2022-002 Internal Controls over Suspension and Debarment (Significant Deficiency) U.S. Department of Education COVID -19: Education Stabilization Fund: Higher Education Emergency Relief Fund 84.425F ? COVID-19 Institutional Portion 2021-2022 Funding Criteria: Under 2 CFR Section 200.303(a) and 2 CFR Section 180, Subpart C, non-federal entities must establish and maintain effective internal controls to provide reasonable assurance that the entity is managing the federal awards in compliance with statues, regulations, and the terms and conditions of the award. Condition: The College does not have documented controls to prevent purchases using federal funds from suspended or debarred vendors. Effect: Payments from federal funds made to suspended or debarred vendors may need to returned and / or impact future funding. Cause: While the College has policies and procedures for procurement, these do not encompass verifying that the potential vendor is suspended or debarred from receiving federal funding as required under 2 CFR Section 180, Subpart C. Questioned Costs: None. Perspective: Because a formal policy is not established, none of the vendors meeting the threshold were subjected to suspension and debarment testing by the College. Repeat Finding: No Auditors? Recommendation: The College should establish procedures to ensure that controls related to suspension and debarment are devised, are consistently implemented and that all written records are maintained to support that the compliance requirement is met. Views of Responsible Officials: See corrective action plan
Finding 2022-600: Unemployment Insurance Program?Reporting Background: As a part of its administration of the UI program, DWD is required to complete and submit multiple performance and special reports to the U.S. Department of Labor (DOL), including the monthly ETA 9052, Nonmonetary Determination Time Lapse Detection. These reports contain information related to Wisconsin?s UI program that assist DOL in evaluating the performance of the program and contain information that is of interest to DOL. In our prior audit, we found that DWD did not establish adequate procedures to ensure the accuracy of the performance and special reports. In April 2022, we recommended that DWD develop and implement adequate procedures for the preparation and review of the UI performance and special reports to ensure the accuracy of the amounts reported to the federal government. We also recommended that DWD retain documentation to support the amounts included in each report it submits to the federal government (Finding 2021-600). Criteria: Under 2 CFR s. 200.303, DWD is required to establish and maintain effective internal controls over its federal programs to provide reasonable assurance that the federal programs are administered in compliance with federal statutes and regulations as well as the terms and conditions of its federal awards. This includes effective internal controls over the preparation of reports for the federal government. Condition: During our current audit, and after April 2022, we found DWD improved its procedures for the preparation and review of the UI performance and special reports, and it retained documentation to support the amounts included in each report it submitted to the federal government. However, for those reports that DWD submitted to the federal government prior to our recommendations in April 2022, we continued to find that the supporting documentation DWD provided did not agree with the amounts it reported on the ETA 9052 performance report. Specifically, we identified that for the November 2021 ETA 9052 performance report we reviewed, the amounts reported for 35 of 110 key line items reviewed did not agree with the supporting documentation provided. Context: We interviewed DWD staff to gain an understanding of the procedures for preparing the UI program performance and special reports. During FY 2021-22, DWD was required to submit 12 ETA 9050 performance reports, 12 ETA 9052 performance reports, and 4 ETA 2208A special reports to DOL. We reviewed: -the ETA 9050 performance reports submitted for the months of November 2021 and April 2022; -the ETA 9052 performance reports submitted for the months of November 2021, April 2022, and May 2022; and -the March 2022 quarterly ETA 2208A special report. We also requested DWD?s documentation to support the reported information for each section or amount identified by the federal government as a key section or key line item. Questioned Costs: None. Effect: DWD cannot be assured that it reported complete and accurate information during the entire fiscal year to enable DOL to assess the outcomes of Wisconsin?s UI program. Cause: Prior to April 2022, which is when we communicated our concerns with the accuracy of the ETA 9052 performance report, DWD did not establish adequate procedures to ensure the accuracy of the report. Recommendation: We recommend the Wisconsin Department of Workforce Development continue to make progress in developing and implementing adequate procedures for the preparation and review of the Unemployment Insurance program?s performance reports to ensure the accuracy of the amounts reported to the federal government. Finding 2022-600: Unemployment Insurance Program?Reporting COVID-19?Unemployment Insurance (Assistance Listing number 17.225) Award Numbers Award Years None 2021 None 2022 Unemployment Insurance (Assistance Listing number 17.225) Award Numbers Award Years None 2021 None 2022 Questioned Costs: None. Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Workforce Development: The Wisconsin Department of Workforce Development agrees with the audit finding and recommendation.
Finding 2022-600: Unemployment Insurance Program?Reporting Background: As a part of its administration of the UI program, DWD is required to complete and submit multiple performance and special reports to the U.S. Department of Labor (DOL), including the monthly ETA 9052, Nonmonetary Determination Time Lapse Detection. These reports contain information related to Wisconsin?s UI program that assist DOL in evaluating the performance of the program and contain information that is of interest to DOL. In our prior audit, we found that DWD did not establish adequate procedures to ensure the accuracy of the performance and special reports. In April 2022, we recommended that DWD develop and implement adequate procedures for the preparation and review of the UI performance and special reports to ensure the accuracy of the amounts reported to the federal government. We also recommended that DWD retain documentation to support the amounts included in each report it submits to the federal government (Finding 2021-600). Criteria: Under 2 CFR s. 200.303, DWD is required to establish and maintain effective internal controls over its federal programs to provide reasonable assurance that the federal programs are administered in compliance with federal statutes and regulations as well as the terms and conditions of its federal awards. This includes effective internal controls over the preparation of reports for the federal government. Condition: During our current audit, and after April 2022, we found DWD improved its procedures for the preparation and review of the UI performance and special reports, and it retained documentation to support the amounts included in each report it submitted to the federal government. However, for those reports that DWD submitted to the federal government prior to our recommendations in April 2022, we continued to find that the supporting documentation DWD provided did not agree with the amounts it reported on the ETA 9052 performance report. Specifically, we identified that for the November 2021 ETA 9052 performance report we reviewed, the amounts reported for 35 of 110 key line items reviewed did not agree with the supporting documentation provided. Context: We interviewed DWD staff to gain an understanding of the procedures for preparing the UI program performance and special reports. During FY 2021-22, DWD was required to submit 12 ETA 9050 performance reports, 12 ETA 9052 performance reports, and 4 ETA 2208A special reports to DOL. We reviewed: -the ETA 9050 performance reports submitted for the months of November 2021 and April 2022; -the ETA 9052 performance reports submitted for the months of November 2021, April 2022, and May 2022; and -the March 2022 quarterly ETA 2208A special report. We also requested DWD?s documentation to support the reported information for each section or amount identified by the federal government as a key section or key line item. Questioned Costs: None. Effect: DWD cannot be assured that it reported complete and accurate information during the entire fiscal year to enable DOL to assess the outcomes of Wisconsin?s UI program. Cause: Prior to April 2022, which is when we communicated our concerns with the accuracy of the ETA 9052 performance report, DWD did not establish adequate procedures to ensure the accuracy of the report. Recommendation: We recommend the Wisconsin Department of Workforce Development continue to make progress in developing and implementing adequate procedures for the preparation and review of the Unemployment Insurance program?s performance reports to ensure the accuracy of the amounts reported to the federal government. Finding 2022-600: Unemployment Insurance Program?Reporting COVID-19?Unemployment Insurance (Assistance Listing number 17.225) Award Numbers Award Years None 2021 None 2022 Unemployment Insurance (Assistance Listing number 17.225) Award Numbers Award Years None 2021 None 2022 Questioned Costs: None. Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Workforce Development: The Wisconsin Department of Workforce Development agrees with the audit finding and recommendation.
Finding 2022-100: Coronavirus State and Local Fiscal Recovery Funds?Unallowable Costs Background: The State was advanced $1.3 billion in CSLFRF funding in May 2021 and another $1.3 billion in May 2022. CSLFRF was created under the American Rescue Plan Act (ARPA) and is administered by DOA. CSLFRF funding has certain stipulations, including that the funds must be used to: -respond to the public health emergency or its negative economic impacts; -respond to the needs of workers performing essential work during the public health emergency; -provide government services to the extent revenue losses due to the public health emergency reduced revenues; and -make necessary investments in water, sewer, or broadband infrastructure. Further, federal regulations stipulate that eligible expenditures must be incurred between March 3, 2021, and December 31, 2024, and funds must be spent through December 31, 2026. DOA paid funds to other state agencies for programs they administered and spent funds on its own programs. Two of the programs established by DOA were the Live Event Small Business Grant Program and the Minor League Sports Team Grant Program. The Live Event Small Business Grant Program provided grants to eligible live event small businesses within the State of Wisconsin that generated 50.0 percent or more of their revenue through provision of goods and/or services to live venues. The Minor League Sports Team Grant Program provided grants to eligible Wisconsin-based minor league sports teams that had attendance of at least 30,000 and not more than 300,000 at events held in 2019. Applicants submitted application materials, including federal income tax information or total revenue, and awards were made after review and approval by DOA. Grant award amounts were determined based on the decrease in the applicant?s federal taxable income or total revenue between calendar years 2019 and 2020, up to a maximum amount of $200,000. Criteria: In accordance with 2 CFR s. 200.303, DOA is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, under U.S. Department of the Treasury Final Rule (31 CFR Part 35), DOA must establish rigorous oversight and internal control processes to monitor compliance with any applicable requirements of CSLFRF funding. Condition: We identified that DOA made a payment of $161,363 to an organization under both the Live Event Small Business Program and the Minor League Sports Team Grant Program. The applicant reported its 2019 and 2020 federal taxable income in both applications and its decrease in income from 2019 to 2020 was $161,363. DOA paid the organization $161,363 under the Minor League Sports Team Grant Program on January 5, 2022, and then paid the organization $161,363 under the Live Event Small Business Program on January 12, 2022. Context: During FY 2021-22, DOA expended $185.2 million in CSLFRF funding, including providing $11.2 million to 96 organizations under the Live Event Small Business Grant Program and $2.8 million to 17 organizations under the Minor League Sports Team Grant Program. We interviewed DOA staff, reviewed applications, and examined payment documentation for these programs. Questioned Costs: $161,363 Effect: Without adequate internal controls in place, DOA is at increased risk of making inappropriate payments using CSLFRF funding. Cause: When administering the CSLFRF grant, DOA did not establish effective internal controls to assess the appropriateness of making a payment to an applicant that applies under multiple programs. DOA staff indicated that such controls were implemented for certain programs where DOA anticipated an applicant might apply under more than one program. However, DOA indicated that it had not anticipated that an applicant would apply under both the Live Event Small Business Grant Program and the Minor League Sports Team Grant Program. Recommendation: We recommend the Wisconsin Department of Administration: -develop and implement controls to identify when an applicant applies for funding under multiple programs and to assess the appropriateness of whether it would be making payments to an applicant that applies under multiple programs; and -review the specific payments made to the organization we identified and seek repayment of the amount that was made inappropriately. Finding 2022-100: Coronavirus State and Local Fiscal Recovery Funds?Unallowable Costs COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: $161,363 Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-304: Coronavirus State and Local Fiscal Recovery Funds?Monitoring of Local and Tribal Health Department Response and Recovery Support Program Expenditures Background: The State was advanced $1.3 billion in CSLFRF in May 2021 and another $1.3 billion in May 2022. CSLFRF was created under the American Rescue Plan Act (ARPA) and is administered by DOA. CSLFRF funding has certain stipulations, including that the funds must be used to: -respond to the public health emergency or its negative economic impacts; -respond to the needs of workers performing essential work during the public health emergency; -provide government services to the extent revenue losses due to the public health emergency reduced revenues; and -make necessary investments in water, sewer, or broadband infrastructure. Further, federal regulations stipulate that eligible expenditures must be incurred between March 3, 2021, and December 31, 2024, and funds must be spent through December 31, 2026. DOA entered into a memorandum of understanding with DHS to administer the Local and Tribal Health Department Response and Recovery Support program, which provides grants to local and tribal health departments for costs incurred to respond to the public health emergency. DHS entered into contracts with 98 local and tribal health departments. The