Requirements: Uniform Guidance mandates maintaining records for tangible personal property exceeding $5,000 in acquisition cost.
  • Recommended Follow-Up: The District should evaluate and strengthen internal controls for managing federal funds and capital asset records.

Finding Text

Finding 2022-007 Equipment and Real Property Management Federal Program: Education Stabilization Fund (ALN 84.425) Condition: Independent School District No. 883 (the District) failed to capitalize equipment with a current per-unit fair market value in excess of $5,000. Criteria: Per the Uniform Guidance, property records must be maintained for tangible personal property having a useful life of more than one year and a per-unit acquisition cost which equals or exceeds $5,000 in program dollars. Cause: The District failed to add an equipment purchase to the District?s capital asset records. Effect: The failure to incorporate the asset into the capital asset records resulted in the District?s noncompliance with the program?s requirements. Questioned Costs: None identified. Recommendation: We recommend the District assess internal controls related to the District?s Federal dollars and controls over ensuring the completeness capital asset records. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the recommendation. See corresponding Corrective Action Plan.

Categories

Equipment & Real Property Management Procurement, Suspension & Debarment

Other Findings in this Audit

  • 38399 2022-006
    Significant Deficiency
  • 38400 2022-007
    Significant Deficiency
  • 614841 2022-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.555 Covid-19 - National School Lunch Program $849,267
84.165 Magnet Schools Assistance $602,459
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $227,976
32.009 Covid-19 - Emergency Connectivity Fund Program $202,000
84.425 Covid-19 - Education Stabilization Fund $167,137
10.553 Covid-19 - School Breakfast Program $164,390
84.010 Title I Grants to Local Educational Agencies $106,311
84.027 Special Education_grants to States $86,022
93.323 Covid-19 - Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $62,015
84.367 Improving Teacher Quality State Grants $24,132
84.365 English Language Acquisition State Grants $16,204
84.173 Special Education_preschool Grants $11,720
84.424 Student Support and Academic Enrichment Program $4,204
84.048 Career and Technical Education -- Basic Grants to States $2,581