Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-003: Procurement: Suspended and DebarredFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award NumberAward numbers: 1935956, 70NANB20H037, 70NANB17H002, OIA ? 1757353, P20GM113125Federal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Covered transactions include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215.When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov Home (click on Search Record, then click on Advanced Search-Exclusions) (Note: The OMB guidance at 2 CFR Part 180 and agency implementing regulations still refer to the SAM Exclusions as the Excluded Parties List System (EPLS)), (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300).Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, including PerspectiveIn our testing over suspension and debarment, we identified nine covered transactions in a sample of 40 procurement transactions for which the University was unable to provide supporting documentation that they verified the vendor was not suspended or debarred prior to entering into the procurement transaction with the vendor. It was determined that the related vendors were not suspended or debarred.Possible Cause and EffectThe University?s internal control over compliance with federal procurement suspension and debarment was not operating consistently through fiscal year 2022, including the maintaining of appropriate documentation.Failure to implement sufficient internal controls to verify the University does not enter into covered transactions with parties that are suspended or debarred in accordance with federal regulations increases the risk of noncompliance.Questioned CostsNo questioned costs were identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNoRecommendationWe recommend the University enhance its internal control over compliance with the federal regulations related to suspension and debarment to ensure covered transactions are not entered into with parties that have been suspended or debarred.Views of Responsible OfficialsThe University agrees with the finding. The University will ensure suspension and debarment language is included within the contracts of all new covered transactions effective July 1, 2023 and thereafter.Additionally, the University will investigate utilizing third-party verification software to screen existing and potential vendors against the System for Award Management (SAM.gov) Exclusions list daily with expected execution by July 1, 2024.
Finding 2022-003: Procurement: Suspended and DebarredFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award NumberAward numbers: 1935956, 70NANB20H037, 70NANB17H002, OIA ? 1757353, P20GM113125Federal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Covered transactions include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215.When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov Home (click on Search Record, then click on Advanced Search-Exclusions) (Note: The OMB guidance at 2 CFR Part 180 and agency implementing regulations still refer to the SAM Exclusions as the Excluded Parties List System (EPLS)), (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300).Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, including PerspectiveIn our testing over suspension and debarment, we identified nine covered transactions in a sample of 40 procurement transactions for which the University was unable to provide supporting documentation that they verified the vendor was not suspended or debarred prior to entering into the procurement transaction with the vendor. It was determined that the related vendors were not suspended or debarred.Possible Cause and EffectThe University?s internal control over compliance with federal procurement suspension and debarment was not operating consistently through fiscal year 2022, including the maintaining of appropriate documentation.Failure to implement sufficient internal controls to verify the University does not enter into covered transactions with parties that are suspended or debarred in accordance with federal regulations increases the risk of noncompliance.Questioned CostsNo questioned costs were identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNoRecommendationWe recommend the University enhance its internal control over compliance with the federal regulations related to suspension and debarment to ensure covered transactions are not entered into with parties that have been suspended or debarred.Views of Responsible OfficialsThe University agrees with the finding. The University will ensure suspension and debarment language is included within the contracts of all new covered transactions effective July 1, 2023 and thereafter.Additionally, the University will investigate utilizing third-party verification software to screen existing and potential vendors against the System for Award Management (SAM.gov) Exclusions list daily with expected execution by July 1, 2024.
Finding 2022-003: Procurement: Suspended and DebarredFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award NumberAward numbers: 1935956, 70NANB20H037, 70NANB17H002, OIA ? 1757353, P20GM113125Federal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Covered transactions include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215.When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov Home (click on Search Record, then click on Advanced Search-Exclusions) (Note: The OMB guidance at 2 CFR Part 180 and agency implementing regulations still refer to the SAM Exclusions as the Excluded Parties List System (EPLS)), (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300).Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, including PerspectiveIn our testing over suspension and debarment, we identified nine covered transactions in a sample of 40 procurement transactions for which the University was unable to provide supporting documentation that they verified the vendor was not suspended or debarred prior to entering into the procurement transaction with the vendor. It was determined that the related vendors were not suspended or debarred.Possible Cause and EffectThe University?s internal control over compliance with federal procurement suspension and debarment was not operating consistently through fiscal year 2022, including the maintaining of appropriate documentation.Failure to implement sufficient internal controls to verify the University does not enter into covered transactions with parties that are suspended or debarred in accordance with federal regulations increases the risk of noncompliance.Questioned CostsNo questioned costs were identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNoRecommendationWe recommend the University enhance its internal control over compliance with the federal regulations related to suspension and debarment to ensure covered transactions are not entered into with parties that have been suspended or debarred.Views of Responsible OfficialsThe University agrees with the finding. The University will ensure suspension and debarment language is included within the contracts of all new covered transactions effective July 1, 2023 and thereafter.Additionally, the University will investigate utilizing third-party verification software to screen existing and potential vendors against the System for Award Management (SAM.gov) Exclusions list daily with expected execution by July 1, 2024.
