Finding 2024-004 – Equipment Management (Significant Deficiency and Noncompliance) Information on the Federal Program: Research & Development Cluster-Multiple ALNs Criteria: 2 CFR 200.313(d) states in part: “Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at 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: Documentation of a physical inventory performed was not available. Additionally, we noted the University’s equipment listing did not contain all the required information, including an identification number and the source of federal funding for the equipment, outlined in the criteria above. Cause: The University did not perform a physical inventory of assets purchased with federal funds in the last two years. Effect or Potential Effect: The University did not have appropriate documentation that a physical inventory was performed. Questioned Costs: None Repeat Finding – No similar findings identified in the prior year. Recommendation: We recommend the University strengthen its policies and procedures over equipment management to ensure a physical inventory is performed every two years, at a minimum. The equipment listing should include all required information to track capital asset acquisitions purchased with federal funding. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-004 – Equipment Management (Significant Deficiency and Noncompliance) Information on the Federal Program: Research & Development Cluster-Multiple ALNs Criteria: 2 CFR 200.313(d) states in part: “Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at 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: Documentation of a physical inventory performed was not available. Additionally, we noted the University’s equipment listing did not contain all the required information, including an identification number and the source of federal funding for the equipment, outlined in the criteria above. Cause: The University did not perform a physical inventory of assets purchased with federal funds in the last two years. Effect or Potential Effect: The University did not have appropriate documentation that a physical inventory was performed. Questioned Costs: None Repeat Finding – No similar findings identified in the prior year. Recommendation: We recommend the University strengthen its policies and procedures over equipment management to ensure a physical inventory is performed every two years, at a minimum. The equipment listing should include all required information to track capital asset acquisitions purchased with federal funding. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-004 – Equipment Management (Significant Deficiency and Noncompliance) Information on the Federal Program: Research & Development Cluster-Multiple ALNs Criteria: 2 CFR 200.313(d) states in part: “Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at 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: Documentation of a physical inventory performed was not available. Additionally, we noted the University’s equipment listing did not contain all the required information, including an identification number and the source of federal funding for the equipment, outlined in the criteria above. Cause: The University did not perform a physical inventory of assets purchased with federal funds in the last two years. Effect or Potential Effect: The University did not have appropriate documentation that a physical inventory was performed. Questioned Costs: None Repeat Finding – No similar findings identified in the prior year. Recommendation: We recommend the University strengthen its policies and procedures over equipment management to ensure a physical inventory is performed every two years, at a minimum. The equipment listing should include all required information to track capital asset acquisitions purchased with federal funding. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-004 – Equipment Management (Significant Deficiency and Noncompliance) Information on the Federal Program: Research & Development Cluster-Multiple ALNs Criteria: 2 CFR 200.313(d) states in part: “Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at 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: Documentation of a physical inventory performed was not available. Additionally, we noted the University’s equipment listing did not contain all the required information, including an identification number and the source of federal funding for the equipment, outlined in the criteria above. Cause: The University did not perform a physical inventory of assets purchased with federal funds in the last two years. Effect or Potential Effect: The University did not have appropriate documentation that a physical inventory was performed. Questioned Costs: None Repeat Finding – No similar findings identified in the prior year. Recommendation: We recommend the University strengthen its policies and procedures over equipment management to ensure a physical inventory is performed every two years, at a minimum. The equipment listing should include all required information to track capital asset acquisitions purchased with federal funding. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-004 – Equipment Management (Significant Deficiency and Noncompliance) Information on the Federal Program: Research & Development Cluster-Multiple ALNs Criteria: 2 CFR 200.313(d) states in part: “Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at 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: Documentation of a physical inventory performed was not available. Additionally, we noted the University’s equipment listing did not contain all the required information, including an identification number and the source of federal funding for the equipment, outlined in the criteria above. Cause: The University did not perform a physical inventory of assets purchased with federal funds in the last two years. Effect or Potential Effect: The University did not have appropriate documentation that a physical inventory was performed. Questioned Costs: None Repeat Finding – No similar findings identified in the prior year. Recommendation: We recommend the University strengthen its policies and procedures over equipment management to ensure a physical inventory is performed every two years, at a minimum. The equipment listing should include all required information to track capital asset acquisitions purchased with federal funding. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-004 – Equipment Management (Significant Deficiency and Noncompliance) Information on the Federal Program: Research & Development Cluster-Multiple ALNs Criteria: 2 CFR 200.313(d) states in part: “Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at 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: Documentation of a physical inventory performed was not available. Additionally, we noted the University’s equipment listing did not contain all the required information, including an identification number and the source of federal funding for the equipment, outlined in the criteria above. Cause: The University did not perform a physical inventory of assets purchased with federal funds in the last two years. Effect or Potential Effect: The University did not have appropriate documentation that a physical inventory was performed. Questioned Costs: None Repeat Finding – No similar findings identified in the prior year. Recommendation: We recommend the University strengthen its policies and procedures over equipment management to ensure a physical inventory is performed every two years, at a minimum. The equipment listing should include all required information to track capital asset acquisitions purchased with federal funding. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-004 – Equipment Management (Significant Deficiency and Noncompliance) Information on the Federal Program: Research & Development Cluster-Multiple ALNs Criteria: 2 CFR 200.313(d) states in part: “Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at 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: Documentation of a physical inventory performed was not available. Additionally, we noted the University’s equipment listing did not contain all the required information, including an identification number and the source of federal funding for the equipment, outlined in the criteria above. Cause: The University did not perform a physical inventory of assets purchased with federal funds in the last two years. Effect or Potential Effect: The University did not have appropriate documentation that a physical inventory was performed. Questioned Costs: None Repeat Finding – No similar findings identified in the prior year. Recommendation: We recommend the University strengthen its policies and procedures over equipment management to ensure a physical inventory is performed every two years, at a minimum. The equipment listing should include all required information to track capital asset acquisitions purchased with federal funding. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-004 – Equipment Management (Significant Deficiency and Noncompliance) Information on the Federal Program: Research & Development Cluster-Multiple ALNs Criteria: 2 CFR 200.313(d) states in part: “Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at 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: Documentation of a physical inventory performed was not available. Additionally, we noted the University’s equipment listing did not contain all the required information, including an identification number and the source of federal funding for the equipment, outlined in the criteria above. Cause: The University did not perform a physical inventory of assets purchased with federal funds in the last two years. Effect or Potential Effect: The University did not have appropriate documentation that a physical inventory was performed. Questioned Costs: None Repeat Finding – No similar findings identified in the prior year. Recommendation: We recommend the University strengthen its policies and procedures over equipment management to ensure a physical inventory is performed every two years, at a minimum. The equipment listing should include all required information to track capital asset acquisitions purchased with federal funding. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-004 – Equipment Management (Significant Deficiency and Noncompliance) Information on the Federal Program: Research & Development Cluster-Multiple ALNs Criteria: 2 CFR 200.313(d) states in part: “Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at 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: Documentation of a physical inventory performed was not available. Additionally, we noted the University’s equipment listing did not contain all the required information, including an identification number and the source of federal funding for the equipment, outlined in the criteria above. Cause: The University did not perform a physical inventory of assets purchased with federal funds in the last two years. Effect or Potential Effect: The University did not have appropriate documentation that a physical inventory was performed. Questioned Costs: None Repeat Finding – No similar findings identified in the prior year. Recommendation: We recommend the University strengthen its policies and procedures over equipment management to ensure a physical inventory is performed every two years, at a minimum. The equipment listing should include all required information to track capital asset acquisitions purchased with federal funding. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-004 – Equipment Management (Significant Deficiency and Noncompliance) Information on the Federal Program: Research & Development Cluster-Multiple ALNs Criteria: 2 CFR 200.313(d) states in part: “Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at 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: Documentation of a physical inventory performed was not available. Additionally, we noted the University’s equipment listing did not contain all the required information, including an identification number and the source of federal funding for the equipment, outlined in the criteria above. Cause: The University did not perform a physical inventory of assets purchased with federal funds in the last two years. Effect or Potential Effect: The University did not have appropriate documentation that a physical inventory was performed. Questioned Costs: None Repeat Finding – No similar findings identified in the prior year. Recommendation: We recommend the University strengthen its policies and procedures over equipment management to ensure a physical inventory is performed every two years, at a minimum. The equipment listing should include all required information to track capital asset acquisitions purchased with federal funding. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-004 – Equipment Management (Significant Deficiency and Noncompliance) Information on the Federal Program: Research & Development Cluster-Multiple ALNs Criteria: 2 CFR 200.313(d) states in part: “Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at 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: Documentation of a physical inventory performed was not available. Additionally, we noted the University’s equipment listing did not contain all the required information, including an identification number and the source of federal funding for the equipment, outlined in the criteria above. Cause: The University did not perform a physical inventory of assets purchased with federal funds in the last two years. Effect or Potential Effect: The University did not have appropriate documentation that a physical inventory was performed. Questioned Costs: None Repeat Finding – No similar findings identified in the prior year. Recommendation: We recommend the University strengthen its policies and procedures over equipment management to ensure a physical inventory is performed every two years, at a minimum. The equipment listing should include all required information to track capital asset acquisitions purchased with federal funding. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-004 – Equipment Management (Significant Deficiency and Noncompliance) Information on the Federal Program: Research & Development Cluster-Multiple ALNs Criteria: 2 CFR 200.313(d) states in part: “Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at 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: Documentation of a physical inventory performed was not available. Additionally, we noted the University’s equipment listing did not contain all the required information, including an identification number and the source of federal funding for the equipment, outlined in the criteria above. Cause: The University did not perform a physical inventory of assets purchased with federal funds in the last two years. Effect or Potential Effect: The University did not have appropriate documentation that a physical inventory was performed. Questioned Costs: None Repeat Finding – No similar findings identified in the prior year. Recommendation: We recommend the University strengthen its policies and procedures over equipment management to ensure a physical inventory is performed every two years, at a minimum. The equipment listing should include all required information to track capital asset acquisitions purchased with federal funding. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-004 – Equipment Management (Significant Deficiency and Noncompliance) Information on the Federal Program: Research & Development Cluster-Multiple ALNs Criteria: 2 CFR 200.313(d) states in part: “Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at 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: Documentation of a physical inventory performed was not available. Additionally, we noted the University’s equipment listing did not contain all the required information, including an identification number and the source of federal funding for the equipment, outlined in the criteria above. Cause: The University did not perform a physical inventory of assets purchased with federal funds in the last two years. Effect or Potential Effect: The University did not have appropriate documentation that a physical inventory was performed. Questioned Costs: None Repeat Finding – No similar findings identified in the prior year. Recommendation: We recommend the University strengthen its policies and procedures over equipment management to ensure a physical inventory is performed every two years, at a minimum. The equipment listing should include all required information to track capital asset acquisitions purchased with federal funding. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
FINDING 2024-003 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): 700S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Modified Opinion Repeat Finding This is a repeat finding from the immediately prior audit report. The prior audit finding number was 2022-001. Condition and Context The School Corporation had not properly designed or implemented a system of internal controls, which would include appropriate segregation of duties, that would likely be effective in preventing, or detecting and correcting, noncompliance. The School Corporation had not designed an internal control system and procedures to ensure all assets purchased with federal awards were added to the property records or capital asset listing. A property record or capital asset listing would include the following for each asset: 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, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. The property record or capital asset listing should be maintained for assets purchased that exceed the School Corporation's capitalization threshold. The School Corporation maintained a detailed listing of capital assets; however, the asset records provided for audit did not include all assets purchased with the COVID-19 - Education Stabilization Fund award. An ironworker for the shop class was purchased from the ESSER 3E award for $6,499, but was not reflected on the School Corporation's capital asset ledger. The lack of internal controls and noncompliance were systemic issued throughout the audit period. INDIANA STATE BOARD OF ACCOUNTS 18 METROPOLITAN SCHOOL DISTRICT OF NORTH POSEY COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) 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) 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. . . ." Cause The School Corporation hired a third-party to take a physical inventory of the School Corporation's capital assets every two years. The last inventory was taken as of June 30, 2023. Between inventories, the School Corporation maintains records of all assets purchased above $5,000 and reports them to the third-party before the next physical inventory is performed. The School Corporation did not provide documentation of the assets purchased to be provided to the third-party responsible for taking the physical inventory. Effect The failure to establish an effective internal control system places the School Corporation at risk of noncompliance with the Equipment and Real Property Management compliance requirement. The lack of adequate capital asset records, which include purchased from federal funds, could allow for the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the program. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the School Corporation maintain documentation of all capital assets purchased over the $5,000 in between physical inventories taken by the third-party to ensure all assets are properly accounted for and safe guarded. INDIANA STATE BOARD OF ACCOUNTS 19 METROPOLITAN SCHOOL DISTRICT OF NORTH POSEY COUNTY 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 2024-003 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): 700S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Modified Opinion Repeat Finding This is a repeat finding from the immediately prior audit report. The prior audit finding number was 2022-001. Condition and Context The School Corporation had not properly designed or implemented a system of internal controls, which would include appropriate segregation of duties, that would likely be effective in preventing, or detecting and correcting, noncompliance. The School Corporation had not designed an internal control system and procedures to ensure all assets purchased with federal awards were added to the property records or capital asset listing. A property record or capital asset listing would include the following for each asset: 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, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. The property record or capital asset listing should be maintained for assets purchased that exceed the School Corporation's capitalization threshold. The School Corporation maintained a detailed listing of capital assets; however, the asset records provided for audit did not include all assets purchased with the COVID-19 - Education Stabilization Fund award. An ironworker for the shop class was purchased from the ESSER 3E award for $6,499, but was not reflected on the School Corporation's capital asset ledger. The lack of internal controls and noncompliance were systemic issued throughout the audit period. INDIANA STATE BOARD OF ACCOUNTS 18 METROPOLITAN SCHOOL DISTRICT OF NORTH POSEY COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) 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) 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. . . ." Cause The School Corporation hired a third-party to take a physical inventory of the School Corporation's capital assets every two years. The last inventory was taken as of June 30, 2023. Between inventories, the School Corporation maintains records of all assets purchased above $5,000 and reports them to the third-party before the next physical inventory is performed. The School Corporation did not provide documentation of the assets purchased to be provided to the third-party responsible for taking the physical inventory. Effect The failure to establish an effective internal control system places the School Corporation at risk of noncompliance with the Equipment and Real Property Management compliance requirement. The lack of adequate capital asset records, which include purchased from federal funds, could allow for the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the program. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the School Corporation maintain documentation of all capital assets purchased over the $5,000 in between physical inventories taken by the third-party to ensure all assets are properly accounted for and safe guarded. INDIANA STATE BOARD OF ACCOUNTS 19 METROPOLITAN SCHOOL DISTRICT OF NORTH POSEY COUNTY 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 2024-003 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): 700S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Modified Opinion Repeat Finding This is a repeat finding from the immediately prior audit report. The prior audit finding number was 2022-001. Condition and Context The School Corporation had not properly designed or implemented a system of internal controls, which would include appropriate segregation of duties, that would likely be effective in preventing, or detecting and correcting, noncompliance. The School Corporation had not designed an internal control system and procedures to ensure all assets purchased with federal awards were added to the property records or capital asset listing. A property record or capital asset listing would include the following for each asset: 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, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. The property record or capital asset listing should be maintained for assets purchased that exceed the School Corporation's capitalization threshold. The School Corporation maintained a detailed listing of capital assets; however, the asset records provided for audit did not include all assets purchased with the COVID-19 - Education Stabilization Fund award. An ironworker for the shop class was purchased from the ESSER 3E award for $6,499, but was not reflected on the School Corporation's capital asset ledger. The lack of internal controls and noncompliance were systemic issued throughout the audit period. INDIANA STATE BOARD OF ACCOUNTS 18 METROPOLITAN SCHOOL DISTRICT OF NORTH POSEY COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) 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) 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. . . ." Cause The School Corporation hired a third-party to take a physical inventory of the School Corporation's capital assets every two years. The last inventory was taken as of June 30, 2023. Between inventories, the School Corporation maintains records of all assets purchased above $5,000 and reports them to the third-party before the next physical inventory is performed. The School Corporation did not provide documentation of the assets purchased to be provided to the third-party responsible for taking the physical inventory. Effect The failure to establish an effective internal control system places the School Corporation at risk of noncompliance with the Equipment and Real Property Management compliance requirement. The lack of adequate capital asset records, which include purchased from federal funds, could allow for the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the program. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the School Corporation maintain documentation of all capital assets purchased over the $5,000 in between physical inventories taken by the third-party to ensure all assets are properly accounted for and safe guarded. INDIANA STATE BOARD OF ACCOUNTS 19 METROPOLITAN SCHOOL DISTRICT OF NORTH POSEY COUNTY 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.
