Item 2023-002 – Equipment and Real Property Management Education Stabilization Fund (ESF) ALN# 84.425 U.S. Department of Education Passed through the State Department of Education Grant period – Year ended September 30, 2023 (84.425U) (84.425D) Criteria – Grantees should have controls in place to ensure that all capital equipment or improvements to land, building, or equipment that were purchased with grant funds received prior approval prior to encumbrance of the expenditure. 2 CFR 200.303 requires the non-Federal entity to “(a) establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in accordance with all applicable statutes, regulations, and the terms and conditions of the Federal award.” 2 CFR 200.313 and 2 CFR 200.439 requires that the following rules of allow ability must apply to equipment and other capital expenditures “Capital expenditures for special purpose equipment are allowable as direct costs, provided that items with a unit cost of $5,000 or more have the prior written approval of the Federal awarding agency or pass-through entity.” 2 CFR 200.439(d)(1) requires that property records must be maintained for equipment acquired under a federal award 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. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Condition – There is a systemic lack of controls in place to ensure that prior approval for capital expenditures for equipment acquisition or improvements to land, buildings, or equipment was obtained prior to incurring the expenditure. Additionally, controls were not in place to ensure that a physical inventory was taken at least once every two years. Cause – Certain capital equipment and improvements to building expenditures were not included in the approved budget to grantor. There was a lack of sufficient controls over the review of capital expenditures to ensure that they were included in the approved budget and that a physical inventory observation was made. Effect – Lack of approval over equipment and capital improvements could lead to disallowed costs. We noted that certain equipment and improvement projects were not included in approved budget for ESSER Funds. Failure to perform a physical inventory observation results in noncompliance with the grant agreement and could result in a misappropriation of assets. Questioned Costs – $57,438. Recommendation – We recommend the strengthening of controls to ensure that proper approval is received prior to the acquisition of improvements to land, building or equipment and that a physical inventory observation is conducted at least once every two years to ensure compliance with grant agreement. Management’s Response – The Board will strengthen the controls in place to provide assurance that proper approval is obtained from grantor agency prior to the purchase of equipment and real property and that a physical inventory observation is conducted at least once every two years.
Finding 2023-005 Pass-Through Entity: Federated States of Micronesia National Government Federal Agency: U.S Department of the Interior AL Program: 15.875 Federal Award No: Various Area: Equipment and Real Property Management Questioned Costs: None Criteria: 2 CFR §200.313(d)(1) requires property records to include a description, serial number or ID number, source of funding (including FAIN), title holder, acquisition date, cost, federal participation percentage, location, use and condition, and disposition data including disposal date and sale price. Condition: The following were noted: 1. The State’s capital asset register reflected no Compact Sector–funded capitalized infrastructure additions since FY 2016, despite completed contracts during 2016 through 2021. The State was unable to provide supporting documentation evidencing capitalizable values, project ownership, or other required details. 2. Four (4) assets or batches of assets that met the State’s capitalization requirements were not capitalized until corrected through audit adjustments. Cause: For both conditions there is a lack of internal control monitoring over fixed asset capitalization. Effect: The State is not in compliance with applicable equipment and real property management requirements. The impact could not be quantified: therefore, no question costs are reported. Recommendation: The State should consider the following: 1. For Condition 1, the State should obtain documentation to support capitalizable values and confirm ownership. 2. For Condition 2, all assets related to health-sector acquisitions, the State should improve coordination between the Department of Health and Human Services and the State Treasury to ensure eligible items are capitalized at requisition or purchase order stage. Identification as a Repeat Finding: N/A View of Responsible Officials: The State’s response and corrective action plan addressing this finding is included in the accompanying corrective action plan.
Finding No. 2023-017 Federal Agency: U.S. Department of Health and Human Services AL Program: 93.323 Epidemiology and Laboratory Capacity for Infectious Diseases Federal Award No.: NU50CK000513 Area: Equipment and Real Property Management Questioned Costs: Unable to determine Criteria: In accordance with 2 CFR Section 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or another identification number, the source of funding for the property (including the Federal award identification number), the title holder, the acquisition date, the cost of the property, the percentage of the Federal agency contribution towards the original purchase, the location, use and condition of the property, and any disposition data including the date of disposal and sale price of the property. Condition: 1. FSMNG was unable to provide a comprehensive listing of its capital assets related to the federal program, nor could it supply the schedule of disposals for the year. As a result, no questioned costs are identified, as we are not able to quantify the extent of noncompliance. 2. FSMNG did not perform the required property and equipment inventory count for the past two fiscal years. Cause: FSMNG lacks controls to comply with property and equipment requirements and adherence to established policies and procedures regarding physical inventory counts of property and equipment and failure to reconcile property records. Effect: The FSM National Government is in noncompliance with applicable equipment and real property management requirements. No questioned cost because we are unable to quantify the extent of noncompliance related to the program’s capital assets. Recommendation: 1) Management should adhere to the requirement of 2 CFR Section 200.313(d)(1) to comply with the requirements for Equipment and Real Property Management; and 2) Management should establish and implement effective monitoring controls to ensure that property records are accurately maintained. Additionally, it is essential to verify that the required physical inventory of equipment has been conducted. Views of Responsible Officials: Management disagrees with the finding. Refer to FSM NG’s Views of Responsible Officials for their detailed response. Auditor Response: In our recent meeting, we clarified that the schedule for additions provided specifically for ALN 93.323 was not reconciled with the total general ledger expenditure, we did not mention the entire Fixed Asset Register (FAR). Additionally, it is important to note that the required physical inventory of equipment was not performed, which is why reconciled schedules are lacking. To address these issues, management should establish and implement effective monitoring controls to ensure that property records are accurately maintained. This will help enhance compliance and improve asset management practices moving forward. We appreciate FSM NG's commitment to strengthening internal controls and look forward to continued collaboration to resolve these matters.
Finding 2023-005 Pass-Through Entity: Federated States of Micronesia National Government Federal Agency: U.S Department of the Interior AL Program: 15.875 Federal Award No: Various Area: Equipment and Real Property Management Questioned Costs: None Criteria: 2 CFR §200.313(d)(1) requires property records to include a description, serial number or ID number, source of funding (including FAIN), title holder, acquisition date, cost, federal participation percentage, location, use and condition, and disposition data including disposal date and sale price. Condition: The following were noted: 1. The State’s capital asset register reflected no Compact Sector–funded capitalized infrastructure additions since FY 2016, despite completed contracts during 2016 through 2021. The State was unable to provide supporting documentation evidencing capitalizable values, project ownership, or other required details. 2. Four (4) assets or batches of assets that met the State’s capitalization requirements were not capitalized until corrected through audit adjustments. Cause: For both conditions there is a lack of internal control monitoring over fixed asset capitalization. Effect: The State is not in compliance with applicable equipment and real property management requirements. The impact could not be quantified: therefore, no question costs are reported. Recommendation: The State should consider the following: 1. For Condition 1, the State should obtain documentation to support capitalizable values and confirm ownership. 2. For Condition 2, all assets related to health-sector acquisitions, the State should improve coordination between the Department of Health and Human Services and the State Treasury to ensure eligible items are capitalized at requisition or purchase order stage. Identification as a Repeat Finding: N/A View of Responsible Officials: The State’s response and corrective action plan addressing this finding is included in the accompanying corrective action plan.
Finding Number: 2023-034 Prior Year Finding Number: N/A Compliance Requirement: Equipment and Real Property Management Program: U.S. Department of the Interior Government Department/Agency: Department of Planning and Natural Resources Fish and Wildlife Cluster ALN: 15.605, 15.611 Award #: Various Award Period: Various Criteria – Per 2 CFR section 200.313, Equipment, property records must be maintained that include a description of the property, a serial number or other identification number, the source of property, who holds title, the acquisition date, cost of the property, percentage of Federal participation in the cost of the property, the location, use and conditions of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Further, a physical inventory of equipment should be taken at least once every 2 years and reconciled to the equipment records along with the usage of an appropriate control system to safeguard and maintain equipment. Additionally, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires that non-federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition – The Government’s Department of Property and Procurement (DPP) maintains the equipment register for the Government. DPP was unable to provide an accurate and complete property records which met the stated requirements. Further, no physical inventory was taken in fiscal year 2023. Further, we noted that internal controls were not operating at a level of precision to ensure compliance with the equipment management compliance requirements. Questioned Costs – None. Context – This is a condition identified per review of the Government’s compliance with the specified requirements. Equipment purchased in 2023 totaled $259,076. Effect – There is a risk that inadequate recordkeeping of equipment could lead to misappropriation of assets and noncompliance with Federal regulations resulting in a return of Federal awards received. Cause – The Government does not appear to have a process in place to adequately monitor equipment acquired with Federal funds. Recommendation – We recommend that DPP improve internal controls to ensure adherence to Federal regulations related to equipment and its related maintenance. There should be timely coordination and communication amongst all Government departments and/or agencies that are responsible for handling and managing such assets. Views of Responsible Officials – The Government concurs with the auditor’s findings and recommendations. The Asset Management Division (AMD) adheres to Federal equipment guidelines. Assets are tagged, and records are created using the Tyler Munis Resource Planning system (ERP). In 2022, AMD inventoried four agencies, ensuring compliance with Federal regulations. The completed Standard Operation Policies and Procedures (SOPP) are pending approval, crucial for enhancing internal controls. Training sessions for fixed assets employees are planned, and additional staff will be needed to support the initiative effectively. The planned corrective actions are presented in the Government’s Corrective Action Plan attached as Appendix B to the Single Audit Report.
