Finding Text
'8. Criteria or specific requirement (including statutory, regulatory, or other citation: Equipment/Real Property Management '9. Condition: The District budgeted for and included items in capital outlay objects in both the general ledger and Illinois State Board of Education expenditure reports that were below the District's capitalization threshold of $5,000. '10. Questioned Costs: No questioned costs '11. Context: Of the 5 Education Stabilization Fund grants that had expenditures in fiscal year 2022 , one of the grants included items below the capitalization threshold of $5,000 in capital outlay objects. '12. Effect: The District did not follow its capitalization threshold as outlined in its Fixed Asset Policy. 13. Cause: This was an oversight by the grant coordinator as they did not take into consideration the District's capitalization policy when compiling the budget. 14. Recommendation: The District should only include items greater than its $5,000 capitalization threshold in capital outlay objects in its general ledger, budgets, and expenditure reports filed with the Illinois State Board of Education. Items between $5,000 and $500 but still capital in nature should be recorded in the 700 object (non-capital equipment). 15. Management's response: The budget will now include Function 7000 to recognize non-capitalized equipment with purchase price between $500 and $4,999.