Significant Deficiency 2024-001. Equipment and Real Property Management United States Department of Education, Passed Through New York State, Department of Education: Education Stabilization Fund COVID-19: Elementary and Secondary School Emergency Relief Fund ALN: 84.425D COVID-19: American Rescue Plan - Elementary and Secondary School Emergency Relief Fund ALN: 84.425U Criteria: Education Stabilization Fund (ESF) grant awards authorized under the federal Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act and American Rescue Plan Act of 2021 (ARP) may be used for equipment purchases and capital expenditures, consistent with federal regulations 2 CFR §200.313 and 2 CFR §200.439. In accordance with 2 CFR §200.313, non-federal entities receiving federal awards are required to have procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a federal award, until disposition takes place. This includes maintaining property records that include a description of the property, a serial number or other identification number, the source of funding for the property, including the Federal Award Identification Number (FAIN), and who holds title. In addition, it requires non-federal entities to track 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. A physical inventory of the property acquired with federal awards must also be taken and the results reconciled with the property inventory records at least once every two years. Condition: The District did not include capital expenditures paid with CRRSA and ARP grant funds in its capital assets inventory records. Cause: The District uses specific expenditure codes in its special aid fund to identify and track capital expenditures incurred that are reimbursable under the CRRSA and ARP grant awards; those capital expenditure codes are different from the District’s standard object code (.200) for equipment purchases. Due to a clerical oversight, those capital expenditures recorded in the special aid fund were inadvertently left off the District’s end-of-year list of annual capital assets additions that would be used to update its capital assets inventory records. Effect: Not including and differentiating capital assets acquired with federal awards in the District’s capital assets inventory records could lead to improper or non-compliant procedures for the disposal of those capital assets. Questioned Costs: None reported. Context: The District upgraded the HVAC systems at its buildings using CRRSA and ARP grant awards during the 2023-2024 fiscal year. Before the CRRSA and ARP grants, the District had never used grant awards to pay for capital improvement projects and thus, District personnel was not accustomed to reviewing expenditure codes in the special aid fund other than the equipment purchases expenditure codes when compiling the listing of equipment and capital expenditures during the year for the District’s third-party capital assets management company to update its capital assets inventory record. Identification of a Repeat Finding: This is not a repeat finding from the immediately prior audit. Recommendation: The District should revise its existing procedures for compiling annual capital assets additions information to ensure equipment and capital expenditures recorded in all of the District’s governmental funds are considered and evaluated for inclusion in the District’s annual capital assets inventory records. Views of Responsible Officials of Auditee: Management agrees with the finding and will ensure that equipment and capital expenditures paid with federal funds are identified and included in the District’s fixed assets inventory records as part of the annual fixed assets reconciliation process.
Significant Deficiency 2024-001. Equipment and Real Property Management United States Department of Education, Passed Through New York State, Department of Education: Education Stabilization Fund COVID-19: Elementary and Secondary School Emergency Relief Fund ALN: 84.425D COVID-19: American Rescue Plan - Elementary and Secondary School Emergency Relief Fund ALN: 84.425U Criteria: Education Stabilization Fund (ESF) grant awards authorized under the federal Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act and American Rescue Plan Act of 2021 (ARP) may be used for equipment purchases and capital expenditures, consistent with federal regulations 2 CFR §200.313 and 2 CFR §200.439. In accordance with 2 CFR §200.313, non-federal entities receiving federal awards are required to have procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a federal award, until disposition takes place. This includes maintaining property records that include a description of the property, a serial number or other identification number, the source of funding for the property, including the Federal Award Identification Number (FAIN), and who holds title. In addition, it requires non-federal entities to track 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. A physical inventory of the property acquired with federal awards must also be taken and the results reconciled with the property inventory records at least once every two years. Condition: The District did not include capital expenditures paid with CRRSA and ARP grant funds in its capital assets inventory records. Cause: The District uses specific expenditure codes in its special aid fund to identify and track capital expenditures incurred that are reimbursable under the CRRSA and ARP grant awards; those capital expenditure codes are different from the District’s standard object code (.200) for equipment purchases. Due to a clerical oversight, those capital expenditures recorded in the special aid fund were inadvertently left off the District’s end-of-year list of annual capital assets additions that would be used to update its capital assets inventory records. Effect: Not including and differentiating capital assets acquired with federal awards in the District’s capital assets inventory records could lead to improper or non-compliant procedures for the disposal of those capital assets. Questioned Costs: None reported. Context: The District upgraded the HVAC systems at its buildings using CRRSA and ARP grant awards during the 2023-2024 fiscal year. Before the CRRSA and ARP grants, the District had never used grant awards to pay for capital improvement projects and thus, District personnel was not accustomed to reviewing expenditure codes in the special aid fund other than the equipment purchases expenditure codes when compiling the listing of equipment and capital expenditures during the year for the District’s third-party capital assets management company to update its capital assets inventory record. Identification of a Repeat Finding: This is not a repeat finding from the immediately prior audit. Recommendation: The District should revise its existing procedures for compiling annual capital assets additions information to ensure equipment and capital expenditures recorded in all of the District’s governmental funds are considered and evaluated for inclusion in the District’s annual capital assets inventory records. Views of Responsible Officials of Auditee: Management agrees with the finding and will ensure that equipment and capital expenditures paid with federal funds are identified and included in the District’s fixed assets inventory records as part of the annual fixed assets reconciliation process.
Finding No. 2024‑001 Research and Development Cluster: National Science Foundation: Hispanic-Serving Institutions Pilot Project STEM Undergraduate, Retention, Graduation and Engagement (ALN 47.076) U.S. Department of Health and Human Services – National Institutes of Health: Antibiotic-Free Anti-Infection Polymer Brush Biocoatings (ALN 93.286) Plasma-Initiated Cross-Linked Nanocoatings as Anti-Infection Agents (ALN 93.855) Statistically valid sample: No and it was not intended to be. Repeat finding: Not a repeat finding. Compliance Requirement – Equipment and Real Property Management – Material Weakness and Material Noncompliance Criteria Non-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that: 1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property (2 CFR section 200.313(d)(1)). 2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)). 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 (2 CFR section 200.313(d)(3)). Condition and Context. There were several matters noted. First, there was no evidence that the University conducted a physical inventory of its federal equipment in the past two years. The value of equipment related to the Research and Development Cluster is $278,787 at June 30, 2024. Second, we selected 7 pieces of equipment out of 65 pieces of equipment that existed at June 30, 2024, and while they were all properly tagged, we noted during our understanding of the process and controls over the process that the tagging of equipment was not done timely as all equipment acquired in a fiscal year is tagged the following August. Third, we selected 3 pieces of equipment out of 14 pieces of equipment that were acquired in fiscal year 2024. While the property records included all of the required elements, there was no evidence of review that current year acquisitions of equipment are accurately included in the University's equipment subledger, and this equipment was not reconciled to a physical inventory, as an inventory did not take place. Cause: Management was not aware of all the compliance requirements over federally purchased equipment, including that a physical inventory must be performed at least once every two years. Additionally, the University has limited resources and this impacts the timing of the tagging of equipment and the review of equipment records. Effect: The equipment purchased with federal funds may not be properly safeguarded. Questioned Costs: There were no questioned costs related to this finding. Recommendation: We recommend that the University strengthen its policies and procedures over equipment, including adding procedures to perform the physical inventory at least once every two years, timely tagging equipment upon the purchase of equipment with federal funds, and properly reviewing and reconciling equipment records with the results of the inventory. Views of Responsible Official: Management agrees with the recommendation. Prior to June 30, 2025, the University will conduct a full physical inventory of equipment purchased using federal funds that have a net book value greater than zero on the University’s books as of June 30, 2024. For new purchases of equipment using federal funds, the University will tag these assets on a monthly basis. In addition, a physical inventory of equipment purchased using federal funds will be conducted every two years going forward. The inventory process will be reviewed by management to ensure timely and accurate completion.
Finding No. 2024‑001 Research and Development Cluster: National Science Foundation: Hispanic-Serving Institutions Pilot Project STEM Undergraduate, Retention, Graduation and Engagement (ALN 47.076) U.S. Department of Health and Human Services – National Institutes of Health: Antibiotic-Free Anti-Infection Polymer Brush Biocoatings (ALN 93.286) Plasma-Initiated Cross-Linked Nanocoatings as Anti-Infection Agents (ALN 93.855) Statistically valid sample: No and it was not intended to be. Repeat finding: Not a repeat finding. Compliance Requirement – Equipment and Real Property Management – Material Weakness and Material Noncompliance Criteria Non-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that: 1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property (2 CFR section 200.313(d)(1)). 2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)). 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 (2 CFR section 200.313(d)(3)). Condition and Context. There were several matters noted. First, there was no evidence that the University conducted a physical inventory of its federal equipment in the past two years. The value of equipment related to the Research and Development Cluster is $278,787 at June 30, 2024. Second, we selected 7 pieces of equipment out of 65 pieces of equipment that existed at June 30, 2024, and while they were all properly tagged, we noted during our understanding of the process and controls over the process that the tagging of equipment was not done timely as all equipment acquired in a fiscal year is tagged the following August. Third, we selected 3 pieces of equipment out of 14 pieces of equipment that were acquired in fiscal year 2024. While the property records included all of the required elements, there was no evidence of review that current year acquisitions of equipment are accurately included in the University's equipment subledger, and this equipment was not reconciled to a physical inventory, as an inventory did not take place. Cause: Management was not aware of all the compliance requirements over federally purchased equipment, including that a physical inventory must be performed at least once every two years. Additionally, the University has limited resources and this impacts the timing of the tagging of equipment and the review of equipment records. Effect: The equipment purchased with federal funds may not be properly safeguarded. Questioned Costs: There were no questioned costs related to this finding. Recommendation: We recommend that the University strengthen its policies and procedures over equipment, including adding procedures to perform the physical inventory at least once every two years, timely tagging equipment upon the purchase of equipment with federal funds, and properly reviewing and reconciling equipment records with the results of the inventory. Views of Responsible Official: Management agrees with the recommendation. Prior to June 30, 2025, the University will conduct a full physical inventory of equipment purchased using federal funds that have a net book value greater than zero on the University’s books as of June 30, 2024. For new purchases of equipment using federal funds, the University will tag these assets on a monthly basis. In addition, a physical inventory of equipment purchased using federal funds will be conducted every two years going forward. The inventory process will be reviewed by management to ensure timely and accurate completion.
