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.
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 2022-304: 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 2022-701: Higher Education Emergency Relief Fund?UW-La Crosse Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from the Higher Education Emergency Relief Fund (HEERF), which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in American Rescue Plan Act (ARPA) funds to UW institutions to be used for student aid (Assistance Listing number 84.425E) and institutional aid (Assistance Listing number 84.425F). UW-La Crosse received an allocation that totaled $35.3 million, of which $19.4 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW-La Crosse is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with the coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and the federal Office of Management and Budget?s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) prohibit UW institutions from using the funds to cover certain costs, including those for student recruitment. Condition: UW-La Crosse used a total of $127,448 of its HEERF institutional aid allocation for consulting, advertising, and recruitment costs to increase student enrollment. Context: During FY 2021-22, UW-La Crosse used $2.9 million of its total HEERF institutional aid allocation. We reviewed 151 transactions for which UW-La Crosse used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW-La Crosse signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested information or supporting documentation for each transaction and interviewed UW-La Crosse staff. Questioned Costs: $127,448 Effect: Because unallowable costs were charged to HEERF, UW-La Crosse was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-La Crosse received federal reimbursement of $127,448 for unallowable costs during FY 2021 22. Cause: UW La Crosse interpreted the federal guidance to permit the costs for which it used its HEERF institutional aid allocation because the intention of the services was to increase enrollment that had declined during the public health emergency. After we questioned the use of HEERF funds, UW-La Crosse subsequently returned the funding. Recommendation: We recommend the University of Wisconsin La Crosse ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-701: Higher Education Emergency Relief Fund?UW-La Crosse Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F200067 2021 Questioned Costs: $127,448 Type of Finding: Noncompliance Response from the University of Wisconsin La Crosse: The University of Wisconsin-La Crosse agrees with the audit finding and recommendation.
Finding 2022-702: Higher Education Emergency Relief Fund?UW Platteville Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from HEERF, which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in ARPA funds to UW institutions to be used for student aid and institutional aid. UW-Platteville received an allocation that totaled $26.4 million, of which $14.5 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW Platteville is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and Uniform Guidance prohibit UW institutions from using the funds to cover certain costs, including those for student recruitment and entertainment. Condition: UW-Platteville used $23,500 of its HEERF institutional aid allocation to create online tours of its campuses for recruiting purposes and $1,018 for student entertainment for a summer 2021 program. Context: During FY 2021-22, UW-Platteville used $6.4 million of its total HEERF institutional aid allocation. We reviewed 13 transactions for which UW Platteville used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW Platteville signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested supporting documentation for certain transactions and interviewed UW Platteville staff. Questioned Costs: $24,518 Effect: Because unallowable costs were charged to HEERF, UW Platteville was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-Platteville received federal reimbursement of $24,518 for unallowable costs during FY 2021 22. Cause: UW-Platteville indicated it used HEERF institutional aid funding for online tours in order to provide prospective students an alternative way to learn about the campus. UW-Platteville indicated it interpreted the federal guidance to permit such use of HEERF institutional aid. However, we found the tour content was predominately marketing because it included encouragement for viewers to enroll at UW-Platteville. We consider any activities that encourage enrollment to be recruiting activity prohibited under federal regulations. After we questioned the use of HEERF funds for the presemester entertainment event, UW-Platteville subsequently returned the funding for this expense. Recommendation: We recommend the University of Wisconsin Platteville: -work with the federal government to resolve the $23,500 in unallowable costs that we identified; and -ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-702: Higher Education Emergency Relief Fund?UW Platteville Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F200891 2021 Questioned Costs: $24,518 Type of Finding: Noncompliance Response from the University of Wisconsin Platteville: The University of Wisconsin-Platteville agrees with the audit finding and recommendations.