Finding Number: 2023-036 Prior Year Finding Number: 2022-031 Compliance Requirement: Equipment and Real Property Management Program: U.S. Department of the Interior Government Department/Agency: Various Economic, Social, and Political Development of the Territories ALN: 15.875 Award #: Various Award Period: Various Criteria – Per 2 CFR section 200.313, Equipment, property records must be maintained that include a description of the property, a serial number or other identification number, the source of property, who holds title, the acquisition date, cost of the property, percentage of Federal participation in the cost of the property, the location, use and conditions of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Further, a physical inventory of equipment should be taken at least once every 2 years and reconciled to the equipment records along with the usage of an appropriate control system to safeguard and maintain equipment. Additionally, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires that non-federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition – The Government’s Department of Property and Procurement (DPP) maintains the equipment register for the Government. DPP was unable to provide an accurate and complete property records which met the stated requirements. Further, no physical inventory was taken in fiscal year 2023. Further, we noted that internal controls were not operating at a level of precision to ensure compliance with the equipment management compliance requirements. Questioned Costs – None. Context – This is a condition identified per review of the Government’s compliance with the specified requirements. Equipment purchased in 2023 totaled $1,452,046. Effect – There is a risk that inadequate recordkeeping of equipment could lead to misappropriation of assets and noncompliance with Federal regulations resulting in a return of Federal awards received. Cause – The Government does not appear to have a process in place to adequately monitor equipment acquired with Federal funds. Recommendation – We recommend that DPP improve internal controls to ensure adherence to Federal regulations related to equipment and its related maintenance. There should be timely coordination and communication amongst all Government departments and/or agencies that are responsible for handling and managing such assets. Views of Responsible Officials – The Government concurs with the auditor’s findings and recommendations. The Department of Property and Procurement (DPP) acknowledges the findings and is actively implementing measures to strengthen compliance with federal equipment requirements. The planned corrective actions are presented in the Government’s Corrective Action Plan attached as Appendix B to the Single Audit Report.
Finding Number: 2023-050 Prior Year Finding Number: 2022-046 Compliance Requirement: Equipment and Real Property Management Program: U.S. Department of Education Government Department/Agency: Department of Education (VIDE) Special Education Cluster ALN: 84.027A, 84.027X Award #: Various Award Period: Various Criteria – Per the Uniform Guidance in 2 CFR Section 200.313, Equipment, property records must be maintained that include a description of the property, a serial number or other identification number, the source of the property, who holds title, the acquisition date, cost of the property, percentage of Federal participation in the cost of the property, the location, use and conditions of the property, and any ultimate disposition date including the date of disposal and sale price of the property. Additionally, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires that non-federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition – The VIDE maintains an equipment listing for fixed assets purchased with federal funding. VIDE was unable to provide complete property records which met the stated requirements. Further, we noted that internal controls were not operating at a level of precision to ensure compliance with the equipment management compliance requirements. Questioned Costs – None. Context – This is a condition identified per review of the VIDE’s compliance with the specified requirements. Effect – There is a risk that inadequate recordkeeping or equipment could lead to misappropriation of assets and noncompliance with Federal regulations resulting in a return of Federal awards received. Cause – VIDE does not appear to have adequate policies and procedures in place to adequately monitor equipment acquired with Federal Funds. Recommendation – We recommend that VIDE improve internal controls to ensure adherence to Federal regulations related to equipment and its related maintenance. There should be timely coordination and communication amongst all personnel that are responsible for handling and managing such assets as well as monitoring of the performance of the recording of the equipment. Views of Responsible Officials – The Government concurs with the auditor’s findings and recommendations. We recognize that while a dual-control workflow exists, high staff turnover and a lack of strict adherence have led to gaps in compliance, and to address this, VIDE is moving to strictly enforce its established protocols and provide targeted training to new personnel in the Procurement and Fixed Asset divisions. VIDE is enforcing strict adherence to its established collaborative dual-control process to ensure timely identification of federally funded equipment, specifically reinforcing the requirement that the Procurement Warehouse must tag assets immediately upon physical receipt so that no asset is permitted to leave the warehouse or enter the ecosystem without a unique identifier. The planned corrective actions are presented in the Government’s Corrective Action Plan attached as Appendix B to the Single Audit Report.
Finding Number 2023-053 Prior Year Finding Number: 2022-049 Compliance Requirement: Equipment and Real Property Management Program: U.S. Department of Education Government Department/Agency: Department of Education (VIDE) Consolidated Grant to the Outlying Areas ALN: 84.403A Award #: Various Award Period: Various Criteria – Per the Uniform Guidance in 2 CFR Section 200.313, Equipment, property records must be maintained that include a description of the property, a serial number or other identification number, the source of the property, who holds title, the acquisition date, cost of the property, percentage of Federal participation in the cost of the property, the location, use and conditions of the property, and any ultimate disposition date including the date of disposal and sale price of the property. Further, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires that non-federal entities receiving Federal awards (i.e. auditee management) establish and maintain internal control designed to ensure compliance with Federal statues, regulations, and the terms and conditions of the Federal award. Condition – The VIDE maintains an equipment listing for fixed assets purchased with federal funding. VIDE was unable to provide complete property records which met the stated requirements. Further, it does not appear that the controls in place are operating at a level of precision to ensure compliance with the equipment management compliance requirements. Questioned Costs – Not determinable. Context – This is a condition identified per review of the VIDE’s compliance with the specified requirements. Effect – There is a risk that inadequate recordkeeping or equipment could lead to misappropriation of assets and noncompliance with Federal regulations resulting in a return of Federal awards received. Cause – VIDE does not appear to have adequate policies and procedures in place to adequately monitor equipment acquired with Federal Funds. Recommendation – We recommend that VIDE improve internal controls to ensure adherence to Federal regulations related to equipment and its related maintenance. There should be timely coordination and communication amongst all personnel that are responsible for handling and managing such assets as well as monitoring of the performance of the recording of the equipment. Views of Responsible Officials – The Government concurs with the auditor’s findings and recommendations. VIDE plans to improve management and documentation of federally funded equipment by enhancing its asset tracking system and maintaining centralized records with detailed asset information. The Procurement Division will conduct quarterly inventory audits to reconcile records with actual inventory, resolving discrepancies promptly. The Fixed Asset Director will establish communication protocols among Programs/Divisions, requiring monthly status reports to ensure data accuracy and timely updates. The planned corrective actions are presented in the Government’s Corrective Action Plan attached as Appendix B to the Single Audit Report.
Finding No.: 2023-014 Federal Agency: U.S. Department of the Interior AL Program: 15.875 Economic, Social, and Political Development of the Territories Federal Award No.: Compact of Free Association, As Amended Questioned Costs: $ Undeterminable Federal Agency: U.S. Department of Health and Human Services AL Program: 93.323 Epidemiology and Laboratory Capacity for Infectious Diseases Federal Award No.: NU50CK000558 Questioned Costs: $ Undeterminable Area: Equipment and Real Property Management Criteria: Section 200.313(d) of the Uniform Guidance and Article VI, Section 1(f)(4) of the Fiscal Procedures Agreement states that procedures for managing equipment, whether acquired in whole or in part with grant funds, will follow state laws and procedures. The following requirements are applicable: a. Property records must be maintained that include a description of the property, a serial number or another identification number, the source of funding for the property (including the FAIN), the title holder, the acquisition date and cost of the property, the percentage of Federal agency contribution towards the original purchase, the location, use and condition of the property, and any disposition data including the date of disposal and sale price of the property; b. A physical inventory of the property must be conducted and the results must be reconciled with the property records at least once every two years; c. A control system must be in place to ensure safeguards for preventing property loss, damage, or theft. Any loss, damage, or theft of equipment must be investigated. The recipient or subrecipient must notify the Federal Agency or pass-through entity of any loss, damage, or theft of equipment that will have an impact on the program; d. Regular maintenance procedures must be in place to ensure the property is in proper working condition; and e. If the recipient or subrecipient is authorized or required to sell the property, proper sales procedures must be in place to ensure the highest possible return. Additionally, the carrying amount of long-lived assets and the estimated useful lives of assets should be periodically re-assessed and adjusted, as appropriate, based on actual experience and relevant factors and circumstances. Furthermore, 2 CFR 200.303(a) states that a recipient of a Federal award must establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should align with the 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). Condition: Capital asset records do not meet the criteria above and are not effectively maintained since updates to the records occur only once a year. Specifically, we noted the following deficiencies: • An inventory of capital assets has not been performed in the recent past in accordance with the above criteria; therefore, a reconciliation of capital asset records and physical inventory has not occurred at least once in the past two years. • Capital asset records are not effectively maintained. It does not appear that RepMar has implemented an effective control system to adequately safeguard capital assets from loss, damage or theft, or to reasonably investigate such occurrences. • RepMar has not established policies and procedures governing property maintenance and has not effectively implemented an entity-wide maintenance plan. • RepMar has not established policies and procedures to routinely assess whether impairment indicators are present and to test long-lived capital assets with impairment indicators for impairment. Cause: RepMar lacks adequate internal control policies and procedures to satisfy compliance with federal property rules and regulations and lacks effective procedures governing property maintenance, as well as periodic assessment of asset impairment conditions and useful lives. Moreover, internal control policies and procedures requiring periodic and timely performance and independent review of capital asset reconciliations and related general ledger accounts are not effectively implemented. Effect: RepMar is in noncompliance with applicable equipment and real property management requirements, and possible misstatement of capital assets and related accounts exists. Questioned costs, if any, which may result from inadequate property records, maintenance procedures, and the absence of timely reconciliations are not determinable. Identification as a Repeat Finding: Finding No. 2022-004 Recommendation: The Ministry of Finance, Banking and Postal Services (MOFBPS) should perform an inventory of RepMar’s capital assets as a basis for recording all assets in the financial statements, should complete such inventory in accordance with applicable property rules and regulations, and should develop adequate maintenance procedures in order to keep property in good condition. Furthermore, RepMar should implement internal control policies and procedures requiring periodic and timely performance and independent review of capital asset reconciliations and related general ledger accounts. Views of Responsible Officials: RepMar’s Corrective Action Plan does not indicate disagreement and provides planned corrective action.
