Finding Text
2022-007 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The requirements for equipment and real property management require property records to be maintained to include details related to any equipment or real property purchased with federal funds. A physical inventory of the property must also be taken and the results reconciled with the property records at least once every two years. The District does not have a process in place to track equipment and real property purchased with federal funds. The District has also not performed a physical inventory of federally purchased property in the past two years. As a result, equipment claimed under the Education Stabilization Funds were not properly tracked and reconciled. Criteria: Proper tracking of equipment and real property would result in the District providing capital asset records to identify equipment and real property purchased with federal funds. Equipment and real property purchased with federal funds is required to be tracked separately and a physical inventory performed every two years. Cause: The District did not have procedures in place to track capital assets, nor did the District have a process in place to have a physical inventory once every two years. Effect: The District was unable to provide capital asset records to verify equipment purchased using federal funds was identified and tracked separately. Recommendation: The District should implement an internal capital asset tracking process as well as obtain a physical inventory of their capital asset records for capital assets acquired with federal funds. Views of Responsible Officials and Planned Corrective Actions: A capital asset list has been created with all assets being added for past and future. The District is currently seeking to contract with a third party for assistance in capturing all assets along with ensuring all depreciation is accurate.