Finding 2022-703: Higher Education Emergency Relief Fund?UW Superior Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from HEERF, which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in ARPA funds to UW institutions to be used for student aid and institutional aid. UW-Superior received an allocation that totaled $8.8 million, of which $4.9 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW Superior is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with the coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and Uniform Guidance prohibit UW institutions from using the funds to cover certain costs, including those for alcohol and entertainment. Condition: During FY 2021-22, UW-Superior used $30,376 of its HEERF institutional aid allocation to offset lost revenue from the sale of alcohol at sporting and other events and $1,500 for student entertainment for a presemester summer event. Context: During FY 2021-22, UW-Superior used $2.4 million of its total HEERF institutional aid allocation. We reviewed 26 transactions for which UW Superior used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW Superior signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested information or supporting documentation for each transaction and interviewed UW Superior staff. Questioned Costs: $31,876 Effect: Because unallowable costs were charged to HEERF, UW Superior was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-Superior received federal reimbursement of $31,876 for unallowable costs during FY 2021 22. Cause: UW-Superior indicated it was aware that alcohol sales should be excluded from lost revenue calculations and agreed that it had incorrectly included a cost center for alcohol sales in its FY 2021-22 lost revenue calculation. When this issue was identified during the audit, UW Superior subsequently adjusted the accounting records in November 2022 to make $30,376 available to fund additional lost revenues under the HEERF program. In December 2022, UW-Superior also adjusted the accounting records to make the $1,500 in costs for the student entertainment available to fund additional HEERF program expenses. Recommendation: We recommend the University of Wisconsin Superior ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-703: Higher Education Emergency Relief Fund?UW Superior Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F202112 2021 Questioned Costs: $31,876 Type of Finding: Noncompliance Response from the University of Wisconsin Superior: The University of Wisconsin-Superior agrees with the audit finding and recommendation.
Finding 2022-701: Higher Education Emergency Relief Fund?UW-La Crosse Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from the Higher Education Emergency Relief Fund (HEERF), which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in American Rescue Plan Act (ARPA) funds to UW institutions to be used for student aid (Assistance Listing number 84.425E) and institutional aid (Assistance Listing number 84.425F). UW-La Crosse received an allocation that totaled $35.3 million, of which $19.4 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW-La Crosse is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with the coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and the federal Office of Management and Budget?s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) prohibit UW institutions from using the funds to cover certain costs, including those for student recruitment. Condition: UW-La Crosse used a total of $127,448 of its HEERF institutional aid allocation for consulting, advertising, and recruitment costs to increase student enrollment. Context: During FY 2021-22, UW-La Crosse used $2.9 million of its total HEERF institutional aid allocation. We reviewed 151 transactions for which UW-La Crosse used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW-La Crosse signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested information or supporting documentation for each transaction and interviewed UW-La Crosse staff. Questioned Costs: $127,448 Effect: Because unallowable costs were charged to HEERF, UW-La Crosse was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-La Crosse received federal reimbursement of $127,448 for unallowable costs during FY 2021 22. Cause: UW La Crosse interpreted the federal guidance to permit the costs for which it used its HEERF institutional aid allocation because the intention of the services was to increase enrollment that had declined during the public health emergency. After we questioned the use of HEERF funds, UW-La Crosse subsequently returned the funding. Recommendation: We recommend the University of Wisconsin La Crosse ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-701: Higher Education Emergency Relief Fund?UW-La Crosse Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F200067 2021 Questioned Costs: $127,448 Type of Finding: Noncompliance Response from the University of Wisconsin La Crosse: The University of Wisconsin-La Crosse agrees with the audit finding and recommendation.
