Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.
Finding 2024-001: Inaccurate Property Management Records Federal Agency: The Corporation for National and Community Service U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Department of Education (USDE) U.S. Department of Energy (USDOE) U.S. Department of Health and Human Services (USDHHS) U.S. Department of Homeland Security (USDHS) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) U.S. Director of National Intelligence (USDNI) U.S. Environmental Protection Agency (USEPA) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) Social Security Administration (SSA) U.S. Department of Veteran Affairs (USDVA) All Pass-Through Entities Program Name: Research and Development (R&D) Cluster ALN and Program Expenditures: Various ($539,302,615) Federal Award Numbers: Various – See schedule of award numbers Federal Award Year: Various – See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to maintaining accurate property management records for equipment purchased with federal R&D Cluster program awards. The University conducts research at multiple locations throughout its campus where equipment purchased with federal awards is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number which funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. The University is required to safeguard equipment purchased with federal awards, maintain current property records, and to perform a physical inventory of equipment on a biennial basis. During our physical observation of 60 pieces of equipment from the University’s property management records (with an original cost value of $4,672,419 and a net book value (NBV) of $1,635,234) purchased with federal R&D Cluster awards, we noted the following: - Three items (with an original cost value of $33,141 and a NBV of $1,309) did not have an asset tag affixed to them in accordance with University policy at the time of our observation. - One item (with an original cost value of $14,500 and a NBV of $0) was not able to be located for our testing. University management believes this item was disposed of but not appropriately removed from the property records and federal equipment listing. Additionally, during our physical observation of six pieces of equipment from multiple locations throughout the University’s campus, we observed that the items had asset tags affixed to them but were not included in the University’s property management records. As such, we were unable to determine the original cost value and NBV of these items. Further, we noted adequate management review controls have not been established to ensure property management records were accurately updated and equipment was properly tagged in accordance with University policy. The NBV of equipment related to the R&D Cluster program totaled $64,136,745 at June 30, 2024. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303, requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the decentralized nature of equipment record keeping process can result in delayed reporting of asset tagging and disposal. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2023-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University concurs with the finding. The testing period for FY2024 fell within the remediation period from FY2023. The University will continue to address these concerns with departments by conducting equipment training and addressing untagged assets.