Information on the federal program: Subject: Education Stabilization Fund – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425D Federal Award Numbers: S425D210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness Criteria: 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: 1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. 2. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. 3. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. 4. (4) Adequate maintenance procedures must be developed to keep the property in good condition. . . ." Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management Requirements compliance requirements. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of an internal control system to ensure assets purchased with federal funds are added to the capital asset listing could have allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds, specifically with capital assets purchased with those funds. Questioned Costs: There were no questioned costs identified. Context: For the one sample item tested in a population of two, we noted the School Corporation expended $175,000 on baseball bleacher renovations which was charged to the ESSER II (84.425D) grant award. The bleachers were not reported on the capital asset listing for the School Corporation as of June 30, 2024. Identification as a repeat finding: No. Recommendation: We recommend the School Corporation implement a control system to ensure that capital assets are added to the capital asset listing at the time they are placed in service. An inventory of capital assets should be taken at least once every two years and reviewed for potential capital asset dispositions. The capital asset listing should include all required information to track capital asset acquisitions, including the federal funding source if applicable. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
Information on the federal program: Subject: Education Stabilization Fund – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425U Federal Award Numbers: S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness Criteria: 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. . . ." Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management Requirements compliance requirements. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: For 2 of 3 sample items tested, we noted the School Corporation expended approximately $22,000 and $67,000 on a new sign and servers, respectively. These assets were charged to the ESSER III (84.425U) grant award. It was noted these capital asset acquisitions were not reported on the capital asset listing for the School Corporation as of June 30, 2024. Additionally, we noted the School Corporation’s capital asset listing did not contain all the required information, including the source of funding for the property, outlined in the criteria above. Identification as a repeat finding: No. Recommendation: We recommend the School Corporation update the capital asset listing at least annually to include all equipment and real property acquisitions and review for potential capital asset dispositions. The capital asset listing should include all required information to track capital asset acquisitions purchased with federal funding. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
Information on the federal program: Subject: Education Stabilization Fund – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425U Federal Award Numbers: S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness Criteria: 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. . . ." Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management Requirements compliance requirements. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: We noted the School Corporation expended approximately $63,000 and $44,000 on pump and HVAC replacements, respectively. These assets were charged to the ESSER III (84.425U) grant award. It was noted these capital asset acquisitions were not reported on the capital asset listing for the School Corporation as of June 30, 2024. Additionally, we noted the School Corporation’s capital asset listing did not contain all the required information, including the source of funding for the property, outlined in the criteria above. Identification as a repeat finding: No. Recommendation: We recommend the School Corporation update the capital asset listing at least annually to include all equipment and real property acquisitions and review for potential capital asset dispositions. The capital asset listing should include all required information to track capital asset acquisitions purchased with federal funding. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
FINDING 2024-007 Information on the federal program: Subject: Education Stabilization Fund – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425U Federal Award Numbers: S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness Criteria: 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. . . ." Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management Requirements compliance requirements. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: The School Corporation expended $341,336 on building renovations which was charged to the ESSER III (84.425U) grant award. It was noted these capital asset acquisitions were not reported on the capital asset listing for the School Corporation as of June 30, 2024. Additionally, we noted the School Corporation’s capital asset listing did not contain all the required information, including the source of funding for the property, outlined in the criteria above. Identification as a repeat finding: No. Recommendation: We recommend the School Corporation update the capital asset listing at least annually to include all equipment and real property acquisitions and review for potential capital asset dispositions. The capital asset listing should include all required information to track capital asset acquisitions purchased with federal funding. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
Information on the federal program: Subject: Education Stabilization Fund – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Award Number: S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness Criteria: 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. . . ." Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management Requirements compliance requirements. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: For 3 of 3 sample items tested, we noted the School Corporation expended $556,400 on roof renovations and $4,280,891 on HVAC upgrades which was charged to the ESSER II (84.425D) and ESSER III (84.425U) grant awards. It was noted these capital asset acquisitions were not reported on the capital asset listing for the School Corporation as of June 30, 2024. Additionally, we noted the School Corporation’s capital asset listing did not contain all the required information, including the source of federal funding for the property, outlined in the criteria above. Identification as a repeat finding: This is a repeat finding from the immediately prior audit. The finding number was 2022-001. Recommendation: We recommend the School Corporation update the capital asset listing at least annually to include all equipment and real property acquisitions and review for potential capital asset dispositions. The capital asset listing should include all required information to track capital asset acquisitions purchased with federal funding. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
