Finding Text
Finding: The District overcharged the Education Stabilization Fund program for equipment. Criteria: Consistent with 2 CFR section 200.313 (equipment), Education Stabilization Funds (ESF) may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by Education Department (ED) or the pass-through entity. In addition, with prior approval by the ED or the pass-through entity, recipients and subrecipients may also use ESF funds to purchase real property, perform construction or minor remodeling, and for improvements to land, buildings, or equipment that meet the overall purpose of the ESF program, which is ?to prevent, prepare for, and respond to? the COVID-19 pandemic. Condition: The District expended Education Stabilization Fund program funding to purchase three vehicles at a price above the amount approved by the Iowa Department of Education. Context: The District obtained approval to buy up to eight vehicles for up to $40,000 each. The District purchased three vehicles in the amounts of $55,348; $48,351, and $54,214, which exceeded the maximum approved amount per vehicle and charged the program for the full purchase price. Effect: The District overspent allowable funds as approved by the Iowa Department of Education for equipment by $37,913. Questioned Costs: $37,913 Identification as a repeat finding: This is not a repeat finding. Cause: The District did not compare the actual cost of each vehicle to the Iowa Department of Education approval. Recommendation: We recommend the District request an amendment if the actual cost exceeds the prior approval limits or only charge the program for the approved portion.