Audit 380438

Assistance Listing Number, Federal Agency, and Program Name Research and Development Cluster National Science Foundation, Department of Commerce, Department of Health and Human Services, Department of Energy, National Endowment for the Humanities, and Department of Transportation ALN 47.083, 47.041, 47.070, 47.084, 47.049, 11.024, 12.RD, 93.884, 93.113, 81.089, 59.065, 81.010, 81.RD, 45.129, 12.600, 59.059, 20.200, 20.505 Federal Award Identification Number and Year Various Pass through Entity Various Finding Type Significant deficiency Repeat Finding No Criteria According to 2 CFR 200.313(d)(2), a physical inventory of the property must be conducted and the results must be reconciled with the property records at least once every two years. Condition The University did not complete a physical inventory of the property within the last two years. Questioned Costs None If Questioned Costs are not Determinable, Description of Why Known Questioned Costs Were Undetermined or Otherwise Could not be Reported N/A Identification of How Questioned Costs Were Computed N/A Context The University did not complete a physical inventory of the property within the last two years. Cause and Effect Policies in place did not include a control to ensure a physical inventory of property is completed at least once every two years. Recommendation The University should implement controls to ensure a physical inventory of property is completed at least once every two years. Views of Responsible Officials and Corrective Action Plan Management agrees with the finding. Management will establish a formal inventory schedule that mandates physical inventory and reconciliation at least once every two years. Designated personnel will be assigned responsibility for executing and documenting the inventory process. Additionally, internal controls will be enhanced through periodic monitoring and reminders to ensure timely completion and proper record keeping.

Assistance Listing Number, Federal Agency, and Program Name Research and Development Cluster National Science Foundation, Department of Commerce, Department of Health and Human Services ALN 47.070, 11.024, , 93.113 Coronavirus State and Local Fiscal Recovery Funds Program ALN 21.027 Federal Award Identification Number and Year Various (R&D) and 21.027 Pass through Entity Various (R&D) and City of Southfield, Michigan; United Way for Southeastern Michigan; MEDC (21.027) Finding Type Significant deficiency Repeat Finding No Criteria A nonfederal entity must conduct all procurement transactions in a manner providing full and open competition in accordance with 2 CFR Section 200.319. Condition The University supported full and open competition when testing Research and Development procurement contracts but did not support rationale for utilizing the selected contractor for 12 of the 23 samples tested. The University supported full and open competition when testing Coronavirus State and Local Fiscal Recovery Funds procurement contracts but did not support rationale for utilizing the selected contractor for 5 of the 5 samples tested. Questioned Costs None If Questioned Costs are not Determinable, Description of Why Known Questioned Costs Were Undetermined or Otherwise Could not be Reported N/A Identification of How Questioned Costs Were Computed N/A Context While the University utilized full and open competition in its procurement process, it did not consistently retain documentation explaining the rationale for selecting specific contractors. Cause and Effect The absence of documented rationale for contractor selection may reflect a focus on meeting competition requirements without fully capturing decision making details. This can make it more difficult to demonstrate the basis for contractor choice and ensure clarity in the procurement process. Recommendation The University should enhance its procurement documentation practices by consistently recording the rationale for contractor selection. This will help ensure transparency, support future reviews, and demonstrate alignment with competitive procurement principles in accordance with 2 CFR Section 200.319. Views of Responsible Officials and Planned Corrective Actions Management will reinforce its existing procurement procedures to ensure that competitive selections are not only conducted appropriately but also consistently documented. Management will implement a standardized documentation protocol that captures the rationale, evaluation criteria, and selection process for each procurement decision. The Procurement Policy will be revised, training will be provided to relevant staff, and periodic reviews will be conducted to ensure compliance.