contracts stipulate the allowable uses of the funding and reporting requirements. After incurring expenditures, the health departments may request reimbursement on a monthly basis using DHS?s CARS. Criteria: In accordance with 2 CFR s. 200.303, DHS is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, under U.S. Department of the Treasury Final Rule (31 CFR Part 35), DHS must establish rigorous oversight and internal control processes to monitor compliance with any applicable requirements of CSLFRF funding. The contracts between DHS and each of the public health departments require the health departments to submit a quarterly report. DHS indicated that the quarterly report includes a list of expenditures for the quarter, a list of payroll costs, and a description of the uses of the funds, and it is due within 30 days of the end of the quarter. DHS tracks the receipt and review of the quarterly reports in a tracking spreadsheet. DHS indicated that it compares the reported expenditures in the quarterly report to the monthly reimbursement request data from CARS to ensure the amounts agree. Further, DHS indicated that it reviews the description of the uses of the funding from the quarterly report to evaluate the allowability of the reported expenses. DHS indicated that quarterly reports are required regardless of whether the public health department incurred expenditures during the quarter. Condition: DHS did not have documentation to support that it was reviewing the quarterly reports and following its procedures to provide oversight over the expenditures charged to the program in FY 2021-22. We attempted to review 20 quarterly reports filed in FY 2021-22 for 10 public health departments. We identified two concerns. First, we found that the City of Milwaukee Public Health Department did not submit the two quarterly reports that were due in FY 2021-22. Therefore, DHS did not have documentation that it evaluated whether funding was expended on allowable activities under the grant program. The City of Milwaukee was reimbursed $3.6 million in expenditures in January 2022. On March 3, 2023, DHS put a hold on any further reimbursements to the City of Milwaukee Public Health Department until the issues with the missing quarterly reports are resolved. Second, we found that 12 of the remaining 18 quarterly reports we reviewed were submitted to DHS more than six months after the due date. Five of the 12 reports were dated after we made our request for the reports in February 2023. We also reviewed reports for the quarter ended June 30, 2022, for the 10 public health departments we selected for review. For three health departments, we found there were differences between the amounts reported to date on the quarterly reports and the total reimbursement provided by DHS as of the end of that quarter. DHS did not have documentation to show that it identified and resolved these differences. Context: DHS was awarded $58.4 million in CSLFRF funds for the Local and Tribal Health Department Response and Recovery Support program. The public health departments are considered beneficiaries under the program and, as such, this funding is not subject to the local or tribal government single audits. In FY 2021-22, DHS reimbursed the public health departments $6.7 million in expenditures for the program. The program ends on December 31, 2024. We reviewed the quarterly reports filed in FY 2021-22 for 10 of the 98 public health departments that were allocated funding for this program. We randomly selected 7 public health departments and selected the remaining three public health departments using a judgement sample based on a review of DHS?s quarterly report tracking spreadsheet. Questioned Costs: None. Effect: Because DHS controls related to the quarterly report are not working effectively, there is an increased risk of improper payments made using the CSLFRF grant funding. Cause: DHS did not have written policies and procedures for the tracking and review of the reports. In addition, DHS did not have documentation to support that it was tracking the timely receipt and review of the quarterly reports in FY 2021-22. At the end of FY 2021-22, DHS experienced turnover in staff responsible for administering the Local and Tribal Health Department Response and Recovery Support program. DHS indicated that the staff responsible for administering the program in FY 2021-22 did not document reviews of the quarterly reports. In a March 2, 2023 email to DHS, staff from the City of Milwaukee Public Health Department indicated that DHS staff had agreed to permit emails to explain the expenditure of funds in lieu of the quarterly reports. DHS did not provide these emails or other documentation to support this permission. Recommendation: We recommend the Wisconsin Department of Health Services: -develop and implement written policies and procedures for the review and tracking of the quarterly reports used to monitor expenditures under the Local and Tribal Health Department Response and Recovery Support program; -maintain the quarterly reports, document its review of the quarterly reports, and document its correspondence with the public health departments regarding resolution of reporting variances; -review the contracts with the public health departments and determine whether any revisions are needed to clarify expectations for documentation and timeliness of filing the quarterly reports; and -ensure it obtains quarterly reports to support the payments it made to the City of Milwaukee Public Health Department. Finding 2022-304: Coronavirus State and Local Fiscal Recovery Funds?Monitoring of Local and Tribal Health Department Response and Recovery Support Program Expenditures COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-100: Coronavirus State and Local Fiscal Recovery Funds?Unallowable Costs Background: The State was advanced $1.3 billion in CSLFRF funding in May 2021 and another $1.3 billion in May 2022. CSLFRF was created under the American Rescue Plan Act (ARPA) and is administered by DOA. CSLFRF funding has certain stipulations, including that the funds must be used to: -respond to the public health emergency or its negative economic impacts; -respond to the needs of workers performing essential work during the public health emergency; -provide government services to the extent revenue losses due to the public health emergency reduced revenues; and -make necessary investments in water, sewer, or broadband infrastructure. Further, federal regulations stipulate that eligible expenditures must be incurred between March 3, 2021, and December 31, 2024, and funds must be spent through December 31, 2026. DOA paid funds to other state agencies for programs they administered and spent funds on its own programs. Two of the programs established by DOA were the Live Event Small Business Grant Program and the Minor League Sports Team Grant Program. The Live Event Small Business Grant Program provided grants to eligible live event small businesses within the State of Wisconsin that generated 50.0 percent or more of their revenue through provision of goods and/or services to live venues. The Minor League Sports Team Grant Program provided grants to eligible Wisconsin-based minor league sports teams that had attendance of at least 30,000 and not more than 300,000 at events held in 2019. Applicants submitted application materials, including federal income tax information or total revenue, and awards were made after review and approval by DOA. Grant award amounts were determined based on the decrease in the applicant?s federal taxable income or total revenue between calendar years 2019 and 2020, up to a maximum amount of $200,000. Criteria: In accordance with 2 CFR s. 200.303, DOA is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, under U.S. Department of the Treasury Final Rule (31 CFR Part 35), DOA must establish rigorous oversight and internal control processes to monitor compliance with any applicable requirements of CSLFRF funding. Condition: We identified that DOA made a payment of $161,363 to an organization under both the Live Event Small Business Program and the Minor League Sports Team Grant Program. The applicant reported its 2019 and 2020 federal taxable income in both applications and its decrease in income from 2019 to 2020 was $161,363. DOA paid the organization $161,363 under the Minor League Sports Team Grant Program on January 5, 2022, and then paid the organization $161,363 under the Live Event Small Business Program on January 12, 2022. Context: During FY 2021-22, DOA expended $185.2 million in CSLFRF funding, including providing $11.2 million to 96 organizations under the Live Event Small Business Grant Program and $2.8 million to 17 organizations under the Minor League Sports Team Grant Program. We interviewed DOA staff, reviewed applications, and examined payment documentation for these programs. Questioned Costs: $161,363 Effect: Without adequate internal controls in place, DOA is at increased risk of making inappropriate payments using CSLFRF funding. Cause: When administering the CSLFRF grant, DOA did not establish effective internal controls to assess the appropriateness of making a payment to an applicant that applies under multiple programs. DOA staff indicated that such controls were implemented for certain programs where DOA anticipated an applicant might apply under more than one program. However, DOA indicated that it had not anticipated that an applicant would apply under both the Live Event Small Business Grant Program and the Minor League Sports Team Grant Program. Recommendation: We recommend the Wisconsin Department of Administration: -develop and implement controls to identify when an applicant applies for funding under multiple programs and to assess the appropriateness of whether it would be making payments to an applicant that applies under multiple programs; and -review the specific payments made to the organization we identified and seek repayment of the amount that was made inappropriately. Finding 2022-100: Coronavirus State and Local Fiscal Recovery Funds?Unallowable Costs COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: $161,363 Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-304: Coronavirus State and Local Fiscal Recovery Funds?Monitoring of Local and Tribal Health Department Response and Recovery Support Program Expenditures Background: The State was advanced $1.3 billion in CSLFRF in May 2021 and another $1.3 billion in May 2022. CSLFRF was created under the American Rescue Plan Act (ARPA) and is administered by DOA. CSLFRF funding has certain stipulations, including that the funds must be used to: -respond to the public health emergency or its negative economic impacts; -respond to the needs of workers performing essential work during the public health emergency; -provide government services to the extent revenue losses due to the public health emergency reduced revenues; and -make necessary investments in water, sewer, or broadband infrastructure. Further, federal regulations stipulate that eligible expenditures must be incurred between March 3, 2021, and December 31, 2024, and funds must be spent through December 31, 2026. DOA entered into a memorandum of understanding with DHS to administer the Local and Tribal Health Department Response and Recovery Support program, which provides grants to local and tribal health departments for costs incurred to respond to the public health emergency. DHS entered into contracts with 98 local and tribal health departments. The contracts stipulate the allowable uses of the funding and reporting requirements. After incurring expenditures, the health departments may request reimbursement on a monthly basis using DHS?s CARS. Criteria: In accordance with 2 CFR s. 200.303, DHS is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, under U.S. Department of the Treasury Final Rule (31 CFR Part 35), DHS must establish rigorous oversight and internal control processes to monitor compliance with any applicable requirements of CSLFRF funding. The contracts between DHS and each of the public health departments require the health departments to submit a quarterly report. DHS indicated that the quarterly report includes a list of expenditures for the quarter, a list of payroll costs, and a description of the uses of the funds, and it is due within 30 days of the end of the quarter. DHS tracks the receipt and review of the quarterly reports in a tracking spreadsheet. DHS indicated that it compares the reported expenditures in the quarterly report to the monthly reimbursement request data from CARS to ensure the amounts agree. Further, DHS indicated that it reviews the description of the uses of the funding from the quarterly report to evaluate the allowability of the reported expenses. DHS indicated that quarterly reports are required regardless of whether the public health department incurred expenditures during the quarter. Condition: DHS did not have documentation to support that it was reviewing the quarterly reports and following its procedures to provide oversight over the expenditures charged to the program in FY 2021-22. We attempted to review 20 quarterly reports filed in FY 2021-22 for 10 public health departments. We identified two concerns. First, we found that the City of Milwaukee Public Health Department did not submit the two quarterly reports that were due in FY 2021-22. Therefore, DHS did not have documentation that it evaluated whether funding was expended on allowable activities under the grant program. The City of Milwaukee was reimbursed $3.6 million in expenditures in January 2022. On March 3, 2023, DHS put a hold on any further reimbursements to the City of Milwaukee Public Health Department until the issues with the missing quarterly reports are resolved. Second, we found that 12 of the remaining 18 quarterly reports we reviewed were submitted to DHS more than six months after the due date. Five of the 12 reports were dated after we made our request for the reports in February 2023. We also reviewed reports for the quarter ended June 30, 2022, for the 10 public health departments we selected for review. For three health departments, we found there were differences between the amounts reported to date on the quarterly reports and the total reimbursement provided by DHS as of the end of that quarter. DHS did not have documentation to show that it identified and resolved these differences. Context: DHS was awarded $58.4 million in CSLFRF funds for the Local and Tribal Health Department Response and Recovery Support program. The public health departments are considered beneficiaries under the program and, as such, this funding is not subject to the local or tribal government single audits. In FY 2021-22, DHS reimbursed the public health departments $6.7 million in expenditures for the program. The program ends on December 31, 2024. We reviewed the quarterly reports filed in FY 2021-22 for 10 of the 98 public health departments that were allocated funding for this program. We randomly selected 7 public health departments and selected the remaining three public health departments using a judgement sample based on a review of DHS?s quarterly report tracking spreadsheet. Questioned Costs: None. Effect: Because DHS controls related to the quarterly report are not working effectively, there is an increased risk of improper payments made using the CSLFRF grant funding. Cause: DHS did not have written policies and procedures for the tracking and review of the reports. In addition, DHS did not have documentation to