Finding 2022-003: Procurement: Suspended and DebarredFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award NumberAward numbers: 1935956, 70NANB20H037, 70NANB17H002, OIA ? 1757353, P20GM113125Federal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Covered transactions include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215.When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov Home (click on Search Record, then click on Advanced Search-Exclusions) (Note: The OMB guidance at 2 CFR Part 180 and agency implementing regulations still refer to the SAM Exclusions as the Excluded Parties List System (EPLS)), (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300).Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, including PerspectiveIn our testing over suspension and debarment, we identified nine covered transactions in a sample of 40 procurement transactions for which the University was unable to provide supporting documentation that they verified the vendor was not suspended or debarred prior to entering into the procurement transaction with the vendor. It was determined that the related vendors were not suspended or debarred.Possible Cause and EffectThe University?s internal control over compliance with federal procurement suspension and debarment was not operating consistently through fiscal year 2022, including the maintaining of appropriate documentation.Failure to implement sufficient internal controls to verify the University does not enter into covered transactions with parties that are suspended or debarred in accordance with federal regulations increases the risk of noncompliance.Questioned CostsNo questioned costs were identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNoRecommendationWe recommend the University enhance its internal control over compliance with the federal regulations related to suspension and debarment to ensure covered transactions are not entered into with parties that have been suspended or debarred.Views of Responsible OfficialsThe University agrees with the finding. The University will ensure suspension and debarment language is included within the contracts of all new covered transactions effective July 1, 2023 and thereafter.Additionally, the University will investigate utilizing third-party verification software to screen existing and potential vendors against the System for Award Management (SAM.gov) Exclusions list daily with expected execution by July 1, 2024.
Finding 2022-003: Procurement: Suspended and DebarredFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award NumberAward numbers: 1935956, 70NANB20H037, 70NANB17H002, OIA ? 1757353, P20GM113125Federal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Covered transactions include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215.When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov Home (click on Search Record, then click on Advanced Search-Exclusions) (Note: The OMB guidance at 2 CFR Part 180 and agency implementing regulations still refer to the SAM Exclusions as the Excluded Parties List System (EPLS)), (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300).Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, including PerspectiveIn our testing over suspension and debarment, we identified nine covered transactions in a sample of 40 procurement transactions for which the University was unable to provide supporting documentation that they verified the vendor was not suspended or debarred prior to entering into the procurement transaction with the vendor. It was determined that the related vendors were not suspended or debarred.Possible Cause and EffectThe University?s internal control over compliance with federal procurement suspension and debarment was not operating consistently through fiscal year 2022, including the maintaining of appropriate documentation.Failure to implement sufficient internal controls to verify the University does not enter into covered transactions with parties that are suspended or debarred in accordance with federal regulations increases the risk of noncompliance.Questioned CostsNo questioned costs were identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNoRecommendationWe recommend the University enhance its internal control over compliance with the federal regulations related to suspension and debarment to ensure covered transactions are not entered into with parties that have been suspended or debarred.Views of Responsible OfficialsThe University agrees with the finding. The University will ensure suspension and debarment language is included within the contracts of all new covered transactions effective July 1, 2023 and thereafter.Additionally, the University will investigate utilizing third-party verification software to screen existing and potential vendors against the System for Award Management (SAM.gov) Exclusions list daily with expected execution by July 1, 2024.
