You’ve almost certainly heard of the ESSER Fund. It’s short for the Elementary and Secondary School Emergency Relief Fund, designed to help schools deal with problems brought about by COVID-19.
The funding has allowed schools to purchase much-needed equipment and resources for their students. However, as a consequence, a new need arises—the need to track and manage these assets thoroughly.
As such, schools must conduct a fixed asset and inventory audit to record items bought with ESSER funds.
Let’s review the ESSER inventory audit and all it entails. Furthermore, we’ll look at the steps schools must take to work with a professional school inventory company that’ll help them follow the regulations related to the funds.
Understanding ESSER Funding and Compliance
The ESSER Fund, which is nearing $190 billion in total, is funded through several legislations: the CARES Act, CRRSA Act, and ARP Act.
Thanks to this funding, schools were able to invest in the resources necessary for a safe learning environment, such as:
- Technology
- Cleaning supplies
- HVAC systems
As we mentioned, a meticulous school inventory audit is essential to comply with federal guidelines and demonstrate a school’s responsibility toward financial administration. Schools that don’t conduct accurate audits risk facing penalties or, worse, losing opportunities for future funding.
What Is a Fixed Asset Inventory Audit?
Then, what is a fixed asset inventory audit? This involves physically counting and verifying every piece of equipment or technology the school purchases. Each item must be correctly logged, located, and tracked. For ESSER funds, tracked assets include:
- Laptops, tablets, and other educational tech
- HVAC systems installed to improve air quality
- Personal protective equipment (PPE) and cleaning supplies
- Classroom furniture and equipment for socially-distanced learning
The audit will prove that the school still owns those items and they are being used as intended. It will also document the items in the school’s financial records.
Steps to Prepare for an ESSER Inventory Audit
A structured approach is required to perform a successful inventory audit. Here are the key steps schools should take for an ESSER inventory audit.
Step 1: Organize and update asset records
Before starting, ensure the asset records are recent, meaning having a detailed list of every asset purchased with ESSER funds. These records include:
- Asset description
- Asset cost
- Purchase date
- Location (the room or department the asset is assigned to)
- Serial number or asset tag
- Condition and depreciation
If your school’s asset records are incomplete or outdated, the audit may be challenging. Work with your school’s financial and procurement teams to complete any missing information before the audit begins.
Step 2: Tag all ESSER assets
All assets bought with ESSER funds should be tagged. Each tag should include a unique identifier (e.g., a barcode or RFID tag), it may also be helpful to indicate the funding source on the tag or on a secondary tag also applied to the item. These tags will quickly identify ESSER assets and make it easier to track them during the audit.
Proper tagging will streamline the inventory process, reducing the risk of missing or misplacing assets. If your school hasn’t yet carried out an asset tagging system, consider partnering with a fixed asset inventory company specializing in tagging and tracking school assets.
Step 3: Use an inventory management software
Technology will facilitate an ESSER inventory audit; consider using asset management software to track and document ESSER purchases. Such software can also update records in real time during the audit.
It allows schools to generate quick reports, which will be useful when it’s time to show their compliance with the regulations.
Many schools have collaborated with a school inventory company that provides advanced asset management software. This collaboration has simplified the audit process and guaranteed that all data is precisely documented.
Step 4: Assign and train audit teams
Multiple teams generally work together in an ESSER inventory audit. They exist to ensure every asset is physically verified. Schools should assign specific personnel to handle different sections of the building—classrooms, offices, and gymnasiums.
Each team member must get proper training to be able to perform these tasks:
- Identifying assets
- Tagging assets
- Documenting assets
- Using a scanner
- Running the inventory software
However, an in-house audit may be overwhelming for schools new to the process or short of manpower. If so, teaming up with a school inventory company can be a solution. These companies will bring in trained professionals who can do the edit efficiently. They already know how to use the specialized equipment and software, thus lowering the risk of a mistake during the audit.
Step 5: Schedule the audit during a low-activity period
Timing is vital for an audit. To minimize disruptions, the best schedule for an audit would be during school breaks and holidays. Audits can also happen after school hours. When fewer students and staff are around, that’s the ideal time.
This way, the audit team can access all areas of the building without worrying about interfering with any school activities. As a result, the team can also complete the audit more quickly.
Step 6: Create a clear audit trail
A clear audit trail is a key requirement for ESSER audits. But what is it? A clear audit trail means having records that show the following:
- When the assets were bought
- Where they are currently located
- How they are being used
For ESSER-funded assets, the following information is usually also required:
- What the assets’ purpose is
- How they contribute to pandemic-response efforts (e.g., remote learning, air quality improvement, etc.)
All relevant purchase orders, invoices, and receipts should also be stored in a centralized location. This will make it easier for auditors to review them.
Why an Accurate ESSER Inventory Audit Is Significant
The main aim of an ESSER inventory audit is to meet federal law requirements. However, a successful ESSER audit also offers several other benefits.
Prevention of lost or misused assets
Regular audits will help schools identify if any ESSER-funded assets are missing, stolen, or damaged. This will prevent the misuse of federal funds and certify that all assets are used for their intended purposes.
Supporting long-term asset management
Schools buy ESSER-funded assets for long-term use, which often requires maintenance. A detailed audit helps schools observe and know their assets’ condition to plan for necessary repairs or replacements in the long run.
Transparency and accountability
Schools must be able to show they are managing their resources responsibly. They show it through complete and accurate inventory audit results, with detailed records of how the ESSER funds were spent. Auditors or stakeholders will know whether the funds have been put to great use or mismanaged.
Working with a Professional Inventory Company
Limited staff and resources are often the bane of many schools when conducting a thorough ESSER audit. That’s where partnering with a company specializing in school inventory audits can be very helpful. These professional companies can conduct fixed asset inventory audits and streamline the process.
Here’s how a fixed asset inventory company can help:
- Tagging and tracking: Pro inventory companies offer the tools and technology to tag and track assets efficiently; every ESSER-funded item will be accounted for.
- Expert teams: Trained auditors can ensure the audit is completed quickly and accurately.
- Inventory management software: Many inventory companies have access to advanced software that makes monitoring and updating asset records easier.
- Compliance support: School inventory companies can help navigate ESSER guidelines so that schools remain within the limits of state and federal regulations.
Post-Audit: What Comes Next?
Once the audit is complete, schools should do the following:
- Review the results.
- Perform any necessary updates to the asset records.
- Resolve any discrepancies.
- Keep the audit documents in a secure, accessible location.
That last step is crucial as it may be required again during future ESSER reviews or external audits.
Moreover, schools should schedule regular inventory audits so that the asset records remain accurate over time. This will help prepare for future reviews or audits of federally funded programs.
Conclusion: ESSER Inventory Audits Keep Your School Up with the Regulations
With the influx of federal funds for schools, managing them becomes essential. An ESSER inventory audit is a competent way to do that. It’s a systematic approach that involves organizing, tagging, and recording assets in a school purchased with the fund.
Using technology will ensure the audit process is smooth and error-free, but your school can do even better by partnering with a fixed asset inventory company. These companies will simplify the process and keep schools compliant and transparent using ESSER funds.
It’s time for schools to demonstrate financial responsibility. Organize an ESSER inventory audit to prevent asset loss now and continue providing students with a dynamic and robust learning environment.