support that it was tracking the timely receipt and review of the quarterly reports in FY 2021-22. At the end of FY 2021-22, DHS experienced turnover in staff responsible for administering the Local and Tribal Health Department Response and Recovery Support program. DHS indicated that the staff responsible for administering the program in FY 2021-22 did not document reviews of the quarterly reports. In a March 2, 2023 email to DHS, staff from the City of Milwaukee Public Health Department indicated that DHS staff had agreed to permit emails to explain the expenditure of funds in lieu of the quarterly reports. DHS did not provide these emails or other documentation to support this permission. Recommendation: We recommend the Wisconsin Department of Health Services: -develop and implement written policies and procedures for the review and tracking of the quarterly reports used to monitor expenditures under the Local and Tribal Health Department Response and Recovery Support program; -maintain the quarterly reports, document its review of the quarterly reports, and document its correspondence with the public health departments regarding resolution of reporting variances; -review the contracts with the public health departments and determine whether any revisions are needed to clarify expectations for documentation and timeliness of filing the quarterly reports; and -ensure it obtains quarterly reports to support the payments it made to the City of Milwaukee Public Health Department. Finding 2022-304: Coronavirus State and Local Fiscal Recovery Funds?Monitoring of Local and Tribal Health Department Response and Recovery Support Program Expenditures COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-100: Coronavirus State and Local Fiscal Recovery Funds?Unallowable Costs Background: The State was advanced $1.3 billion in CSLFRF funding in May 2021 and another $1.3 billion in May 2022. CSLFRF was created under the American Rescue Plan Act (ARPA) and is administered by DOA. CSLFRF funding has certain stipulations, including that the funds must be used to: -respond to the public health emergency or its negative economic impacts; -respond to the needs of workers performing essential work during the public health emergency; -provide government services to the extent revenue losses due to the public health emergency reduced revenues; and -make necessary investments in water, sewer, or broadband infrastructure. Further, federal regulations stipulate that eligible expenditures must be incurred between March 3, 2021, and December 31, 2024, and funds must be spent through December 31, 2026. DOA paid funds to other state agencies for programs they administered and spent funds on its own programs. Two of the programs established by DOA were the Live Event Small Business Grant Program and the Minor League Sports Team Grant Program. The Live Event Small Business Grant Program provided grants to eligible live event small businesses within the State of Wisconsin that generated 50.0 percent or more of their revenue through provision of goods and/or services to live venues. The Minor League Sports Team Grant Program provided grants to eligible Wisconsin-based minor league sports teams that had attendance of at least 30,000 and not more than 300,000 at events held in 2019. Applicants submitted application materials, including federal income tax information or total revenue, and awards were made after review and approval by DOA. Grant award amounts were determined based on the decrease in the applicant?s federal taxable income or total revenue between calendar years 2019 and 2020, up to a maximum amount of $200,000. Criteria: In accordance with 2 CFR s. 200.303, DOA is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, under U.S. Department of the Treasury Final Rule (31 CFR Part 35), DOA must establish rigorous oversight and internal control processes to monitor compliance with any applicable requirements of CSLFRF funding. Condition: We identified that DOA made a payment of $161,363 to an organization under both the Live Event Small Business Program and the Minor League Sports Team Grant Program. The applicant reported its 2019 and 2020 federal taxable income in both applications and its decrease in income from 2019 to 2020 was $161,363. DOA paid the organization $161,363 under the Minor League Sports Team Grant Program on January 5, 2022, and then paid the organization $161,363 under the Live Event Small Business Program on January 12, 2022. Context: During FY 2021-22, DOA expended $185.2 million in CSLFRF funding, including providing $11.2 million to 96 organizations under the Live Event Small Business Grant Program and $2.8 million to 17 organizations under the Minor League Sports Team Grant Program. We interviewed DOA staff, reviewed applications, and examined payment documentation for these programs. Questioned Costs: $161,363 Effect: Without adequate internal controls in place, DOA is at increased risk of making inappropriate payments using CSLFRF funding. Cause: When administering the CSLFRF grant, DOA did not establish effective internal controls to assess the appropriateness of making a payment to an applicant that applies under multiple programs. DOA staff indicated that such controls were implemented for certain programs where DOA anticipated an applicant might apply under more than one program. However, DOA indicated that it had not anticipated that an applicant would apply under both the Live Event Small Business Grant Program and the Minor League Sports Team Grant Program. Recommendation: We recommend the Wisconsin Department of Administration: -develop and implement controls to identify when an applicant applies for funding under multiple programs and to assess the appropriateness of whether it would be making payments to an applicant that applies under multiple programs; and -review the specific payments made to the organization we identified and seek repayment of the amount that was made inappropriately. Finding 2022-100: Coronavirus State and Local Fiscal Recovery Funds?Unallowable Costs COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: $161,363 Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-304: Coronavirus State and Local Fiscal Recovery Funds?Monitoring of Local and Tribal Health Department Response and Recovery Support Program Expenditures Background: The State was advanced $1.3 billion in CSLFRF in May 2021 and another $1.3 billion in May 2022. CSLFRF was created under the American Rescue Plan Act (ARPA) and is administered by DOA. CSLFRF funding has certain stipulations, including that the funds must be used to: -respond to the public health emergency or its negative economic impacts; -respond to the needs of workers performing essential work during the public health emergency; -provide government services to the extent revenue losses due to the public health emergency reduced revenues; and -make necessary investments in water, sewer, or broadband infrastructure. Further, federal regulations stipulate that eligible expenditures must be incurred between March 3, 2021, and December 31, 2024, and funds must be spent through December 31, 2026. DOA entered into a memorandum of understanding with DHS to administer the Local and Tribal Health Department Response and Recovery Support program, which provides grants to local and tribal health departments for costs incurred to respond to the public health emergency. DHS entered into contracts with 98 local and tribal health departments. The contracts stipulate the allowable uses of the funding and reporting requirements. After incurring expenditures, the health departments may request reimbursement on a monthly basis using DHS?s CARS. Criteria: In accordance with 2 CFR s. 200.303, DHS is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, under U.S. Department of the Treasury Final Rule (31 CFR Part 35), DHS must establish rigorous oversight and internal control processes to monitor compliance with any applicable requirements of CSLFRF funding. The contracts between DHS and each of the public health departments require the health departments to submit a quarterly report. DHS indicated that the quarterly report includes a list of expenditures for the quarter, a list of payroll costs, and a description of the uses of the funds, and it is due within 30 days of the end of the quarter. DHS tracks the receipt and review of the quarterly reports in a tracking spreadsheet. DHS indicated that it compares the reported expenditures in the quarterly report to the monthly reimbursement request data from CARS to ensure the amounts agree. Further, DHS indicated that it reviews the description of the uses of the funding from the quarterly report to evaluate the allowability of the reported expenses. DHS indicated that quarterly reports are required regardless of whether the public health department incurred expenditures during the quarter. Condition: DHS did not have documentation to support that it was reviewing the quarterly reports and following its procedures to provide oversight over the expenditures charged to the program in FY 2021-22. We attempted to review 20 quarterly reports filed in FY 2021-22 for 10 public health departments. We identified two concerns. First, we found that the City of Milwaukee Public Health Department did not submit the two quarterly reports that were due in FY 2021-22. Therefore, DHS did not have documentation that it evaluated whether funding was expended on allowable activities under the grant program. The City of Milwaukee was reimbursed $3.6 million in expenditures in January 2022. On March 3, 2023, DHS put a hold on any further reimbursements to the City of Milwaukee Public Health Department until the issues with the missing quarterly reports are resolved. Second, we found that 12 of the remaining 18 quarterly reports we reviewed were submitted to DHS more than six months after the due date. Five of the 12 reports were dated after we made our request for the reports in February 2023. We also reviewed reports for the quarter ended June 30, 2022, for the 10 public health departments we selected for review. For three health departments, we found there were differences between the amounts reported to date on the quarterly reports and the total reimbursement provided by DHS as of the end of that quarter. DHS did not have documentation to show that it identified and resolved these differences. Context: DHS was awarded $58.4 million in CSLFRF funds for the Local and Tribal Health Department Response and Recovery Support program. The public health departments are considered beneficiaries under the program and, as such, this funding is not subject to the local or tribal government single audits. In FY 2021-22, DHS reimbursed the public health departments $6.7 million in expenditures for the program. The program ends on December 31, 2024. We reviewed the quarterly reports filed in FY 2021-22 for 10 of the 98 public health departments that were allocated funding for this program. We randomly selected 7 public health departments and selected the remaining three public health departments using a judgement sample based on a review of DHS?s quarterly report tracking spreadsheet. Questioned Costs: None. Effect: Because DHS controls related to the quarterly report are not working effectively, there is an increased risk of improper payments made using the CSLFRF grant funding. Cause: DHS did not have written policies and procedures for the tracking and review of the reports. In addition, DHS did not have documentation to support that it was tracking the timely receipt and review of the quarterly reports in FY 2021-22. At the end of FY 2021-22, DHS experienced turnover in staff responsible for administering the Local and Tribal Health Department Response and Recovery Support program. DHS indicated that the staff responsible for administering the program in FY 2021-22 did not document reviews of the quarterly reports. In a March 2, 2023 email to DHS, staff from the City of Milwaukee Public Health Department indicated that DHS staff had agreed to permit emails to explain the expenditure of funds in lieu of the quarterly reports. DHS did not provide these emails or other documentation to support this permission. Recommendation: We recommend the Wisconsin Department of Health Services: -develop and implement written policies and procedures for the review and tracking of the quarterly reports used to monitor expenditures under the Local and Tribal Health Department Response and Recovery Support program; -maintain the quarterly reports, document its review of the quarterly reports, and document its correspondence with the public health departments regarding resolution of reporting variances; -review the contracts with the public health departments and determine whether any revisions are needed to clarify expectations for documentation and timeliness of filing the quarterly reports; and -ensure it obtains quarterly reports to support the payments it made to the City of Milwaukee Public Health Department. Finding 2022-304: Coronavirus State and Local Fiscal Recovery Funds?Monitoring of Local and Tribal Health Department Response and Recovery Support Program Expenditures COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-100: Coronavirus State and Local Fiscal Recovery Funds?Unallowable Costs Background: The State was advanced $1.3 billion in CSLFRF funding in May 2021 and another $1.3 billion in May 2022. CSLFRF was created under the American Rescue Plan Act (ARPA) and is administered by DOA. CSLFRF funding has certain stipulations, including that the funds must be used to: -respond to the public health emergency or its negative economic impacts; -respond to the needs of workers performing essential work during the public health emergency; -provide government services to the extent revenue losses due to the public health emergency reduced revenues; and -make necessary investments in water, sewer, or broadband infrastructure. Further, federal regulations stipulate that eligible expenditures must be incurred between March 3, 2021, and December 31, 2024, and funds must be spent through December 31, 2026. DOA paid funds to other state agencies for programs they administered and spent funds on its own programs. Two of the programs established by DOA were the Live Event Small Business Grant Program and the Minor League Sports Team Grant Program. The Live Event Small Business Grant Program provided grants to eligible live event small businesses within the State of Wisconsin that generated 50.0 percent or more of their revenue through provision of goods and/or services to live venues. The Minor League Sports Team Grant Program provided grants to eligible Wisconsin-based minor league sports teams that had attendance of at least 30,000 and not more than 300,000 at events held in 2019. Applicants submitted application materials, including federal income tax information or total revenue, and awards were made after review and approval by DOA. Grant award amounts were determined based on the decrease in the applicant?s federal taxable income or total revenue between calendar years 2019 and 2020, up to a maximum amount of $200,000. Criteria: In accordance with 2 CFR s. 200.303, DOA is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, under U.S. Department of the Treasury Final Rule (31 CFR Part 35), DOA must establish rigorous oversight and internal control processes to monitor compliance with any applicable requirements of CSLFRF funding. Condition: We identified that DOA made a payment of $161,363 to an organization under