Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
FINDING 2024-002 Subject: Special Education Cluster (IDEA) - Equipment Federal Agency: Department of Education Federal Programs: Special Education Grants to States, COVID-19 - Special Education Grants to States Assistance Listings Numbers: 84.027, 84.027X Federal Award Numbers and Years (or Other Identifying Numbers): H027A190084, 22611-093-ARP Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Other Matters INDIANA STATE BOARD OF ACCOUNTS 17 KOKOMO SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Repeat Finding The same finding also appeared in prior Report B60713 as Finding 2022-001. Condition and Context Per federal requirements property records must contain the following information about the equipment: description (including serial number or other identification number), 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, 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 200.313(d)(1)). An effective internal control system was not in place at the School Corporation to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management compliance requirement. The School Corporation purchased $243,903 of equipment with Special Education funds. Equipment, totaling $78,874, was not added to the School Corporation's capital asset record. The School Corporation's capital asset record did not include an allocation or designation of what items were purchased with federal funds. The School Corporation had another system, called Destiny, in place to track special education equipment purchases. This system did include the required federal parameters to satisfy the property record requirements; however, equipment, totaling $220,149, was not added to this record. Additionally, one equipment item added to the Destiny system for a stander had discrepancies. It was listed at a purchase price of $3,059 and an acquisition date of June 23, 2023. The School Corporation's capital asset listed it at $7,430 with an acquisition date of January 30, 2024. The lack of effective internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) 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. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d)(1) states: "Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property." INDIANA STATE BOARD OF ACCOUNTS 18 KOKOMO SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Cause A proper system of internal controls was not designed and implemented by the management of the School Corporation. The School Corporation's policies and procedures for tracking equipment purchased with federal funds was not sufficient and/or properly implemented to ensure all equipment was properly recorded. Effect Without the proper implementation of an effectively designed system of internal controls, the internal control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. As a result, equipment purchased with federal funds for the Special Education program was not accurately recorded. Noncompliance with the grant agreement and the Equipment and Real Property Management compliance requirement could result in the loss of future federal funds to the School Corporation. Questioned Costs There were no questioned cost identified. Recommendation We recommended that the School Corporation's management establish and properly implement a system of internal controls to ensure compliance with the grant agreement and the Equipment and Real Property Management compliance requirement. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2024-002 Subject: Special Education Cluster (IDEA) - Equipment Federal Agency: Department of Education Federal Programs: Special Education Grants to States, COVID-19 - Special Education Grants to States Assistance Listings Numbers: 84.027, 84.027X Federal Award Numbers and Years (or Other Identifying Numbers): H027A190084, 22611-093-ARP Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Other Matters INDIANA STATE BOARD OF ACCOUNTS 17 KOKOMO SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Repeat Finding The same finding also appeared in prior Report B60713 as Finding 2022-001. Condition and Context Per federal requirements property records must contain the following information about the equipment: description (including serial number or other identification number), 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, 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 200.313(d)(1)). An effective internal control system was not in place at the School Corporation to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management compliance requirement. The School Corporation purchased $243,903 of equipment with Special Education funds. Equipment, totaling $78,874, was not added to the School Corporation's capital asset record. The School Corporation's capital asset record did not include an allocation or designation of what items were purchased with federal funds. The School Corporation had another system, called Destiny, in place to track special education equipment purchases. This system did include the required federal parameters to satisfy the property record requirements; however, equipment, totaling $220,149, was not added to this record. Additionally, one equipment item added to the Destiny system for a stander had discrepancies. It was listed at a purchase price of $3,059 and an acquisition date of June 23, 2023. The School Corporation's capital asset listed it at $7,430 with an acquisition date of January 30, 2024. The lack of effective internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) 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. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d)(1) states: "Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property." INDIANA STATE BOARD OF ACCOUNTS 18 KOKOMO SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Cause A proper system of internal controls was not designed and implemented by the management of the School Corporation. The School Corporation's policies and procedures for tracking equipment purchased with federal funds was not sufficient and/or properly implemented to ensure all equipment was properly recorded. Effect Without the proper implementation of an effectively designed system of internal controls, the internal control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. As a result, equipment purchased with federal funds for the Special Education program was not accurately recorded. Noncompliance with the grant agreement and the Equipment and Real Property Management compliance requirement could result in the loss of future federal funds to the School Corporation. Questioned Costs There were no questioned cost identified. Recommendation We recommended that the School Corporation's management establish and properly implement a system of internal controls to ensure compliance with the grant agreement and the Equipment and Real Property Management compliance requirement. