Finding 2023-001
significant deficiencyother matters
- Program
- EDUCATION STABILIZATION FUND (84.425)
- Compliance requirement
- Equipment and real property management
- FAC record
- FY2023 audit on fac.gov
Finding text from the filing
Significant Deficiency in Internal Control Over Compliance and Noncompliance Assistance Listing: 84.425D – COVID-19 – Elementary and Secondary School Emergency Relief Fund Federal Agency Name: United States Department of Education Criteria: As a condition of receiving Federal awards, non-Federal entities agree to comply with laws, regulations and the provisions of grant agreements and contracts, and to maintain internal control to provide reasonable assurance of compliance with these requirements. The U.S. Department of Education established the “equipment and real property management” compliance requirement applicable to the Elementary and Secondary School Emergency Relief Fund which stipulates that all capital purchases by subrecipients must receive prior approval from the Texas Department of Education. Condition: During the fiscal year ended August 31, 2023, the District did not have effective internal controls over compliance with the equipment and real property management requirement described above. The District requested and received reimbursement for capital purchases that had not received prior approval from the Texas Department of Education. Cause: The District did not have adequately designed controls in place to ensure compliance with the equipment and real property management requirement. Effect or Potential Effect: The District’s capital purchases could have been denied by the Texas Department of Education. Questioned Costs: None. Identification as a repeat finding, if applicable: Not a repeat finding. Recommendation: We recommend that the District review its internal controls over compliance to ensure controls are suitably designed and are in place to prevent, or detect and correct, noncompliance with applicable compliance requirements. Views of Responsible Officials and Planned Corrective Action Plan: See corrective action plan. Pass-Through Entity: Texas Department of Education Award Number: S425D210042 Compliance Requirement: Equipment and Real Property Management