both the Live Event Small Business Program and the Minor League Sports Team Grant Program. The applicant reported its 2019 and 2020 federal taxable income in both applications and its decrease in income from 2019 to 2020 was $161,363. DOA paid the organization $161,363 under the Minor League Sports Team Grant Program on January 5, 2022, and then paid the organization $161,363 under the Live Event Small Business Program on January 12, 2022. Context: During FY 2021-22, DOA expended $185.2 million in CSLFRF funding, including providing $11.2 million to 96 organizations under the Live Event Small Business Grant Program and $2.8 million to 17 organizations under the Minor League Sports Team Grant Program. We interviewed DOA staff, reviewed applications, and examined payment documentation for these programs. Questioned Costs: $161,363 Effect: Without adequate internal controls in place, DOA is at increased risk of making inappropriate payments using CSLFRF funding. Cause: When administering the CSLFRF grant, DOA did not establish effective internal controls to assess the appropriateness of making a payment to an applicant that applies under multiple programs. DOA staff indicated that such controls were implemented for certain programs where DOA anticipated an applicant might apply under more than one program. However, DOA indicated that it had not anticipated that an applicant would apply under both the Live Event Small Business Grant Program and the Minor League Sports Team Grant Program. Recommendation: We recommend the Wisconsin Department of Administration: -develop and implement controls to identify when an applicant applies for funding under multiple programs and to assess the appropriateness of whether it would be making payments to an applicant that applies under multiple programs; and -review the specific payments made to the organization we identified and seek repayment of the amount that was made inappropriately. Finding 2022-100: Coronavirus State and Local Fiscal Recovery Funds?Unallowable Costs COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: $161,363 Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-304: Coronavirus State and Local Fiscal Recovery Funds?Monitoring of Local and Tribal Health Department Response and Recovery Support Program Expenditures Background: The State was advanced $1.3 billion in CSLFRF in May 2021 and another $1.3 billion in May 2022. CSLFRF was created under the American Rescue Plan Act (ARPA) and is administered by DOA. CSLFRF funding has certain stipulations, including that the funds must be used to: -respond to the public health emergency or its negative economic impacts; -respond to the needs of workers performing essential work during the public health emergency; -provide government services to the extent revenue losses due to the public health emergency reduced revenues; and -make necessary investments in water, sewer, or broadband infrastructure. Further, federal regulations stipulate that eligible expenditures must be incurred between March 3, 2021, and December 31, 2024, and funds must be spent through December 31, 2026. DOA entered into a memorandum of understanding with DHS to administer the Local and Tribal Health Department Response and Recovery Support program, which provides grants to local and tribal health departments for costs incurred to respond to the public health emergency. DHS entered into contracts with 98 local and tribal health departments. The contracts stipulate the allowable uses of the funding and reporting requirements. After incurring expenditures, the health departments may request reimbursement on a monthly basis using DHS?s CARS. Criteria: In accordance with 2 CFR s. 200.303, DHS is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, under U.S. Department of the Treasury Final Rule (31 CFR Part 35), DHS must establish rigorous oversight and internal control processes to monitor compliance with any applicable requirements of CSLFRF funding. The contracts between DHS and each of the public health departments require the health departments to submit a quarterly report. DHS indicated that the quarterly report includes a list of expenditures for the quarter, a list of payroll costs, and a description of the uses of the funds, and it is due within 30 days of the end of the quarter. DHS tracks the receipt and review of the quarterly reports in a tracking spreadsheet. DHS indicated that it compares the reported expenditures in the quarterly report to the monthly reimbursement request data from CARS to ensure the amounts agree. Further, DHS indicated that it reviews the description of the uses of the funding from the quarterly report to evaluate the allowability of the reported expenses. DHS indicated that quarterly reports are required regardless of whether the public health department incurred expenditures during the quarter. Condition: DHS did not have documentation to support that it was reviewing the quarterly reports and following its procedures to provide oversight over the expenditures charged to the program in FY 2021-22. We attempted to review 20 quarterly reports filed in FY 2021-22 for 10 public health departments. We identified two concerns. First, we found that the City of Milwaukee Public Health Department did not submit the two quarterly reports that were due in FY 2021-22. Therefore, DHS did not have documentation that it evaluated whether funding was expended on allowable activities under the grant program. The City of Milwaukee was reimbursed $3.6 million in expenditures in January 2022. On March 3, 2023, DHS put a hold on any further reimbursements to the City of Milwaukee Public Health Department until the issues with the missing quarterly reports are resolved. Second, we found that 12 of the remaining 18 quarterly reports we reviewed were submitted to DHS more than six months after the due date. Five of the 12 reports were dated after we made our request for the reports in February 2023. We also reviewed reports for the quarter ended June 30, 2022, for the 10 public health departments we selected for review. For three health departments, we found there were differences between the amounts reported to date on the quarterly reports and the total reimbursement provided by DHS as of the end of that quarter. DHS did not have documentation to show that it identified and resolved these differences. Context: DHS was awarded $58.4 million in CSLFRF funds for the Local and Tribal Health Department Response and Recovery Support program. The public health departments are considered beneficiaries under the program and, as such, this funding is not subject to the local or tribal government single audits. In FY 2021-22, DHS reimbursed the public health departments $6.7 million in expenditures for the program. The program ends on December 31, 2024. We reviewed the quarterly reports filed in FY 2021-22 for 10 of the 98 public health departments that were allocated funding for this program. We randomly selected 7 public health departments and selected the remaining three public health departments using a judgement sample based on a review of DHS?s quarterly report tracking spreadsheet. Questioned Costs: None. Effect: Because DHS controls related to the quarterly report are not working effectively, there is an increased risk of improper payments made using the CSLFRF grant funding. Cause: DHS did not have written policies and procedures for the tracking and review of the reports. In addition, DHS did not have documentation to support that it was tracking the timely receipt and review of the quarterly reports in FY 2021-22. At the end of FY 2021-22, DHS experienced turnover in staff responsible for administering the Local and Tribal Health Department Response and Recovery Support program. DHS indicated that the staff responsible for administering the program in FY 2021-22 did not document reviews of the quarterly reports. In a March 2, 2023 email to DHS, staff from the City of Milwaukee Public Health Department indicated that DHS staff had agreed to permit emails to explain the expenditure of funds in lieu of the quarterly reports. DHS did not provide these emails or other documentation to support this permission. Recommendation: We recommend the Wisconsin Department of Health Services: -develop and implement written policies and procedures for the review and tracking of the quarterly reports used to monitor expenditures under the Local and Tribal Health Department Response and Recovery Support program; -maintain the quarterly reports, document its review of the quarterly reports, and document its correspondence with the public health departments regarding resolution of reporting variances; -review the contracts with the public health departments and determine whether any revisions are needed to clarify expectations for documentation and timeliness of filing the quarterly reports; and -ensure it obtains quarterly reports to support the payments it made to the City of Milwaukee Public Health Department. Finding 2022-304: Coronavirus State and Local Fiscal Recovery Funds?Monitoring of Local and Tribal Health Department Response and Recovery Support Program Expenditures COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-100: Coronavirus State and Local Fiscal Recovery Funds?Unallowable Costs Background: The State was advanced $1.3 billion in CSLFRF funding in May 2021 and another $1.3 billion in May 2022. CSLFRF was created under the American Rescue Plan Act (ARPA) and is administered by DOA. CSLFRF funding has certain stipulations, including that the funds must be used to: -respond to the public health emergency or its negative economic impacts; -respond to the needs of workers performing essential work during the public health emergency; -provide government services to the extent revenue losses due to the public health emergency reduced revenues; and -make necessary investments in water, sewer, or broadband infrastructure. Further, federal regulations stipulate that eligible expenditures must be incurred between March 3, 2021, and December 31, 2024, and funds must be spent through December 31, 2026. DOA paid funds to other state agencies for programs they administered and spent funds on its own programs. Two of the programs established by DOA were the Live Event Small Business Grant Program and the Minor League Sports Team Grant Program. The Live Event Small Business Grant Program provided grants to eligible live event small businesses within the State of Wisconsin that generated 50.0 percent or more of their revenue through provision of goods and/or services to live venues. The Minor League Sports Team Grant Program provided grants to eligible Wisconsin-based minor league sports teams that had attendance of at least 30,000 and not more than 300,000 at events held in 2019. Applicants submitted application materials, including federal income tax information or total revenue, and awards were made after review and approval by DOA. Grant award amounts were determined based on the decrease in the applicant?s federal taxable income or total revenue between calendar years 2019 and 2020, up to a maximum amount of $200,000. Criteria: In accordance with 2 CFR s. 200.303, DOA is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, under U.S. Department of the Treasury Final Rule (31 CFR Part 35), DOA must establish rigorous oversight and internal control processes to monitor compliance with any applicable requirements of CSLFRF funding. Condition: We identified that DOA made a payment of $161,363 to an organization under both the Live Event Small Business Program and the Minor League Sports Team Grant Program. The applicant reported its 2019 and 2020 federal taxable income in both applications and its decrease in income from 2019 to 2020 was $161,363. DOA paid the organization $161,363 under the Minor League Sports Team Grant Program on January 5, 2022, and then paid the organization $161,363 under the Live Event Small Business Program on January 12, 2022. Context: During FY 2021-22, DOA expended $185.2 million in CSLFRF funding, including providing $11.2 million to 96 organizations under the Live Event Small Business Grant Program and $2.8 million to 17 organizations under the Minor League Sports Team Grant Program. We interviewed DOA staff, reviewed applications, and examined payment documentation for these programs. Questioned Costs: $161,363 Effect: Without adequate internal controls in place, DOA is at increased risk of making inappropriate payments using CSLFRF funding. Cause: When administering the CSLFRF grant, DOA did not establish effective internal controls to assess the appropriateness of making a payment to an applicant that applies under multiple programs. DOA staff indicated that such controls were implemented for certain programs where DOA anticipated an applicant might apply under more than one program. However, DOA indicated that it had not anticipated that an applicant would apply under both the Live Event Small Business Grant Program and the Minor League Sports Team Grant Program. Recommendation: We recommend the Wisconsin Department of Administration: -develop and implement controls to identify when an applicant applies for funding under multiple programs and to assess the appropriateness of whether it would be making payments to an applicant that applies under multiple programs; and -review the specific payments made to the organization we identified and seek repayment of the amount that was made inappropriately. Finding 2022-100: Coronavirus State and Local Fiscal Recovery Funds?Unallowable Costs COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: $161,363 Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-304: Coronavirus State and Local Fiscal Recovery Funds?Monitoring of Local and Tribal Health Department Response and Recovery Support Program Expenditures Background: The State was advanced $1.3 billion in CSLFRF in May 2021 and another $1.3 billion in May 2022. CSLFRF was created under the American Rescue Plan Act (ARPA) and is administered by DOA. CSLFRF funding has certain stipulations, including that the funds must be used to: -respond to the public health emergency or its negative economic impacts; -respond to the needs of workers performing essential work during the public health emergency; -provide government services to the extent revenue losses due to the public health emergency reduced revenues; and -make necessary investments in water, sewer, or broadband infrastructure. Further, federal regulations stipulate that eligible expenditures must be incurred between March 3, 2021, and December 31, 2024, and funds must be spent through December 31, 2026. DOA entered into a memorandum of understanding with DHS to administer the Local and Tribal Health Department Response and Recovery Support program, which provides grants to local and tribal health departments for costs incurred to respond to the public health emergency. DHS entered into contracts with 98 local and tribal health departments. The contracts stipulate the allowable uses of the funding and reporting requirements. After incurring expenditures, the health departments may request reimbursement on a monthly basis using DHS?s CARS. Criteria: In accordance with 2 CFR s. 200.303, DHS is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, under U.S. Department of the Treasury Final Rule (31 CFR Part 35), DHS must establish rigorous oversight and internal control processes to monitor compliance with any applicable requirements of CSLFRF funding. The contracts between DHS and each of the public health departments require