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2024-002 Subject: Special Education Cluster (IDEA) - Equipment Federal Agency: Department of Education Federal Programs: Special Education Grants to States, COVID-19 - Special Education Grants to States Assistance Listings Numbers: 84.027, 84.027X Federal Award Numbers and Years (or Other Identifying Numbers): H027A190084, 22611-093-ARP Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Other Matters INDIANA STATE BOARD OF ACCOUNTS 17 KOKOMO SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Repeat Finding The same finding also appeared in prior Report B60713 as Finding 2022-001. Condition and Context Per federal requirements property records must contain the following information about the equipment: description (including serial number or other identification number), 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, 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 200.313(d)(1)). An effective internal control system was not in place at the School Corporation to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management compliance requirement. The School Corporation purchased $243,903 of equipment with Special Education funds. Equipment, totaling $78,874, was not added to the School Corporation's capital asset record. The School Corporation's capital asset record did not include an allocation or designation of what items were purchased with federal funds. The School Corporation had another system, called Destiny, in place to track special education equipment purchases. This system did include the required federal parameters to satisfy the property record requirements; however, equipment, totaling $220,149, was not added to this record. Additionally, one equipment item added to the Destiny system for a stander had discrepancies. It was listed at a purchase price of $3,059 and an acquisition date of June 23, 2023. The School Corporation's capital asset listed it at $7,430 with an acquisition date of January 30, 2024. The lack of effective internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) 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. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d)(1) states: "Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property." INDIANA STATE BOARD OF ACCOUNTS 18 KOKOMO SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Cause A proper system of internal controls was not designed and implemented by the management of the School Corporation. The School Corporation's policies and procedures for tracking equipment purchased with federal funds was not sufficient and/or properly implemented to ensure all equipment was properly recorded. Effect Without the proper implementation of an effectively designed system of internal controls, the internal control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. As a result, equipment purchased with federal funds for the Special Education program was not accurately recorded. Noncompliance with the grant agreement and the Equipment and Real Property Management compliance requirement could result in the loss of future federal funds to the School Corporation. Questioned Costs There were no questioned cost identified. Recommendation We recommended that the School Corporation's management establish and properly implement a system of internal controls to ensure compliance with the grant agreement and the Equipment and Real Property Management compliance requirement. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2024-002 Subject: Special Education Cluster (IDEA) - Equipment Federal Agency: Department of Education Federal Programs: Special Education Grants to States, COVID-19 - Special Education Grants to States Assistance Listings Numbers: 84.027, 84.027X Federal Award Numbers and Years (or Other Identifying Numbers): H027A190084, 22611-093-ARP Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Other Matters INDIANA STATE BOARD OF ACCOUNTS 17 KOKOMO SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Repeat Finding The same finding also appeared in prior Report B60713 as Finding 2022-001. Condition and Context Per federal requirements property records must contain the following information about the equipment: description (including serial number or other identification number), 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, 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 200.313(d)(1)). An effective internal control system was not in place at the School Corporation to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management compliance requirement. The School Corporation purchased $243,903 of equipment with Special Education funds. Equipment, totaling $78,874, was not added to the School Corporation's capital asset record. The School Corporation's capital asset record did not include an allocation or designation of what items were purchased with federal funds. The School Corporation had another system, called Destiny, in place to track special education equipment purchases. This system did include the required federal parameters to satisfy the property record requirements; however, equipment, totaling $220,149, was not added to this record. Additionally, one equipment item added to the Destiny system for a stander had discrepancies. It was listed at a purchase price of $3,059 and an acquisition date of June 23, 2023. The School Corporation's capital asset listed it at $7,430 with an acquisition date of January 30, 2024. The lack of effective internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) 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. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d)(1) states: "Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property." INDIANA STATE BOARD OF ACCOUNTS 18 KOKOMO SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Cause A proper system of internal controls was not designed and implemented by the management of the School Corporation. The School Corporation's policies and procedures for tracking equipment purchased with federal funds was not sufficient and/or properly implemented to ensure all equipment was properly recorded. Effect Without the proper implementation of an effectively designed system of internal controls, the internal control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. As a result, equipment purchased with federal funds for the Special Education program was not accurately recorded. Noncompliance with the grant agreement and the Equipment and Real Property Management compliance requirement could result in the loss of future federal funds to the School Corporation. Questioned Costs There were no questioned cost identified. Recommendation We recommended that the School Corporation's management establish and properly implement a system of internal controls to ensure compliance with the grant agreement and the Equipment and Real Property Management compliance requirement. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2024-002 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Number: 84.425U Federal Award Number and Year (or Other Identifying Number): S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Modified Opinion Condition and Context As part of sound management of the federal award, the School Corporation was responsible for implementing a system of internal controls that would ensure compliance with the applicable requirements. The School Corporation had not properly designed or implemented such a system. The School Corporation was required to maintain a capital asset listing which would include a description of the property, a serial number of other identification number, the source of funding for the property (including the federal award identification number (FAIN)), 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, and use and condition of the property for assets purchased that exceeded the School Corporation's capitalization threshold. During the audit period, the School Corporation purchased one asset, a trailer, with COVID-19 - Education Stabilization Fund grant funds that exceeded the School Corporation's capitalization threshold. The School Corporation was not in compliance with the requirements of the federal award as adequate property records were not maintained for the asset purchased. Additionally, with no detailed listing of its capital assets, the School Corporation was unable to perform a physical inventory as required. INDIANA STATE BOARD OF ACCOUNTS 19 SOUTH HARRISON COMMUNITY SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) 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. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d)(1) states: "Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property." Cause Management of the School Corporation acknowledged awareness of the requirement to maintain a complete detailed listing of capital assets, including those purchased with federal funds. However, due to time constraints, management had not been able to compile a list of assets purchased prior to the audit period and had only accumulated invoices for items purchased during the audit period that need to be added to the School Corporation's capital asset records. Effect Without a proper system of internal controls in place that operated effectively, the School Corporation did not maintain capital asset records and, therefore, did not conduct a physical inventory, both of which resulted in material noncompliance with the requirements of the federal award. The lack of capital asset records and periodic physical inventories renders the School Corporation incapable of ensuring that capital assets purchased with federal funds are properly safeguarded and maintained. Noncompliance with the provisions of federal statutes, regulations, and the terms and conditions of the federal award could result in the loss of future federal funding to the School Corporation. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the School Corporation's management establish a proper system of internal controls and compile the required capital asset listing as well as conduct periodic physical inventories. INDIANA STATE BOARD OF ACCOUNTS 20 SOUTH HARRISON COMMUNITY SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2024-002 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Number: 84.425U Federal Award Number and Year (or Other Identifying Number): S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Modified Opinion Condition and Context As part of sound management of the federal award, the School Corporation was responsible for implementing a system of internal controls that would ensure compliance with the applicable requirements. The School Corporation had not properly designed or implemented such a system. The School Corporation was required to maintain a capital asset listing which would include a description of the property, a serial number of other identification number, the source of funding for the property (including the federal award identification number (FAIN)), 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, and use and condition of the property for assets purchased that exceeded the School Corporation's capitalization threshold. During the audit period, the School Corporation purchased one asset, a trailer, with COVID-19 - Education Stabilization Fund grant funds that exceeded the School Corporation's capitalization threshold. The School Corporation was not in compliance with the requirements of the federal award as adequate property records were not maintained for the asset purchased. Additionally, with no detailed listing of its capital assets, the School Corporation was unable to perform a physical inventory as required. INDIANA STATE BOARD OF ACCOUNTS 19 SOUTH HARRISON COMMUNITY SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) 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. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d)(1) states: "Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property." Cause Management of the School Corporation acknowledged awareness of the requirement to maintain a complete detailed listing of capital assets, including those purchased with federal funds. However, due to time constraints, management had not been able to compile a list of assets purchased prior to the audit period and had only accumulated invoices for items purchased during the audit period that need to be added to the School Corporation's capital asset records. Effect Without a proper system of internal controls in place that operated effectively, the School Corporation did not maintain capital asset records and, therefore, did not conduct a physical inventory, both of which resulted in material noncompliance with the requirements of the federal award. The lack of capital asset records and periodic physical inventories renders the School Corporation incapable of ensuring that capital assets purchased with federal funds are properly safeguarded and maintained. Noncompliance with the provisions of federal statutes, regulations, and the terms and conditions of the federal award could result in the loss of future federal funding to the School Corporation. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the School Corporation's management establish a proper system of internal controls and compile the required capital asset listing as well as conduct periodic physical inventories. INDIANA STATE BOARD OF ACCOUNTS 20 SOUTH HARRISON COMMUNITY SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
Information on the federal program: Subject: Education Stabilization Fund – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425U Federal Award Numbers: S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness Criteria: 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. . . ." Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management Requirements compliance requirements. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: The School Corporation expended $1,313,973 on building renovations which was charged to the ESSER III (84.425U) grant award. The School Corporation was unable to provide the capital asset listing as of June 30, 2024, for testing to ensure the building renovations were properly included on the listing. Additionally, an inventory was not performed in the 2 year period tested. Identification as a repeat finding: No. Recommendation: We recommend the School Corporation update the capital asset listing at least annually to include all equipment and real property acquisitions and review for potential capital asset dispositions and ensure the listing is maintained for audit. The capital asset listing should include all required information to track capital asset acquisitions purchased with federal funding. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