Finding No. 2024‑001 Research and Development Cluster: National Science Foundation: Hispanic-Serving Institutions Pilot Project STEM Undergraduate, Retention, Graduation and Engagement (ALN 47.076) U.S. Department of Health and Human Services – National Institutes of Health: Antibiotic-Free Anti-Infection Polymer Brush Biocoatings (ALN 93.286) Plasma-Initiated Cross-Linked Nanocoatings as Anti-Infection Agents (ALN 93.855) Statistically valid sample: No and it was not intended to be. Repeat finding: Not a repeat finding. Compliance Requirement – Equipment and Real Property Management – Material Weakness and Material Noncompliance Criteria Non-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that: 1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property (2 CFR section 200.313(d)(1)). 2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)). 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 (2 CFR section 200.313(d)(3)). Condition and Context. There were several matters noted. First, there was no evidence that the University conducted a physical inventory of its federal equipment in the past two years. The value of equipment related to the Research and Development Cluster is $278,787 at June 30, 2024. Second, we selected 7 pieces of equipment out of 65 pieces of equipment that existed at June 30, 2024, and while they were all properly tagged, we noted during our understanding of the process and controls over the process that the tagging of equipment was not done timely as all equipment acquired in a fiscal year is tagged the following August. Third, we selected 3 pieces of equipment out of 14 pieces of equipment that were acquired in fiscal year 2024. While the property records included all of the required elements, there was no evidence of review that current year acquisitions of equipment are accurately included in the University's equipment subledger, and this equipment was not reconciled to a physical inventory, as an inventory did not take place. Cause: Management was not aware of all the compliance requirements over federally purchased equipment, including that a physical inventory must be performed at least once every two years. Additionally, the University has limited resources and this impacts the timing of the tagging of equipment and the review of equipment records. Effect: The equipment purchased with federal funds may not be properly safeguarded. Questioned Costs: There were no questioned costs related to this finding. Recommendation: We recommend that the University strengthen its policies and procedures over equipment, including adding procedures to perform the physical inventory at least once every two years, timely tagging equipment upon the purchase of equipment with federal funds, and properly reviewing and reconciling equipment records with the results of the inventory. Views of Responsible Official: Management agrees with the recommendation. Prior to June 30, 2025, the University will conduct a full physical inventory of equipment purchased using federal funds that have a net book value greater than zero on the University’s books as of June 30, 2024. For new purchases of equipment using federal funds, the University will tag these assets on a monthly basis. In addition, a physical inventory of equipment purchased using federal funds will be conducted every two years going forward. The inventory process will be reviewed by management to ensure timely and accurate completion.
Criteria: 2 CFR 200.313(d)(2) requires the non-Federal entity take a physical inventory of property and reconcile the results with the property records at least once every two years. 2 CFR 200.313(d)(1) requires “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…” Condition: The University did not complete a full physical inventory at least once every 2 years as required and did not reconcile the results with its property records. Additionally, one equipment item did not have a fixed asset tag. Context: The University’s Fixed Asset Policy and related procedures require inventories of property and equipment to be conducted at least once every 2 years. In addition, each equipment item is required to have a unique identifier or a fixed asset tag. The University has 22 departments for which a physical inventory was required. We noted that in fiscal years 2023 and 2024, physical inventories were conducted for 12 and 20 departments, respectively. In 2025, physical inventories for the remaining 2 departments were completed. However, as of June 30, 2024, the inventory results had not been reconciled to the property records. Further, in testing a non-statistical sample of seven equipment items we noted that one item did not have a unique identifier or a fixed asset tag. Cause: Although the University has established policies and procedures in place for the physical inventory and reconciliation of property and equipment and fixed asset tagging, management indicated that staffing limitations, combined with a campus relocation, closure of the Hawai‘i Loa campus and ongoing construction of its science laboratories, hindered the University’s ability to complete the inventories and reconciliations within the required timeframe. Effect: Failure to perform physical inventory of property and reconcile the results with the property records at least once every two years, and failure to properly tag equipment items resulted in noncompliance with the equipment and real property management requirements which increases the risk of misappropriation, loss, or inaccurate reporting of federally funded assets. Questioned Costs: None Identification of a repeat finding: This is a repeat finding of 2023-003. Recommendations: We recommend the University review and update its current fixed asset inventory and tagging processes to ensure compliance with the requirements. Specifically, we recommend the following: 1. Developing and implementing a corrective action plan to address the barriers that prevented timely completion of the physical inventory and reconciliations, including: • Assessing staffing needs and allocating adequate resources, whether through additional personnel, temporary assistance, or reallocation of responsibilities, to ensure physical inventories and reconciliations are completed timely. • Establishing a formal timeline and monitoring process for conducting and reconciling physical inventories of all departments within the required two-year cycle. • Identifying opportunities to leverage technology or asset management software to streamline and document the inventory and reconciliation process. 2. Ensuring that all equipment items are appropriately tagged or assigned unique identifiers in accordance with its Fixed Asset Policy and 2 CFR 200.313(d)(1). 3. Providing training and guidance to responsible staff on the inventory process, reconciliation procedures, and tagging requirements to reinforce accountability and ensure consistent application of policies. Views of responsible officials: The University initiated a thorough inventory process, including a requirement to tag and photograph all assets, during the fiscal year ended June 30, 2024. The inventory process was started on schedule in May 2024, and departments were asked to complete their inventory procedures and sign off on the inventory reports by June 2024. Despite the additional complications created by the University’s campus relocation project necessitated by the closure of the Hawai‘i Loa campus and the construction of the science laboratories, 91% of the departments completed their inventories prior to June 30, 2024. The remaining 9% of departments completed their inventories after requesting an extension and/or providing additional details on the requested inventory items in the meantime, and these inventories were completed during the fiscal year ending June 30, 2025. These results demonstrate improvement and progress compared to the prior year’s finding in this area and illustrate the University’s commitment to adhering to tits fixed asset inventory processes and procedures. The University is committed to addressing these issues promptly and effectively to ensure compliance with federal regulations. Accordingly, the University will conduct a thorough review of its inventory procedures, timing, technologies, training resources, and resource allocations to ensure that the next inventory process is designed to enable completion and reconciliation prior to the fiscal-year end, to include the tagging and identification of all inventory items.
Criteria: 2 CFR 200.313(d)(2) requires the non-Federal entity take a physical inventory of property and reconcile the results with the property records at least once every two years. 2 CFR 200.313(d)(1) requires “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…” Condition: The University did not complete a full physical inventory at least once every 2 years as required and did not reconcile the results with its property records. Additionally, one equipment item did not have a fixed asset tag. Context: The University’s Fixed Asset Policy and related procedures require inventories of property and equipment to be conducted at least once every 2 years. In addition, each equipment item is required to have a unique identifier or a fixed asset tag. The University has 22 departments for which a physical inventory was required. We noted that in fiscal years 2023 and 2024, physical inventories were conducted for 12 and 20 departments, respectively. In 2025, physical inventories for the remaining 2 departments were completed. However, as of June 30, 2024, the inventory results had not been reconciled to the property records. Further, in testing a non-statistical sample of seven equipment items we noted that one item did not have a unique identifier or a fixed asset tag. Cause: Although the University has established policies and procedures in place for the physical inventory and reconciliation of property and equipment and fixed asset tagging, management indicated that staffing limitations, combined with a campus relocation, closure of the Hawai‘i Loa campus and ongoing construction of its science laboratories, hindered the University’s ability to complete the inventories and reconciliations within the required timeframe. Effect: Failure to perform physical inventory of property and reconcile the results with the property records at least once every two years, and failure to properly tag equipment items resulted in noncompliance with the equipment and real property management requirements which increases the risk of misappropriation, loss, or inaccurate reporting of federally funded assets. Questioned Costs: None Identification of a repeat finding: This is a repeat finding of 2023-003. Recommendations: We recommend the University review and update its current fixed asset inventory and tagging processes to ensure compliance with the requirements. Specifically, we recommend the following: 1. Developing and implementing a corrective action plan to address the barriers that prevented timely completion of the physical inventory and reconciliations, including: • Assessing staffing needs and allocating adequate resources, whether through additional personnel, temporary assistance, or reallocation of responsibilities, to ensure physical inventories and reconciliations are completed timely. • Establishing a formal timeline and monitoring process for conducting and reconciling physical inventories of all departments within the required two-year cycle. • Identifying opportunities to leverage technology or asset management software to streamline and document the inventory and reconciliation process. 2. Ensuring that all equipment items are appropriately tagged or assigned unique identifiers in accordance with its Fixed Asset Policy and 2 CFR 200.313(d)(1). 3. Providing training and guidance to responsible staff on the inventory process, reconciliation procedures, and tagging requirements to reinforce accountability and ensure consistent application of policies. Views of responsible officials: The University initiated a thorough inventory process, including a requirement to tag and photograph all assets, during the fiscal year ended June 30, 2024. The inventory process was started on schedule in May 2024, and departments were asked to complete their inventory procedures and sign off on the inventory reports by June 2024. Despite the additional complications created by the University’s campus relocation project necessitated by the closure of the Hawai‘i Loa campus and the construction of the science laboratories, 91% of the departments completed their inventories prior to June 30, 2024. The remaining 9% of departments completed their inventories after requesting an extension and/or providing additional details on the requested inventory items in the meantime, and these inventories were completed during the fiscal year ending June 30, 2025. These results demonstrate improvement and progress compared to the prior year’s finding in this area and illustrate the University’s commitment to adhering to tits fixed asset inventory processes and procedures. The University is committed to addressing these issues promptly and effectively to ensure compliance with federal regulations. Accordingly, the University will conduct a thorough review of its inventory procedures, timing, technologies, training resources, and resource allocations to ensure that the next inventory process is designed to enable completion and reconciliation prior to the fiscal-year end, to include the tagging and identification of all inventory items.
Criteria: 2 CFR 200.313(d)(2) requires the non-Federal entity take a physical inventory of property and reconcile the results with the property records at least once every two years. 2 CFR 200.313(d)(1) requires “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…” Condition: The University did not complete a full physical inventory at least once every 2 years as required and did not reconcile the results with its property records. Additionally, one equipment item did not have a fixed asset tag. Context: The University’s Fixed Asset Policy and related procedures require inventories of property and equipment to be conducted at least once every 2 years. In addition, each equipment item is required to have a unique identifier or a fixed asset tag. The University has 22 departments for which a physical inventory was required. We noted that in fiscal years 2023 and 2024, physical inventories were conducted for 12 and 20 departments, respectively. In 2025, physical inventories for the remaining 2 departments were completed. However, as of June 30, 2024, the inventory results had not been reconciled to the property records. Further, in testing a non-statistical sample of seven equipment items we noted that one item did not have a unique identifier or a fixed asset tag. Cause: Although the University has established policies and procedures in place for the physical inventory and reconciliation of property and equipment and fixed asset tagging, management indicated that staffing limitations, combined with a campus relocation, closure of the Hawai‘i Loa campus and ongoing construction of its science laboratories, hindered the University’s ability to complete the inventories and reconciliations within the required timeframe. Effect: Failure to perform physical inventory of property and reconcile the results with the property records at least once every two years, and failure to properly tag equipment items resulted in noncompliance with the equipment and real property management requirements which increases the risk of misappropriation, loss, or inaccurate reporting of federally funded assets. Questioned Costs: None Identification of a repeat finding: This is a repeat finding of 2023-003. Recommendations: We recommend the University review and update its current fixed asset inventory and tagging processes to ensure compliance with the requirements. Specifically, we recommend the following: 1. Developing and implementing a corrective action plan to address the barriers that prevented timely completion of the physical inventory and reconciliations, including: • Assessing staffing needs and allocating adequate resources, whether through additional personnel, temporary assistance, or reallocation of responsibilities, to ensure physical inventories and reconciliations are completed timely. • Establishing a formal timeline and monitoring process for conducting and reconciling physical inventories of all departments within the required two-year cycle. • Identifying opportunities to leverage technology or asset management software to streamline and document the inventory and reconciliation process. 2. Ensuring that all equipment items are appropriately tagged or assigned unique identifiers in accordance with its Fixed Asset Policy and 2 CFR 200.313(d)(1). 3. Providing training and guidance to responsible staff on the inventory process, reconciliation procedures, and tagging requirements to reinforce accountability and ensure consistent application of policies. Views of responsible officials: The University initiated a thorough inventory process, including a requirement to tag and photograph all assets, during the fiscal year ended June 30, 2024. The inventory process was started on schedule in May 2024, and departments were asked to complete their inventory procedures and sign off on the inventory reports by June 2024. Despite the additional complications created by the University’s campus relocation project necessitated by the closure of the Hawai‘i Loa campus and the construction of the science laboratories, 91% of the departments completed their inventories prior to June 30, 2024. The remaining 9% of departments completed their inventories after requesting an extension and/or providing additional details on the requested inventory items in the meantime, and these inventories were completed during the fiscal year ending June 30, 2025. These results demonstrate improvement and progress compared to the prior year’s finding in this area and illustrate the University’s commitment to adhering to tits fixed asset inventory processes and procedures. The University is committed to addressing these issues promptly and effectively to ensure compliance with federal regulations. Accordingly, the University will conduct a thorough review of its inventory procedures, timing, technologies, training resources, and resource allocations to ensure that the next inventory process is designed to enable completion and reconciliation prior to the fiscal-year end, to include the tagging and identification of all inventory items.