Finding 2023 – 008: Activities Allowed and Unallowed, Allowable Costs, Period of Performance (Compliance; Internal Controls Over Compliance) (Repeat Finding: 2018-006, 2019-008, 2020-008, 2021-007 and 2022-009) Significant Deficiency ALN 93.441 Indian Self Determination ALN 20.205 Highway Planning & Construction ALN 93.575 Child Care and Development Block Grant Criteria: Uniform Guidance 2 CFR, Part §200.313(a) requires that non-federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be following 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). Condition: During compliance requirement testing for Activities Allowed and Unallowed, Allowable Costs and Period of Performance for the above noted major programs, we selected 120 transactions for testing from each major program. The following number of transactions were not provided for review during the audit: ALN 93.441 – Indian Self Determination – 18 transactions ALN 20.205 – Highway Planning and Construction – 16 transactions ALN 93.575 – Child Care and Development Block Grant – 7 transactions Questioned Costs: ALN 93.441 – Indian Self Determination – $9,236 ALN 20.205 – Highway Planning and Construction - $8,367 ALN 93.575 – Child Care and Development Block Grant – $22,832 Cause: The Governmental Department did not maintain sufficient appropriate documentation for audit review. Effect: The Governmental Department is not in compliance with Activities Allowed and Unallowed, Allowable Costs and Period of Performance compliance requirements for the three major programs mentioned above. This could lead to sanctions by the funding agencies. Recommendation: We recommend the Governmental Department becomes familiar with the requirements of 2 CFR, Part §200.313(a) and establish appropriate internal control policies and procedures to ensure compliance with the requirements of Uniform Guidance and each major program. In addition, all staff should be trained in those policies and procedures, so they are familiar with the requirements. We further recommend the Governmental Department does not process payment for disbursements that do not contain sufficient, appropriate supporting documentation and necessary approvals. Views of Responsible Officials: See the corrective action plan that accompanies the schedule of findings and questioned costs.
Finding 2023 – 007: Equipment and Real Property Management (Compliance; Internal Controls Over Compliance) Material Weakness Criteria: Non-federal entities that acquire, manage, or dispose of equipment and real property purchased with federal funds are required to establish and maintain effective internal controls and inventory procedures to ensure proper management, safeguarding, and accountability of such assets. According to 2 CFR § 200.310–200.314, non-federal entities must adequately safeguard all assets and assure that they are used solely for authorized purposes. Specifically, 2 CFR § 200.313(d) requires that property records be maintained for equipment, a physical inventory be taken at least once every two years and reconciled to the property records, and that adequate maintenance procedures be implemented to keep the property in good condition. Additionally, 2 CFR § 200.407, 200.439, 200.313, and 200.311 require non-federal entities to obtain prior written approval from the federal awarding agency or pass-through entity before using federal funds to purchase or lease equipment (with a per-unit cost of $10,000 or more), land, or buildings. Condition: During our review of the Organization’s internal controls over compliance related to the Title V major program, we noted that the Organization did not obtain prior written approval from the funding agency for the purchase of land and a building with Title V funds, with the purchase exceeding the $20,000 threshold included in the Title V contract. Additionally, the Organization did not have an approved budget that included these capital expenditures. The Organization also does not have an adequate system of controls established to identify, mark, record, or maintain equipment and real property purchased with federal funds, and no periodic physical inventory of such assets is being performed. Questioned Costs: None. Cause: The Organization does not have sufficiently established control policies and procedures to ensure that prior written approval is obtained for capital expenditures as required by federal regulations and the grant contract. The Organization also lacks established control policies for identifying, marking, recording, or maintaining equipment and real property, as well as for conducting periodic inventories. Effect: The Organization is not in compliance with federal requirements for prior written approval of capital expenditures and for equipment and real property management. As a result, there is an increased risk that federal funds may be used for unallowable purposes, and the Organization may be unable to distinguish federally funded property from other property or detect if such property is misplaced or stolen. Recommendation: We recommend that the Organization becomes familiar with the requirements of 2 CFR Part 200 and establishes appropriate internal control policies and procedures to ensure that prior written approval is obtained for all capital expenditures with federal funds. We further recommend that the Organization implement procedures for maintaining property records, conducting periodic physical inventories, and ensuring all staff are trained on these requirements. Views of Responsible Officials: See the corrective action plan that accompanies the schedule of findings and questioned costs.
Health Center Infrastructure Support Equipment Physical Inventory Federal Agency: Department of Health and Human Services Program: Health Center Infrastructure Support Assistance Listing #: 93.526 Criteria OMB Uniform Guidance 2 CFR 200.313(d) requires that the auditee establish procedures for managing equipment, whether acquired in whole or in part under a Federal award. Property records must be maintained and a physical inventory of equipment must be taken and the results reconciled with the property records at least once every two years. Condition Sunset Park began purchasing equipment under the Health Center Infrastructure Support program in 2022. Property records were established and maintained, however, Sunset Park did not retain evidence that a physical inventory of the equipment purchased was taken and reconciled with the property records at least once in the past two years. Cause Sunset Park did not have a process in place to ensure that a physical inventory of all federally funded equipment was performed at least once every two years and that evidence supporting the reconciliation to the property records was retained. Effect The requirement to conduct a physical inventory of equipment and the results reconciled with the property records at least once every two years was not met. However, we tested a sample of 30 items purchased under the Health Center Infrastructure Support program in 2023, including physically inspecting the equipment and reconciling the location and condition of our sampled items to the property records maintained by Sunset Park. We had no exceptions in this testing. Questioned Costs There are no questioned costs associated with this finding. Recommendation Sunset Park should establish a process to ensure that a physical inventory of equipment is performed at least once every two years and reconciliation of the results of the inventory is retained.
Health Center Infrastructure Support Equipment Physical Inventory Federal Agency: Department of Health and Human Services Program: Health Center Infrastructure Support Assistance Listing #: 93.526 Criteria OMB Uniform Guidance 2 CFR 200.313(d) requires that the auditee establish procedures for managing equipment, whether acquired in whole or in part under a Federal award. Property records must be maintained and a physical inventory of equipment must be taken and the results reconciled with the property records at least once every two years. Condition Sunset Park began purchasing equipment under the Health Center Infrastructure Support program in 2022. Property records were established and maintained, however, Sunset Park did not retain evidence that a physical inventory of the equipment purchased was taken and reconciled with the property records at least once in the past two years. Cause Sunset Park did not have a process in place to ensure that a physical inventory of all federally funded equipment was performed at least once every two years and that evidence supporting the reconciliation to the property records was retained. Effect The requirement to conduct a physical inventory of equipment and the results reconciled with the property records at least once every two years was not met. However, we tested a sample of 30 items purchased under the Health Center Infrastructure Support program in 2023, including physically inspecting the equipment and reconciling the location and condition of our sampled items to the property records maintained by Sunset Park. We had no exceptions in this testing. Questioned Costs There are no questioned costs associated with this finding. Recommendation Sunset Park should establish a process to ensure that a physical inventory of equipment is performed at least once every two years and reconciliation of the results of the inventory is retained.