Information on the federal program: Subject: Education Stabilization Fund – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Award Numbers and Years (or Other Identifying Numbers): S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness Criteria: 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. . . ." Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management Requirements compliance requirements. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified Context: The School Corporation expended $2,799,607 on building renovations which was charged to the ESSER II (84.425D) and ESSER III (84.425U) grant awards. It was noted these capital asset acquisitions were not reported on the capital asset listing for the School Corporation as of June 30, 2024. Additionally, we noted the School Corporation’s capital asset listing did not contain all the required information, including the source of funding for the property, outlined in the criteria above. Identification as a repeat finding: No. Recommendation: We recommend the School Corporation update the capital asset listing at least annually to include all equipment and real property acquisitions and review for potential capital asset dispositions. Additionally, we recommend the School Corporation update the capital asset listing to include all the required information, including the source of funding for the property, outlined in the criteria above. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
Information on the federal program: Subject: Education Stabilization Fund – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Award Numbers and Years (or Other Identifying Numbers): S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness Criteria: 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. . . ." Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management Requirements compliance requirements. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified Context: The School Corporation expended $2,799,607 on building renovations which was charged to the ESSER II (84.425D) and ESSER III (84.425U) grant awards. It was noted these capital asset acquisitions were not reported on the capital asset listing for the School Corporation as of June 30, 2024. Additionally, we noted the School Corporation’s capital asset listing did not contain all the required information, including the source of funding for the property, outlined in the criteria above. Identification as a repeat finding: No. Recommendation: We recommend the School Corporation update the capital asset listing at least annually to include all equipment and real property acquisitions and review for potential capital asset dispositions. Additionally, we recommend the School Corporation update the capital asset listing to include all the required information, including the source of funding for the property, outlined in the criteria above. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
FINDING 2024-005 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Numbers: 84.425D, 84.425U, 84.425W Federal Award Numbers and Years (or Other Identifying Numbers): S425D210013, S425U210013, S425W210015 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Other Matters Condition and Context An effective internal control system was not in place at the School Corporation to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management compliance requirement. A property record or capital asset listing which would 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 (FAIN)), 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, and use and condition of the property is to be maintained for assets purchased that exceed the School Corporation's capitalization threshold. INDIANA STATE BOARD OF ACCOUNTS 25 EAST NOBLE SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) The School Corporation purchased one capital asset with federal award funding during the audit period. It was determined that the tested capital asset was listed on the School Corporation's capital asset listing; however, the listing did not include the percentage of federal participation or the use and condition of the property. The lack of internal controls and noncompliance were systematic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) 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. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d)(1) states: "Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property." Cause The School Corporation was unaware of the requirements to track the percentage of federal participation in the project costs for the federal award under which the property was acquired and the use and condition of the property. Effect Without the proper implementation of an effectively designed system of internal controls, the internal control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. As a result, assets purchased with federal dollars were not properly added to the School Corporation's asset listing. Noncompliance with the provisions of federal statutes, regulations, and the terms and conditions of the federal award could result in the loss of future federal funding to the School Corporation. Questioned Costs There were no questioned costs identified. INDIANA STATE BOARD OF ACCOUNTS 26 EAST NOBLE SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Recommendation We recommended that management of the School Corporation establish a proper system of internal controls and develop policies and procedures to ensure asset records include all the necessary information. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2024-005 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Numbers: 84.425D, 84.425U, 84.425W Federal Award Numbers and Years (or Other Identifying Numbers): S425D210013, S425U210013, S425W210015 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Other Matters Condition and Context An effective internal control system was not in place at the School Corporation to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management compliance requirement. A property record or capital asset listing which would 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 (FAIN)), 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, and use and condition of the property is to be maintained for assets purchased that exceed the School Corporation's capitalization threshold. INDIANA STATE BOARD OF ACCOUNTS 25 EAST NOBLE SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) The School Corporation purchased one capital asset with federal award funding during the audit period. It was determined that the tested capital asset was listed on the School Corporation's capital asset listing; however, the listing did not include the percentage of federal participation or the use and condition of the property. The lack of internal controls and noncompliance were systematic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) 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. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d)(1) states: "Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property." Cause The School Corporation was unaware of the requirements to track the percentage of federal participation in the project costs for the federal award under which the property was acquired and the use and condition of the property. Effect Without the proper implementation of an effectively designed system of internal controls, the internal control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. As a result, assets purchased with federal dollars were not properly added to the School Corporation's asset listing. Noncompliance with the provisions of federal statutes, regulations, and the terms and conditions of the federal award could result in the loss of future federal funding to the School Corporation. Questioned Costs There were no questioned costs identified. INDIANA STATE BOARD OF ACCOUNTS 26 EAST NOBLE SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Recommendation We recommended that management of the School Corporation establish a proper system of internal controls and develop policies and procedures to ensure asset records include all the necessary information. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2024-005 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Numbers: 84.425D, 84.425U, 84.425W Federal Award Numbers and Years (or Other Identifying Numbers): S425D210013, S425U210013, S425W210015 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Other Matters Condition and Context An effective internal control system was not in place at the School Corporation to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management compliance requirement. A property record or capital asset listing which would 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 (FAIN)), 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, and use and condition of the property is to be maintained for assets purchased that exceed the School Corporation's capitalization threshold. INDIANA STATE BOARD OF ACCOUNTS 25 EAST NOBLE SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) The School Corporation purchased one capital asset with federal award funding during the audit period. It was determined that the tested capital asset was listed on the School Corporation's capital asset listing; however, the listing did not include the percentage of federal participation or the use and condition of the property. The lack of internal controls and noncompliance were systematic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) 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. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d)(1) states: "Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property." Cause The School Corporation was unaware of the requirements to track the percentage of federal participation in the project costs for the federal award under which the property was acquired and the use and condition of the property. Effect Without the proper implementation of an effectively designed system of internal controls, the internal control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. As a result, assets purchased with federal dollars were not properly added to the School Corporation's asset listing. Noncompliance with the provisions of federal statutes, regulations, and the terms and conditions of the federal award could result in the loss of future federal funding to the School Corporation. Questioned Costs There were no questioned costs identified. INDIANA STATE BOARD OF ACCOUNTS 26 EAST NOBLE SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Recommendation We recommended that management of the School Corporation establish a proper system of internal controls and develop policies and procedures to ensure asset records include all the necessary information. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2024-005 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Numbers: 84.425D, 84.425U, 84.425W Federal Award Numbers and Years (or Other Identifying Numbers): S425D210013, S425U210013, S425W210015 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Other Matters Condition and Context An effective internal control system was not in place at the School Corporation to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management compliance requirement. A property record or capital asset listing which would 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 (FAIN)), 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, and use and condition of the property is to be maintained for assets purchased that exceed the School Corporation's capitalization threshold. INDIANA STATE BOARD OF ACCOUNTS 25 EAST NOBLE SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) The School Corporation purchased one capital asset with federal award funding during the audit period. It was determined that the tested capital asset was listed on the School Corporation's capital asset listing; however, the listing did not include the percentage of federal participation or the use and condition of the property. The lack of internal controls and noncompliance were systematic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) 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. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d)(1) states: "Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property." Cause The School Corporation was unaware of the requirements to track the percentage of federal participation in the project costs for the federal award under which the property was acquired and the use and condition of the property. Effect Without the proper implementation of an effectively designed system of internal controls, the internal control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. As a result, assets purchased with federal dollars were not properly added to the School Corporation's asset listing. Noncompliance with the provisions of federal statutes, regulations, and the terms and conditions of the federal award could result in the loss of future federal funding to the School Corporation. Questioned Costs There were no questioned costs identified. INDIANA STATE BOARD OF ACCOUNTS 26 EAST NOBLE SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Recommendation We recommended that management of the School Corporation establish a proper system of internal controls and develop policies and procedures to ensure asset records include all the necessary information. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.