Criteria: 2 CFR 200.313(d)(2) requires the non-Federal entity take a physical inventory of property and reconcile the results with the property records at least once every two years. 2 CFR 200.313(d)(1) requires “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…” Condition: The University did not complete a full physical inventory at least once every 2 years as required and did not reconcile the results with its property records. Additionally, one equipment item did not have a fixed asset tag. Context: The University’s Fixed Asset Policy and related procedures require inventories of property and equipment to be conducted at least once every 2 years. In addition, each equipment item is required to have a unique identifier or a fixed asset tag. The University has 22 departments for which a physical inventory was required. We noted that in fiscal years 2023 and 2024, physical inventories were conducted for 12 and 20 departments, respectively. In 2025, physical inventories for the remaining 2 departments were completed. However, as of June 30, 2024, the inventory results had not been reconciled to the property records. Further, in testing a non-statistical sample of seven equipment items we noted that one item did not have a unique identifier or a fixed asset tag. Cause: Although the University has established policies and procedures in place for the physical inventory and reconciliation of property and equipment and fixed asset tagging, management indicated that staffing limitations, combined with a campus relocation, closure of the Hawai‘i Loa campus and ongoing construction of its science laboratories, hindered the University’s ability to complete the inventories and reconciliations within the required timeframe. Effect: Failure to perform physical inventory of property and reconcile the results with the property records at least once every two years, and failure to properly tag equipment items resulted in noncompliance with the equipment and real property management requirements which increases the risk of misappropriation, loss, or inaccurate reporting of federally funded assets. Questioned Costs: None Identification of a repeat finding: This is a repeat finding of 2023-003. Recommendations: We recommend the University review and update its current fixed asset inventory and tagging processes to ensure compliance with the requirements. Specifically, we recommend the following: 1. Developing and implementing a corrective action plan to address the barriers that prevented timely completion of the physical inventory and reconciliations, including: • Assessing staffing needs and allocating adequate resources, whether through additional personnel, temporary assistance, or reallocation of responsibilities, to ensure physical inventories and reconciliations are completed timely. • Establishing a formal timeline and monitoring process for conducting and reconciling physical inventories of all departments within the required two-year cycle. • Identifying opportunities to leverage technology or asset management software to streamline and document the inventory and reconciliation process. 2. Ensuring that all equipment items are appropriately tagged or assigned unique identifiers in accordance with its Fixed Asset Policy and 2 CFR 200.313(d)(1). 3. Providing training and guidance to responsible staff on the inventory process, reconciliation procedures, and tagging requirements to reinforce accountability and ensure consistent application of policies. Views of responsible officials: The University initiated a thorough inventory process, including a requirement to tag and photograph all assets, during the fiscal year ended June 30, 2024. The inventory process was started on schedule in May 2024, and departments were asked to complete their inventory procedures and sign off on the inventory reports by June 2024. Despite the additional complications created by the University’s campus relocation project necessitated by the closure of the Hawai‘i Loa campus and the construction of the science laboratories, 91% of the departments completed their inventories prior to June 30, 2024. The remaining 9% of departments completed their inventories after requesting an extension and/or providing additional details on the requested inventory items in the meantime, and these inventories were completed during the fiscal year ending June 30, 2025. These results demonstrate improvement and progress compared to the prior year’s finding in this area and illustrate the University’s commitment to adhering to tits fixed asset inventory processes and procedures. The University is committed to addressing these issues promptly and effectively to ensure compliance with federal regulations. Accordingly, the University will conduct a thorough review of its inventory procedures, timing, technologies, training resources, and resource allocations to ensure that the next inventory process is designed to enable completion and reconciliation prior to the fiscal-year end, to include the tagging and identification of all inventory items.
Criteria: 2 CFR 200.313(d)(2) requires the non-Federal entity take a physical inventory of property and reconcile the results with the property records at least once every two years. 2 CFR 200.313(d)(1) requires “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…” Condition: The University did not complete a full physical inventory at least once every 2 years as required and did not reconcile the results with its property records. Additionally, one equipment item did not have a fixed asset tag. Context: The University’s Fixed Asset Policy and related procedures require inventories of property and equipment to be conducted at least once every 2 years. In addition, each equipment item is required to have a unique identifier or a fixed asset tag. The University has 22 departments for which a physical inventory was required. We noted that in fiscal years 2023 and 2024, physical inventories were conducted for 12 and 20 departments, respectively. In 2025, physical inventories for the remaining 2 departments were completed. However, as of June 30, 2024, the inventory results had not been reconciled to the property records. Further, in testing a non-statistical sample of seven equipment items we noted that one item did not have a unique identifier or a fixed asset tag. Cause: Although the University has established policies and procedures in place for the physical inventory and reconciliation of property and equipment and fixed asset tagging, management indicated that staffing limitations, combined with a campus relocation, closure of the Hawai‘i Loa campus and ongoing construction of its science laboratories, hindered the University’s ability to complete the inventories and reconciliations within the required timeframe. Effect: Failure to perform physical inventory of property and reconcile the results with the property records at least once every two years, and failure to properly tag equipment items resulted in noncompliance with the equipment and real property management requirements which increases the risk of misappropriation, loss, or inaccurate reporting of federally funded assets. Questioned Costs: None Identification of a repeat finding: This is a repeat finding of 2023-003. Recommendations: We recommend the University review and update its current fixed asset inventory and tagging processes to ensure compliance with the requirements. Specifically, we recommend the following: 1. Developing and implementing a corrective action plan to address the barriers that prevented timely completion of the physical inventory and reconciliations, including: • Assessing staffing needs and allocating adequate resources, whether through additional personnel, temporary assistance, or reallocation of responsibilities, to ensure physical inventories and reconciliations are completed timely. • Establishing a formal timeline and monitoring process for conducting and reconciling physical inventories of all departments within the required two-year cycle. • Identifying opportunities to leverage technology or asset management software to streamline and document the inventory and reconciliation process. 2. Ensuring that all equipment items are appropriately tagged or assigned unique identifiers in accordance with its Fixed Asset Policy and 2 CFR 200.313(d)(1). 3. Providing training and guidance to responsible staff on the inventory process, reconciliation procedures, and tagging requirements to reinforce accountability and ensure consistent application of policies. Views of responsible officials: The University initiated a thorough inventory process, including a requirement to tag and photograph all assets, during the fiscal year ended June 30, 2024. The inventory process was started on schedule in May 2024, and departments were asked to complete their inventory procedures and sign off on the inventory reports by June 2024. Despite the additional complications created by the University’s campus relocation project necessitated by the closure of the Hawai‘i Loa campus and the construction of the science laboratories, 91% of the departments completed their inventories prior to June 30, 2024. The remaining 9% of departments completed their inventories after requesting an extension and/or providing additional details on the requested inventory items in the meantime, and these inventories were completed during the fiscal year ending June 30, 2025. These results demonstrate improvement and progress compared to the prior year’s finding in this area and illustrate the University’s commitment to adhering to tits fixed asset inventory processes and procedures. The University is committed to addressing these issues promptly and effectively to ensure compliance with federal regulations. Accordingly, the University will conduct a thorough review of its inventory procedures, timing, technologies, training resources, and resource allocations to ensure that the next inventory process is designed to enable completion and reconciliation prior to the fiscal-year end, to include the tagging and identification of all inventory items.
Criteria: 2 CFR 200.313(d)(2) requires the non-Federal entity take a physical inventory of property and reconcile the results with the property records at least once every two years. 2 CFR 200.313(d)(1) requires “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…” Condition: The University did not complete a full physical inventory at least once every 2 years as required and did not reconcile the results with its property records. Additionally, one equipment item did not have a fixed asset tag. Context: The University’s Fixed Asset Policy and related procedures require inventories of property and equipment to be conducted at least once every 2 years. In addition, each equipment item is required to have a unique identifier or a fixed asset tag. The University has 22 departments for which a physical inventory was required. We noted that in fiscal years 2023 and 2024, physical inventories were conducted for 12 and 20 departments, respectively. In 2025, physical inventories for the remaining 2 departments were completed. However, as of June 30, 2024, the inventory results had not been reconciled to the property records. Further, in testing a non-statistical sample of seven equipment items we noted that one item did not have a unique identifier or a fixed asset tag. Cause: Although the University has established policies and procedures in place for the physical inventory and reconciliation of property and equipment and fixed asset tagging, management indicated that staffing limitations, combined with a campus relocation, closure of the Hawai‘i Loa campus and ongoing construction of its science laboratories, hindered the University’s ability to complete the inventories and reconciliations within the required timeframe. Effect: Failure to perform physical inventory of property and reconcile the results with the property records at least once every two years, and failure to properly tag equipment items resulted in noncompliance with the equipment and real property management requirements which increases the risk of misappropriation, loss, or inaccurate reporting of federally funded assets. Questioned Costs: None Identification of a repeat finding: This is a repeat finding of 2023-003. Recommendations: We recommend the University review and update its current fixed asset inventory and tagging processes to ensure compliance with the requirements. Specifically, we recommend the following: 1. Developing and implementing a corrective action plan to address the barriers that prevented timely completion of the physical inventory and reconciliations, including: • Assessing staffing needs and allocating adequate resources, whether through additional personnel, temporary assistance, or reallocation of responsibilities, to ensure physical inventories and reconciliations are completed timely. • Establishing a formal timeline and monitoring process for conducting and reconciling physical inventories of all departments within the required two-year cycle. • Identifying opportunities to leverage technology or asset management software to streamline and document the inventory and reconciliation process. 2. Ensuring that all equipment items are appropriately tagged or assigned unique identifiers in accordance with its Fixed Asset Policy and 2 CFR 200.313(d)(1). 3. Providing training and guidance to responsible staff on the inventory process, reconciliation procedures, and tagging requirements to reinforce accountability and ensure consistent application of policies. Views of responsible officials: The University initiated a thorough inventory process, including a requirement to tag and photograph all assets, during the fiscal year ended June 30, 2024. The inventory process was started on schedule in May 2024, and departments were asked to complete their inventory procedures and sign off on the inventory reports by June 2024. Despite the additional complications created by the University’s campus relocation project necessitated by the closure of the Hawai‘i Loa campus and the construction of the science laboratories, 91% of the departments completed their inventories prior to June 30, 2024. The remaining 9% of departments completed their inventories after requesting an extension and/or providing additional details on the requested inventory items in the meantime, and these inventories were completed during the fiscal year ending June 30, 2025. These results demonstrate improvement and progress compared to the prior year’s finding in this area and illustrate the University’s commitment to adhering to tits fixed asset inventory processes and procedures. The University is committed to addressing these issues promptly and effectively to ensure compliance with federal regulations. Accordingly, the University will conduct a thorough review of its inventory procedures, timing, technologies, training resources, and resource allocations to ensure that the next inventory process is designed to enable completion and reconciliation prior to the fiscal-year end, to include the tagging and identification of all inventory items.
Criteria: 2 CFR 200.313(d)(2) requires the non-Federal entity take a physical inventory of property and reconcile the results with the property records at least once every two years. 2 CFR 200.313(d)(1) requires “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…” Condition: The University did not complete a full physical inventory at least once every 2 years as required and did not reconcile the results with its property records. Additionally, one equipment item did not have a fixed asset tag. Context: The University’s Fixed Asset Policy and related procedures require inventories of property and equipment to be conducted at least once every 2 years. In addition, each equipment item is required to have a unique identifier or a fixed asset tag. The University has 22 departments for which a physical inventory was required. We noted that in fiscal years 2023 and 2024, physical inventories were conducted for 12 and 20 departments, respectively. In 2025, physical inventories for the remaining 2 departments were completed. However, as of June 30, 2024, the inventory results had not been reconciled to the property records. Further, in testing a non-statistical sample of seven equipment items we noted that one item did not have a unique identifier or a fixed asset tag. Cause: Although the University has established policies and procedures in place for the physical inventory and reconciliation of property and equipment and fixed asset tagging, management indicated that staffing limitations, combined with a campus relocation, closure of the Hawai‘i Loa campus and ongoing construction of its science laboratories, hindered the University’s ability to complete the inventories and reconciliations within the required timeframe. Effect: Failure to perform physical inventory of property and reconcile the results with the property records at least once every two years, and failure to properly tag equipment items resulted in noncompliance with the equipment and real property management requirements which increases the risk of misappropriation, loss, or inaccurate reporting of federally funded assets. Questioned Costs: None Identification of a repeat finding: This is a repeat finding of 2023-003. Recommendations: We recommend the University review and update its current fixed asset inventory and tagging processes to ensure compliance with the requirements. Specifically, we recommend the following: 1. Developing and implementing a corrective action plan to address the barriers that prevented timely completion of the physical inventory and reconciliations, including: • Assessing staffing needs and allocating adequate resources, whether through additional personnel, temporary assistance, or reallocation of responsibilities, to ensure physical inventories and reconciliations are completed timely. • Establishing a formal timeline and monitoring process for conducting and reconciling physical inventories of all departments within the required two-year cycle. • Identifying opportunities to leverage technology or asset management software to streamline and document the inventory and reconciliation process. 2. Ensuring that all equipment items are appropriately tagged or assigned unique identifiers in accordance with its Fixed Asset Policy and 2 CFR 200.313(d)(1). 3. Providing training and guidance to responsible staff on the inventory process, reconciliation procedures, and tagging requirements to reinforce accountability and ensure consistent application of policies. Views of responsible officials: The University initiated a thorough inventory process, including a requirement to tag and photograph all assets, during the fiscal year ended June 30, 2024. The inventory process was started on schedule in May 2024, and departments were asked to complete their inventory procedures and sign off on the inventory reports by June 2024. Despite the additional complications created by the University’s campus relocation project necessitated by the closure of the Hawai‘i Loa campus and the construction of the science laboratories, 91% of the departments completed their inventories prior to June 30, 2024. The remaining 9% of departments completed their inventories after requesting an extension and/or providing additional details on the requested inventory items in the meantime, and these inventories were completed during the fiscal year ending June 30, 2025. These results demonstrate improvement and progress compared to the prior year’s finding in this area and illustrate the University’s commitment to adhering to tits fixed asset inventory processes and procedures. The University is committed to addressing these issues promptly and effectively to ensure compliance with federal regulations. Accordingly, the University will conduct a thorough review of its inventory procedures, timing, technologies, training resources, and resource allocations to ensure that the next inventory process is designed to enable completion and reconciliation prior to the fiscal-year end, to include the tagging and identification of all inventory items.