Finding 2022-702: Higher Education Emergency Relief Fund?UW Platteville Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from HEERF, which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in ARPA funds to UW institutions to be used for student aid and institutional aid. UW-Platteville received an allocation that totaled $26.4 million, of which $14.5 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW Platteville is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and Uniform Guidance prohibit UW institutions from using the funds to cover certain costs, including those for student recruitment and entertainment. Condition: UW-Platteville used $23,500 of its HEERF institutional aid allocation to create online tours of its campuses for recruiting purposes and $1,018 for student entertainment for a summer 2021 program. Context: During FY 2021-22, UW-Platteville used $6.4 million of its total HEERF institutional aid allocation. We reviewed 13 transactions for which UW Platteville used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW Platteville signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested supporting documentation for certain transactions and interviewed UW Platteville staff. Questioned Costs: $24,518 Effect: Because unallowable costs were charged to HEERF, UW Platteville was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-Platteville received federal reimbursement of $24,518 for unallowable costs during FY 2021 22. Cause: UW-Platteville indicated it used HEERF institutional aid funding for online tours in order to provide prospective students an alternative way to learn about the campus. UW-Platteville indicated it interpreted the federal guidance to permit such use of HEERF institutional aid. However, we found the tour content was predominately marketing because it included encouragement for viewers to enroll at UW-Platteville. We consider any activities that encourage enrollment to be recruiting activity prohibited under federal regulations. After we questioned the use of HEERF funds for the presemester entertainment event, UW-Platteville subsequently returned the funding for this expense. Recommendation: We recommend the University of Wisconsin Platteville: -work with the federal government to resolve the $23,500 in unallowable costs that we identified; and -ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-702: Higher Education Emergency Relief Fund?UW Platteville Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F200891 2021 Questioned Costs: $24,518 Type of Finding: Noncompliance Response from the University of Wisconsin Platteville: The University of Wisconsin-Platteville agrees with the audit finding and recommendations.
Finding 2022-703: Higher Education Emergency Relief Fund?UW Superior Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from HEERF, which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in ARPA funds to UW institutions to be used for student aid and institutional aid. UW-Superior received an allocation that totaled $8.8 million, of which $4.9 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW Superior is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with the coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and Uniform Guidance prohibit UW institutions from using the funds to cover certain costs, including those for alcohol and entertainment. Condition: During FY 2021-22, UW-Superior used $30,376 of its HEERF institutional aid allocation to offset lost revenue from the sale of alcohol at sporting and other events and $1,500 for student entertainment for a presemester summer event. Context: During FY 2021-22, UW-Superior used $2.4 million of its total HEERF institutional aid allocation. We reviewed 26 transactions for which UW Superior used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW Superior signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested information or supporting documentation for each transaction and interviewed UW Superior staff. Questioned Costs: $31,876 Effect: Because unallowable costs were charged to HEERF, UW Superior was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-Superior received federal reimbursement of $31,876 for unallowable costs during FY 2021 22. Cause: UW-Superior indicated it was aware that alcohol sales should be excluded from lost revenue calculations and agreed that it had incorrectly included a cost center for alcohol sales in its FY 2021-22 lost revenue calculation. When this issue was identified during the audit, UW Superior subsequently adjusted the accounting records in November 2022 to make $30,376 available to fund additional lost revenues under the HEERF program. In December 2022, UW-Superior also adjusted the accounting records to make the $1,500 in costs for the student entertainment available to fund additional HEERF program expenses. Recommendation: We recommend the University of Wisconsin Superior ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-703: Higher Education Emergency Relief Fund?UW Superior Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F202112 2021 Questioned Costs: $31,876 Type of Finding: Noncompliance Response from the University of Wisconsin Superior: The University of Wisconsin-Superior agrees with the audit finding and recommendation.