the health departments to submit a quarterly report. DHS indicated that the quarterly report includes a list of expenditures for the quarter, a list of payroll costs, and a description of the uses of the funds, and it is due within 30 days of the end of the quarter. DHS tracks the receipt and review of the quarterly reports in a tracking spreadsheet. DHS indicated that it compares the reported expenditures in the quarterly report to the monthly reimbursement request data from CARS to ensure the amounts agree. Further, DHS indicated that it reviews the description of the uses of the funding from the quarterly report to evaluate the allowability of the reported expenses. DHS indicated that quarterly reports are required regardless of whether the public health department incurred expenditures during the quarter. Condition: DHS did not have documentation to support that it was reviewing the quarterly reports and following its procedures to provide oversight over the expenditures charged to the program in FY 2021-22. We attempted to review 20 quarterly reports filed in FY 2021-22 for 10 public health departments. We identified two concerns. First, we found that the City of Milwaukee Public Health Department did not submit the two quarterly reports that were due in FY 2021-22. Therefore, DHS did not have documentation that it evaluated whether funding was expended on allowable activities under the grant program. The City of Milwaukee was reimbursed $3.6 million in expenditures in January 2022. On March 3, 2023, DHS put a hold on any further reimbursements to the City of Milwaukee Public Health Department until the issues with the missing quarterly reports are resolved. Second, we found that 12 of the remaining 18 quarterly reports we reviewed were submitted to DHS more than six months after the due date. Five of the 12 reports were dated after we made our request for the reports in February 2023. We also reviewed reports for the quarter ended June 30, 2022, for the 10 public health departments we selected for review. For three health departments, we found there were differences between the amounts reported to date on the quarterly reports and the total reimbursement provided by DHS as of the end of that quarter. DHS did not have documentation to show that it identified and resolved these differences. Context: DHS was awarded $58.4 million in CSLFRF funds for the Local and Tribal Health Department Response and Recovery Support program. The public health departments are considered beneficiaries under the program and, as such, this funding is not subject to the local or tribal government single audits. In FY 2021-22, DHS reimbursed the public health departments $6.7 million in expenditures for the program. The program ends on December 31, 2024. We reviewed the quarterly reports filed in FY 2021-22 for 10 of the 98 public health departments that were allocated funding for this program. We randomly selected 7 public health departments and selected the remaining three public health departments using a judgement sample based on a review of DHS?s quarterly report tracking spreadsheet. Questioned Costs: None. Effect: Because DHS controls related to the quarterly report are not working effectively, there is an increased risk of improper payments made using the CSLFRF grant funding. Cause: DHS did not have written policies and procedures for the tracking and review of the reports. In addition, DHS did not have documentation to support that it was tracking the timely receipt and review of the quarterly reports in FY 2021-22. At the end of FY 2021-22, DHS experienced turnover in staff responsible for administering the Local and Tribal Health Department Response and Recovery Support program. DHS indicated that the staff responsible for administering the program in FY 2021-22 did not document reviews of the quarterly reports. In a March 2, 2023 email to DHS, staff from the City of Milwaukee Public Health Department indicated that DHS staff had agreed to permit emails to explain the expenditure of funds in lieu of the quarterly reports. DHS did not provide these emails or other documentation to support this permission. Recommendation: We recommend the Wisconsin Department of Health Services: -develop and implement written policies and procedures for the review and tracking of the quarterly reports used to monitor expenditures under the Local and Tribal Health Department Response and Recovery Support program; -maintain the quarterly reports, document its review of the quarterly reports, and document its correspondence with the public health departments regarding resolution of reporting variances; -review the contracts with the public health departments and determine whether any revisions are needed to clarify expectations for documentation and timeliness of filing the quarterly reports; and -ensure it obtains quarterly reports to support the payments it made to the City of Milwaukee Public Health Department. Finding 2022-304: Coronavirus State and Local Fiscal Recovery Funds?Monitoring of Local and Tribal Health Department Response and Recovery Support Program Expenditures COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-100: Coronavirus State and Local Fiscal Recovery Funds?Unallowable Costs Background: The State was advanced $1.3 billion in CSLFRF funding in May 2021 and another $1.3 billion in May 2022. CSLFRF was created under the American Rescue Plan Act (ARPA) and is administered by DOA. CSLFRF funding has certain stipulations, including that the funds must be used to: -respond to the public health emergency or its negative economic impacts; -respond to the needs of workers performing essential work during the public health emergency; -provide government services to the extent revenue losses due to the public health emergency reduced revenues; and -make necessary investments in water, sewer, or broadband infrastructure. Further, federal regulations stipulate that eligible expenditures must be incurred between March 3, 2021, and December 31, 2024, and funds must be spent through December 31, 2026. DOA paid funds to other state agencies for programs they administered and spent funds on its own programs. Two of the programs established by DOA were the Live Event Small Business Grant Program and the Minor League Sports Team Grant Program. The Live Event Small Business Grant Program provided grants to eligible live event small businesses within the State of Wisconsin that generated 50.0 percent or more of their revenue through provision of goods and/or services to live venues. The Minor League Sports Team Grant Program provided grants to eligible Wisconsin-based minor league sports teams that had attendance of at least 30,000 and not more than 300,000 at events held in 2019. Applicants submitted application materials, including federal income tax information or total revenue, and awards were made after review and approval by DOA. Grant award amounts were determined based on the decrease in the applicant?s federal taxable income or total revenue between calendar years 2019 and 2020, up to a maximum amount of $200,000. Criteria: In accordance with 2 CFR s. 200.303, DOA is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, under U.S. Department of the Treasury Final Rule (31 CFR Part 35), DOA must establish rigorous oversight and internal control processes to monitor compliance with any applicable requirements of CSLFRF funding. Condition: We identified that DOA made a payment of $161,363 to an organization under both the Live Event Small Business Program and the Minor League Sports Team Grant Program. The applicant reported its 2019 and 2020 federal taxable income in both applications and its decrease in income from 2019 to 2020 was $161,363. DOA paid the organization $161,363 under the Minor League Sports Team Grant Program on January 5, 2022, and then paid the organization $161,363 under the Live Event Small Business Program on January 12, 2022. Context: During FY 2021-22, DOA expended $185.2 million in CSLFRF funding, including providing $11.2 million to 96 organizations under the Live Event Small Business Grant Program and $2.8 million to 17 organizations under the Minor League Sports Team Grant Program. We interviewed DOA staff, reviewed applications, and examined payment documentation for these programs. Questioned Costs: $161,363 Effect: Without adequate internal controls in place, DOA is at increased risk of making inappropriate payments using CSLFRF funding. Cause: When administering the CSLFRF grant, DOA did not establish effective internal controls to assess the appropriateness of making a payment to an applicant that applies under multiple programs. DOA staff indicated that such controls were implemented for certain programs where DOA anticipated an applicant might apply under more than one program. However, DOA indicated that it had not anticipated that an applicant would apply under both the Live Event Small Business Grant Program and the Minor League Sports Team Grant Program. Recommendation: We recommend the Wisconsin Department of Administration: -develop and implement controls to identify when an applicant applies for funding under multiple programs and to assess the appropriateness of whether it would be making payments to an applicant that applies under multiple programs; and -review the specific payments made to the organization we identified and seek repayment of the amount that was made inappropriately. Finding 2022-100: Coronavirus State and Local Fiscal Recovery Funds?Unallowable Costs COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: $161,363 Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-304: Coronavirus State and Local Fiscal Recovery Funds?Monitoring of Local and Tribal Health Department Response and Recovery Support Program Expenditures Background: The State was advanced $1.3 billion in CSLFRF in May 2021 and another $1.3 billion in May 2022. CSLFRF was created under the American Rescue Plan Act (ARPA) and is administered by DOA. CSLFRF funding has certain stipulations, including that the funds must be used to: -respond to the public health emergency or its negative economic impacts; -respond to the needs of workers performing essential work during the public health emergency; -provide government services to the extent revenue losses due to the public health emergency reduced revenues; and -make necessary investments in water, sewer, or broadband infrastructure. Further, federal regulations stipulate that eligible expenditures must be incurred between March 3, 2021, and December 31, 2024, and funds must be spent through December 31, 2026. DOA entered into a memorandum of understanding with DHS to administer the Local and Tribal Health Department Response and Recovery Support program, which provides grants to local and tribal health departments for costs incurred to respond to the public health emergency. DHS entered into contracts with 98 local and tribal health departments. The contracts stipulate the allowable uses of the funding and reporting requirements. After incurring expenditures, the health departments may request reimbursement on a monthly basis using DHS?s CARS. Criteria: In accordance with 2 CFR s. 200.303, DHS is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, under U.S. Department of the Treasury Final Rule (31 CFR Part 35), DHS must establish rigorous oversight and internal control processes to monitor compliance with any applicable requirements of CSLFRF funding. The contracts between DHS and each of the public health departments require the health departments to submit a quarterly report. DHS indicated that the quarterly report includes a list of expenditures for the quarter, a list of payroll costs, and a description of the uses of the funds, and it is due within 30 days of the end of the quarter. DHS tracks the receipt and review of the quarterly reports in a tracking spreadsheet. DHS indicated that it compares the reported expenditures in the quarterly report to the monthly reimbursement request data from CARS to ensure the amounts agree. Further, DHS indicated that it reviews the description of the uses of the funding from the quarterly report to evaluate the allowability of the reported expenses. DHS indicated that quarterly reports are required regardless of whether the public health department incurred expenditures during the quarter. Condition: DHS did not have documentation to support that it was reviewing the quarterly reports and following its procedures to provide oversight over the expenditures charged to the program in FY 2021-22. We attempted to review 20 quarterly reports filed in FY 2021-22 for 10 public health departments. We identified two concerns. First, we found that the City of Milwaukee Public Health Department did not submit the two quarterly reports that were due in FY 2021-22. Therefore, DHS did not have documentation that it evaluated whether funding was expended on allowable activities under the grant program. The City of Milwaukee was reimbursed $3.6 million in expenditures in January 2022. On March 3, 2023, DHS put a hold on any further reimbursements to the City of Milwaukee Public Health Department until the issues with the missing quarterly reports are resolved. Second, we found that 12 of the remaining 18 quarterly reports we reviewed were submitted to DHS more than six months after the due date. Five of the 12 reports were dated after we made our request for the reports in February 2023. We also reviewed reports for the quarter ended June 30, 2022, for the 10 public health departments we selected for review. For three health departments, we found there were differences between the amounts reported to date on the quarterly reports and the total reimbursement provided by DHS as of the end of that quarter. DHS did not have documentation to show that it identified and resolved these differences. Context: DHS was awarded $58.4 million in CSLFRF funds for the Local and Tribal Health Department Response and Recovery Support program. The public health departments are considered beneficiaries under the program and, as such, this funding is not subject to the local or tribal government single audits. In FY 2021-22, DHS reimbursed the public health departments $6.7 million in expenditures for the program. The program ends on December 31, 2024. We reviewed the quarterly reports filed in FY 2021-22 for 10 of the 98 public health departments that were allocated funding for this program. We randomly selected 7 public health departments and selected the remaining three public health departments using a judgement sample based on a review of DHS?s quarterly report tracking spreadsheet. Questioned Costs: None. Effect: Because DHS controls related to the quarterly report are not working effectively, there is an increased risk of improper payments made using the CSLFRF grant funding. Cause: DHS did not have written policies and procedures for the tracking and review of the reports. In addition, DHS did not have documentation to support that it was tracking the timely receipt and review of the quarterly reports in FY 2021-22. At the end of FY 2021-22, DHS experienced turnover in staff responsible for administering the Local and Tribal Health Department Response and Recovery Support program. DHS indicated that the staff responsible for administering the program in FY 2021-22 did not document reviews of the quarterly reports. In a March 2, 2023 email to DHS, staff from the City of Milwaukee Public Health Department indicated that DHS staff had agreed to permit emails to explain the expenditure of funds in lieu of the