Criteria: 2 CFR 200.313(d)(2) requires the non-Federal entity take a physical inventory of property and reconcile the results with the property records at least once every two years. 2 CFR 200.313(d)(1) requires “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…” Condition: The University did not complete a full physical inventory at least once every 2 years as required and did not reconcile the results with its property records. Additionally, one equipment item did not have a fixed asset tag. Context: The University’s Fixed Asset Policy and related procedures require inventories of property and equipment to be conducted at least once every 2 years. In addition, each equipment item is required to have a unique identifier or a fixed asset tag. The University has 22 departments for which a physical inventory was required. We noted that in fiscal years 2023 and 2024, physical inventories were conducted for 12 and 20 departments, respectively. In 2025, physical inventories for the remaining 2 departments were completed. However, as of June 30, 2024, the inventory results had not been reconciled to the property records. Further, in testing a non-statistical sample of seven equipment items we noted that one item did not have a unique identifier or a fixed asset tag. Cause: Although the University has established policies and procedures in place for the physical inventory and reconciliation of property and equipment and fixed asset tagging, management indicated that staffing limitations, combined with a campus relocation, closure of the Hawai‘i Loa campus and ongoing construction of its science laboratories, hindered the University’s ability to complete the inventories and reconciliations within the required timeframe. Effect: Failure to perform physical inventory of property and reconcile the results with the property records at least once every two years, and failure to properly tag equipment items resulted in noncompliance with the equipment and real property management requirements which increases the risk of misappropriation, loss, or inaccurate reporting of federally funded assets. Questioned Costs: None Identification of a repeat finding: This is a repeat finding of 2023-003. Recommendations: We recommend the University review and update its current fixed asset inventory and tagging processes to ensure compliance with the requirements. Specifically, we recommend the following: 1. Developing and implementing a corrective action plan to address the barriers that prevented timely completion of the physical inventory and reconciliations, including: • Assessing staffing needs and allocating adequate resources, whether through additional personnel, temporary assistance, or reallocation of responsibilities, to ensure physical inventories and reconciliations are completed timely. • Establishing a formal timeline and monitoring process for conducting and reconciling physical inventories of all departments within the required two-year cycle. • Identifying opportunities to leverage technology or asset management software to streamline and document the inventory and reconciliation process. 2. Ensuring that all equipment items are appropriately tagged or assigned unique identifiers in accordance with its Fixed Asset Policy and 2 CFR 200.313(d)(1). 3. Providing training and guidance to responsible staff on the inventory process, reconciliation procedures, and tagging requirements to reinforce accountability and ensure consistent application of policies. Views of responsible officials: The University initiated a thorough inventory process, including a requirement to tag and photograph all assets, during the fiscal year ended June 30, 2024. The inventory process was started on schedule in May 2024, and departments were asked to complete their inventory procedures and sign off on the inventory reports by June 2024. Despite the additional complications created by the University’s campus relocation project necessitated by the closure of the Hawai‘i Loa campus and the construction of the science laboratories, 91% of the departments completed their inventories prior to June 30, 2024. The remaining 9% of departments completed their inventories after requesting an extension and/or providing additional details on the requested inventory items in the meantime, and these inventories were completed during the fiscal year ending June 30, 2025. These results demonstrate improvement and progress compared to the prior year’s finding in this area and illustrate the University’s commitment to adhering to tits fixed asset inventory processes and procedures. The University is committed to addressing these issues promptly and effectively to ensure compliance with federal regulations. Accordingly, the University will conduct a thorough review of its inventory procedures, timing, technologies, training resources, and resource allocations to ensure that the next inventory process is designed to enable completion and reconciliation prior to the fiscal-year end, to include the tagging and identification of all inventory items.
Criteria: 2 CFR 200.313(d)(2) requires the non-Federal entity take a physical inventory of property and reconcile the results with the property records at least once every two years. 2 CFR 200.313(d)(1) requires “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…” Condition: The University did not complete a full physical inventory at least once every 2 years as required and did not reconcile the results with its property records. Additionally, one equipment item did not have a fixed asset tag. Context: The University’s Fixed Asset Policy and related procedures require inventories of property and equipment to be conducted at least once every 2 years. In addition, each equipment item is required to have a unique identifier or a fixed asset tag. The University has 22 departments for which a physical inventory was required. We noted that in fiscal years 2023 and 2024, physical inventories were conducted for 12 and 20 departments, respectively. In 2025, physical inventories for the remaining 2 departments were completed. However, as of June 30, 2024, the inventory results had not been reconciled to the property records. Further, in testing a non-statistical sample of seven equipment items we noted that one item did not have a unique identifier or a fixed asset tag. Cause: Although the University has established policies and procedures in place for the physical inventory and reconciliation of property and equipment and fixed asset tagging, management indicated that staffing limitations, combined with a campus relocation, closure of the Hawai‘i Loa campus and ongoing construction of its science laboratories, hindered the University’s ability to complete the inventories and reconciliations within the required timeframe. Effect: Failure to perform physical inventory of property and reconcile the results with the property records at least once every two years, and failure to properly tag equipment items resulted in noncompliance with the equipment and real property management requirements which increases the risk of misappropriation, loss, or inaccurate reporting of federally funded assets. Questioned Costs: None Identification of a repeat finding: This is a repeat finding of 2023-003. Recommendations: We recommend the University review and update its current fixed asset inventory and tagging processes to ensure compliance with the requirements. Specifically, we recommend the following: 1. Developing and implementing a corrective action plan to address the barriers that prevented timely completion of the physical inventory and reconciliations, including: • Assessing staffing needs and allocating adequate resources, whether through additional personnel, temporary assistance, or reallocation of responsibilities, to ensure physical inventories and reconciliations are completed timely. • Establishing a formal timeline and monitoring process for conducting and reconciling physical inventories of all departments within the required two-year cycle. • Identifying opportunities to leverage technology or asset management software to streamline and document the inventory and reconciliation process. 2. Ensuring that all equipment items are appropriately tagged or assigned unique identifiers in accordance with its Fixed Asset Policy and 2 CFR 200.313(d)(1). 3. Providing training and guidance to responsible staff on the inventory process, reconciliation procedures, and tagging requirements to reinforce accountability and ensure consistent application of policies. Views of responsible officials: The University initiated a thorough inventory process, including a requirement to tag and photograph all assets, during the fiscal year ended June 30, 2024. The inventory process was started on schedule in May 2024, and departments were asked to complete their inventory procedures and sign off on the inventory reports by June 2024. Despite the additional complications created by the University’s campus relocation project necessitated by the closure of the Hawai‘i Loa campus and the construction of the science laboratories, 91% of the departments completed their inventories prior to June 30, 2024. The remaining 9% of departments completed their inventories after requesting an extension and/or providing additional details on the requested inventory items in the meantime, and these inventories were completed during the fiscal year ending June 30, 2025. These results demonstrate improvement and progress compared to the prior year’s finding in this area and illustrate the University’s commitment to adhering to tits fixed asset inventory processes and procedures. The University is committed to addressing these issues promptly and effectively to ensure compliance with federal regulations. Accordingly, the University will conduct a thorough review of its inventory procedures, timing, technologies, training resources, and resource allocations to ensure that the next inventory process is designed to enable completion and reconciliation prior to the fiscal-year end, to include the tagging and identification of all inventory items.
Criteria: 2 CFR 200.313(d)(2) requires the non-Federal entity take a physical inventory of property and reconcile the results with the property records at least once every two years. 2 CFR 200.313(d)(1) requires “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…” Condition: The University did not complete a full physical inventory at least once every 2 years as required and did not reconcile the results with its property records. Additionally, one equipment item did not have a fixed asset tag. Context: The University’s Fixed Asset Policy and related procedures require inventories of property and equipment to be conducted at least once every 2 years. In addition, each equipment item is required to have a unique identifier or a fixed asset tag. The University has 22 departments for which a physical inventory was required. We noted that in fiscal years 2023 and 2024, physical inventories were conducted for 12 and 20 departments, respectively. In 2025, physical inventories for the remaining 2 departments were completed. However, as of June 30, 2024, the inventory results had not been reconciled to the property records. Further, in testing a non-statistical sample of seven equipment items we noted that one item did not have a unique identifier or a fixed asset tag. Cause: Although the University has established policies and procedures in place for the physical inventory and reconciliation of property and equipment and fixed asset tagging, management indicated that staffing limitations, combined with a campus relocation, closure of the Hawai‘i Loa campus and ongoing construction of its science laboratories, hindered the University’s ability to complete the inventories and reconciliations within the required timeframe. Effect: Failure to perform physical inventory of property and reconcile the results with the property records at least once every two years, and failure to properly tag equipment items resulted in noncompliance with the equipment and real property management requirements which increases the risk of misappropriation, loss, or inaccurate reporting of federally funded assets. Questioned Costs: None Identification of a repeat finding: This is a repeat finding of 2023-003. Recommendations: We recommend the University review and update its current fixed asset inventory and tagging processes to ensure compliance with the requirements. Specifically, we recommend the following: 1. Developing and implementing a corrective action plan to address the barriers that prevented timely completion of the physical inventory and reconciliations, including: • Assessing staffing needs and allocating adequate resources, whether through additional personnel, temporary assistance, or reallocation of responsibilities, to ensure physical inventories and reconciliations are completed timely. • Establishing a formal timeline and monitoring process for conducting and reconciling physical inventories of all departments within the required two-year cycle. • Identifying opportunities to leverage technology or asset management software to streamline and document the inventory and reconciliation process. 2. Ensuring that all equipment items are appropriately tagged or assigned unique identifiers in accordance with its Fixed Asset Policy and 2 CFR 200.313(d)(1). 3. Providing training and guidance to responsible staff on the inventory process, reconciliation procedures, and tagging requirements to reinforce accountability and ensure consistent application of policies. Views of responsible officials: The University initiated a thorough inventory process, including a requirement to tag and photograph all assets, during the fiscal year ended June 30, 2024. The inventory process was started on schedule in May 2024, and departments were asked to complete their inventory procedures and sign off on the inventory reports by June 2024. Despite the additional complications created by the University’s campus relocation project necessitated by the closure of the Hawai‘i Loa campus and the construction of the science laboratories, 91% of the departments completed their inventories prior to June 30, 2024. The remaining 9% of departments completed their inventories after requesting an extension and/or providing additional details on the requested inventory items in the meantime, and these inventories were completed during the fiscal year ending June 30, 2025. These results demonstrate improvement and progress compared to the prior year’s finding in this area and illustrate the University’s commitment to adhering to tits fixed asset inventory processes and procedures. The University is committed to addressing these issues promptly and effectively to ensure compliance with federal regulations. Accordingly, the University will conduct a thorough review of its inventory procedures, timing, technologies, training resources, and resource allocations to ensure that the next inventory process is designed to enable completion and reconciliation prior to the fiscal-year end, to include the tagging and identification of all inventory items.
Criteria: 2 CFR 200.313(d)(2) requires the non-Federal entity take a physical inventory of property and reconcile the results with the property records at least once every two years. 2 CFR 200.313(d)(1) requires “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…” Condition: The University did not complete a full physical inventory at least once every 2 years as required and did not reconcile the results with its property records. Additionally, one equipment item did not have a fixed asset tag. Context: The University’s Fixed Asset Policy and related procedures require inventories of property and equipment to be conducted at least once every 2 years. In addition, each equipment item is required to have a unique identifier or a fixed asset tag. The University has 22 departments for which a physical inventory was required. We noted that in fiscal years 2023 and 2024, physical inventories were conducted for 12 and 20 departments, respectively. In 2025, physical inventories for the remaining 2 departments were completed. However, as of June 30, 2024, the inventory results had not been reconciled to the property records. Further, in testing a non-statistical sample of seven equipment items we noted that one item did not have a unique identifier or a fixed asset tag. Cause: Although the University has established policies and procedures in place for the physical inventory and reconciliation of property and equipment and fixed asset tagging, management indicated that staffing limitations, combined with a campus relocation, closure of the Hawai‘i Loa campus and ongoing construction of its science laboratories, hindered the University’s ability to complete the inventories and reconciliations within the required timeframe. Effect: Failure to perform physical inventory of property and reconcile the results with the property records at least once every two years, and failure to properly tag equipment items resulted in noncompliance with the equipment and real property management requirements which increases the risk of misappropriation, loss, or inaccurate reporting of federally funded assets. Questioned Costs: None Identification of a repeat finding: This is a repeat finding of 2023-003. Recommendations: We recommend the University review and update its current fixed asset inventory and tagging processes to ensure compliance with the requirements. Specifically, we recommend the following: 1. Developing and implementing a corrective action plan to address the barriers that prevented timely completion of the physical inventory and reconciliations, including: • Assessing staffing needs and allocating adequate resources, whether through additional personnel, temporary assistance, or reallocation of responsibilities, to ensure physical inventories and reconciliations are completed timely. • Establishing a formal timeline and monitoring process for conducting and reconciling physical inventories of all departments within the required two-year cycle. • Identifying opportunities to leverage technology or asset management software to streamline and document the inventory and reconciliation process. 2. Ensuring that all equipment items are appropriately tagged or assigned unique identifiers in accordance with its Fixed Asset Policy and 2 CFR 200.313(d)(1). 3. Providing training and guidance to responsible staff on the inventory process, reconciliation procedures, and tagging requirements to reinforce accountability and ensure consistent application of policies. Views of responsible officials: The University initiated a thorough inventory process, including a requirement to tag and photograph all assets, during the fiscal year ended June 30, 2024. The inventory process was started on schedule in May 2024, and departments were asked to complete their inventory procedures and sign off on the inventory reports by June 2024. Despite the additional complications created by the University’s campus relocation project necessitated by the closure of the Hawai‘i Loa campus and the construction of the science laboratories, 91% of the departments completed their inventories prior to June 30, 2024. The remaining 9% of departments completed their inventories after requesting an extension and/or providing additional details on the requested inventory items in the meantime, and these inventories were completed during the fiscal year ending June 30, 2025. These results demonstrate improvement and progress compared to the prior year’s finding in this area and illustrate the University’s commitment to adhering to tits fixed asset inventory processes and procedures. The University is committed to addressing these issues promptly and effectively to ensure compliance with federal regulations. Accordingly, the University will conduct a thorough review of its inventory procedures, timing, technologies, training resources, and resource allocations to ensure that the next inventory process is designed to enable completion and reconciliation prior to the fiscal-year end, to include the tagging and identification of all inventory items.