Information on the federal program: Subject: Education Stabilization Fund – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Award Number: S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness Criteria: 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. . . ." Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management Requirements compliance requirements. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: For 3 of 3 sample items tested, we noted the School Corporation expended $556,400 on roof renovations and $4,280,891 on HVAC upgrades which was charged to the ESSER II (84.425D) and ESSER III (84.425U) grant awards. It was noted these capital asset acquisitions were not reported on the capital asset listing for the School Corporation as of June 30, 2024. Additionally, we noted the School Corporation’s capital asset listing did not contain all the required information, including the source of federal funding for the property, outlined in the criteria above. Identification as a repeat finding: This is a repeat finding from the immediately prior audit. The finding number was 2022-001. Recommendation: We recommend the School Corporation update the capital asset listing at least annually to include all equipment and real property acquisitions and review for potential capital asset dispositions. The capital asset listing should include all required information to track capital asset acquisitions purchased with federal funding. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
FINDING 2024-005 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Number: 84.425U Federal Award Number and Year (or Other Identifying Numbers): S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Other Matters INDIANA STATE BOARD OF ACCOUNTS 23 SCHOOL CITY OF HOBART SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Repeat Finding This is a repeat finding from the immediately prior audit report. The prior audit finding number was 2022-003. Condition and Context The School Corporation had not properly designed a system of internal controls to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management compliance requirement. A property record or capital asset listing is required to be maintained for all equipment, property improvements, and property purchased with the Education Stabilization Fund (ESF) grant awards to ensure adequate safeguards are in place to prevent loss or damage of items. The School Corporation hired a consultant to compile and provide a fixed asset report that contained all inventory and assets purchased that exceeded the School Corporation's capitalization threshold. The consultant prepared the report; however, the School Corporation did not have any policies or procedures in place to review the asset listing to ensure the listing was complete. The School Corporation's capital asset listing did not include all the required asset information for assets purchased with federal awards. The following information for each asset was not included in the School Corporations capital asset listing: the source of funding for the property (including the federal award identification number (FAIN)), and percentage of federal participation in the project costs for the federal award under which the property was acquired. The School Corporation purchased five capital assets totaling $118,845.73 with ESSER III funds. Of the five assets purchased, four were not included on the asset listing. The one asset that was included in the asset listing did not list the source of the federal funding including the federal award number. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d) states in part: ". . . (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. INDIANA STATE BOARD OF ACCOUNTS 24 SCHOOL CITY OF HOBART SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. . . ." 2 CFR 200.313(e) states in part: "When original or replacement equipment acquired under a Federal award is no longer needed for the original project or program or for other activities currently or previously supported by a Federal awarding agency, except as otherwise provided in Federal statutes, regulations, or Federal awarding agency disposition instructions, the non-Federal entity must request disposition instructions from the Federal awarding agency if required by the terms and conditions of the Federal award. . . ." Cause The School Corporation did not develop a system of internal controls to ensure that all items over the capital asset threshold were added to the listing, the capital asset listing included all required information, and that items purchased were properly maintained and safeguarded. Effect Noncompliance with the grant agreement and the compliance requirement could result in the repayment of federal funds. Questioned Costs There were no questioned costs identified. Recommendation We recommended that management of the School Corporation establish a proper system of internal controls and develop policies and procedures to ensure asset records include all the necessary information, new assets are properly added, disposals are properly documented, and any discrepancies are reconciled. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2024-005 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Number: 84.425U Federal Award Number and Year (or Other Identifying Numbers): S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Other Matters INDIANA STATE BOARD OF ACCOUNTS 23 SCHOOL CITY OF HOBART SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Repeat Finding This is a repeat finding from the immediately prior audit report. The prior audit finding number was 2022-003. Condition and Context The School Corporation had not properly designed a system of internal controls to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management compliance requirement. A property record or capital asset listing is required to be maintained for all equipment, property improvements, and property purchased with the Education Stabilization Fund (ESF) grant awards to ensure adequate safeguards are in place to prevent loss or damage of items. The School Corporation hired a consultant to compile and provide a fixed asset report that contained all inventory and assets purchased that exceeded the School Corporation's capitalization threshold. The consultant prepared the report; however, the School Corporation did not have any policies or procedures in place to review the asset listing to ensure the listing was complete. The School Corporation's capital asset listing did not include all the required asset information for assets purchased with federal awards. The following information for each asset was not included in the School Corporations capital asset listing: the source of funding for the property (including the federal award identification number (FAIN)), and percentage of federal participation in the project costs for the federal award under which the property was acquired. The School Corporation purchased five capital assets totaling $118,845.73 with ESSER III funds. Of the five assets purchased, four were not included on the asset listing. The one asset that was included in the asset listing did not list the source of the federal funding including the federal award number. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d) states in part: ". . . (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. INDIANA STATE BOARD OF ACCOUNTS 24 SCHOOL CITY OF HOBART SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. . . ." 2 CFR 200.313(e) states in part: "When original or replacement equipment acquired under a Federal award is no longer needed for the original project or program or for other activities currently or previously supported by a Federal awarding agency, except as otherwise provided in Federal statutes, regulations, or Federal awarding agency disposition instructions, the non-Federal entity must request disposition instructions from the Federal awarding agency if required by the terms and conditions of the Federal award. . . ." Cause The School Corporation did not develop a system of internal controls to ensure that all items over the capital asset threshold were added to the listing, the capital asset listing included all required information, and that items purchased were properly maintained and safeguarded. Effect Noncompliance with the grant agreement and the compliance requirement could result in the repayment of federal funds. Questioned Costs There were no questioned costs identified. Recommendation We recommended that management of the School Corporation establish a proper system of internal controls and develop policies and procedures to ensure asset records include all the necessary information, new assets are properly added, disposals are properly documented, and any discrepancies are reconciled. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
Condition: The Organization has not properly maintained a capital asset listing and has not performed an inventory of capital assets within the last two years. Criteria: Per 2 CFR 200.313, 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. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Effect – The Organization did not have a capital asset listing that properly identified and described assets purchased with federal grant funds. Any future disposition of assets may not be traced to the correct awarding agency. Cause – Management did not maintain a capital asset schedule and perform a physical inventory of assets at least once every two years. Repeat Finding: No. Recommendation: Management should maintain a capital asset schedule and perform a physical inventory of assets at least once every two years. Views of Responsible Official: Management of the Organization has performed a physical inventory of assets on March 12, 2025. Management will ensure that a physical inventory of assets is completed on a regular basis. Questioned Costs – None reported.
FINDING 2024-004 Information on the federal program: Subject: Education Stabilization Fund – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Award Numbers: S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness Criteria: 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. . . ." Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management Requirements compliance requirements. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: For four sample items tested, we noted the School Corporation expended approximately $86,300 on a 72-passenger bus, $670,600 on roof replacement, $19,000 on an intercom package for the high school, and $21,000 on admin building improvements, which were charged to the ESSER II (84.425D) and ESSER III (84.425U) grant awards. For three of the four sample items (all except the bus purchase), it was noted the capital asset acquisitions could not be traced to the capital asset listing for the School Corporation as of June 30, 2024. We noted the acquisitions were properly approved by IDOE in the grant application, management completed a physical inventory in the 2-year audit period, and the assets were properly maintained and safeguarded. Identification as a repeat finding: No. Recommendation: We recommend the School Corporation update the capital asset listing at least annually to include all equipment and real property acquisitions and review for potential capital asset dispositions. The capital asset listing should include all required information to track capital asset acquisitions purchased with federal funding. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
FINDING 2024-004 Information on the federal program: Subject: Education Stabilization Fund – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Award Numbers: S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness Criteria: 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. . . ." Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management Requirements compliance requirements. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: For four sample items tested, we noted the School Corporation expended approximately $86,300 on a 72-passenger bus, $670,600 on roof replacement, $19,000 on an intercom package for the high school, and $21,000 on admin building improvements, which were charged to the ESSER II (84.425D) and ESSER III (84.425U) grant awards. For three of the four sample items (all except the bus purchase), it was noted the capital asset acquisitions could not be traced to the capital asset listing for the School Corporation as of June 30, 2024. We noted the acquisitions were properly approved by IDOE in the grant application, management completed a physical inventory in the 2-year audit period, and the assets were properly maintained and safeguarded. Identification as a repeat finding: No. Recommendation: We recommend the School Corporation update the capital asset listing at least annually to include all equipment and real property acquisitions and review for potential capital asset dispositions. The capital asset listing should include all required information to track capital asset acquisitions purchased with federal funding. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