quarterly reports. DHS did not provide these emails or other documentation to support this permission. Recommendation: We recommend the Wisconsin Department of Health Services: -develop and implement written policies and procedures for the review and tracking of the quarterly reports used to monitor expenditures under the Local and Tribal Health Department Response and Recovery Support program; -maintain the quarterly reports, document its review of the quarterly reports, and document its correspondence with the public health departments regarding resolution of reporting variances; -review the contracts with the public health departments and determine whether any revisions are needed to clarify expectations for documentation and timeliness of filing the quarterly reports; and -ensure it obtains quarterly reports to support the payments it made to the City of Milwaukee Public Health Department. Finding 2022-304: Coronavirus State and Local Fiscal Recovery Funds?Monitoring of Local and Tribal Health Department Response and Recovery Support Program Expenditures COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-100: Coronavirus State and Local Fiscal Recovery Funds?Unallowable Costs Background: The State was advanced $1.3 billion in CSLFRF funding in May 2021 and another $1.3 billion in May 2022. CSLFRF was created under the American Rescue Plan Act (ARPA) and is administered by DOA. CSLFRF funding has certain stipulations, including that the funds must be used to: -respond to the public health emergency or its negative economic impacts; -respond to the needs of workers performing essential work during the public health emergency; -provide government services to the extent revenue losses due to the public health emergency reduced revenues; and -make necessary investments in water, sewer, or broadband infrastructure. Further, federal regulations stipulate that eligible expenditures must be incurred between March 3, 2021, and December 31, 2024, and funds must be spent through December 31, 2026. DOA paid funds to other state agencies for programs they administered and spent funds on its own programs. Two of the programs established by DOA were the Live Event Small Business Grant Program and the Minor League Sports Team Grant Program. The Live Event Small Business Grant Program provided grants to eligible live event small businesses within the State of Wisconsin that generated 50.0 percent or more of their revenue through provision of goods and/or services to live venues. The Minor League Sports Team Grant Program provided grants to eligible Wisconsin-based minor league sports teams that had attendance of at least 30,000 and not more than 300,000 at events held in 2019. Applicants submitted application materials, including federal income tax information or total revenue, and awards were made after review and approval by DOA. Grant award amounts were determined based on the decrease in the applicant?s federal taxable income or total revenue between calendar years 2019 and 2020, up to a maximum amount of $200,000. Criteria: In accordance with 2 CFR s. 200.303, DOA is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, under U.S. Department of the Treasury Final Rule (31 CFR Part 35), DOA must establish rigorous oversight and internal control processes to monitor compliance with any applicable requirements of CSLFRF funding. Condition: We identified that DOA made a payment of $161,363 to an organization under both the Live Event Small Business Program and the Minor League Sports Team Grant Program. The applicant reported its 2019 and 2020 federal taxable income in both applications and its decrease in income from 2019 to 2020 was $161,363. DOA paid the organization $161,363 under the Minor League Sports Team Grant Program on January 5, 2022, and then paid the organization $161,363 under the Live Event Small Business Program on January 12, 2022. Context: During FY 2021-22, DOA expended $185.2 million in CSLFRF funding, including providing $11.2 million to 96 organizations under the Live Event Small Business Grant Program and $2.8 million to 17 organizations under the Minor League Sports Team Grant Program. We interviewed DOA staff, reviewed applications, and examined payment documentation for these programs. Questioned Costs: $161,363 Effect: Without adequate internal controls in place, DOA is at increased risk of making inappropriate payments using CSLFRF funding. Cause: When administering the CSLFRF grant, DOA did not establish effective internal controls to assess the appropriateness of making a payment to an applicant that applies under multiple programs. DOA staff indicated that such controls were implemented for certain programs where DOA anticipated an applicant might apply under more than one program. However, DOA indicated that it had not anticipated that an applicant would apply under both the Live Event Small Business Grant Program and the Minor League Sports Team Grant Program. Recommendation: We recommend the Wisconsin Department of Administration: -develop and implement controls to identify when an applicant applies for funding under multiple programs and to assess the appropriateness of whether it would be making payments to an applicant that applies under multiple programs; and -review the specific payments made to the organization we identified and seek repayment of the amount that was made inappropriately. Finding 2022-100: Coronavirus State and Local Fiscal Recovery Funds?Unallowable Costs COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: $161,363 Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-304: Coronavirus State and Local Fiscal Recovery Funds?Monitoring of Local and Tribal Health Department Response and Recovery Support Program Expenditures Background: The State was advanced $1.3 billion in CSLFRF in May 2021 and another $1.3 billion in May 2022. CSLFRF was created under the American Rescue Plan Act (ARPA) and is administered by DOA. CSLFRF funding has certain stipulations, including that the funds must be used to: -respond to the public health emergency or its negative economic impacts; -respond to the needs of workers performing essential work during the public health emergency; -provide government services to the extent revenue losses due to the public health emergency reduced revenues; and -make necessary investments in water, sewer, or broadband infrastructure. Further, federal regulations stipulate that eligible expenditures must be incurred between March 3, 2021, and December 31, 2024, and funds must be spent through December 31, 2026. DOA entered into a memorandum of understanding with DHS to administer the Local and Tribal Health Department Response and Recovery Support program, which provides grants to local and tribal health departments for costs incurred to respond to the public health emergency. DHS entered into contracts with 98 local and tribal health departments. The contracts stipulate the allowable uses of the funding and reporting requirements. After incurring expenditures, the health departments may request reimbursement on a monthly basis using DHS?s CARS. Criteria: In accordance with 2 CFR s. 200.303, DHS is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, under U.S. Department of the Treasury Final Rule (31 CFR Part 35), DHS must establish rigorous oversight and internal control processes to monitor compliance with any applicable requirements of CSLFRF funding. The contracts between DHS and each of the public health departments require the health departments to submit a quarterly report. DHS indicated that the quarterly report includes a list of expenditures for the quarter, a list of payroll costs, and a description of the uses of the funds, and it is due within 30 days of the end of the quarter. DHS tracks the receipt and review of the quarterly reports in a tracking spreadsheet. DHS indicated that it compares the reported expenditures in the quarterly report to the monthly reimbursement request data from CARS to ensure the amounts agree. Further, DHS indicated that it reviews the description of the uses of the funding from the quarterly report to evaluate the allowability of the reported expenses. DHS indicated that quarterly reports are required regardless of whether the public health department incurred expenditures during the quarter. Condition: DHS did not have documentation to support that it was reviewing the quarterly reports and following its procedures to provide oversight over the expenditures charged to the program in FY 2021-22. We attempted to review 20 quarterly reports filed in FY 2021-22 for 10 public health departments. We identified two concerns. First, we found that the City of Milwaukee Public Health Department did not submit the two quarterly reports that were due in FY 2021-22. Therefore, DHS did not have documentation that it evaluated whether funding was expended on allowable activities under the grant program. The City of Milwaukee was reimbursed $3.6 million in expenditures in January 2022. On March 3, 2023, DHS put a hold on any further reimbursements to the City of Milwaukee Public Health Department until the issues with the missing quarterly reports are resolved. Second, we found that 12 of the remaining 18 quarterly reports we reviewed were submitted to DHS more than six months after the due date. Five of the 12 reports were dated after we made our request for the reports in February 2023. We also reviewed reports for the quarter ended June 30, 2022, for the 10 public health departments we selected for review. For three health departments, we found there were differences between the amounts reported to date on the quarterly reports and the total reimbursement provided by DHS as of the end of that quarter. DHS did not have documentation to show that it identified and resolved these differences. Context: DHS was awarded $58.4 million in CSLFRF funds for the Local and Tribal Health Department Response and Recovery Support program. The public health departments are considered beneficiaries under the program and, as such, this funding is not subject to the local or tribal government single audits. In FY 2021-22, DHS reimbursed the public health departments $6.7 million in expenditures for the program. The program ends on December 31, 2024. We reviewed the quarterly reports filed in FY 2021-22 for 10 of the 98 public health departments that were allocated funding for this program. We randomly selected 7 public health departments and selected the remaining three public health departments using a judgement sample based on a review of DHS?s quarterly report tracking spreadsheet. Questioned Costs: None. Effect: Because DHS controls related to the quarterly report are not working effectively, there is an increased risk of improper payments made using the CSLFRF grant funding. Cause: DHS did not have written policies and procedures for the tracking and review of the reports. In addition, DHS did not have documentation to support that it was tracking the timely receipt and review of the quarterly reports in FY 2021-22. At the end of FY 2021-22, DHS experienced turnover in staff responsible for administering the Local and Tribal Health Department Response and Recovery Support program. DHS indicated that the staff responsible for administering the program in FY 2021-22 did not document reviews of the quarterly reports. In a March 2, 2023 email to DHS, staff from the City of Milwaukee Public Health Department indicated that DHS staff had agreed to permit emails to explain the expenditure of funds in lieu of the quarterly reports. DHS did not provide these emails or other documentation to support this permission. Recommendation: We recommend the Wisconsin Department of Health Services: -develop and implement written policies and procedures for the review and tracking of the quarterly reports used to monitor expenditures under the Local and Tribal Health Department Response and Recovery Support program; -maintain the quarterly reports, document its review of the quarterly reports, and document its correspondence with the public health departments regarding resolution of reporting variances; -review the contracts with the public health departments and determine whether any revisions are needed to clarify expectations for documentation and timeliness of filing the quarterly reports; and -ensure it obtains quarterly reports to support the payments it made to the City of Milwaukee Public Health Department. Finding 2022-304: Coronavirus State and Local Fiscal Recovery Funds?Monitoring of Local and Tribal Health Department Response and Recovery Support Program Expenditures COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-100: Coronavirus State and Local Fiscal Recovery Funds?Unallowable Costs Background: The State was advanced $1.3 billion in CSLFRF funding in May 2021 and another $1.3 billion in May 2022. CSLFRF was created under the American Rescue Plan Act (ARPA) and is administered by DOA. CSLFRF funding has certain stipulations, including that the funds must be used to: -respond to the public health emergency or its negative economic impacts; -respond to the needs of workers performing essential work during the public health emergency; -provide government services to the extent revenue losses due to the public health emergency reduced revenues; and -make necessary investments in water, sewer, or broadband infrastructure. Further, federal regulations stipulate that eligible expenditures must be incurred between March 3, 2021, and December 31, 2024, and funds must be spent through December 31, 2026. DOA paid funds to other state agencies for programs they administered and spent funds on its own programs. Two of the programs established by DOA were the Live Event Small Business Grant Program and the Minor League Sports Team Grant Program. The Live Event Small Business Grant Program provided grants to eligible live event small businesses within the State of Wisconsin that generated 50.0 percent or more of their revenue through provision of goods and/or services to live venues. The Minor League Sports Team Grant Program provided grants to eligible Wisconsin-based minor league sports teams that had attendance of at least 30,000 and not more than 300,000 at events held in 2019. Applicants submitted application materials, including federal income tax information or total revenue, and awards were made after review and approval by DOA. Grant award amounts were determined based on the decrease in the applicant?s federal taxable income or total revenue between calendar years 2019 and 2020, up to a maximum amount of $200,000. Criteria: In accordance with 2 CFR s. 200.303, DOA is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, under U.S. Department of the Treasury Final Rule (31 CFR Part 35), DOA must establish rigorous oversight and internal control processes to monitor compliance with any applicable requirements of CSLFRF funding. Condition: We identified that DOA made a payment of $161,363 to an organization under both the Live Event Small Business Program and the Minor League Sports Team Grant Program. The applicant reported its 2019 and 2020 federal taxable income in both applications and its decrease in income from 2019 to 2020 was $161,363. DOA paid the organization $161,363 under the Minor League Sports Team Grant Program on January 5, 2022, and then paid the organization $161,363 under the Live Event Small Business Program on January 12, 2022. Context: During FY 2021-22, DOA expended $185.2 million in CSLFRF funding, including providing $11.2 million to 96 organizations under the Live Event Small