Criteria: 2 CFR 200.313(d)(2) requires the non-Federal entity take a physical inventory of property and reconcile the results with the property records at least once every two years. 2 CFR 200.313(d)(1) requires “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…” Condition: The University did not complete a full physical inventory at least once every 2 years as required and did not reconcile the results with its property records. Additionally, one equipment item did not have a fixed asset tag. Context: The University’s Fixed Asset Policy and related procedures require inventories of property and equipment to be conducted at least once every 2 years. In addition, each equipment item is required to have a unique identifier or a fixed asset tag. The University has 22 departments for which a physical inventory was required. We noted that in fiscal years 2023 and 2024, physical inventories were conducted for 12 and 20 departments, respectively. In 2025, physical inventories for the remaining 2 departments were completed. However, as of June 30, 2024, the inventory results had not been reconciled to the property records. Further, in testing a non-statistical sample of seven equipment items we noted that one item did not have a unique identifier or a fixed asset tag. Cause: Although the University has established policies and procedures in place for the physical inventory and reconciliation of property and equipment and fixed asset tagging, management indicated that staffing limitations, combined with a campus relocation, closure of the Hawai‘i Loa campus and ongoing construction of its science laboratories, hindered the University’s ability to complete the inventories and reconciliations within the required timeframe. Effect: Failure to perform physical inventory of property and reconcile the results with the property records at least once every two years, and failure to properly tag equipment items resulted in noncompliance with the equipment and real property management requirements which increases the risk of misappropriation, loss, or inaccurate reporting of federally funded assets. Questioned Costs: None Identification of a repeat finding: This is a repeat finding of 2023-003. Recommendations: We recommend the University review and update its current fixed asset inventory and tagging processes to ensure compliance with the requirements. Specifically, we recommend the following: 1. Developing and implementing a corrective action plan to address the barriers that prevented timely completion of the physical inventory and reconciliations, including: • Assessing staffing needs and allocating adequate resources, whether through additional personnel, temporary assistance, or reallocation of responsibilities, to ensure physical inventories and reconciliations are completed timely. • Establishing a formal timeline and monitoring process for conducting and reconciling physical inventories of all departments within the required two-year cycle. • Identifying opportunities to leverage technology or asset management software to streamline and document the inventory and reconciliation process. 2. Ensuring that all equipment items are appropriately tagged or assigned unique identifiers in accordance with its Fixed Asset Policy and 2 CFR 200.313(d)(1). 3. Providing training and guidance to responsible staff on the inventory process, reconciliation procedures, and tagging requirements to reinforce accountability and ensure consistent application of policies. Views of responsible officials: The University initiated a thorough inventory process, including a requirement to tag and photograph all assets, during the fiscal year ended June 30, 2024. The inventory process was started on schedule in May 2024, and departments were asked to complete their inventory procedures and sign off on the inventory reports by June 2024. Despite the additional complications created by the University’s campus relocation project necessitated by the closure of the Hawai‘i Loa campus and the construction of the science laboratories, 91% of the departments completed their inventories prior to June 30, 2024. The remaining 9% of departments completed their inventories after requesting an extension and/or providing additional details on the requested inventory items in the meantime, and these inventories were completed during the fiscal year ending June 30, 2025. These results demonstrate improvement and progress compared to the prior year’s finding in this area and illustrate the University’s commitment to adhering to tits fixed asset inventory processes and procedures. The University is committed to addressing these issues promptly and effectively to ensure compliance with federal regulations. Accordingly, the University will conduct a thorough review of its inventory procedures, timing, technologies, training resources, and resource allocations to ensure that the next inventory process is designed to enable completion and reconciliation prior to the fiscal-year end, to include the tagging and identification of all inventory items.
Criteria: 2 CFR 200.313(d)(2) requires the non-Federal entity take a physical inventory of property and reconcile the results with the property records at least once every two years. 2 CFR 200.313(d)(1) requires “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…” Condition: The University did not complete a full physical inventory at least once every 2 years as required and did not reconcile the results with its property records. Additionally, one equipment item did not have a fixed asset tag. Context: The University’s Fixed Asset Policy and related procedures require inventories of property and equipment to be conducted at least once every 2 years. In addition, each equipment item is required to have a unique identifier or a fixed asset tag. The University has 22 departments for which a physical inventory was required. We noted that in fiscal years 2023 and 2024, physical inventories were conducted for 12 and 20 departments, respectively. In 2025, physical inventories for the remaining 2 departments were completed. However, as of June 30, 2024, the inventory results had not been reconciled to the property records. Further, in testing a non-statistical sample of seven equipment items we noted that one item did not have a unique identifier or a fixed asset tag. Cause: Although the University has established policies and procedures in place for the physical inventory and reconciliation of property and equipment and fixed asset tagging, management indicated that staffing limitations, combined with a campus relocation, closure of the Hawai‘i Loa campus and ongoing construction of its science laboratories, hindered the University’s ability to complete the inventories and reconciliations within the required timeframe. Effect: Failure to perform physical inventory of property and reconcile the results with the property records at least once every two years, and failure to properly tag equipment items resulted in noncompliance with the equipment and real property management requirements which increases the risk of misappropriation, loss, or inaccurate reporting of federally funded assets. Questioned Costs: None Identification of a repeat finding: This is a repeat finding of 2023-003. Recommendations: We recommend the University review and update its current fixed asset inventory and tagging processes to ensure compliance with the requirements. Specifically, we recommend the following: 1. Developing and implementing a corrective action plan to address the barriers that prevented timely completion of the physical inventory and reconciliations, including: • Assessing staffing needs and allocating adequate resources, whether through additional personnel, temporary assistance, or reallocation of responsibilities, to ensure physical inventories and reconciliations are completed timely. • Establishing a formal timeline and monitoring process for conducting and reconciling physical inventories of all departments within the required two-year cycle. • Identifying opportunities to leverage technology or asset management software to streamline and document the inventory and reconciliation process. 2. Ensuring that all equipment items are appropriately tagged or assigned unique identifiers in accordance with its Fixed Asset Policy and 2 CFR 200.313(d)(1). 3. Providing training and guidance to responsible staff on the inventory process, reconciliation procedures, and tagging requirements to reinforce accountability and ensure consistent application of policies. Views of responsible officials: The University initiated a thorough inventory process, including a requirement to tag and photograph all assets, during the fiscal year ended June 30, 2024. The inventory process was started on schedule in May 2024, and departments were asked to complete their inventory procedures and sign off on the inventory reports by June 2024. Despite the additional complications created by the University’s campus relocation project necessitated by the closure of the Hawai‘i Loa campus and the construction of the science laboratories, 91% of the departments completed their inventories prior to June 30, 2024. The remaining 9% of departments completed their inventories after requesting an extension and/or providing additional details on the requested inventory items in the meantime, and these inventories were completed during the fiscal year ending June 30, 2025. These results demonstrate improvement and progress compared to the prior year’s finding in this area and illustrate the University’s commitment to adhering to tits fixed asset inventory processes and procedures. The University is committed to addressing these issues promptly and effectively to ensure compliance with federal regulations. Accordingly, the University will conduct a thorough review of its inventory procedures, timing, technologies, training resources, and resource allocations to ensure that the next inventory process is designed to enable completion and reconciliation prior to the fiscal-year end, to include the tagging and identification of all inventory items.
Criteria: 2 CFR 200.313(d)(2) requires the non-Federal entity take a physical inventory of property and reconcile the results with the property records at least once every two years. 2 CFR 200.313(d)(1) requires “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…” Condition: The University did not complete a full physical inventory at least once every 2 years as required and did not reconcile the results with its property records. Additionally, one equipment item did not have a fixed asset tag. Context: The University’s Fixed Asset Policy and related procedures require inventories of property and equipment to be conducted at least once every 2 years. In addition, each equipment item is required to have a unique identifier or a fixed asset tag. The University has 22 departments for which a physical inventory was required. We noted that in fiscal years 2023 and 2024, physical inventories were conducted for 12 and 20 departments, respectively. In 2025, physical inventories for the remaining 2 departments were completed. However, as of June 30, 2024, the inventory results had not been reconciled to the property records. Further, in testing a non-statistical sample of seven equipment items we noted that one item did not have a unique identifier or a fixed asset tag. Cause: Although the University has established policies and procedures in place for the physical inventory and reconciliation of property and equipment and fixed asset tagging, management indicated that staffing limitations, combined with a campus relocation, closure of the Hawai‘i Loa campus and ongoing construction of its science laboratories, hindered the University’s ability to complete the inventories and reconciliations within the required timeframe. Effect: Failure to perform physical inventory of property and reconcile the results with the property records at least once every two years, and failure to properly tag equipment items resulted in noncompliance with the equipment and real property management requirements which increases the risk of misappropriation, loss, or inaccurate reporting of federally funded assets. Questioned Costs: None Identification of a repeat finding: This is a repeat finding of 2023-003. Recommendations: We recommend the University review and update its current fixed asset inventory and tagging processes to ensure compliance with the requirements. Specifically, we recommend the following: 1. Developing and implementing a corrective action plan to address the barriers that prevented timely completion of the physical inventory and reconciliations, including: • Assessing staffing needs and allocating adequate resources, whether through additional personnel, temporary assistance, or reallocation of responsibilities, to ensure physical inventories and reconciliations are completed timely. • Establishing a formal timeline and monitoring process for conducting and reconciling physical inventories of all departments within the required two-year cycle. • Identifying opportunities to leverage technology or asset management software to streamline and document the inventory and reconciliation process. 2. Ensuring that all equipment items are appropriately tagged or assigned unique identifiers in accordance with its Fixed Asset Policy and 2 CFR 200.313(d)(1). 3. Providing training and guidance to responsible staff on the inventory process, reconciliation procedures, and tagging requirements to reinforce accountability and ensure consistent application of policies. Views of responsible officials: The University initiated a thorough inventory process, including a requirement to tag and photograph all assets, during the fiscal year ended June 30, 2024. The inventory process was started on schedule in May 2024, and departments were asked to complete their inventory procedures and sign off on the inventory reports by June 2024. Despite the additional complications created by the University’s campus relocation project necessitated by the closure of the Hawai‘i Loa campus and the construction of the science laboratories, 91% of the departments completed their inventories prior to June 30, 2024. The remaining 9% of departments completed their inventories after requesting an extension and/or providing additional details on the requested inventory items in the meantime, and these inventories were completed during the fiscal year ending June 30, 2025. These results demonstrate improvement and progress compared to the prior year’s finding in this area and illustrate the University’s commitment to adhering to tits fixed asset inventory processes and procedures. The University is committed to addressing these issues promptly and effectively to ensure compliance with federal regulations. Accordingly, the University will conduct a thorough review of its inventory procedures, timing, technologies, training resources, and resource allocations to ensure that the next inventory process is designed to enable completion and reconciliation prior to the fiscal-year end, to include the tagging and identification of all inventory items.
Criteria: 2 CFR 200.313(d)(2) requires the non-Federal entity take a physical inventory of property and reconcile the results with the property records at least once every two years. 2 CFR 200.313(d)(1) requires “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…” Condition: The University did not complete a full physical inventory at least once every 2 years as required and did not reconcile the results with its property records. Additionally, one equipment item did not have a fixed asset tag. Context: The University’s Fixed Asset Policy and related procedures require inventories of property and equipment to be conducted at least once every 2 years. In addition, each equipment item is required to have a unique identifier or a fixed asset tag. The University has 22 departments for which a physical inventory was required. We noted that in fiscal years 2023 and 2024, physical inventories were conducted for 12 and 20 departments, respectively. In 2025, physical inventories for the remaining 2 departments were completed. However, as of June 30, 2024, the inventory results had not been reconciled to the property records. Further, in testing a non-statistical sample of seven equipment items we noted that one item did not have a unique identifier or a fixed asset tag. Cause: Although the University has established policies and procedures in place for the physical inventory and reconciliation of property and equipment and fixed asset tagging, management indicated that staffing limitations, combined with a campus relocation, closure of the Hawai‘i Loa campus and ongoing construction of its science laboratories, hindered the University’s ability to complete the inventories and reconciliations within the required timeframe. Effect: Failure to perform physical inventory of property and reconcile the results with the property records at least once every two years, and failure to properly tag equipment items resulted in noncompliance with the equipment and real property management requirements which increases the risk of misappropriation, loss, or inaccurate reporting of federally funded assets. Questioned Costs: None Identification of a repeat finding: This is a repeat finding of 2023-003. Recommendations: We recommend the University review and update its current fixed asset inventory and tagging processes to ensure compliance with the requirements. Specifically, we recommend the following: 1. Developing and implementing a corrective action plan to address the barriers that prevented timely completion of the physical inventory and reconciliations, including: • Assessing staffing needs and allocating adequate resources, whether through additional personnel, temporary assistance, or reallocation of responsibilities, to ensure physical inventories and reconciliations are completed timely. • Establishing a formal timeline and monitoring process for conducting and reconciling physical inventories of all departments within the required two-year cycle. • Identifying opportunities to leverage technology or asset management software to streamline and document the inventory and reconciliation process. 2. Ensuring that all equipment items are appropriately tagged or assigned unique identifiers in accordance with its Fixed Asset Policy and 2 CFR 200.313(d)(1). 3. Providing training and guidance to responsible staff on the inventory process, reconciliation procedures, and tagging requirements to reinforce accountability and ensure consistent application of policies. Views of responsible officials: The University initiated a thorough inventory process, including a requirement to tag and photograph all assets, during the fiscal year ended June 30, 2024. The inventory process was started on schedule in May 2024, and departments were asked to complete their inventory procedures and sign off on the inventory reports by June 2024. Despite the additional complications created by the University’s campus relocation project necessitated by the closure of the Hawai‘i Loa campus and the construction of the science laboratories, 91% of the departments completed their inventories prior to June 30, 2024. The remaining 9% of departments completed their inventories after requesting an extension and/or providing additional details on the requested inventory items in the meantime, and these inventories were completed during the fiscal year ending June 30, 2025. These results demonstrate improvement and progress compared to the prior year’s finding in this area and illustrate the University’s commitment to adhering to tits fixed asset inventory processes and procedures. The University is committed to addressing these issues promptly and effectively to ensure compliance with federal regulations. Accordingly, the University will conduct a thorough review of its inventory procedures, timing, technologies, training resources, and resource allocations to ensure that the next inventory process is designed to enable completion and reconciliation prior to the fiscal-year end, to include the tagging and identification of all inventory items.