Finding: Equipment Management Program: Maternal and Child Health Federal Consolidated Programs Assistance Listing Number: 93.110 Criteria: OMB Circular A-110 and 2 CFR 200.313 (c) through (e) require equipment records be maintained to include identification numbers, source of funding, location and condition of property; a physical inventory of equipment shall be taken at least once every two years and reconciled to the equipment records, an appropriate control system shall be used to safeguard equipment, and equipment shall be adequately maintained. Condition: We noted the following conditions in our testing of equipment management: a) Equipment records were not maintained in accordance to 2 CFR 200.313, in which equipment is not identifiable with serial numbers or tags. b) Internal controls were not in place to safeguard equipment at various locations. Questioned Costs: None. Context: Total equipment purchased in fiscal year 23 are in accordance with grant, however, testing was not possible to be performed as equipment records did not include tag numbers to identify individual equipment at the various locations. A manual listing was created by the grant manager during the audit that agreed to purchase records. Equipment was not capitalized within the general ledger system but rather expensed, as such, system records did not exist. Effect: Not being able to produce a comprehensive and complete listing of assets purchased with federal funds, not properly tagging assets and not implementing internal controls to safeguard assets increase the risk of loss of assets purchased with federal funds and prevents them from being adequately tracked and maintained. In addition, the potential of noncompliance with the rules and regulations surrounding disposition of assets increases if the assets have been improperly disposed. Identification as a repeat finding: Not applicable. Recommendation: We recommend the Organization tags all equipment as soon as possible and perform a physical inventory count in order to create a complete equipment listing within its asset management system. In addition, we advise for the client to create an agreement between Organization and location/holder of property that clarifies ownership as well as compliance requirements for equipment purchased with federal funds with respect to safeguarding and maintaining such equipment. We also recommend for the Organization to establish an equipment policy and train individuals receiving grants in the requirements associated with equipment management and federal compliance requirements. Views of responsible officials: The Organization agrees with the finding. See separate report for planned corrective actions.
2023-002 – Equipment Management Cluster: Research and Development Cluster (“R&D Cluster”) Grantor: Various - All R&D Cluster awards with equipment Award Name: Various - All R&D Cluster awards with equipment Award Year: FY2023 Pass-through entities and ID Number: Various - All R&D Cluster awards with equipment Assistance Listing Number: Various – All R&D Cluster awards with equipment Condition The University has a process in place whereby a third-party is engaged to scan all equipment (federal and nonfederal) across their 3 campuses every two years. The third-party does not have a detailed listing when performing their inventory and thus the University must reconcile what was located by the thirdparty to their detailed equipment listing and understand why certain items were not located. If not located, follow-up is performed on an asset-by-asset basis by the University requesting the custodian of the asset confirm the equipment is on-hand. While we University provided evidence of the third-party inventory being performed, including a related manual reconciliation process, we were unable to obtain an aggregated reconciliation between the University equipment records and the third-party inventory results that included all follow-up information as the process is currently manual and disaggregated. Additionally, when scanning through the detailed listing of federal assets, certain equipment was noted to have an inventory date outside of the past 2 years. Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Cause The University’s process for reviewing third-party equipment inventory results and conducting follow-up is manual, which can cause delays. Additionally, an aggregated reconciliation is not maintained, which can result in an incomplete or inaccurate inventory listing. Effect The lack of a formal reconciliation may result in incomplete equipment inventory records and/or certain assets not being physically inspected within the required 2-year period. Questioned Costs There are no questioned costs associated with this finding. Recommendation We recommend the University update their policies and procedures to require an aggregated reconciliation be maintained between third-party equipment inventory results and University equipment records. Additionally, the University should develop a more automated approach to resolving discrepancies between the third-party equipment inventory results and the federally funded equipment listing, rather than utilizing a manual process, which can cause delays. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings
2023-002 – Equipment Management Cluster: Research and Development Cluster (“R&D Cluster”) Grantor: Various - All R&D Cluster awards with equipment Award Name: Various - All R&D Cluster awards with equipment Award Year: FY2023 Pass-through entities and ID Number: Various - All R&D Cluster awards with equipment Assistance Listing Number: Various – All R&D Cluster awards with equipment Condition The University has a process in place whereby a third-party is engaged to scan all equipment (federal and nonfederal) across their 3 campuses every two years. The third-party does not have a detailed listing when performing their inventory and thus the University must reconcile what was located by the thirdparty to their detailed equipment listing and understand why certain items were not located. If not located, follow-up is performed on an asset-by-asset basis by the University requesting the custodian of the asset confirm the equipment is on-hand. While we University provided evidence of the third-party inventory being performed, including a related manual reconciliation process, we were unable to obtain an aggregated reconciliation between the University equipment records and the third-party inventory results that included all follow-up information as the process is currently manual and disaggregated. Additionally, when scanning through the detailed listing of federal assets, certain equipment was noted to have an inventory date outside of the past 2 years. Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Cause The University’s process for reviewing third-party equipment inventory results and conducting follow-up is manual, which can cause delays. Additionally, an aggregated reconciliation is not maintained, which can result in an incomplete or inaccurate inventory listing. Effect The lack of a formal reconciliation may result in incomplete equipment inventory records and/or certain assets not being physically inspected within the required 2-year period. Questioned Costs There are no questioned costs associated with this finding. Recommendation We recommend the University update their policies and procedures to require an aggregated reconciliation be maintained between third-party equipment inventory results and University equipment records. Additionally, the University should develop a more automated approach to resolving discrepancies between the third-party equipment inventory results and the federally funded equipment listing, rather than utilizing a manual process, which can cause delays. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings
2023-002 – Equipment Management Cluster: Research and Development Cluster (“R&D Cluster”) Grantor: Various - All R&D Cluster awards with equipment Award Name: Various - All R&D Cluster awards with equipment Award Year: FY2023 Pass-through entities and ID Number: Various - All R&D Cluster awards with equipment Assistance Listing Number: Various – All R&D Cluster awards with equipment Condition The University has a process in place whereby a third-party is engaged to scan all equipment (federal and nonfederal) across their 3 campuses every two years. The third-party does not have a detailed listing when performing their inventory and thus the University must reconcile what was located by the thirdparty to their detailed equipment listing and understand why certain items were not located. If not located, follow-up is performed on an asset-by-asset basis by the University requesting the custodian of the asset confirm the equipment is on-hand. While we University provided evidence of the third-party inventory being performed, including a related manual reconciliation process, we were unable to obtain an aggregated reconciliation between the University equipment records and the third-party inventory results that included all follow-up information as the process is currently manual and disaggregated. Additionally, when scanning through the detailed listing of federal assets, certain equipment was noted to have an inventory date outside of the past 2 years. Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Cause The University’s process for reviewing third-party equipment inventory results and conducting follow-up is manual, which can cause delays. Additionally, an aggregated reconciliation is not maintained, which can result in an incomplete or inaccurate inventory listing. Effect The lack of a formal reconciliation may result in incomplete equipment inventory records and/or certain assets not being physically inspected within the required 2-year period. Questioned Costs There are no questioned costs associated with this finding. Recommendation We recommend the University update their policies and procedures to require an aggregated reconciliation be maintained between third-party equipment inventory results and University equipment records. Additionally, the University should develop a more automated approach to resolving discrepancies between the third-party equipment inventory results and the federally funded equipment listing, rather than utilizing a manual process, which can cause delays. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings
2023-002 – Equipment Management Cluster: Research and Development Cluster (“R&D Cluster”) Grantor: Various - All R&D Cluster awards with equipment Award Name: Various - All R&D Cluster awards with equipment Award Year: FY2023 Pass-through entities and ID Number: Various - All R&D Cluster awards with equipment Assistance Listing Number: Various – All R&D Cluster awards with equipment Condition The University has a process in place whereby a third-party is engaged to scan all equipment (federal and nonfederal) across their 3 campuses every two years. The third-party does not have a detailed listing when performing their inventory and thus the University must reconcile what was located by the thirdparty to their detailed equipment listing and understand why certain items were not located. If not located, follow-up is performed on an asset-by-asset basis by the University requesting the custodian of the asset confirm the equipment is on-hand. While we University provided evidence of the third-party inventory being performed, including a related manual reconciliation process, we were unable to obtain an aggregated reconciliation between the University equipment records and the third-party inventory results that included all follow-up information as the process is currently manual and disaggregated. Additionally, when scanning through the detailed listing of federal assets, certain equipment was noted to have an inventory date outside of the past 2 years. Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Cause The University’s process for reviewing third-party equipment inventory results and conducting follow-up is manual, which can cause delays. Additionally, an aggregated reconciliation is not maintained, which can result in an incomplete or inaccurate inventory listing. Effect The lack of a formal reconciliation may result in incomplete equipment inventory records and/or certain assets not being physically inspected within the required 2-year period. Questioned Costs There are no questioned costs associated with this finding. Recommendation We recommend the University update their policies and procedures to require an aggregated reconciliation be maintained between third-party equipment inventory results and University equipment records. Additionally, the University should develop a more automated approach to resolving discrepancies between the third-party equipment inventory results and the federally funded equipment listing, rather than utilizing a manual process, which can cause delays. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings
2023-002 – Equipment Management Cluster: Research and Development Cluster (“R&D Cluster”) Grantor: Various - All R&D Cluster awards with equipment Award Name: Various - All R&D Cluster awards with equipment Award Year: FY2023 Pass-through entities and ID Number: Various - All R&D Cluster awards with equipment Assistance Listing Number: Various – All R&D Cluster awards with equipment Condition The University has a process in place whereby a third-party is engaged to scan all equipment (federal and nonfederal) across their 3 campuses every two years. The third-party does not have a detailed listing when performing their inventory and thus the University must reconcile what was located by the thirdparty to their detailed equipment listing and understand why certain items were not located. If not located, follow-up is performed on an asset-by-asset basis by the University requesting the custodian of the asset confirm the equipment is on-hand. While we University provided evidence of the third-party inventory being performed, including a related manual reconciliation process, we were unable to obtain an aggregated reconciliation between the University equipment records and the third-party inventory results that included all follow-up information as the process is currently manual and disaggregated. Additionally, when scanning through the detailed listing of federal assets, certain equipment was noted to have an inventory date outside of the past 2 years. Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Cause The University’s process for reviewing third-party equipment inventory results and conducting follow-up is manual, which can cause delays. Additionally, an aggregated reconciliation is not maintained, which can result in an incomplete or inaccurate inventory listing. Effect The lack of a formal reconciliation may result in incomplete equipment inventory records and/or certain assets not being physically inspected within the required 2-year period. Questioned Costs There are no questioned costs associated with this finding. Recommendation We recommend the University update their policies and procedures to require an aggregated reconciliation be maintained between third-party equipment inventory results and University equipment records. Additionally, the University should develop a more automated approach to resolving discrepancies between the third-party equipment inventory results and the federally funded equipment listing, rather than utilizing a manual process, which can cause delays. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings
2023-002 – Equipment Management Cluster: Research and Development Cluster (“R&D Cluster”) Grantor: Various - All R&D Cluster awards with equipment Award Name: Various - All R&D Cluster awards with equipment Award Year: FY2023 Pass-through entities and ID Number: Various - All R&D Cluster awards with equipment Assistance Listing Number: Various – All R&D Cluster awards with equipment Condition The University has a process in place whereby a third-party is engaged to scan all equipment (federal and nonfederal) across their 3 campuses every two years. The third-party does not have a detailed listing when performing their inventory and thus the University must reconcile what was located by the thirdparty to their detailed equipment listing and understand why certain items were not located. If not located, follow-up is performed on an asset-by-asset basis by the University requesting the custodian of the asset confirm the equipment is on-hand. While we University provided evidence of the third-party inventory being performed, including a related manual reconciliation process, we were unable to obtain an aggregated reconciliation between the University equipment records and the third-party inventory results that included all follow-up information as the process is currently manual and disaggregated. Additionally, when scanning through the detailed listing of federal assets, certain equipment was noted to have an inventory date outside of the past 2 years. Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Cause The University’s process for reviewing third-party equipment inventory results and conducting follow-up is manual, which can cause delays. Additionally, an aggregated reconciliation is not maintained, which can result in an incomplete or inaccurate inventory listing. Effect The lack of a formal reconciliation may result in incomplete equipment inventory records and/or certain assets not being physically inspected within the required 2-year period. Questioned Costs There are no questioned costs associated with this finding. Recommendation We recommend the University update their policies and procedures to require an aggregated reconciliation be maintained between third-party equipment inventory results and University equipment records. Additionally, the University should develop a more automated approach to resolving discrepancies between the third-party equipment inventory results and the federally funded equipment listing, rather than utilizing a manual process, which can cause delays. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings
2023-002 – Equipment Management Cluster: Research and Development Cluster (“R&D Cluster”) Grantor: Various - All R&D Cluster awards with equipment Award Name: Various - All R&D Cluster awards with equipment Award Year: FY2023 Pass-through entities and ID Number: Various - All R&D Cluster awards with equipment Assistance Listing Number: Various – All R&D Cluster awards with equipment Condition The University has a process in place whereby a third-party is engaged to scan all equipment (federal and nonfederal) across their 3 campuses every two years. The third-party does not have a detailed listing when performing their inventory and thus the University must reconcile what was located by the thirdparty to their detailed equipment listing and understand why certain items were not located. If not located, follow-up is performed on an asset-by-asset basis by the University requesting the custodian of the asset confirm the equipment is on-hand. While we University provided evidence of the third-party inventory being performed, including a related manual reconciliation process, we were unable to obtain an aggregated reconciliation between the University equipment records and the third-party inventory results that included all follow-up information as the process is currently manual and disaggregated. Additionally, when scanning through the detailed listing of federal assets, certain equipment was noted to have an inventory date outside of the past 2 years. Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Cause The University’s process for reviewing third-party equipment inventory results and conducting follow-up is manual, which can cause delays. Additionally, an aggregated reconciliation is not maintained, which can result in an incomplete or inaccurate inventory listing. Effect The lack of a formal reconciliation may result in incomplete equipment inventory records and/or certain assets not being physically inspected within the required 2-year period. Questioned Costs There are no questioned costs associated with this finding. Recommendation We recommend the University update their policies and procedures to require an aggregated reconciliation be maintained between third-party equipment inventory results and University equipment records. Additionally, the University should develop a more automated approach to resolving discrepancies between the third-party equipment inventory results and the federally funded equipment listing, rather than utilizing a manual process, which can cause delays. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings
2023-002 – Equipment Management Cluster: Research and Development Cluster (“R&D Cluster”) Grantor: Various - All R&D Cluster awards with equipment Award Name: Various - All R&D Cluster awards with equipment Award Year: FY2023 Pass-through entities and ID Number: Various - All R&D Cluster awards with equipment Assistance Listing Number: Various – All R&D Cluster awards with equipment Condition The University has a process in place whereby a third-party is engaged to scan all equipment (federal and nonfederal) across their 3 campuses every two years. The third-party does not have a detailed listing when performing their inventory and thus the University must reconcile what was located by the thirdparty to their detailed equipment listing and understand why certain items were not located. If not located, follow-up is performed on an asset-by-asset basis by the University requesting the custodian of the asset confirm the equipment is on-hand. While we University provided evidence of the third-party inventory being performed, including a related manual reconciliation process, we were unable to obtain an aggregated reconciliation between the University equipment records and the third-party inventory results that included all follow-up information as the process is currently manual and disaggregated. Additionally, when scanning through the detailed listing of federal assets, certain equipment was noted to have an inventory date outside of the past 2 years. Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Cause The University’s process for reviewing third-party equipment inventory results and conducting follow-up is manual, which can cause delays. Additionally, an aggregated reconciliation is not maintained, which can result in an incomplete or inaccurate inventory listing. Effect The lack of a formal reconciliation may result in incomplete equipment inventory records and/or certain assets not being physically inspected within the required 2-year period. Questioned Costs There are no questioned costs associated with this finding. Recommendation We recommend the University update their policies and procedures to require an aggregated reconciliation be maintained between third-party equipment inventory results and University equipment records. Additionally, the University should develop a more automated approach to resolving discrepancies between the third-party equipment inventory results and the federally funded equipment listing, rather than utilizing a manual process, which can cause delays. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings
2023-002 – Equipment Management Cluster: Research and Development Cluster (“R&D Cluster”) Grantor: Various - All R&D Cluster awards with equipment Award Name: Various - All R&D Cluster awards with equipment Award Year: FY2023 Pass-through entities and ID Number: Various - All R&D Cluster awards with equipment Assistance Listing Number: Various – All R&D Cluster awards with equipment Condition The University has a process in place whereby a third-party is engaged to scan all equipment (federal and nonfederal) across their 3 campuses every two years. The third-party does not have a detailed listing when performing their inventory and thus the University must reconcile what was located by the thirdparty to their detailed equipment listing and understand why certain items were not located. If not located, follow-up is performed on an asset-by-asset basis by the University requesting the custodian of the asset confirm the equipment is on-hand. While we University provided evidence of the third-party inventory being performed, including a related manual reconciliation process, we were unable to obtain an aggregated reconciliation between the University equipment records and the third-party inventory results that included all follow-up information as the process is currently manual and disaggregated. Additionally, when scanning through the detailed listing of federal assets, certain equipment was noted to have an inventory date outside of the past 2 years. Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Cause The University’s process for reviewing third-party equipment inventory results and conducting follow-up is manual, which can cause delays. Additionally, an aggregated reconciliation is not maintained, which can result in an incomplete or inaccurate inventory listing. Effect The lack of a formal reconciliation may result in incomplete equipment inventory records and/or certain assets not being physically inspected within the required 2-year period. Questioned Costs There are no questioned costs associated with this finding. Recommendation We recommend the University update their policies and procedures to require an aggregated reconciliation be maintained between third-party equipment inventory results and University equipment records. Additionally, the University should develop a more automated approach to resolving discrepancies between the third-party equipment inventory results and the federally funded equipment listing, rather than utilizing a manual process, which can cause delays. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings
2023-002 – Equipment Management Cluster: Research and Development Cluster (“R&D Cluster”) Grantor: Various - All R&D Cluster awards with equipment Award Name: Various - All R&D Cluster awards with equipment Award Year: FY2023 Pass-through entities and ID Number: Various - All R&D Cluster awards with equipment Assistance Listing Number: Various – All R&D Cluster awards with equipment Condition The University has a process in place whereby a third-party is engaged to scan all equipment (federal and nonfederal) across their 3 campuses every two years. The third-party does not have a detailed listing when performing their inventory and thus the University must reconcile what was located by the thirdparty to their detailed equipment listing and understand why certain items were not located. If not located, follow-up is performed on an asset-by-asset basis by the University requesting the custodian of the asset confirm the equipment is on-hand. While we University provided evidence of the third-party inventory being performed, including a related manual reconciliation process, we were unable to obtain an aggregated reconciliation between the University equipment records and the third-party inventory results that included all follow-up information as the process is currently manual and disaggregated. Additionally, when scanning through the detailed listing of federal assets, certain equipment was noted to have an inventory date outside of the past 2 years. Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Cause The University’s process for reviewing third-party equipment inventory results and conducting follow-up is manual, which can cause delays. Additionally, an aggregated reconciliation is not maintained, which can result in an incomplete or inaccurate inventory listing. Effect The lack of a formal reconciliation may result in incomplete equipment inventory records and/or certain assets not being physically inspected within the required 2-year period. Questioned Costs There are no questioned costs associated with this finding. Recommendation We recommend the University update their policies and procedures to require an aggregated reconciliation be maintained between third-party equipment inventory results and University equipment records. Additionally, the University should develop a more automated approach to resolving discrepancies between the third-party equipment inventory results and the federally funded equipment listing, rather than utilizing a manual process, which can cause delays. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings
2023-002 – Equipment Management Cluster: Research and Development Cluster (“R&D Cluster”) Grantor: Various - All R&D Cluster awards with equipment Award Name: Various - All R&D Cluster awards with equipment Award Year: FY2023 Pass-through entities and ID Number: Various - All R&D Cluster awards with equipment Assistance Listing Number: Various – All R&D Cluster awards with equipment Condition The University has a process in place whereby a third-party is engaged to scan all equipment (federal and nonfederal) across their 3 campuses every two years. The third-party does not have a detailed listing when performing their inventory and thus the University must reconcile what was located by the thirdparty to their detailed equipment listing and understand why certain items were not located. If not located, follow-up is performed on an asset-by-asset basis by the University requesting the custodian of the asset confirm the equipment is on-hand. While we University provided evidence of the third-party inventory being performed, including a related manual reconciliation process, we were unable to obtain an aggregated reconciliation between the University equipment records and the third-party inventory results that included all follow-up information as the process is currently manual and disaggregated. Additionally, when scanning through the detailed listing of federal assets, certain equipment was noted to have an inventory date outside of the past 2 years. Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Cause The University’s process for reviewing third-party equipment inventory results and conducting follow-up is manual, which can cause delays. Additionally, an aggregated reconciliation is not maintained, which can result in an incomplete or inaccurate inventory listing. Effect The lack of a formal reconciliation may result in incomplete equipment inventory records and/or certain assets not being physically inspected within the required 2-year period. Questioned Costs There are no questioned costs associated with this finding. Recommendation We recommend the University update their policies and procedures to require an aggregated reconciliation be maintained between third-party equipment inventory results and University equipment records. Additionally, the University should develop a more automated approach to resolving discrepancies between the third-party equipment inventory results and the federally funded equipment listing, rather than utilizing a manual process, which can cause delays. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings
2023-002 – Equipment Management Cluster: Research and Development Cluster (“R&D Cluster”) Grantor: Various - All R&D Cluster awards with equipment Award Name: Various - All R&D Cluster awards with equipment Award Year: FY2023 Pass-through entities and ID Number: Various - All R&D Cluster awards with equipment Assistance Listing Number: Various – All R&D Cluster awards with equipment Condition The University has a process in place whereby a third-party is engaged to scan all equipment (federal and nonfederal) across their 3 campuses every two years. The third-party does not have a detailed listing when performing their inventory and thus the University must reconcile what was located by the thirdparty to their detailed equipment listing and understand why certain items were not located. If not located, follow-up is performed on an asset-by-asset basis by the University requesting the custodian of the asset confirm the equipment is on-hand. While we University provided evidence of the third-party inventory being performed, including a related manual reconciliation process, we were unable to obtain an aggregated reconciliation between the University equipment records and the third-party inventory results that included all follow-up information as the process is currently manual and disaggregated. Additionally, when scanning through the detailed listing of federal assets, certain equipment was noted to have an inventory date outside of the past 2 years. Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Cause The University’s process for reviewing third-party equipment inventory results and conducting follow-up is manual, which can cause delays. Additionally, an aggregated reconciliation is not maintained, which can result in an incomplete or inaccurate inventory listing. Effect The lack of a formal reconciliation may result in incomplete equipment inventory records and/or certain assets not being physically inspected within the required 2-year period. Questioned Costs There are no questioned costs associated with this finding. Recommendation We recommend the University update their policies and procedures to require an aggregated reconciliation be maintained between third-party equipment inventory results and University equipment records. Additionally, the University should develop a more automated approach to resolving discrepancies between the third-party equipment inventory results and the federally funded equipment listing, rather than utilizing a manual process, which can cause delays. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings
2023-002 – Equipment Management Cluster: Research and Development Cluster (“R&D Cluster”) Grantor: Various - All R&D Cluster awards with equipment Award Name: Various - All R&D Cluster awards with equipment Award Year: FY2023 Pass-through entities and ID Number: Various - All R&D Cluster awards with equipment Assistance Listing Number: Various – All R&D Cluster awards with equipment Condition The University has a process in place whereby a third-party is engaged to scan all equipment (federal and nonfederal) across their 3 campuses every two years. The third-party does not have a detailed listing when performing their inventory and thus the University must reconcile what was located by the thirdparty to their detailed equipment listing and understand why certain items were not located. If not located, follow-up is performed on an asset-by-asset basis by the University requesting the custodian of the asset confirm the equipment is on-hand. While we University provided evidence of the third-party inventory being performed, including a related manual reconciliation process, we were unable to obtain an aggregated reconciliation between the University equipment records and the third-party inventory results that included all follow-up information as the process is currently manual and disaggregated. Additionally, when scanning through the detailed listing of federal assets, certain equipment was noted to have an inventory date outside of the past 2 years. Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Cause The University’s process for reviewing third-party equipment inventory results and conducting follow-up is manual, which can cause delays. Additionally, an aggregated reconciliation is not maintained, which can result in an incomplete or inaccurate inventory listing. Effect The lack of a formal reconciliation may result in incomplete equipment inventory records and/or certain assets not being physically inspected within the required 2-year period. Questioned Costs There are no questioned costs associated with this finding. Recommendation We recommend the University update their policies and procedures to require an aggregated reconciliation be maintained between third-party equipment inventory results and University equipment records. Additionally, the University should develop a more automated approach to resolving discrepancies between the third-party equipment inventory results and the federally funded equipment listing, rather than utilizing a manual process, which can cause delays. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings
2023-002 – Equipment Management Cluster: Research and Development Cluster (“R&D Cluster”) Grantor: Various - All R&D Cluster awards with equipment Award Name: Various - All R&D Cluster awards with equipment Award Year: FY2023 Pass-through entities and ID Number: Various - All R&D Cluster awards with equipment Assistance Listing Number: Various – All R&D Cluster awards with equipment Condition The University has a process in place whereby a third-party is engaged to scan all equipment (federal and nonfederal) across their 3 campuses every two years. The third-party does not have a detailed listing when performing their inventory and thus the University must reconcile what was located by the thirdparty to their detailed equipment listing and understand why certain items were not located. If not located, follow-up is performed on an asset-by-asset basis by the University requesting the custodian of the asset confirm the equipment is on-hand. While we University provided evidence of the third-party inventory being performed, including a related manual reconciliation process, we were unable to obtain an aggregated reconciliation between the University equipment records and the third-party inventory results that included all follow-up information as the process is currently manual and disaggregated. Additionally, when scanning through the detailed listing of federal assets, certain equipment was noted to have an inventory date outside of the past 2 years. Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Cause The University’s process for reviewing third-party equipment inventory results and conducting follow-up is manual, which can cause delays. Additionally, an aggregated reconciliation is not maintained, which can result in an incomplete or inaccurate inventory listing. Effect The lack of a formal reconciliation may result in incomplete equipment inventory records and/or certain assets not being physically inspected within the required 2-year period. Questioned Costs There are no questioned costs associated with this finding. Recommendation We recommend the University update their policies and procedures to require an aggregated reconciliation be maintained between third-party equipment inventory results and University equipment records. Additionally, the University should develop a more automated approach to resolving discrepancies between the third-party equipment inventory results and the federally funded equipment listing, rather than utilizing a manual process, which can cause delays. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings
