CORRECTIVE ACTION PLAN:
For the findings and questioned costs relating to federal awards of fiscal year ended June 30, 2023,
Finding No. 2023-001 - Equipment and Real Property Management:
Criteria:
2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing...
CORRECTIVE ACTION PLAN:
For the findings and questioned costs relating to federal awards of fiscal year ended June 30, 2023,
Finding No. 2023-001 - Equipment and Real Property Management:
Criteria:
2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements:
(1) 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.
(2) A physical inventory of the property must be taken, and the results reconciled with the property records at least once every two years.
(3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated.
(4) Adequate maintenance procedures must be developed to keep the property in good condition.
(5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return.
Condition:
The last physical inventory of the property was taken on July 13, 2021, with the property subsidiary as of August 2020. A physical inventory should have been performed on or before July 13, 2023.
Cause:
The Inventory would be done during fiscal 2022-2023, but the employee in-charge of fixed assets got a chronic condition diagnostic. After the diagnostic the employee is underperforming. The beginning of the inventory was postponed as stated in the corrective action section of this document.
Effect:
Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. In addition, the condition above resulted in assets that could not be found in the facilities due to disposal after the date of the inventory observation, items relocated to other areas and items purchased after the date of the last inventory observation.
Questioned Cost:
None.
Corrective action:
The Foundation duly complies with four of five requirements of 2 CFR section 200.313(d).
Management is committed to fully complying with the regulations. A plan is being developed to begin a physical inventory by the end of the fiscal year ending Juen 30, 2024. Finance staff will perform the inventory, along with the staff of the Foundation departments.
The inventory plan will include the following:
• Establish time schedules.
• Identify responsible parties.
• Detail description of entire inventory process.
• Send to research laboratories, clinical research, clinical laboratory and administrative offices, the subsidiary list of the inventory as per the subsidiary, along with instructions.
• Establish a deadline to departments send to finance the certified list of inventories.
• Upon receipt of department inventories the finance staff will schedule a visit to each department, to confirm the inventory certification received.
• Reconcile the inventory with general ledger and make the necessary adjustments in general ledger and the subsidiary.
• Prepare an inventory report, for record, and for audit purposes. The report’s total dollar amount will be reconciled with the general ledger, including all equipment certified in the inventory.
Submitted on March 15, 2024, by:
Alejandro Ramírez
Chief Financial Officer