Criteria: 2 CFR 200.313(d)(2) requires the non-Federal entity take a physical inventory of property and reconcile the results with the property records at least once every two years. 2 CFR 200.313(d)(1) requires “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…” Condition: The University did not complete a full physical inventory at least once every 2 years as required and did not reconcile the results with its property records. Additionally, one equipment item did not have a fixed asset tag. Context: The University’s Fixed Asset Policy and related procedures require inventories of property and equipment to be conducted at least once every 2 years. In addition, each equipment item is required to have a unique identifier or a fixed asset tag. The University has 22 departments for which a physical inventory was required. We noted that in fiscal years 2023 and 2024, physical inventories were conducted for 12 and 20 departments, respectively. In 2025, physical inventories for the remaining 2 departments were completed. However, as of June 30, 2024, the inventory results had not been reconciled to the property records. Further, in testing a non-statistical sample of seven equipment items we noted that one item did not have a unique identifier or a fixed asset tag. Cause: Although the University has established policies and procedures in place for the physical inventory and reconciliation of property and equipment and fixed asset tagging, management indicated that staffing limitations, combined with a campus relocation, closure of the Hawai‘i Loa campus and ongoing construction of its science laboratories, hindered the University’s ability to complete the inventories and reconciliations within the required timeframe. Effect: Failure to perform physical inventory of property and reconcile the results with the property records at least once every two years, and failure to properly tag equipment items resulted in noncompliance with the equipment and real property management requirements which increases the risk of misappropriation, loss, or inaccurate reporting of federally funded assets. Questioned Costs: None Identification of a repeat finding: This is a repeat finding of 2023-003. Recommendations: We recommend the University review and update its current fixed asset inventory and tagging processes to ensure compliance with the requirements. Specifically, we recommend the following: 1. Developing and implementing a corrective action plan to address the barriers that prevented timely completion of the physical inventory and reconciliations, including: • Assessing staffing needs and allocating adequate resources, whether through additional personnel, temporary assistance, or reallocation of responsibilities, to ensure physical inventories and reconciliations are completed timely. • Establishing a formal timeline and monitoring process for conducting and reconciling physical inventories of all departments within the required two-year cycle. • Identifying opportunities to leverage technology or asset management software to streamline and document the inventory and reconciliation process. 2. Ensuring that all equipment items are appropriately tagged or assigned unique identifiers in accordance with its Fixed Asset Policy and 2 CFR 200.313(d)(1). 3. Providing training and guidance to responsible staff on the inventory process, reconciliation procedures, and tagging requirements to reinforce accountability and ensure consistent application of policies. Views of responsible officials: The University initiated a thorough inventory process, including a requirement to tag and photograph all assets, during the fiscal year ended June 30, 2024. The inventory process was started on schedule in May 2024, and departments were asked to complete their inventory procedures and sign off on the inventory reports by June 2024. Despite the additional complications created by the University’s campus relocation project necessitated by the closure of the Hawai‘i Loa campus and the construction of the science laboratories, 91% of the departments completed their inventories prior to June 30, 2024. The remaining 9% of departments completed their inventories after requesting an extension and/or providing additional details on the requested inventory items in the meantime, and these inventories were completed during the fiscal year ending June 30, 2025. These results demonstrate improvement and progress compared to the prior year’s finding in this area and illustrate the University’s commitment to adhering to tits fixed asset inventory processes and procedures. The University is committed to addressing these issues promptly and effectively to ensure compliance with federal regulations. Accordingly, the University will conduct a thorough review of its inventory procedures, timing, technologies, training resources, and resource allocations to ensure that the next inventory process is designed to enable completion and reconciliation prior to the fiscal-year end, to include the tagging and identification of all inventory items.
Criteria: 2 CFR 200.313(d)(2) requires the non-Federal entity take a physical inventory of property and reconcile the results with the property records at least once every two years. 2 CFR 200.313(d)(1) requires “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…” Condition: The University did not complete a full physical inventory at least once every 2 years as required and did not reconcile the results with its property records. Additionally, one equipment item did not have a fixed asset tag. Context: The University’s Fixed Asset Policy and related procedures require inventories of property and equipment to be conducted at least once every 2 years. In addition, each equipment item is required to have a unique identifier or a fixed asset tag. The University has 22 departments for which a physical inventory was required. We noted that in fiscal years 2023 and 2024, physical inventories were conducted for 12 and 20 departments, respectively. In 2025, physical inventories for the remaining 2 departments were completed. However, as of June 30, 2024, the inventory results had not been reconciled to the property records. Further, in testing a non-statistical sample of seven equipment items we noted that one item did not have a unique identifier or a fixed asset tag. Cause: Although the University has established policies and procedures in place for the physical inventory and reconciliation of property and equipment and fixed asset tagging, management indicated that staffing limitations, combined with a campus relocation, closure of the Hawai‘i Loa campus and ongoing construction of its science laboratories, hindered the University’s ability to complete the inventories and reconciliations within the required timeframe. Effect: Failure to perform physical inventory of property and reconcile the results with the property records at least once every two years, and failure to properly tag equipment items resulted in noncompliance with the equipment and real property management requirements which increases the risk of misappropriation, loss, or inaccurate reporting of federally funded assets. Questioned Costs: None Identification of a repeat finding: This is a repeat finding of 2023-003. Recommendations: We recommend the University review and update its current fixed asset inventory and tagging processes to ensure compliance with the requirements. Specifically, we recommend the following: 1. Developing and implementing a corrective action plan to address the barriers that prevented timely completion of the physical inventory and reconciliations, including: • Assessing staffing needs and allocating adequate resources, whether through additional personnel, temporary assistance, or reallocation of responsibilities, to ensure physical inventories and reconciliations are completed timely. • Establishing a formal timeline and monitoring process for conducting and reconciling physical inventories of all departments within the required two-year cycle. • Identifying opportunities to leverage technology or asset management software to streamline and document the inventory and reconciliation process. 2. Ensuring that all equipment items are appropriately tagged or assigned unique identifiers in accordance with its Fixed Asset Policy and 2 CFR 200.313(d)(1). 3. Providing training and guidance to responsible staff on the inventory process, reconciliation procedures, and tagging requirements to reinforce accountability and ensure consistent application of policies. Views of responsible officials: The University initiated a thorough inventory process, including a requirement to tag and photograph all assets, during the fiscal year ended June 30, 2024. The inventory process was started on schedule in May 2024, and departments were asked to complete their inventory procedures and sign off on the inventory reports by June 2024. Despite the additional complications created by the University’s campus relocation project necessitated by the closure of the Hawai‘i Loa campus and the construction of the science laboratories, 91% of the departments completed their inventories prior to June 30, 2024. The remaining 9% of departments completed their inventories after requesting an extension and/or providing additional details on the requested inventory items in the meantime, and these inventories were completed during the fiscal year ending June 30, 2025. These results demonstrate improvement and progress compared to the prior year’s finding in this area and illustrate the University’s commitment to adhering to tits fixed asset inventory processes and procedures. The University is committed to addressing these issues promptly and effectively to ensure compliance with federal regulations. Accordingly, the University will conduct a thorough review of its inventory procedures, timing, technologies, training resources, and resource allocations to ensure that the next inventory process is designed to enable completion and reconciliation prior to the fiscal-year end, to include the tagging and identification of all inventory items.
Criteria: 2 CFR 200.313(d)(2) requires the non-Federal entity take a physical inventory of property and reconcile the results with the property records at least once every two years. 2 CFR 200.313(d)(1) requires “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…” Condition: The University did not complete a full physical inventory at least once every 2 years as required and did not reconcile the results with its property records. Additionally, one equipment item did not have a fixed asset tag. Context: The University’s Fixed Asset Policy and related procedures require inventories of property and equipment to be conducted at least once every 2 years. In addition, each equipment item is required to have a unique identifier or a fixed asset tag. The University has 22 departments for which a physical inventory was required. We noted that in fiscal years 2023 and 2024, physical inventories were conducted for 12 and 20 departments, respectively. In 2025, physical inventories for the remaining 2 departments were completed. However, as of June 30, 2024, the inventory results had not been reconciled to the property records. Further, in testing a non-statistical sample of seven equipment items we noted that one item did not have a unique identifier or a fixed asset tag. Cause: Although the University has established policies and procedures in place for the physical inventory and reconciliation of property and equipment and fixed asset tagging, management indicated that staffing limitations, combined with a campus relocation, closure of the Hawai‘i Loa campus and ongoing construction of its science laboratories, hindered the University’s ability to complete the inventories and reconciliations within the required timeframe. Effect: Failure to perform physical inventory of property and reconcile the results with the property records at least once every two years, and failure to properly tag equipment items resulted in noncompliance with the equipment and real property management requirements which increases the risk of misappropriation, loss, or inaccurate reporting of federally funded assets. Questioned Costs: None Identification of a repeat finding: This is a repeat finding of 2023-003. Recommendations: We recommend the University review and update its current fixed asset inventory and tagging processes to ensure compliance with the requirements. Specifically, we recommend the following: 1. Developing and implementing a corrective action plan to address the barriers that prevented timely completion of the physical inventory and reconciliations, including: • Assessing staffing needs and allocating adequate resources, whether through additional personnel, temporary assistance, or reallocation of responsibilities, to ensure physical inventories and reconciliations are completed timely. • Establishing a formal timeline and monitoring process for conducting and reconciling physical inventories of all departments within the required two-year cycle. • Identifying opportunities to leverage technology or asset management software to streamline and document the inventory and reconciliation process. 2. Ensuring that all equipment items are appropriately tagged or assigned unique identifiers in accordance with its Fixed Asset Policy and 2 CFR 200.313(d)(1). 3. Providing training and guidance to responsible staff on the inventory process, reconciliation procedures, and tagging requirements to reinforce accountability and ensure consistent application of policies. Views of responsible officials: The University initiated a thorough inventory process, including a requirement to tag and photograph all assets, during the fiscal year ended June 30, 2024. The inventory process was started on schedule in May 2024, and departments were asked to complete their inventory procedures and sign off on the inventory reports by June 2024. Despite the additional complications created by the University’s campus relocation project necessitated by the closure of the Hawai‘i Loa campus and the construction of the science laboratories, 91% of the departments completed their inventories prior to June 30, 2024. The remaining 9% of departments completed their inventories after requesting an extension and/or providing additional details on the requested inventory items in the meantime, and these inventories were completed during the fiscal year ending June 30, 2025. These results demonstrate improvement and progress compared to the prior year’s finding in this area and illustrate the University’s commitment to adhering to tits fixed asset inventory processes and procedures. The University is committed to addressing these issues promptly and effectively to ensure compliance with federal regulations. Accordingly, the University will conduct a thorough review of its inventory procedures, timing, technologies, training resources, and resource allocations to ensure that the next inventory process is designed to enable completion and reconciliation prior to the fiscal-year end, to include the tagging and identification of all inventory items.
Criteria: 2 CFR 200.313(d)(2) requires the non-Federal entity take a physical inventory of property and reconcile the results with the property records at least once every two years. 2 CFR 200.313(d)(1) requires “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…” Condition: The University did not complete a full physical inventory at least once every 2 years as required and did not reconcile the results with its property records. Additionally, one equipment item did not have a fixed asset tag. Context: The University’s Fixed Asset Policy and related procedures require inventories of property and equipment to be conducted at least once every 2 years. In addition, each equipment item is required to have a unique identifier or a fixed asset tag. The University has 22 departments for which a physical inventory was required. We noted that in fiscal years 2023 and 2024, physical inventories were conducted for 12 and 20 departments, respectively. In 2025, physical inventories for the remaining 2 departments were completed. However, as of June 30, 2024, the inventory results had not been reconciled to the property records. Further, in testing a non-statistical sample of seven equipment items we noted that one item did not have a unique identifier or a fixed asset tag. Cause: Although the University has established policies and procedures in place for the physical inventory and reconciliation of property and equipment and fixed asset tagging, management indicated that staffing limitations, combined with a campus relocation, closure of the Hawai‘i Loa campus and ongoing construction of its science laboratories, hindered the University’s ability to complete the inventories and reconciliations within the required timeframe. Effect: Failure to perform physical inventory of property and reconcile the results with the property records at least once every two years, and failure to properly tag equipment items resulted in noncompliance with the equipment and real property management requirements which increases the risk of misappropriation, loss, or inaccurate reporting of federally funded assets. Questioned Costs: None Identification of a repeat finding: This is a repeat finding of 2023-003. Recommendations: We recommend the University review and update its current fixed asset inventory and tagging processes to ensure compliance with the requirements. Specifically, we recommend the following: 1. Developing and implementing a corrective action plan to address the barriers that prevented timely completion of the physical inventory and reconciliations, including: • Assessing staffing needs and allocating adequate resources, whether through additional personnel, temporary assistance, or reallocation of responsibilities, to ensure physical inventories and reconciliations are completed timely. • Establishing a formal timeline and monitoring process for conducting and reconciling physical inventories of all departments within the required two-year cycle. • Identifying opportunities to leverage technology or asset management software to streamline and document the inventory and reconciliation process. 2. Ensuring that all equipment items are appropriately tagged or assigned unique identifiers in accordance with its Fixed Asset Policy and 2 CFR 200.313(d)(1). 3. Providing training and guidance to responsible staff on the inventory process, reconciliation procedures, and tagging requirements to reinforce accountability and ensure consistent application of policies. Views of responsible officials: The University initiated a thorough inventory process, including a requirement to tag and photograph all assets, during the fiscal year ended June 30, 2024. The inventory process was started on schedule in May 2024, and departments were asked to complete their inventory procedures and sign off on the inventory reports by June 2024. Despite the additional complications created by the University’s campus relocation project necessitated by the closure of the Hawai‘i Loa campus and the construction of the science laboratories, 91% of the departments completed their inventories prior to June 30, 2024. The remaining 9% of departments completed their inventories after requesting an extension and/or providing additional details on the requested inventory items in the meantime, and these inventories were completed during the fiscal year ending June 30, 2025. These results demonstrate improvement and progress compared to the prior year’s finding in this area and illustrate the University’s commitment to adhering to tits fixed asset inventory processes and procedures. The University is committed to addressing these issues promptly and effectively to ensure compliance with federal regulations. Accordingly, the University will conduct a thorough review of its inventory procedures, timing, technologies, training resources, and resource allocations to ensure that the next inventory process is designed to enable completion and reconciliation prior to the fiscal-year end, to include the tagging and identification of all inventory items.