Finding 2022-004: AllowabilityFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award NumberAward numbers: P20GM104316, 1935956Federal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementThe cost principles in 2 CFR Part 200, Subpart E (Cost Principles), prescribe the cost accounting requirements associated with the administration of federal awards by:a. States, local governments, and Indian tribesb. Institutions of higher education (IHEs)c. Nonprofit organizationsAs provided in 2 CFR section 200.101, the cost principles requirements apply to all federal awards with the exception of grant agreements and cooperative agreements providing food commodities; agreements for loans, loan guarantees, interest subsidies, insurance; and programs listed in 2 CFR section 200.101(d) (see Appendix I of this Supplement). Federal awards administered by publicly owned hospitals and other providers of medical care are exempt from 2 CFR Part 200, Subpart E, but are subject to the requirements 45 CFR Part 75, Appendix IX, the Department of Health and Human Services (HHS) implementation of 2 CFR Part 200. The cost principles applicable to a non-federal entity apply to all federal awards received by the entity, regardless of whether the awards are received directly from the federal awarding agency or indirectly through a pass-through entity. For this purpose, federal awards include cost-reimbursement contracts under the Federal Acquisition Regulation (FAR). The cost principles do not apply to federal awards under which a non-federal entity is not required to account to the federal awarding agency or pass-through entity for actual costs incurred.The requirements for allowable costs/cost principles are contained in 2 CFR Part 200, Subpart E, program legislation, federal awarding agency regulations, and the terms and conditions of the award.Basic GuidelinesExcept where otherwise authorized by statute, cost must meet the following general criteria in order to be allowable under federal awards;1. Be necessary and reasonable for the performance of the federal award and be allocable thereto under the principles in 2 CFR Part 200, Subpart E.2. Conform to any limitations or exclusions set forth in 2 CFR Part 200, Subpart E or in the federal award as to types or amount of cost items.3. Be consistent with policies and procedures that apply uniformly to both federally financed and other activities of the non-federal entity.4. Be accorded consistent treatment. A cost may not be assigned to a federal award as a direct cost if any other cost incurred for the same purpose in like circumstances has been allocated to the federal award as an indirect cost.5. Be determined in accordance with generally accepted accounting principles (GAAP), except for state and local governments and Indian tribes only as otherwise provided for in 2 CFR Part 200.6. Not be included as a cost or used to meet cost-sharing or matching requirements of any other federally financed program in either the current or a prior period.7. Be adequately documented.Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, including PerspectiveIn our testing over allowability of cost, we identified one transaction in a sample of 40 non-payroll transactions for which the University paid and allocated the cost, however, the service contract period had not yet started. In addition, we identified a second transaction for an intergovernmental personnel agreement (in the same sample of 40 non-payroll transactions) which included an advance on future service.Possible Cause and EffectThe University?s internal control over compliance with allowability and allocability was not operating at a level of precision (period of service) consistently through fiscal year 2022.Questioned CostsKnown questioned costs aggregated $52,445 (direct cost + an allocation of indirect costs).Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNoRecommendationWe recommend the University enhance the level of precision around its internal control over compliance related to the timing of allocating and charges costs.Views of Responsible OfficialsThe University agrees with this finding. The questioned costs will be removed from the grant charged. Additionally, the University will provide additional education and awareness over the billing of federal awards to ensure that expenses relate to the period being billed and services being performed.
Finding 2022-004: AllowabilityFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award NumberAward numbers: P20GM104316, 1935956Federal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementThe cost principles in 2 CFR Part 200, Subpart E (Cost Principles), prescribe the cost accounting requirements associated with the administration of federal awards by:a. States, local governments, and Indian tribesb. Institutions of higher education (IHEs)c. Nonprofit organizationsAs provided in 2 CFR section 200.101, the cost principles requirements apply to all federal awards with the exception of grant agreements and cooperative agreements providing food commodities; agreements for loans, loan guarantees, interest subsidies, insurance; and programs listed in 2 CFR section 200.101(d) (see Appendix I of this Supplement). Federal awards administered by publicly owned hospitals and other providers of medical care are exempt from 2 CFR Part 200, Subpart E, but are subject to the requirements 45 CFR Part 75, Appendix IX, the Department of Health and Human Services (HHS) implementation of 2 CFR Part 200. The cost principles applicable to a non-federal entity apply to all federal awards received by the entity, regardless of whether the awards are received directly from the federal awarding agency or indirectly through a pass-through entity. For this purpose, federal awards include cost-reimbursement contracts under the Federal Acquisition Regulation (FAR). The cost principles do not apply to federal awards under which a non-federal entity is not required to account to the federal awarding agency or pass-through entity for actual costs incurred.The requirements for allowable costs/cost principles are contained in 2 CFR Part 200, Subpart E, program legislation, federal awarding agency regulations, and the terms and conditions of the award.Basic GuidelinesExcept where otherwise authorized by statute, cost must meet the following general criteria in order to be allowable under federal awards;1. Be necessary and reasonable for the performance of the federal award and be allocable thereto under the principles in 2 CFR Part 200, Subpart E.2. Conform to any limitations or exclusions set forth in 2 CFR Part 200, Subpart E or in the federal award as to types or amount of cost items.3. Be consistent with policies and procedures that apply uniformly to both federally financed and other activities of the non-federal entity.4. Be accorded consistent treatment. A cost may not be assigned to a federal award as a direct cost if any other cost incurred for the same purpose in like circumstances has been allocated to the federal award as an indirect cost.5. Be determined in accordance with generally accepted accounting principles (GAAP), except for state and local governments and Indian tribes only as otherwise provided for in 2 CFR Part 200.6. Not be included as a cost or used to meet cost-sharing or matching requirements of any other federally financed program in either the current or a prior period.7. Be adequately documented.Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, including PerspectiveIn our testing over allowability of cost, we identified one transaction in a sample of 40 non-payroll transactions for which the University paid and allocated the cost, however, the service contract period had not yet started. In addition, we identified a second transaction for an intergovernmental personnel agreement (in the same sample of 40 non-payroll transactions) which included an advance on future service.Possible Cause and EffectThe University?s internal control over compliance with allowability and allocability was not operating at a level of precision (period of service) consistently through fiscal year 2022.Questioned CostsKnown questioned costs aggregated $52,445 (direct cost + an allocation of indirect costs).Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNoRecommendationWe recommend the University enhance the level of precision around its internal control over compliance related to the timing of allocating and charges costs.Views of Responsible OfficialsThe University agrees with this finding. The questioned costs will be removed from the grant charged. Additionally, the University will provide additional education and awareness over the billing of federal awards to ensure that expenses relate to the period being billed and services being performed.
Finding 2022-004: AllowabilityFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award NumberAward numbers: P20GM104316, 1935956Federal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementThe cost principles in 2 CFR Part 200, Subpart E (Cost Principles), prescribe the cost accounting requirements associated with the administration of federal awards by:a. States, local governments, and Indian tribesb. Institutions of higher education (IHEs)c. Nonprofit organizationsAs provided in 2 CFR section 200.101, the cost principles requirements apply to all federal awards with the exception of grant agreements and cooperative agreements providing food commodities; agreements for loans, loan guarantees, interest subsidies, insurance; and programs listed in 2 CFR section 200.101(d) (see Appendix I of this Supplement). Federal awards administered by publicly owned hospitals and other providers of medical care are exempt from 2 CFR Part 200, Subpart E, but are subject to the requirements 45 CFR Part 75, Appendix IX, the Department of Health and Human Services (HHS) implementation of 2 CFR Part 200. The cost principles applicable to a non-federal entity apply to all federal awards received by the entity, regardless of whether the awards are received directly from the federal awarding agency or indirectly through a pass-through entity. For this purpose, federal awards include cost-reimbursement contracts under the Federal Acquisition Regulation (FAR). The cost principles do not apply to federal awards under which a non-federal entity is not required to account to the federal awarding agency or pass-through entity for actual costs incurred.The requirements for allowable costs/cost principles are contained in 2 CFR Part 200, Subpart E, program legislation, federal awarding agency regulations, and the terms and conditions of the award.Basic GuidelinesExcept where otherwise authorized by statute, cost must meet the following general criteria in order to be allowable under federal awards;1. Be necessary and reasonable for the performance of the federal award and be allocable thereto under the principles in 2 CFR Part 200, Subpart E.2. Conform to any limitations or exclusions set forth in 2 CFR Part 200, Subpart E or in the federal award as to types or amount of cost items.3. Be consistent with policies and procedures that apply uniformly to both federally financed and other activities of the non-federal entity.4. Be accorded consistent treatment. A cost may not be assigned to a federal award as a direct cost if any other cost incurred for the same purpose in like circumstances has been allocated to the federal award as an indirect cost.5. Be determined in accordance with generally accepted accounting principles (GAAP), except for state and local governments and Indian tribes only as otherwise provided for in 2 CFR Part 200.6. Not be included as a cost or used to meet cost-sharing or matching requirements of any other federally financed program in either the current or a prior period.7. Be adequately documented.Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, including PerspectiveIn our testing over allowability of cost, we identified one transaction in a sample of 40 non-payroll transactions for which the University paid and allocated the cost, however, the service contract period had not yet started. In addition, we identified a second transaction for an intergovernmental personnel agreement (in the same sample of 40 non-payroll transactions) which included an advance on future service.Possible Cause and EffectThe University?s internal control over compliance with allowability and allocability was not operating at a level of precision (period of service) consistently through fiscal year 2022.Questioned CostsKnown questioned costs aggregated $52,445 (direct cost + an allocation of indirect costs).Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNoRecommendationWe recommend the University enhance the level of precision around its internal control over compliance related to the timing of allocating and charges costs.Views of Responsible OfficialsThe University agrees with this finding. The questioned costs will be removed from the grant charged. Additionally, the University will provide additional education and awareness over the billing of federal awards to ensure that expenses relate to the period being billed and services being performed.