Business Grant Program and $2.8 million to 17 organizations under the Minor League Sports Team Grant Program. We interviewed DOA staff, reviewed applications, and examined payment documentation for these programs. Questioned Costs: $161,363 Effect: Without adequate internal controls in place, DOA is at increased risk of making inappropriate payments using CSLFRF funding. Cause: When administering the CSLFRF grant, DOA did not establish effective internal controls to assess the appropriateness of making a payment to an applicant that applies under multiple programs. DOA staff indicated that such controls were implemented for certain programs where DOA anticipated an applicant might apply under more than one program. However, DOA indicated that it had not anticipated that an applicant would apply under both the Live Event Small Business Grant Program and the Minor League Sports Team Grant Program. Recommendation: We recommend the Wisconsin Department of Administration: -develop and implement controls to identify when an applicant applies for funding under multiple programs and to assess the appropriateness of whether it would be making payments to an applicant that applies under multiple programs; and -review the specific payments made to the organization we identified and seek repayment of the amount that was made inappropriately. Finding 2022-100: Coronavirus State and Local Fiscal Recovery Funds?Unallowable Costs COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: $161,363 Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-304: Coronavirus State and Local Fiscal Recovery Funds?Monitoring of Local and Tribal Health Department Response and Recovery Support Program Expenditures Background: The State was advanced $1.3 billion in CSLFRF in May 2021 and another $1.3 billion in May 2022. CSLFRF was created under the American Rescue Plan Act (ARPA) and is administered by DOA. CSLFRF funding has certain stipulations, including that the funds must be used to: -respond to the public health emergency or its negative economic impacts; -respond to the needs of workers performing essential work during the public health emergency; -provide government services to the extent revenue losses due to the public health emergency reduced revenues; and -make necessary investments in water, sewer, or broadband infrastructure. Further, federal regulations stipulate that eligible expenditures must be incurred between March 3, 2021, and December 31, 2024, and funds must be spent through December 31, 2026. DOA entered into a memorandum of understanding with DHS to administer the Local and Tribal Health Department Response and Recovery Support program, which provides grants to local and tribal health departments for costs incurred to respond to the public health emergency. DHS entered into contracts with 98 local and tribal health departments. The contracts stipulate the allowable uses of the funding and reporting requirements. After incurring expenditures, the health departments may request reimbursement on a monthly basis using DHS?s CARS. Criteria: In accordance with 2 CFR s. 200.303, DHS is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, under U.S. Department of the Treasury Final Rule (31 CFR Part 35), DHS must establish rigorous oversight and internal control processes to monitor compliance with any applicable requirements of CSLFRF funding. The contracts between DHS and each of the public health departments require the health departments to submit a quarterly report. DHS indicated that the quarterly report includes a list of expenditures for the quarter, a list of payroll costs, and a description of the uses of the funds, and it is due within 30 days of the end of the quarter. DHS tracks the receipt and review of the quarterly reports in a tracking spreadsheet. DHS indicated that it compares the reported expenditures in the quarterly report to the monthly reimbursement request data from CARS to ensure the amounts agree. Further, DHS indicated that it reviews the description of the uses of the funding from the quarterly report to evaluate the allowability of the reported expenses. DHS indicated that quarterly reports are required regardless of whether the public health department incurred expenditures during the quarter. Condition: DHS did not have documentation to support that it was reviewing the quarterly reports and following its procedures to provide oversight over the expenditures charged to the program in FY 2021-22. We attempted to review 20 quarterly reports filed in FY 2021-22 for 10 public health departments. We identified two concerns. First, we found that the City of Milwaukee Public Health Department did not submit the two quarterly reports that were due in FY 2021-22. Therefore, DHS did not have documentation that it evaluated whether funding was expended on allowable activities under the grant program. The City of Milwaukee was reimbursed $3.6 million in expenditures in January 2022. On March 3, 2023, DHS put a hold on any further reimbursements to the City of Milwaukee Public Health Department until the issues with the missing quarterly reports are resolved. Second, we found that 12 of the remaining 18 quarterly reports we reviewed were submitted to DHS more than six months after the due date. Five of the 12 reports were dated after we made our request for the reports in February 2023. We also reviewed reports for the quarter ended June 30, 2022, for the 10 public health departments we selected for review. For three health departments, we found there were differences between the amounts reported to date on the quarterly reports and the total reimbursement provided by DHS as of the end of that quarter. DHS did not have documentation to show that it identified and resolved these differences. Context: DHS was awarded $58.4 million in CSLFRF funds for the Local and Tribal Health Department Response and Recovery Support program. The public health departments are considered beneficiaries under the program and, as such, this funding is not subject to the local or tribal government single audits. In FY 2021-22, DHS reimbursed the public health departments $6.7 million in expenditures for the program. The program ends on December 31, 2024. We reviewed the quarterly reports filed in FY 2021-22 for 10 of the 98 public health departments that were allocated funding for this program. We randomly selected 7 public health departments and selected the remaining three public health departments using a judgement sample based on a review of DHS?s quarterly report tracking spreadsheet. Questioned Costs: None. Effect: Because DHS controls related to the quarterly report are not working effectively, there is an increased risk of improper payments made using the CSLFRF grant funding. Cause: DHS did not have written policies and procedures for the tracking and review of the reports. In addition, DHS did not have documentation to support that it was tracking the timely receipt and review of the quarterly reports in FY 2021-22. At the end of FY 2021-22, DHS experienced turnover in staff responsible for administering the Local and Tribal Health Department Response and Recovery Support program. DHS indicated that the staff responsible for administering the program in FY 2021-22 did not document reviews of the quarterly reports. In a March 2, 2023 email to DHS, staff from the City of Milwaukee Public Health Department indicated that DHS staff had agreed to permit emails to explain the expenditure of funds in lieu of the quarterly reports. DHS did not provide these emails or other documentation to support this permission. Recommendation: We recommend the Wisconsin Department of Health Services: -develop and implement written policies and procedures for the review and tracking of the quarterly reports used to monitor expenditures under the Local and Tribal Health Department Response and Recovery Support program; -maintain the quarterly reports, document its review of the quarterly reports, and document its correspondence with the public health departments regarding resolution of reporting variances; -review the contracts with the public health departments and determine whether any revisions are needed to clarify expectations for documentation and timeliness of filing the quarterly reports; and -ensure it obtains quarterly reports to support the payments it made to the City of Milwaukee Public Health Department. Finding 2022-304: Coronavirus State and Local Fiscal Recovery Funds?Monitoring of Local and Tribal Health Department Response and Recovery Support Program Expenditures COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-100: Coronavirus State and Local Fiscal Recovery Funds?Unallowable Costs Background: The State was advanced $1.3 billion in CSLFRF funding in May 2021 and another $1.3 billion in May 2022. CSLFRF was created under the American Rescue Plan Act (ARPA) and is administered by DOA. CSLFRF funding has certain stipulations, including that the funds must be used to: -respond to the public health emergency or its negative economic impacts; -respond to the needs of workers performing essential work during the public health emergency; -provide government services to the extent revenue losses due to the public health emergency reduced revenues; and -make necessary investments in water, sewer, or broadband infrastructure. Further, federal regulations stipulate that eligible expenditures must be incurred between March 3, 2021, and December 31, 2024, and funds must be spent through December 31, 2026. DOA paid funds to other state agencies for programs they administered and spent funds on its own programs. Two of the programs established by DOA were the Live Event Small Business Grant Program and the Minor League Sports Team Grant Program. The Live Event Small Business Grant Program provided grants to eligible live event small businesses within the State of Wisconsin that generated 50.0 percent or more of their revenue through provision of goods and/or services to live venues. The Minor League Sports Team Grant Program provided grants to eligible Wisconsin-based minor league sports teams that had attendance of at least 30,000 and not more than 300,000 at events held in 2019. Applicants submitted application materials, including federal income tax information or total revenue, and awards were made after review and approval by DOA. Grant award amounts were determined based on the decrease in the applicant?s federal taxable income or total revenue between calendar years 2019 and 2020, up to a maximum amount of $200,000. Criteria: In accordance with 2 CFR s. 200.303, DOA is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, under U.S. Department of the Treasury Final Rule (31 CFR Part 35), DOA must establish rigorous oversight and internal control processes to monitor compliance with any applicable requirements of CSLFRF funding. Condition: We identified that DOA made a payment of $161,363 to an organization under both the Live Event Small Business Program and the Minor League Sports Team Grant Program. The applicant reported its 2019 and 2020 federal taxable income in both applications and its decrease in income from 2019 to 2020 was $161,363. DOA paid the organization $161,363 under the Minor League Sports Team Grant Program on January 5, 2022, and then paid the organization $161,363 under the Live Event Small Business Program on January 12, 2022. Context: During FY 2021-22, DOA expended $185.2 million in CSLFRF funding, including providing $11.2 million to 96 organizations under the Live Event Small Business Grant Program and $2.8 million to 17 organizations under the Minor League Sports Team Grant Program. We interviewed DOA staff, reviewed applications, and examined payment documentation for these programs. Questioned Costs: $161,363 Effect: Without adequate internal controls in place, DOA is at increased risk of making inappropriate payments using CSLFRF funding. Cause: When administering the CSLFRF grant, DOA did not establish effective internal controls to assess the appropriateness of making a payment to an applicant that applies under multiple programs. DOA staff indicated that such controls were implemented for certain programs where DOA anticipated an applicant might apply under more than one program. However, DOA indicated that it had not anticipated that an applicant would apply under both the Live Event Small Business Grant Program and the Minor League Sports Team Grant Program. Recommendation: We recommend the Wisconsin Department of Administration: -develop and implement controls to identify when an applicant applies for funding under multiple programs and to assess the appropriateness of whether it would be making payments to an applicant that applies under multiple programs; and -review the specific payments made to the organization we identified and seek repayment of the amount that was made inappropriately. Finding 2022-100: Coronavirus State and Local Fiscal Recovery Funds?Unallowable Costs COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: $161,363 Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-304: Coronavirus State and Local Fiscal Recovery Funds?Monitoring of Local and Tribal Health Department Response and Recovery Support Program Expenditures Background: The State was advanced $1.3 billion in CSLFRF in May 2021 and another $1.3 billion in May 2022. CSLFRF was created under the American Rescue Plan Act (ARPA) and is administered by DOA. CSLFRF funding has certain stipulations, including that the funds must be used to: -respond to the public health emergency or its negative economic impacts; -respond to the needs of workers performing essential work during the public health emergency; -provide government services to the extent revenue losses due to the public health emergency reduced revenues; and -make necessary investments in water, sewer, or broadband infrastructure. Further, federal regulations stipulate that eligible expenditures must be incurred between March 3, 2021, and December 31, 2024, and funds must be spent through December 31, 2026. DOA entered into a memorandum of understanding with DHS to administer the Local and Tribal Health Department Response and Recovery Support program, which provides grants to local and tribal health departments for costs incurred to respond to the public health emergency. DHS entered into contracts with 98 local and tribal health departments. The contracts stipulate the allowable uses of the funding and reporting requirements. After incurring expenditures, the health departments may request reimbursement on a monthly basis using DHS?s CARS. Criteria: In accordance with 2 CFR s. 200.303, DHS is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, under U.S. Department of the Treasury Final Rule (31 CFR Part 35), DHS must establish rigorous oversight and internal control processes to monitor compliance with any applicable requirements of CSLFRF funding. The contracts between DHS and each of the public health departments require the health departments to submit a quarterly report. DHS indicated that the quarterly report includes a list of expenditures for the quarter, a list of payroll costs, and a description of the uses of the funds, and it is due within 30 days of the end of the quarter. DHS tracks the receipt and review of the quarterly reports in a tracking spreadsheet. DHS indicated that it compares the reported expenditures in the quarterly report to the monthly reimbursement request data from CARS to ensure the amounts agree. Further, DHS indicated that it reviews the description of the uses of the funding