Finding 2022-701: Higher Education Emergency Relief Fund?UW-La Crosse Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from the Higher Education Emergency Relief Fund (HEERF), which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in American Rescue Plan Act (ARPA) funds to UW institutions to be used for student aid (Assistance Listing number 84.425E) and institutional aid (Assistance Listing number 84.425F). UW-La Crosse received an allocation that totaled $35.3 million, of which $19.4 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW-La Crosse is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with the coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and the federal Office of Management and Budget?s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) prohibit UW institutions from using the funds to cover certain costs, including those for student recruitment. Condition: UW-La Crosse used a total of $127,448 of its HEERF institutional aid allocation for consulting, advertising, and recruitment costs to increase student enrollment. Context: During FY 2021-22, UW-La Crosse used $2.9 million of its total HEERF institutional aid allocation. We reviewed 151 transactions for which UW-La Crosse used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW-La Crosse signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested information or supporting documentation for each transaction and interviewed UW-La Crosse staff. Questioned Costs: $127,448 Effect: Because unallowable costs were charged to HEERF, UW-La Crosse was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-La Crosse received federal reimbursement of $127,448 for unallowable costs during FY 2021 22. Cause: UW La Crosse interpreted the federal guidance to permit the costs for which it used its HEERF institutional aid allocation because the intention of the services was to increase enrollment that had declined during the public health emergency. After we questioned the use of HEERF funds, UW-La Crosse subsequently returned the funding. Recommendation: We recommend the University of Wisconsin La Crosse ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-701: Higher Education Emergency Relief Fund?UW-La Crosse Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F200067 2021 Questioned Costs: $127,448 Type of Finding: Noncompliance Response from the University of Wisconsin La Crosse: The University of Wisconsin-La Crosse agrees with the audit finding and recommendation.
Finding 2022-702: Higher Education Emergency Relief Fund?UW Platteville Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from HEERF, which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in ARPA funds to UW institutions to be used for student aid and institutional aid. UW-Platteville received an allocation that totaled $26.4 million, of which $14.5 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW Platteville is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and Uniform Guidance prohibit UW institutions from using the funds to cover certain costs, including those for student recruitment and entertainment. Condition: UW-Platteville used $23,500 of its HEERF institutional aid allocation to create online tours of its campuses for recruiting purposes and $1,018 for student entertainment for a summer 2021 program. Context: During FY 2021-22, UW-Platteville used $6.4 million of its total HEERF institutional aid allocation. We reviewed 13 transactions for which UW Platteville used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW Platteville signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested supporting documentation for certain transactions and interviewed UW Platteville staff. Questioned Costs: $24,518 Effect: Because unallowable costs were charged to HEERF, UW Platteville was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-Platteville received federal reimbursement of $24,518 for unallowable costs during FY 2021 22. Cause: UW-Platteville indicated it used HEERF institutional aid funding for online tours in order to provide prospective students an alternative way to learn about the campus. UW-Platteville indicated it interpreted the federal guidance to permit such use of HEERF institutional aid. However, we found the tour content was predominately marketing because it included encouragement for viewers to enroll at UW-Platteville. We consider any activities that encourage enrollment to be recruiting activity prohibited under federal regulations. After we questioned the use of HEERF funds for the presemester entertainment event, UW-Platteville subsequently returned the funding for this expense. Recommendation: We recommend the University of Wisconsin Platteville: -work with the federal government to resolve the $23,500 in unallowable costs that we identified; and -ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-702: Higher Education Emergency Relief Fund?UW Platteville Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F200891 2021 Questioned Costs: $24,518 Type of Finding: Noncompliance Response from the University of Wisconsin Platteville: The University of Wisconsin-Platteville agrees with the audit finding and recommendations.
Finding 2022-703: Higher Education Emergency Relief Fund?UW Superior Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from HEERF, which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in ARPA funds to UW institutions to be used for student aid and institutional aid. UW-Superior received an allocation that totaled $8.8 million, of which $4.9 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW Superior is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with the coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and Uniform Guidance prohibit UW institutions from using the funds to cover certain costs, including those for alcohol and entertainment. Condition: During FY 2021-22, UW-Superior used $30,376 of its HEERF institutional aid allocation to offset lost revenue from the sale of alcohol at sporting and other events and $1,500 for student entertainment for a presemester summer event. Context: During FY 2021-22, UW-Superior used $2.4 million of its total HEERF institutional aid allocation. We reviewed 26 transactions for which UW Superior used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW Superior signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested information or supporting documentation for each transaction and interviewed UW Superior staff. Questioned Costs: $31,876 Effect: Because unallowable costs were charged to HEERF, UW Superior was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-Superior received federal reimbursement of $31,876 for unallowable costs during FY 2021 22. Cause: UW-Superior indicated it was aware that alcohol sales should be excluded from lost revenue calculations and agreed that it had incorrectly included a cost center for alcohol sales in its FY 2021-22 lost revenue calculation. When this issue was identified during the audit, UW Superior subsequently adjusted the accounting records in November 2022 to make $30,376 available to fund additional lost revenues under the HEERF program. In December 2022, UW-Superior also adjusted the accounting records to make the $1,500 in costs for the student entertainment available to fund additional HEERF program expenses. Recommendation: We recommend the University of Wisconsin Superior ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-703: Higher Education Emergency Relief Fund?UW Superior Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F202112 2021 Questioned Costs: $31,876 Type of Finding: Noncompliance Response from the University of Wisconsin Superior: The University of Wisconsin-Superior agrees with the audit finding and recommendation.