FINDING 2024-003 Information on the federal program: Subject: Education Stabilization Fund – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425U Federal Award Numbers: S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness Criteria: 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. . . ." Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management Requirements compliance requirements. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: For one item in a sample of two capital asset additions tested, we noted the School Corporation expended approximately $153,000 for a gym floor project which was charged to the ESSER III (84.425U) grant award. It was noted these capital asset acquisitions were not reported on the capital asset listing for the School Corporation as of June 30, 2024. Additionally, we noted the School Corporation’s capital asset listing did not contain all the required information, including the source of funding for the property, outlined in the criteria above. Identification as a repeat finding: This is a repeat finding from the immediately prior audit report. The prior audit finding number was 2022-005. Recommendation: We recommend the School Corporation update the capital asset listing at least annually to include all equipment and real property acquisitions and review for potential capital asset dispositions. The capital asset listing should include all required information to track capital asset acquisitions purchased with federal funding. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
2024-008 Federal Agency: U.S. Department of Education Pass Thru Entity: Oklahoma State Department of Education Program: COVID-19 Education Stabilization Fund Assistance Listing: COVID-19- 84.425U Grant Period: Year ending June 30, 2024 Compliance Requirement: F. Equipment and Real Property Management Type of Finding: Non-Compliance & Material Weakness Condition: Property was not tracked and maintained as property in accordance as federal regulations. Criteria: 2 CFR 200.313(d)(1) requires property records must be maintained that include a description of the property, serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, the cost of the property, percentage of the federal project costs under which 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. Context: All equipment expenditures claimed were reviewed. There were leasehold improvement purchased that should have been captured in the federal inventory listing. Cause: District was unaware those equipment items would need to be on the District property records of federal programs. Effect: Potential noncompliance with Uniform Guidance. Repeat Finding from Prior Year: No Recommendation: We recommend that all property purchased with federal funds be properly tracked. We also recommend reconciliation procedures be implemented of property paid with federal funds and federal inventory listing. Views of Responsible Officials and Planned Corrective Action: District will review federal claims for equipment purchases items greater than $5,000 and life longer than a year and capture equipment items into the property records as they are received.
2024-008 Federal Agency: U.S. Department of Education Pass Thru Entity: Oklahoma State Department of Education Program: COVID-19 Education Stabilization Fund Assistance Listing: COVID-19- 84.425U Grant Period: Year ending June 30, 2024 Compliance Requirement: F. Equipment and Real Property Management Type of Finding: Non-Compliance & Material Weakness Condition: Property was not tracked and maintained as property in accordance as federal regulations. Criteria: 2 CFR 200.313(d)(1) requires property records must be maintained that include a description of the property, serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, the cost of the property, percentage of the federal project costs under which 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. Context: All equipment expenditures claimed were reviewed. There were leasehold improvement purchased that should have been captured in the federal inventory listing. Cause: District was unaware those equipment items would need to be on the District property records of federal programs. Effect: Potential noncompliance with Uniform Guidance. Repeat Finding from Prior Year: No Recommendation: We recommend that all property purchased with federal funds be properly tracked. We also recommend reconciliation procedures be implemented of property paid with federal funds and federal inventory listing. Views of Responsible Officials and Planned Corrective Action: District will review federal claims for equipment purchases items greater than $5,000 and life longer than a year and capture equipment items into the property records as they are received.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.
Finding No. 2024-001 - Equipment and Real Property Management Federal Program Research and Development Cluster Name of Federal Agency U.S. Department of Health and Human Services Category Other matters Compliance requirement F. Equipment and Real Property Management Criteria 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition As a result of our prior year audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have completed a physical inventory on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process and was expected to be completed before June 30, 2025. Cause The property inventory was originally scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed until 2024. Because of the timing of when the inventory was commenced and the high volume of the assets being counted, the inventory was not completed as of June 30, 2024. Effect Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost None. Context Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. As of June 30, 2024, the physical inventory was still in process. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2023-001. Recommendation The Foundation should complete the physical inventory before June 30, 2025. In addition, related policies and procedures should be updated as a result of the current inventory to improve the efficiency of the count and ensure the timely completion of physical inventories in the future. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years, and with sufficient time to allow for the completion of the inventories within the required timeframe. Views of responsible officials and planned corrective actions The Foundation’s management agrees with this finding. Please refer to the corrective action plan on pages 33-34.