from the quarterly report to evaluate the allowability of the reported expenses. DHS indicated that quarterly reports are required regardless of whether the public health department incurred expenditures during the quarter. Condition: DHS did not have documentation to support that it was reviewing the quarterly reports and following its procedures to provide oversight over the expenditures charged to the program in FY 2021-22. We attempted to review 20 quarterly reports filed in FY 2021-22 for 10 public health departments. We identified two concerns. First, we found that the City of Milwaukee Public Health Department did not submit the two quarterly reports that were due in FY 2021-22. Therefore, DHS did not have documentation that it evaluated whether funding was expended on allowable activities under the grant program. The City of Milwaukee was reimbursed $3.6 million in expenditures in January 2022. On March 3, 2023, DHS put a hold on any further reimbursements to the City of Milwaukee Public Health Department until the issues with the missing quarterly reports are resolved. Second, we found that 12 of the remaining 18 quarterly reports we reviewed were submitted to DHS more than six months after the due date. Five of the 12 reports were dated after we made our request for the reports in February 2023. We also reviewed reports for the quarter ended June 30, 2022, for the 10 public health departments we selected for review. For three health departments, we found there were differences between the amounts reported to date on the quarterly reports and the total reimbursement provided by DHS as of the end of that quarter. DHS did not have documentation to show that it identified and resolved these differences. Context: DHS was awarded $58.4 million in CSLFRF funds for the Local and Tribal Health Department Response and Recovery Support program. The public health departments are considered beneficiaries under the program and, as such, this funding is not subject to the local or tribal government single audits. In FY 2021-22, DHS reimbursed the public health departments $6.7 million in expenditures for the program. The program ends on December 31, 2024. We reviewed the quarterly reports filed in FY 2021-22 for 10 of the 98 public health departments that were allocated funding for this program. We randomly selected 7 public health departments and selected the remaining three public health departments using a judgement sample based on a review of DHS?s quarterly report tracking spreadsheet. Questioned Costs: None. Effect: Because DHS controls related to the quarterly report are not working effectively, there is an increased risk of improper payments made using the CSLFRF grant funding. Cause: DHS did not have written policies and procedures for the tracking and review of the reports. In addition, DHS did not have documentation to support that it was tracking the timely receipt and review of the quarterly reports in FY 2021-22. At the end of FY 2021-22, DHS experienced turnover in staff responsible for administering the Local and Tribal Health Department Response and Recovery Support program. DHS indicated that the staff responsible for administering the program in FY 2021-22 did not document reviews of the quarterly reports. In a March 2, 2023 email to DHS, staff from the City of Milwaukee Public Health Department indicated that DHS staff had agreed to permit emails to explain the expenditure of funds in lieu of the quarterly reports. DHS did not provide these emails or other documentation to support this permission. Recommendation: We recommend the Wisconsin Department of Health Services: -develop and implement written policies and procedures for the review and tracking of the quarterly reports used to monitor expenditures under the Local and Tribal Health Department Response and Recovery Support program; -maintain the quarterly reports, document its review of the quarterly reports, and document its correspondence with the public health departments regarding resolution of reporting variances; -review the contracts with the public health departments and determine whether any revisions are needed to clarify expectations for documentation and timeliness of filing the quarterly reports; and -ensure it obtains quarterly reports to support the payments it made to the City of Milwaukee Public Health Department. Finding 2022-304: Coronavirus State and Local Fiscal Recovery Funds?Monitoring of Local and Tribal Health Department Response and Recovery Support Program Expenditures COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-100: Coronavirus State and Local Fiscal Recovery Funds?Unallowable Costs Background: The State was advanced $1.3 billion in CSLFRF funding in May 2021 and another $1.3 billion in May 2022. CSLFRF was created under the American Rescue Plan Act (ARPA) and is administered by DOA. CSLFRF funding has certain stipulations, including that the funds must be used to: -respond to the public health emergency or its negative economic impacts; -respond to the needs of workers performing essential work during the public health emergency; -provide government services to the extent revenue losses due to the public health emergency reduced revenues; and -make necessary investments in water, sewer, or broadband infrastructure. Further, federal regulations stipulate that eligible expenditures must be incurred between March 3, 2021, and December 31, 2024, and funds must be spent through December 31, 2026. DOA paid funds to other state agencies for programs they administered and spent funds on its own programs. Two of the programs established by DOA were the Live Event Small Business Grant Program and the Minor League Sports Team Grant Program. The Live Event Small Business Grant Program provided grants to eligible live event small businesses within the State of Wisconsin that generated 50.0 percent or more of their revenue through provision of goods and/or services to live venues. The Minor League Sports Team Grant Program provided grants to eligible Wisconsin-based minor league sports teams that had attendance of at least 30,000 and not more than 300,000 at events held in 2019. Applicants submitted application materials, including federal income tax information or total revenue, and awards were made after review and approval by DOA. Grant award amounts were determined based on the decrease in the applicant?s federal taxable income or total revenue between calendar years 2019 and 2020, up to a maximum amount of $200,000. Criteria: In accordance with 2 CFR s. 200.303, DOA is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, under U.S. Department of the Treasury Final Rule (31 CFR Part 35), DOA must establish rigorous oversight and internal control processes to monitor compliance with any applicable requirements of CSLFRF funding. Condition: We identified that DOA made a payment of $161,363 to an organization under both the Live Event Small Business Program and the Minor League Sports Team Grant Program. The applicant reported its 2019 and 2020 federal taxable income in both applications and its decrease in income from 2019 to 2020 was $161,363. DOA paid the organization $161,363 under the Minor League Sports Team Grant Program on January 5, 2022, and then paid the organization $161,363 under the Live Event Small Business Program on January 12, 2022. Context: During FY 2021-22, DOA expended $185.2 million in CSLFRF funding, including providing $11.2 million to 96 organizations under the Live Event Small Business Grant Program and $2.8 million to 17 organizations under the Minor League Sports Team Grant Program. We interviewed DOA staff, reviewed applications, and examined payment documentation for these programs. Questioned Costs: $161,363 Effect: Without adequate internal controls in place, DOA is at increased risk of making inappropriate payments using CSLFRF funding. Cause: When administering the CSLFRF grant, DOA did not establish effective internal controls to assess the appropriateness of making a payment to an applicant that applies under multiple programs. DOA staff indicated that such controls were implemented for certain programs where DOA anticipated an applicant might apply under more than one program. However, DOA indicated that it had not anticipated that an applicant would apply under both the Live Event Small Business Grant Program and the Minor League Sports Team Grant Program. Recommendation: We recommend the Wisconsin Department of Administration: -develop and implement controls to identify when an applicant applies for funding under multiple programs and to assess the appropriateness of whether it would be making payments to an applicant that applies under multiple programs; and -review the specific payments made to the organization we identified and seek repayment of the amount that was made inappropriately. Finding 2022-100: Coronavirus State and Local Fiscal Recovery Funds?Unallowable Costs COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: $161,363 Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Federal Agency: United States Department of Housing and Urban Development Federal Program Name: CDBG Entitlement Grants Cluster: Community Development Block Grant (CDBG) Assistance Listing Number: 14.218 Federal Award Identification Number and Year: B-21-MC-06-0593; B-20-MC-06-0593; B-19-MC-06-0593; B-18-MC-06-0593; B-17-MC-06-0593; B-16-MC-06-0593; Award Years 2021, 2020, 2019, 2018, 2017, and 2016 Award Period: Fiscal Year 2021-2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance (Allowable Costs) ? Other Matter (Allowable Costs) Criteria or Specific Requirement: 2 CFR Part 200, section 200.303 of the Uniform states that a non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: The City has specific CDBG grant personnel that are responsible for reviewing all grant expenditures to ensure they are allowable. However, the designated grant personnel are reviewing the expenditures after the disbursement has been made instead of prior to authorizing the disbursement and charging to the grant. In addition, there is no formal documentation retained to illustrate that all disbursements were reviewed. Internal controls over federal awards should include authorization by appropriate grant personnel prior to such disbursements occurring. Questioned Costs: None noted. Context: All disbursements are reviewed in the same manner. Cause: The City will correct any unallowed expenditures identified by grant personnel by moving such expenditures to an appropriate fund and revenue source. These procedures were deemed by the City to be adequate. Effect: Without formal documentation of the review process, the review might not occur without management's knowledge. In addition, internal controls should have a preventative as well as detective aspect to ensure timely identification of any unallowable costs or activities. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the City either utilize the electronic authorization capabilities of the accounting system or manually initial or sign invoices to have approvals of all grants expenditures by the designated grant personnel prior to disbursing the funds.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(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, 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. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(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, 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. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(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, 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. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(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, 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. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(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, 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. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(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, 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. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(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, 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. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(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, 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. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(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, 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. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(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, 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. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(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, 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. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(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, 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. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(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, 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. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(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, 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. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(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, 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. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(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, 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. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(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, 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. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(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, 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. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(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, 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. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(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, 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. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(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, 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. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(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, 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. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(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, 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. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(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, 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. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(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, 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. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(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, 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. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(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, 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. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.