Finding 2022-701: Higher Education Emergency Relief Fund?UW-La Crosse Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from the Higher Education Emergency Relief Fund (HEERF), which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in American Rescue Plan Act (ARPA) funds to UW institutions to be used for student aid (Assistance Listing number 84.425E) and institutional aid (Assistance Listing number 84.425F). UW-La Crosse received an allocation that totaled $35.3 million, of which $19.4 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW-La Crosse is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with the coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and the federal Office of Management and Budget?s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) prohibit UW institutions from using the funds to cover certain costs, including those for student recruitment. Condition: UW-La Crosse used a total of $127,448 of its HEERF institutional aid allocation for consulting, advertising, and recruitment costs to increase student enrollment. Context: During FY 2021-22, UW-La Crosse used $2.9 million of its total HEERF institutional aid allocation. We reviewed 151 transactions for which UW-La Crosse used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW-La Crosse signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested information or supporting documentation for each transaction and interviewed UW-La Crosse staff. Questioned Costs: $127,448 Effect: Because unallowable costs were charged to HEERF, UW-La Crosse was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-La Crosse received federal reimbursement of $127,448 for unallowable costs during FY 2021 22. Cause: UW La Crosse interpreted the federal guidance to permit the costs for which it used its HEERF institutional aid allocation because the intention of the services was to increase enrollment that had declined during the public health emergency. After we questioned the use of HEERF funds, UW-La Crosse subsequently returned the funding. Recommendation: We recommend the University of Wisconsin La Crosse ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-701: Higher Education Emergency Relief Fund?UW-La Crosse Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F200067 2021 Questioned Costs: $127,448 Type of Finding: Noncompliance Response from the University of Wisconsin La Crosse: The University of Wisconsin-La Crosse agrees with the audit finding and recommendation.
Finding 2022-702: Higher Education Emergency Relief Fund?UW Platteville Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from HEERF, which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in ARPA funds to UW institutions to be used for student aid and institutional aid. UW-Platteville received an allocation that totaled $26.4 million, of which $14.5 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW Platteville is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and Uniform Guidance prohibit UW institutions from using the funds to cover certain costs, including those for student recruitment and entertainment. Condition: UW-Platteville used $23,500 of its HEERF institutional aid allocation to create online tours of its campuses for recruiting purposes and $1,018 for student entertainment for a summer 2021 program. Context: During FY 2021-22, UW-Platteville used $6.4 million of its total HEERF institutional aid allocation. We reviewed 13 transactions for which UW Platteville used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW Platteville signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested supporting documentation for certain transactions and interviewed UW Platteville staff. Questioned Costs: $24,518 Effect: Because unallowable costs were charged to HEERF, UW Platteville was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-Platteville received federal reimbursement of $24,518 for unallowable costs during FY 2021 22. Cause: UW-Platteville indicated it used HEERF institutional aid funding for online tours in order to provide prospective students an alternative way to learn about the campus. UW-Platteville indicated it interpreted the federal guidance to permit such use of HEERF institutional aid. However, we found the tour content was predominately marketing because it included encouragement for viewers to enroll at UW-Platteville. We consider any activities that encourage enrollment to be recruiting activity prohibited under federal regulations. After we questioned the use of HEERF funds for the presemester entertainment event, UW-Platteville subsequently returned the funding for this expense. Recommendation: We recommend the University of Wisconsin Platteville: -work with the federal government to resolve the $23,500 in unallowable costs that we identified; and -ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-702: Higher Education Emergency Relief Fund?UW Platteville Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F200891 2021 Questioned Costs: $24,518 Type of Finding: Noncompliance Response from the University of Wisconsin Platteville: The University of Wisconsin-Platteville agrees with the audit finding and recommendations.