Criteria: 2 CFR 200.313(d)(2) requires the non-Federal entity take a physical inventory of property and reconcile the results with the property records at least once every two years. 2 CFR 200.313(d)(1) requires “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…” Condition: The University did not complete a full physical inventory at least once every 2 years as required and did not reconcile the results with its property records. Additionally, one equipment item did not have a fixed asset tag. Context: The University’s Fixed Asset Policy and related procedures require inventories of property and equipment to be conducted at least once every 2 years. In addition, each equipment item is required to have a unique identifier or a fixed asset tag. The University has 22 departments for which a physical inventory was required. We noted that in fiscal years 2023 and 2024, physical inventories were conducted for 12 and 20 departments, respectively. In 2025, physical inventories for the remaining 2 departments were completed. However, as of June 30, 2024, the inventory results had not been reconciled to the property records. Further, in testing a non-statistical sample of seven equipment items we noted that one item did not have a unique identifier or a fixed asset tag. Cause: Although the University has established policies and procedures in place for the physical inventory and reconciliation of property and equipment and fixed asset tagging, management indicated that staffing limitations, combined with a campus relocation, closure of the Hawai‘i Loa campus and ongoing construction of its science laboratories, hindered the University’s ability to complete the inventories and reconciliations within the required timeframe. Effect: Failure to perform physical inventory of property and reconcile the results with the property records at least once every two years, and failure to properly tag equipment items resulted in noncompliance with the equipment and real property management requirements which increases the risk of misappropriation, loss, or inaccurate reporting of federally funded assets. Questioned Costs: None Identification of a repeat finding: This is a repeat finding of 2023-003. Recommendations: We recommend the University review and update its current fixed asset inventory and tagging processes to ensure compliance with the requirements. Specifically, we recommend the following: 1. Developing and implementing a corrective action plan to address the barriers that prevented timely completion of the physical inventory and reconciliations, including: • Assessing staffing needs and allocating adequate resources, whether through additional personnel, temporary assistance, or reallocation of responsibilities, to ensure physical inventories and reconciliations are completed timely. • Establishing a formal timeline and monitoring process for conducting and reconciling physical inventories of all departments within the required two-year cycle. • Identifying opportunities to leverage technology or asset management software to streamline and document the inventory and reconciliation process. 2. Ensuring that all equipment items are appropriately tagged or assigned unique identifiers in accordance with its Fixed Asset Policy and 2 CFR 200.313(d)(1). 3. Providing training and guidance to responsible staff on the inventory process, reconciliation procedures, and tagging requirements to reinforce accountability and ensure consistent application of policies. Views of responsible officials: The University initiated a thorough inventory process, including a requirement to tag and photograph all assets, during the fiscal year ended June 30, 2024. The inventory process was started on schedule in May 2024, and departments were asked to complete their inventory procedures and sign off on the inventory reports by June 2024. Despite the additional complications created by the University’s campus relocation project necessitated by the closure of the Hawai‘i Loa campus and the construction of the science laboratories, 91% of the departments completed their inventories prior to June 30, 2024. The remaining 9% of departments completed their inventories after requesting an extension and/or providing additional details on the requested inventory items in the meantime, and these inventories were completed during the fiscal year ending June 30, 2025. These results demonstrate improvement and progress compared to the prior year’s finding in this area and illustrate the University’s commitment to adhering to tits fixed asset inventory processes and procedures. The University is committed to addressing these issues promptly and effectively to ensure compliance with federal regulations. Accordingly, the University will conduct a thorough review of its inventory procedures, timing, technologies, training resources, and resource allocations to ensure that the next inventory process is designed to enable completion and reconciliation prior to the fiscal-year end, to include the tagging and identification of all inventory items.
U.S. Department of Education Fund for the Improvement of Postsecondary Education - 84.116Z Award Number - P116Z220080 Criteria or Specific Requirement - Equipment and Real Property Management Non-federal entities other than states must follow 2 CFR section 200.313 which require that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property (2 CFR section 200.313(d)(1)). Condition - The College property records do not contain all of the information required under 2 CFR section 200.313. Cause - The College has not historically received federal awards that would allow for purchase of equipment and real property and therefore was not aware of the specific requirements. Effect or Potential Effect - Failure to properly track and maintain equipment purchased with Federal funding could ultimately lead to loss of equipment procured with Federal funds or noncompliance with Uniform Guidance requirements. Questioned Costs - None noted. Context - Approximately $4,075,000 of the $4,463,801 of Federal expenditures since grant inception have been for equipment and real property. When performing testing, we noted that the College did not have proper tracking procedures in place for property records as the records did not contain a serial number or other identification number, there was no indication in the property records that the equipment and real property was purchased with Federal funds and the location, use and condition of the property was not identified. Identification as a repeat finding, if applicable - Yes, 2023-002 Recommendation - We recommend that management take necessary steps to ensure compliance with equipment and real property maintenance requirements to comply with 2 CFR section 200.313. View of Responsible Official and Planned Corrective Actions – Management agrees with the stated finding and has implemented a corrective action plan.
Assistance Listing Number 84.425 Education Stabilization Fund Department of Education Passed Through North Dakota Department of Public Instruction Passed Through Turtle Mountain Band of Chippewa Indians Equipment/Real Property Management Criteria 2 CFR sections 200.313(c) and (e) includes a requirement for the non-federal entity to not encumber the equipment without prior approval of the federal awarding agency. 2 CFR section 200.311 includes a requirement for the non-federal entity, with prior approval by the ED or passthrough entity, may also use ESF funds to purchase real property, perform construction or minor remodeling, and for improvements to land, buildings, or equipment. Condition The District did not obtain prior approval for equipment acquisition or construction projects. Context Per discussion with the District staff and review of program expenditures, there were 19 capital asset acquisitions during the year, we tested all of them for prior state approval. One purchase was approved by the state after the purchase was made. Seven purchases were made without prior state approval. Cause The District did not properly submit for prior approval for equipment acquisition or construction until after the expenditure had been incurred and in some instances there were no submissions for prior approval. Effect The District may have purchased capital items that were not allowed by the State. Questioned Costs Undeterminable. Repeat Finding See prior year finding 2023-004. Recommendation We recommend the District to review all compliance requirements of federal programs to ensure they have procedures to ensure compliance with those requirements and for the requests for acquisition to be made timely and for the appropriate expenditure amount. Management’s Response See corrective action plan.
Assistance Listing Number 84.425 Education Stabilization Fund Department of Education Passed Through North Dakota Department of Public Instruction Passed Through Turtle Mountain Band of Chippewa Indians Equipment/Real Property Management Criteria 2 CFR sections 200.313(c) and (e) includes a requirement for the non-federal entity to not encumber the equipment without prior approval of the federal awarding agency. 2 CFR section 200.311 includes a requirement for the non-federal entity, with prior approval by the ED or passthrough entity, may also use ESF funds to purchase real property, perform construction or minor remodeling, and for improvements to land, buildings, or equipment. Condition The District did not obtain prior approval for equipment acquisition or construction projects. Context Per discussion with the District staff and review of program expenditures, there were 19 capital asset acquisitions during the year, we tested all of them for prior state approval. One purchase was approved by the state after the purchase was made. Seven purchases were made without prior state approval. Cause The District did not properly submit for prior approval for equipment acquisition or construction until after the expenditure had been incurred and in some instances there were no submissions for prior approval. Effect The District may have purchased capital items that were not allowed by the State. Questioned Costs Undeterminable. Repeat Finding See prior year finding 2023-004. Recommendation We recommend the District to review all compliance requirements of federal programs to ensure they have procedures to ensure compliance with those requirements and for the requests for acquisition to be made timely and for the appropriate expenditure amount. Management’s Response See corrective action plan.
Assistance Listing Number 84.425 Education Stabilization Fund Department of Education Passed Through North Dakota Department of Public Instruction Passed Through Turtle Mountain Band of Chippewa Indians Equipment/Real Property Management Criteria 2 CFR sections 200.313(c) and (e) includes a requirement for the non-federal entity to not encumber the equipment without prior approval of the federal awarding agency. 2 CFR section 200.311 includes a requirement for the non-federal entity, with prior approval by the ED or passthrough entity, may also use ESF funds to purchase real property, perform construction or minor remodeling, and for improvements to land, buildings, or equipment. Condition The District did not obtain prior approval for equipment acquisition or construction projects. Context Per discussion with the District staff and review of program expenditures, there were 19 capital asset acquisitions during the year, we tested all of them for prior state approval. One purchase was approved by the state after the purchase was made. Seven purchases were made without prior state approval. Cause The District did not properly submit for prior approval for equipment acquisition or construction until after the expenditure had been incurred and in some instances there were no submissions for prior approval. Effect The District may have purchased capital items that were not allowed by the State. Questioned Costs Undeterminable. Repeat Finding See prior year finding 2023-004. Recommendation We recommend the District to review all compliance requirements of federal programs to ensure they have procedures to ensure compliance with those requirements and for the requests for acquisition to be made timely and for the appropriate expenditure amount. Management’s Response See 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 Finding: 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 was not able to provide a complete capital asset listing with the required information to support that the equipment purchases of $46,727 and $12,408 with COVID-19 – Education Stabilization Fund ESSER II and ESSER III funds had been added to the capital asset listing. Additionally, the School Corporation was not able to provide support that an inventory of capital assets had taken place at least once in the last 2 year. 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. 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 Finding: 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 was not able to provide a complete capital asset listing with the required information to support that the equipment purchases of $46,727 and $12,408 with COVID-19 – Education Stabilization Fund ESSER II and ESSER III funds had been added to the capital asset listing. Additionally, the School Corporation was not able to provide support that an inventory of capital assets had taken place at least once in the last 2 year. 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. 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.
Equipment (15.042) Criteria: CFR Section 200.313 under the Uniform Guidance requires a physical inventory of property acquired with federal dollars to be conducted at least once every two years. Condition: The District does not have physical inventory procedures in place for equipment purchased with federal dollars. Cause: Management oversight Effects: There is an increased risk that funds received for disposal of equipment purchased with federal dollars would not be retained by the program. Questioned Costs: None Context: The District was unable to provide support for a physical inventory of equipment purchased with federal dollars conducted in the last two years. Repeat Finding: Yes Recommendation: We recommend the District implement policies and procedures for conducting a physical inventory of equipment purchased with federal dollars at least once every two years. Management’s Response: The District will perform a physical inventory of all equipment purchased with federal dollars.
Equipment (15.042) Criteria: CFR Section 200.313 under the Uniform Guidance requires a physical inventory of property acquired with federal dollars to be conducted at least once every two years. Condition: The District does not have physical inventory procedures in place for equipment purchased with federal dollars. Cause: Management oversight Effects: There is an increased risk that funds received for disposal of equipment purchased with federal dollars would not be retained by the program. Questioned Costs: None Context: The District was unable to provide support for a physical inventory of equipment purchased with federal dollars conducted in the last two years. Repeat Finding: Yes Recommendation: We recommend the District implement policies and procedures for conducting a physical inventory of equipment purchased with federal dollars at least once every two years. Management’s Response: The District will perform a physical inventory of all equipment purchased with federal dollars.
2024-008 – Physical Inventory on Property and Equipment Federal Agency: Various and U.S. Department of Education Federal Program Title: Research and Development Cluster, Higher Education – Institutional Aid Federal Assistance Listing Numbers: Various and 84.031 Federal Award Identification Number and Year: Various Award Period: 7/1/2023 – 6/30/2024 Type of Finding: Other Matters and Significant Deficiency in Internal Control Over Compliance Criteria or Specific Requirement: A physical inventory of the property must be taken and the results reconciled with the property records at least one very two years (2 CFR section 200.313(d)(2)). Condition: No evidence of a physical inventory count performed by the University. Questioned Costs: N/A Context: During the testing property and equipment, there was no evidence provided by the University of a physical inventory count performed in the previous two years. Cause: Internal controls surrounding physical inventory of equipment purchased with federal funds is not designed or operating effectively. Effect: No supporting documentation can be provided showing that physical inventory is taking place. Repeat Finding: No. Recommendation: We recommend that the University review and revise their current procedures and policies related to capitalized equipment purchased with federal funds to ensure a physical inventory count is being performed once every two years. Views of Responsible Officials: There is no disagreement with the audit finding and the University is in the process of implementing corrective procedures.