Finding Text
2022-002. Equipment and Real Property Management United States Department of Education, passed-through New York State Department of Education: Education Stabilization Fund (ESF) COVID-19: Governor?s Emergency Education Relief (GEER) Fund ALN: 84.425C COVID-19: Elementary and Secondary School Emergency Relief (ESSER) Fund ALN: 84.425D COVID-19: American Rescue Plan ? Elementary and Secondary School Emergency Relief (ARP ESSER) Fund ALN: 84.425U Criteria: 2 CFR ?200.313 of the Uniform Guidance issued by the U.S. Office of Management and Budget requires management to have procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a federal award, until disposition takes place, which includes maintaining property records that include a description of the property, a serial number or other identification number, the source of funding for the property (including FAIN), who holds title, the acquisition date and 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 sale price of the property. Condition: The District did not tag and include as an addition, equipment purchased using federal grant funds during the current year, in the District?s capital assets inventory. Cause: Due to the District not having procedures in place to reconcile the District?s equipment codes to the annual capital assets additions, the equipment purchased under the federal grant was inadvertently omitted from the current year capital assets inventory additions. Effect: This could result in the improper use or disposal of capital assets purchased from federal funds. Questioned Costs: None reported. Context: The District rarely uses federal grant funds for the purchase of equipment. Additionally, there were significant changes in personnel within the Business Office during the year. As a result, when the capital assets additions were being compiled and sent to the District?s third party capital assets management company, the equipment purchased using federal grant funds was inadvertently omitted from the listing. Identification of a Repeat Finding: This is not a repeat finding. Recommendation: The District should implement procedures where there is a formal reconciliation performed annually between all of the District?s equipment expenditure codes and the additions to the District?s capital assets inventory. Additionally, all capital assets additions purchased with federal funds should be immediately tagged and managed in accordance with 2 CFR ?200.313. Views of Responsible Officials of Auditee: Management agrees with the finding and will ensure that the equipment gets properly tagged and added to the District?s capital assets inventory record.