Finding Text
Finding 2023-002 – EQUIPMENT
Type: Material Weakness in Internal Control / Noncompliance
Program: COVID 19 Education Stabilization Fund (ALN 84.425D – ESSER II Formula)
Condition: The District was unable to locate all Chromebooks selected for testing that were purchased with ESSER II Formula funds. Also, some Chromebooks that were located did not have adequate identification tags.
Criteria: As detailed in 2 CFR 200.313, “Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the 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.”
Cause: Inadequate inventory and tag procedures.
Effect: Missing equipment potentially not being used for its intended purpose, and property records are not in compliance with 2 CFR 200.313. For equipment that is missing the proper identification tags, the sale or otherwise disposition of the equipment may not be properly recorded.
Context: Of the 53 Chromebooks selected for testing, 3 could not be located and 5 of the identification tags did not include the source of funding for the property.
Recommendation: We recommend that the District review/update inventory procedures to ensure that all equipment purchased with Federal funds is adequately tracked. Also, we recommend that the District review/update equipment tagging procedures to ensure that equipment purchased with Federal funds properly identify the source of funding.
Management’s Resp: We are in agreement with this finding.