Finding 620025 (2022-001)

Material Weakness
Requirement
F
Questioned Costs
-
Year
2022
Accepted
2023-09-11

AI Summary

  • Core Issue: The School District failed to conduct required physical inventory inspections every two years and did not properly document equipment disposal.
  • Impacted Requirements: Non-compliance with 2 C.F.R. § 200.313 regarding property records and inventory management.
  • Recommended Follow-Up: Review and update policies to ensure all equipment is recorded, and conduct physical inventories with proper documentation.

Finding Text

2 C.F.R. ? 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. ? 200.313. 2 C.F.R. ? 200.313(d)(1) states, in part, that property records must be maintained for equipment and real property purchases using federal funds. The property records should include, but are not limited to, 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), and any ultimate disposition data including the date of disposal and sales price of the property. Additionally, 2 C.F.R. ? 200.313(d)(2) states that a physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. During testing over the capital outlay for both Education Stabilization Fund and Special Education Cluster, we found that the School District did not maintain documentation that a physical inventory inspection occurred at least once every two years. Additionally, testing over the District's Special Education Cluster capital outlay listing identified one item totaling $500, which projects to an error of $3,867, that could not be located as it was disposed and not properly removed from the listing. To effectively control equipment and to maintain accountability over expenditures, the School District should review its policy and ensure all equipment is properly identified and recorded on their capital outlay listing. Additionally, the School District should ensure that a physical inventory is performed at least once every two years and that adequate documentation is maintained to support that an inspection was performed.

Categories

Equipment & Real Property Management

Other Findings in this Audit

  • 43583 2022-001
    Material Weakness
  • 43584 2022-001
    Material Weakness
  • 43585 2022-001
    Material Weakness
  • 43586 2022-001
    Material Weakness
  • 48372 2022-001
    Material Weakness
  • 48373 2022-001
    Material Weakness
  • 48374 2022-001
    Material Weakness
  • 48375 2022-002
    Material Weakness
  • 48376 2022-001
    Material Weakness
  • 48377 2022-002
    Material Weakness
  • 48378 2022-001
    Material Weakness
  • 48379 2022-002
    Material Weakness
  • 620026 2022-001
    Material Weakness
  • 620027 2022-001
    Material Weakness
  • 620028 2022-001
    Material Weakness
  • 624814 2022-001
    Material Weakness
  • 624815 2022-001
    Material Weakness
  • 624816 2022-001
    Material Weakness
  • 624817 2022-002
    Material Weakness
  • 624818 2022-001
    Material Weakness
  • 624819 2022-002
    Material Weakness
  • 624820 2022-001
    Material Weakness
  • 624821 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Covid-19 American Rescue Plan Elementary and Secondary School Emergency Relief $1.55M
84.425 Covid-19 Elementary and Secondary School Emergency Relief $1.32M
10.555 National School Lunch Program $899,951
84.027 Special Education_grants to States $632,596
84.010 Title I Grants to Local Educational Agencies $629,812
10.553 School Breakfast Program $287,000
32.009 Emergency Connectivity Fund Program $107,650
84.027 American Rescue Plan Idea Part B Special Education $69,888
84.365 English Language Acquisition State Grants $60,946
10.555 Covid-19 National School Lunch Program $50,758
84.424 Student Support and Academic Enrichment Program $41,105
84.173 Special Education_preschool Grants $38,800
84.367 Supporting Effective Instruction State Grant $30,902
10.553 Covid-19 School Breakfast Program $13,723
10.649 Pandemic Ebt Administrative Costs $3,063
84.173 American Rescue Plan Idea Early Childhood Special Education $272