Finding 2022-004: AllowabilityFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award NumberAward numbers: P20GM104316, 1935956Federal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementThe cost principles in 2 CFR Part 200, Subpart E (Cost Principles), prescribe the cost accounting requirements associated with the administration of federal awards by:a. States, local governments, and Indian tribesb. Institutions of higher education (IHEs)c. Nonprofit organizationsAs provided in 2 CFR section 200.101, the cost principles requirements apply to all federal awards with the exception of grant agreements and cooperative agreements providing food commodities; agreements for loans, loan guarantees, interest subsidies, insurance; and programs listed in 2 CFR section 200.101(d) (see Appendix I of this Supplement). Federal awards administered by publicly owned hospitals and other providers of medical care are exempt from 2 CFR Part 200, Subpart E, but are subject to the requirements 45 CFR Part 75, Appendix IX, the Department of Health and Human Services (HHS) implementation of 2 CFR Part 200. The cost principles applicable to a non-federal entity apply to all federal awards received by the entity, regardless of whether the awards are received directly from the federal awarding agency or indirectly through a pass-through entity. For this purpose, federal awards include cost-reimbursement contracts under the Federal Acquisition Regulation (FAR). The cost principles do not apply to federal awards under which a non-federal entity is not required to account to the federal awarding agency or pass-through entity for actual costs incurred.The requirements for allowable costs/cost principles are contained in 2 CFR Part 200, Subpart E, program legislation, federal awarding agency regulations, and the terms and conditions of the award.Basic GuidelinesExcept where otherwise authorized by statute, cost must meet the following general criteria in order to be allowable under federal awards;1. Be necessary and reasonable for the performance of the federal award and be allocable thereto under the principles in 2 CFR Part 200, Subpart E.2. Conform to any limitations or exclusions set forth in 2 CFR Part 200, Subpart E or in the federal award as to types or amount of cost items.3. Be consistent with policies and procedures that apply uniformly to both federally financed and other activities of the non-federal entity.4. Be accorded consistent treatment. A cost may not be assigned to a federal award as a direct cost if any other cost incurred for the same purpose in like circumstances has been allocated to the federal award as an indirect cost.5. Be determined in accordance with generally accepted accounting principles (GAAP), except for state and local governments and Indian tribes only as otherwise provided for in 2 CFR Part 200.6. Not be included as a cost or used to meet cost-sharing or matching requirements of any other federally financed program in either the current or a prior period.7. Be adequately documented.Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, including PerspectiveIn our testing over allowability of cost, we identified one transaction in a sample of 40 non-payroll transactions for which the University paid and allocated the cost, however, the service contract period had not yet started. In addition, we identified a second transaction for an intergovernmental personnel agreement (in the same sample of 40 non-payroll transactions) which included an advance on future service.Possible Cause and EffectThe University?s internal control over compliance with allowability and allocability was not operating at a level of precision (period of service) consistently through fiscal year 2022.Questioned CostsKnown questioned costs aggregated $52,445 (direct cost + an allocation of indirect costs).Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNoRecommendationWe recommend the University enhance the level of precision around its internal control over compliance related to the timing of allocating and charges costs.Views of Responsible OfficialsThe University agrees with this finding. The questioned costs will be removed from the grant charged. Additionally, the University will provide additional education and awareness over the billing of federal awards to ensure that expenses relate to the period being billed and services being performed.