Finding 2022-703: Higher Education Emergency Relief Fund?UW Superior Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from HEERF, which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in ARPA funds to UW institutions to be used for student aid and institutional aid. UW-Superior received an allocation that totaled $8.8 million, of which $4.9 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW Superior is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with the coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and Uniform Guidance prohibit UW institutions from using the funds to cover certain costs, including those for alcohol and entertainment. Condition: During FY 2021-22, UW-Superior used $30,376 of its HEERF institutional aid allocation to offset lost revenue from the sale of alcohol at sporting and other events and $1,500 for student entertainment for a presemester summer event. Context: During FY 2021-22, UW-Superior used $2.4 million of its total HEERF institutional aid allocation. We reviewed 26 transactions for which UW Superior used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW Superior signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested information or supporting documentation for each transaction and interviewed UW Superior staff. Questioned Costs: $31,876 Effect: Because unallowable costs were charged to HEERF, UW Superior was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-Superior received federal reimbursement of $31,876 for unallowable costs during FY 2021 22. Cause: UW-Superior indicated it was aware that alcohol sales should be excluded from lost revenue calculations and agreed that it had incorrectly included a cost center for alcohol sales in its FY 2021-22 lost revenue calculation. When this issue was identified during the audit, UW Superior subsequently adjusted the accounting records in November 2022 to make $30,376 available to fund additional lost revenues under the HEERF program. In December 2022, UW-Superior also adjusted the accounting records to make the $1,500 in costs for the student entertainment available to fund additional HEERF program expenses. Recommendation: We recommend the University of Wisconsin Superior ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-703: Higher Education Emergency Relief Fund?UW Superior Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F202112 2021 Questioned Costs: $31,876 Type of Finding: Noncompliance Response from the University of Wisconsin Superior: The University of Wisconsin-Superior agrees with the audit finding and recommendation.
Finding 2022-701: Higher Education Emergency Relief Fund?UW-La Crosse Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from the Higher Education Emergency Relief Fund (HEERF), which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in American Rescue Plan Act (ARPA) funds to UW institutions to be used for student aid (Assistance Listing number 84.425E) and institutional aid (Assistance Listing number 84.425F). UW-La Crosse received an allocation that totaled $35.3 million, of which $19.4 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW-La Crosse is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with the coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and the federal Office of Management and Budget?s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) prohibit UW institutions from using the funds to cover certain costs, including those for student recruitment. Condition: UW-La Crosse used a total of $127,448 of its HEERF institutional aid allocation for consulting, advertising, and recruitment costs to increase student enrollment. Context: During FY 2021-22, UW-La Crosse used $2.9 million of its total HEERF institutional aid allocation. We reviewed 151 transactions for which UW-La Crosse used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW-La Crosse signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested information or supporting documentation for each transaction and interviewed UW-La Crosse staff. Questioned Costs: $127,448 Effect: Because unallowable costs were charged to HEERF, UW-La Crosse was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-La Crosse received federal reimbursement of $127,448 for unallowable costs during FY 2021 22. Cause: UW La Crosse interpreted the federal guidance to permit the costs for which it used its HEERF institutional aid allocation because the intention of the services was to increase enrollment that had declined during the public health emergency. After we questioned the use of HEERF funds, UW-La Crosse subsequently returned the funding. Recommendation: We recommend the University of Wisconsin La Crosse ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-701: Higher Education Emergency Relief Fund?UW-La Crosse Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F200067 2021 Questioned Costs: $127,448 Type of Finding: Noncompliance Response from the University of Wisconsin La Crosse: The University of Wisconsin-La Crosse agrees with the audit finding and recommendation.