Finding 2022-004: AllowabilityFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award NumberAward numbers: P20GM104316, 1935956Federal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementThe cost principles in 2 CFR Part 200, Subpart E (Cost Principles), prescribe the cost accounting requirements associated with the administration of federal awards by:a. States, local governments, and Indian tribesb. Institutions of higher education (IHEs)c. Nonprofit organizationsAs provided in 2 CFR section 200.101, the cost principles requirements apply to all federal awards with the exception of grant agreements and cooperative agreements providing food commodities; agreements for loans, loan guarantees, interest subsidies, insurance; and programs listed in 2 CFR section 200.101(d) (see Appendix I of this Supplement). Federal awards administered by publicly owned hospitals and other providers of medical care are exempt from 2 CFR Part 200, Subpart E, but are subject to the requirements 45 CFR Part 75, Appendix IX, the Department of Health and Human Services (HHS) implementation of 2 CFR Part 200. The cost principles applicable to a non-federal entity apply to all federal awards received by the entity, regardless of whether the awards are received directly from the federal awarding agency or indirectly through a pass-through entity. For this purpose, federal awards include cost-reimbursement contracts under the Federal Acquisition Regulation (FAR). The cost principles do not apply to federal awards under which a non-federal entity is not required to account to the federal awarding agency or pass-through entity for actual costs incurred.The requirements for allowable costs/cost principles are contained in 2 CFR Part 200, Subpart E, program legislation, federal awarding agency regulations, and the terms and conditions of the award.Basic GuidelinesExcept where otherwise authorized by statute, cost must meet the following general criteria in order to be allowable under federal awards;1. Be necessary and reasonable for the performance of the federal award and be allocable thereto under the principles in 2 CFR Part 200, Subpart E.2. Conform to any limitations or exclusions set forth in 2 CFR Part 200, Subpart E or in the federal award as to types or amount of cost items.3. Be consistent with policies and procedures that apply uniformly to both federally financed and other activities of the non-federal entity.4. Be accorded consistent treatment. A cost may not be assigned to a federal award as a direct cost if any other cost incurred for the same purpose in like circumstances has been allocated to the federal award as an indirect cost.5. Be determined in accordance with generally accepted accounting principles (GAAP), except for state and local governments and Indian tribes only as otherwise provided for in 2 CFR Part 200.6. Not be included as a cost or used to meet cost-sharing or matching requirements of any other federally financed program in either the current or a prior period.7. Be adequately documented.Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, including PerspectiveIn our testing over allowability of cost, we identified one transaction in a sample of 40 non-payroll transactions for which the University paid and allocated the cost, however, the service contract period had not yet started. In addition, we identified a second transaction for an intergovernmental personnel agreement (in the same sample of 40 non-payroll transactions) which included an advance on future service.Possible Cause and EffectThe University?s internal control over compliance with allowability and allocability was not operating at a level of precision (period of service) consistently through fiscal year 2022.Questioned CostsKnown questioned costs aggregated $52,445 (direct cost + an allocation of indirect costs).Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNoRecommendationWe recommend the University enhance the level of precision around its internal control over compliance related to the timing of allocating and charges costs.Views of Responsible OfficialsThe University agrees with this finding. The questioned costs will be removed from the grant charged. Additionally, the University will provide additional education and awareness over the billing of federal awards to ensure that expenses relate to the period being billed and services being performed.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.
Finding 2022-002: EquipmentFederal ProgramResearch and Development Cluster (R&D) (AL No.: Various)Federal AgenciesAgencies included within the R&D clusterFederal Award YearJuly 1, 2021 through June 30, 2022Criteria or RequirementNon-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that:1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, 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 sales price of the property (2 CFR section 200.313(d)(1)).2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)).4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR section 200.313(d)(4))Per 2 CFR Section 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.Condition Found, Including PerspectiveThe University did not complete its physical inventory counts for 10 departments out of the 15 sampled University departments. The University has a total of 70 departments monitoring federal equipment. In addition, for one item in our sample of 40 physical inspections, we noted the property was not appropriately tagged for identification.Possible Cause and EffectThe control that equipment purchased on federal grants is counted, and reconciled to property records, within a two-year period was not operating effectively. Further, the control regarding tagging and identifying equipment to the University?s property records was not operating effectively.Questioned CostsNone identified.Statistical ValidityThe sample was not intended to be, and was not, a statistically valid sample.Repeat Finding in the Prior YearNo.RecommendationWe recommend the University enhance its internal control over compliance around establishing property records of newly acquired federally funded equipment in accordance with applicable Federal regulations, and completing the necessary physical inventories and reconciliations.Views of Responsible OfficialsThe University agrees with the finding and will strengthen processes including unit and senior leadership accountability around the tagging and surveying of federally funded equipment. The University will implement management and escalation procedures with executive leadership to ensure that accountability for all completed surveys resides with the senior leader. The entire process is being evaluated and controls will be enhanced where needed and training will be expanded to include the importance of timely compliance.