Finding 2022-702: Higher Education Emergency Relief Fund?UW Platteville Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from HEERF, which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in ARPA funds to UW institutions to be used for student aid and institutional aid. UW-Platteville received an allocation that totaled $26.4 million, of which $14.5 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW Platteville is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and Uniform Guidance prohibit UW institutions from using the funds to cover certain costs, including those for student recruitment and entertainment. Condition: UW-Platteville used $23,500 of its HEERF institutional aid allocation to create online tours of its campuses for recruiting purposes and $1,018 for student entertainment for a summer 2021 program. Context: During FY 2021-22, UW-Platteville used $6.4 million of its total HEERF institutional aid allocation. We reviewed 13 transactions for which UW Platteville used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW Platteville signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested supporting documentation for certain transactions and interviewed UW Platteville staff. Questioned Costs: $24,518 Effect: Because unallowable costs were charged to HEERF, UW Platteville was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-Platteville received federal reimbursement of $24,518 for unallowable costs during FY 2021 22. Cause: UW-Platteville indicated it used HEERF institutional aid funding for online tours in order to provide prospective students an alternative way to learn about the campus. UW-Platteville indicated it interpreted the federal guidance to permit such use of HEERF institutional aid. However, we found the tour content was predominately marketing because it included encouragement for viewers to enroll at UW-Platteville. We consider any activities that encourage enrollment to be recruiting activity prohibited under federal regulations. After we questioned the use of HEERF funds for the presemester entertainment event, UW-Platteville subsequently returned the funding for this expense. Recommendation: We recommend the University of Wisconsin Platteville: -work with the federal government to resolve the $23,500 in unallowable costs that we identified; and -ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-702: Higher Education Emergency Relief Fund?UW Platteville Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F200891 2021 Questioned Costs: $24,518 Type of Finding: Noncompliance Response from the University of Wisconsin Platteville: The University of Wisconsin-Platteville agrees with the audit finding and recommendations.
Finding 2022-703: Higher Education Emergency Relief Fund?UW Superior Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from HEERF, which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in ARPA funds to UW institutions to be used for student aid and institutional aid. UW-Superior received an allocation that totaled $8.8 million, of which $4.9 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW Superior is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with the coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and Uniform Guidance prohibit UW institutions from using the funds to cover certain costs, including those for alcohol and entertainment. Condition: During FY 2021-22, UW-Superior used $30,376 of its HEERF institutional aid allocation to offset lost revenue from the sale of alcohol at sporting and other events and $1,500 for student entertainment for a presemester summer event. Context: During FY 2021-22, UW-Superior used $2.4 million of its total HEERF institutional aid allocation. We reviewed 26 transactions for which UW Superior used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW Superior signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested information or supporting documentation for each transaction and interviewed UW Superior staff. Questioned Costs: $31,876 Effect: Because unallowable costs were charged to HEERF, UW Superior was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-Superior received federal reimbursement of $31,876 for unallowable costs during FY 2021 22. Cause: UW-Superior indicated it was aware that alcohol sales should be excluded from lost revenue calculations and agreed that it had incorrectly included a cost center for alcohol sales in its FY 2021-22 lost revenue calculation. When this issue was identified during the audit, UW Superior subsequently adjusted the accounting records in November 2022 to make $30,376 available to fund additional lost revenues under the HEERF program. In December 2022, UW-Superior also adjusted the accounting records to make the $1,500 in costs for the student entertainment available to fund additional HEERF program expenses. Recommendation: We recommend the University of Wisconsin Superior ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-703: Higher Education Emergency Relief Fund?UW Superior Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F202112 2021 Questioned Costs: $31,876 Type of Finding: Noncompliance Response from the University of Wisconsin Superior: The University of Wisconsin-Superior agrees with the audit finding and recommendation.