2023-002 – Equipment Management Cluster: Research and Development Cluster (“R&D Cluster”) Grantor: Various - All R&D Cluster awards with equipment Award Name: Various - All R&D Cluster awards with equipment Award Year: FY2023 Pass-through entities and ID Number: Various - All R&D Cluster awards with equipment Assistance Listing Number: Various – All R&D Cluster awards with equipment Condition The University has a process in place whereby a third-party is engaged to scan all equipment (federal and nonfederal) across their 3 campuses every two years. The third-party does not have a detailed listing when performing their inventory and thus the University must reconcile what was located by the thirdparty to their detailed equipment listing and understand why certain items were not located. If not located, follow-up is performed on an asset-by-asset basis by the University requesting the custodian of the asset confirm the equipment is on-hand. While we University provided evidence of the third-party inventory being performed, including a related manual reconciliation process, we were unable to obtain an aggregated reconciliation between the University equipment records and the third-party inventory results that included all follow-up information as the process is currently manual and disaggregated. Additionally, when scanning through the detailed listing of federal assets, certain equipment was noted to have an inventory date outside of the past 2 years. Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Cause The University’s process for reviewing third-party equipment inventory results and conducting follow-up is manual, which can cause delays. Additionally, an aggregated reconciliation is not maintained, which can result in an incomplete or inaccurate inventory listing. Effect The lack of a formal reconciliation may result in incomplete equipment inventory records and/or certain assets not being physically inspected within the required 2-year period. Questioned Costs There are no questioned costs associated with this finding. Recommendation We recommend the University update their policies and procedures to require an aggregated reconciliation be maintained between third-party equipment inventory results and University equipment records. Additionally, the University should develop a more automated approach to resolving discrepancies between the third-party equipment inventory results and the federally funded equipment listing, rather than utilizing a manual process, which can cause delays. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings
2023-002 – Equipment Management Cluster: Research and Development Cluster (“R&D Cluster”) Grantor: Various - All R&D Cluster awards with equipment Award Name: Various - All R&D Cluster awards with equipment Award Year: FY2023 Pass-through entities and ID Number: Various - All R&D Cluster awards with equipment Assistance Listing Number: Various – All R&D Cluster awards with equipment Condition The University has a process in place whereby a third-party is engaged to scan all equipment (federal and nonfederal) across their 3 campuses every two years. The third-party does not have a detailed listing when performing their inventory and thus the University must reconcile what was located by the thirdparty to their detailed equipment listing and understand why certain items were not located. If not located, follow-up is performed on an asset-by-asset basis by the University requesting the custodian of the asset confirm the equipment is on-hand. While we University provided evidence of the third-party inventory being performed, including a related manual reconciliation process, we were unable to obtain an aggregated reconciliation between the University equipment records and the third-party inventory results that included all follow-up information as the process is currently manual and disaggregated. Additionally, when scanning through the detailed listing of federal assets, certain equipment was noted to have an inventory date outside of the past 2 years. Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Cause The University’s process for reviewing third-party equipment inventory results and conducting follow-up is manual, which can cause delays. Additionally, an aggregated reconciliation is not maintained, which can result in an incomplete or inaccurate inventory listing. Effect The lack of a formal reconciliation may result in incomplete equipment inventory records and/or certain assets not being physically inspected within the required 2-year period. Questioned Costs There are no questioned costs associated with this finding. Recommendation We recommend the University update their policies and procedures to require an aggregated reconciliation be maintained between third-party equipment inventory results and University equipment records. Additionally, the University should develop a more automated approach to resolving discrepancies between the third-party equipment inventory results and the federally funded equipment listing, rather than utilizing a manual process, which can cause delays. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings
2023-002 – Equipment Management Cluster: Research and Development Cluster (“R&D Cluster”) Grantor: Various - All R&D Cluster awards with equipment Award Name: Various - All R&D Cluster awards with equipment Award Year: FY2023 Pass-through entities and ID Number: Various - All R&D Cluster awards with equipment Assistance Listing Number: Various – All R&D Cluster awards with equipment Condition The University has a process in place whereby a third-party is engaged to scan all equipment (federal and nonfederal) across their 3 campuses every two years. The third-party does not have a detailed listing when performing their inventory and thus the University must reconcile what was located by the thirdparty to their detailed equipment listing and understand why certain items were not located. If not located, follow-up is performed on an asset-by-asset basis by the University requesting the custodian of the asset confirm the equipment is on-hand. While we University provided evidence of the third-party inventory being performed, including a related manual reconciliation process, we were unable to obtain an aggregated reconciliation between the University equipment records and the third-party inventory results that included all follow-up information as the process is currently manual and disaggregated. Additionally, when scanning through the detailed listing of federal assets, certain equipment was noted to have an inventory date outside of the past 2 years. Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Cause The University’s process for reviewing third-party equipment inventory results and conducting follow-up is manual, which can cause delays. Additionally, an aggregated reconciliation is not maintained, which can result in an incomplete or inaccurate inventory listing. Effect The lack of a formal reconciliation may result in incomplete equipment inventory records and/or certain assets not being physically inspected within the required 2-year period. Questioned Costs There are no questioned costs associated with this finding. Recommendation We recommend the University update their policies and procedures to require an aggregated reconciliation be maintained between third-party equipment inventory results and University equipment records. Additionally, the University should develop a more automated approach to resolving discrepancies between the third-party equipment inventory results and the federally funded equipment listing, rather than utilizing a manual process, which can cause delays. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings
2023-002 – Equipment Management Cluster: Research and Development Cluster (“R&D Cluster”) Grantor: Various - All R&D Cluster awards with equipment Award Name: Various - All R&D Cluster awards with equipment Award Year: FY2023 Pass-through entities and ID Number: Various - All R&D Cluster awards with equipment Assistance Listing Number: Various – All R&D Cluster awards with equipment Condition The University has a process in place whereby a third-party is engaged to scan all equipment (federal and nonfederal) across their 3 campuses every two years. The third-party does not have a detailed listing when performing their inventory and thus the University must reconcile what was located by the thirdparty to their detailed equipment listing and understand why certain items were not located. If not located, follow-up is performed on an asset-by-asset basis by the University requesting the custodian of the asset confirm the equipment is on-hand. While we University provided evidence of the third-party inventory being performed, including a related manual reconciliation process, we were unable to obtain an aggregated reconciliation between the University equipment records and the third-party inventory results that included all follow-up information as the process is currently manual and disaggregated. Additionally, when scanning through the detailed listing of federal assets, certain equipment was noted to have an inventory date outside of the past 2 years. Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Cause The University’s process for reviewing third-party equipment inventory results and conducting follow-up is manual, which can cause delays. Additionally, an aggregated reconciliation is not maintained, which can result in an incomplete or inaccurate inventory listing. Effect The lack of a formal reconciliation may result in incomplete equipment inventory records and/or certain assets not being physically inspected within the required 2-year period. Questioned Costs There are no questioned costs associated with this finding. Recommendation We recommend the University update their policies and procedures to require an aggregated reconciliation be maintained between third-party equipment inventory results and University equipment records. Additionally, the University should develop a more automated approach to resolving discrepancies between the third-party equipment inventory results and the federally funded equipment listing, rather than utilizing a manual process, which can cause delays. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings
2023-002 – Equipment Management Cluster: Research and Development Cluster (“R&D Cluster”) Grantor: Various - All R&D Cluster awards with equipment Award Name: Various - All R&D Cluster awards with equipment Award Year: FY2023 Pass-through entities and ID Number: Various - All R&D Cluster awards with equipment Assistance Listing Number: Various – All R&D Cluster awards with equipment Condition The University has a process in place whereby a third-party is engaged to scan all equipment (federal and nonfederal) across their 3 campuses every two years. The third-party does not have a detailed listing when performing their inventory and thus the University must reconcile what was located by the thirdparty to their detailed equipment listing and understand why certain items were not located. If not located, follow-up is performed on an asset-by-asset basis by the University requesting the custodian of the asset confirm the equipment is on-hand. While we University provided evidence of the third-party inventory being performed, including a related manual reconciliation process, we were unable to obtain an aggregated reconciliation between the University equipment records and the third-party inventory results that included all follow-up information as the process is currently manual and disaggregated. Additionally, when scanning through the detailed listing of federal assets, certain equipment was noted to have an inventory date outside of the past 2 years. Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Cause The University’s process for reviewing third-party equipment inventory results and conducting follow-up is manual, which can cause delays. Additionally, an aggregated reconciliation is not maintained, which can result in an incomplete or inaccurate inventory listing. Effect The lack of a formal reconciliation may result in incomplete equipment inventory records and/or certain assets not being physically inspected within the required 2-year period. Questioned Costs There are no questioned costs associated with this finding. Recommendation We recommend the University update their policies and procedures to require an aggregated reconciliation be maintained between third-party equipment inventory results and University equipment records. Additionally, the University should develop a more automated approach to resolving discrepancies between the third-party equipment inventory results and the federally funded equipment listing, rather than utilizing a manual process, which can cause delays. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings
2023-002 – Equipment Management Cluster: Research and Development Cluster (“R&D Cluster”) Grantor: Various - All R&D Cluster awards with equipment Award Name: Various - All R&D Cluster awards with equipment Award Year: FY2023 Pass-through entities and ID Number: Various - All R&D Cluster awards with equipment Assistance Listing Number: Various – All R&D Cluster awards with equipment Condition The University has a process in place whereby a third-party is engaged to scan all equipment (federal and nonfederal) across their 3 campuses every two years. The third-party does not have a detailed listing when performing their inventory and thus the University must reconcile what was located by the thirdparty to their detailed equipment listing and understand why certain items were not located. If not located, follow-up is performed on an asset-by-asset basis by the University requesting the custodian of the asset confirm the equipment is on-hand. While we University provided evidence of the third-party inventory being performed, including a related manual reconciliation process, we were unable to obtain an aggregated reconciliation between the University equipment records and the third-party inventory results that included all follow-up information as the process is currently manual and disaggregated. Additionally, when scanning through the detailed listing of federal assets, certain equipment was noted to have an inventory date outside of the past 2 years. Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Cause The University’s process for reviewing third-party equipment inventory results and conducting follow-up is manual, which can cause delays. Additionally, an aggregated reconciliation is not maintained, which can result in an incomplete or inaccurate inventory listing. Effect The lack of a formal reconciliation may result in incomplete equipment inventory records and/or certain assets not being physically inspected within the required 2-year period. Questioned Costs There are no questioned costs associated with this finding. Recommendation We recommend the University update their policies and procedures to require an aggregated reconciliation be maintained between third-party equipment inventory results and University equipment records. Additionally, the University should develop a more automated approach to resolving discrepancies between the third-party equipment inventory results and the federally funded equipment listing, rather than utilizing a manual process, which can cause delays. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings
2023-002 – Equipment Management Cluster: Research and Development Cluster (“R&D Cluster”) Grantor: Various - All R&D Cluster awards with equipment Award Name: Various - All R&D Cluster awards with equipment Award Year: FY2023 Pass-through entities and ID Number: Various - All R&D Cluster awards with equipment Assistance Listing Number: Various – All R&D Cluster awards with equipment Condition The University has a process in place whereby a third-party is engaged to scan all equipment (federal and nonfederal) across their 3 campuses every two years. The third-party does not have a detailed listing when performing their inventory and thus the University must reconcile what was located by the thirdparty to their detailed equipment listing and understand why certain items were not located. If not located, follow-up is performed on an asset-by-asset basis by the University requesting the custodian of the asset confirm the equipment is on-hand. While we University provided evidence of the third-party inventory being performed, including a related manual reconciliation process, we were unable to obtain an aggregated reconciliation between the University equipment records and the third-party inventory results that included all follow-up information as the process is currently manual and disaggregated. Additionally, when scanning through the detailed listing of federal assets, certain equipment was noted to have an inventory date outside of the past 2 years. Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Cause The University’s process for reviewing third-party equipment inventory results and conducting follow-up is manual, which can cause delays. Additionally, an aggregated reconciliation is not maintained, which can result in an incomplete or inaccurate inventory listing. Effect The lack of a formal reconciliation may result in incomplete equipment inventory records and/or certain assets not being physically inspected within the required 2-year period. Questioned Costs There are no questioned costs associated with this finding. Recommendation We recommend the University update their policies and procedures to require an aggregated reconciliation be maintained between third-party equipment inventory results and University equipment records. Additionally, the University should develop a more automated approach to resolving discrepancies between the third-party equipment inventory results and the federally funded equipment listing, rather than utilizing a manual process, which can cause delays. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings
2023-002 – Equipment Management Cluster: Research and Development Cluster (“R&D Cluster”) Grantor: Various - All R&D Cluster awards with equipment Award Name: Various - All R&D Cluster awards with equipment Award Year: FY2023 Pass-through entities and ID Number: Various - All R&D Cluster awards with equipment Assistance Listing Number: Various – All R&D Cluster awards with equipment Condition The University has a process in place whereby a third-party is engaged to scan all equipment (federal and nonfederal) across their 3 campuses every two years. The third-party does not have a detailed listing when performing their inventory and thus the University must reconcile what was located by the thirdparty to their detailed equipment listing and understand why certain items were not located. If not located, follow-up is performed on an asset-by-asset basis by the University requesting the custodian of the asset confirm the equipment is on-hand. While we University provided evidence of the third-party inventory being performed, including a related manual reconciliation process, we were unable to obtain an aggregated reconciliation between the University equipment records and the third-party inventory results that included all follow-up information as the process is currently manual and disaggregated. Additionally, when scanning through the detailed listing of federal assets, certain equipment was noted to have an inventory date outside of the past 2 years. Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Cause The University’s process for reviewing third-party equipment inventory results and conducting follow-up is manual, which can cause delays. Additionally, an aggregated reconciliation is not maintained, which can result in an incomplete or inaccurate inventory listing. Effect The lack of a formal reconciliation may result in incomplete equipment inventory records and/or certain assets not being physically inspected within the required 2-year period. Questioned Costs There are no questioned costs associated with this finding. Recommendation We recommend the University update their policies and procedures to require an aggregated reconciliation be maintained between third-party equipment inventory results and University equipment records. Additionally, the University should develop a more automated approach to resolving discrepancies between the third-party equipment inventory results and the federally funded equipment listing, rather than utilizing a manual process, which can cause delays. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings
2023-002 – Equipment Management Cluster: Research and Development Cluster (“R&D Cluster”) Grantor: Various - All R&D Cluster awards with equipment Award Name: Various - All R&D Cluster awards with equipment Award Year: FY2023 Pass-through entities and ID Number: Various - All R&D Cluster awards with equipment Assistance Listing Number: Various – All R&D Cluster awards with equipment Condition The University has a process in place whereby a third-party is engaged to scan all equipment (federal and nonfederal) across their 3 campuses every two years. The third-party does not have a detailed listing when performing their inventory and thus the University must reconcile what was located by the thirdparty to their detailed equipment listing and understand why certain items were not located. If not located, follow-up is performed on an asset-by-asset basis by the University requesting the custodian of the asset confirm the equipment is on-hand. While we University provided evidence of the third-party inventory being performed, including a related manual reconciliation process, we were unable to obtain an aggregated reconciliation between the University equipment records and the third-party inventory results that included all follow-up information as the process is currently manual and disaggregated. Additionally, when scanning through the detailed listing of federal assets, certain equipment was noted to have an inventory date outside of the past 2 years. Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Cause The University’s process for reviewing third-party equipment inventory results and conducting follow-up is manual, which can cause delays. Additionally, an aggregated reconciliation is not maintained, which can result in an incomplete or inaccurate inventory listing. Effect The lack of a formal reconciliation may result in incomplete equipment inventory records and/or certain assets not being physically inspected within the required 2-year period. Questioned Costs There are no questioned costs associated with this finding. Recommendation We recommend the University update their policies and procedures to require an aggregated reconciliation be maintained between third-party equipment inventory results and University equipment records. Additionally, the University should develop a more automated approach to resolving discrepancies between the third-party equipment inventory results and the federally funded equipment listing, rather than utilizing a manual process, which can cause delays. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings
2023-002 – Equipment Management Cluster: Research and Development Cluster (“R&D Cluster”) Grantor: Various - All R&D Cluster awards with equipment Award Name: Various - All R&D Cluster awards with equipment Award Year: FY2023 Pass-through entities and ID Number: Various - All R&D Cluster awards with equipment Assistance Listing Number: Various – All R&D Cluster awards with equipment Condition The University has a process in place whereby a third-party is engaged to scan all equipment (federal and nonfederal) across their 3 campuses every two years. The third-party does not have a detailed listing when performing their inventory and thus the University must reconcile what was located by the thirdparty to their detailed equipment listing and understand why certain items were not located. If not located, follow-up is performed on an asset-by-asset basis by the University requesting the custodian of the asset confirm the equipment is on-hand. While we University provided evidence of the third-party inventory being performed, including a related manual reconciliation process, we were unable to obtain an aggregated reconciliation between the University equipment records and the third-party inventory results that included all follow-up information as the process is currently manual and disaggregated. Additionally, when scanning through the detailed listing of federal assets, certain equipment was noted to have an inventory date outside of the past 2 years. Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Cause The University’s process for reviewing third-party equipment inventory results and conducting follow-up is manual, which can cause delays. Additionally, an aggregated reconciliation is not maintained, which can result in an incomplete or inaccurate inventory listing. Effect The lack of a formal reconciliation may result in incomplete equipment inventory records and/or certain assets not being physically inspected within the required 2-year period. Questioned Costs There are no questioned costs associated with this finding. Recommendation We recommend the University update their policies and procedures to require an aggregated reconciliation be maintained between third-party equipment inventory results and University equipment records. Additionally, the University should develop a more automated approach to resolving discrepancies between the third-party equipment inventory results and the federally funded equipment listing, rather than utilizing a manual process, which can cause delays. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings
2023-002 – Equipment Management Cluster: Research and Development Cluster (“R&D Cluster”) Grantor: Various - All R&D Cluster awards with equipment Award Name: Various - All R&D Cluster awards with equipment Award Year: FY2023 Pass-through entities and ID Number: Various - All R&D Cluster awards with equipment Assistance Listing Number: Various – All R&D Cluster awards with equipment Condition The University has a process in place whereby a third-party is engaged to scan all equipment (federal and nonfederal) across their 3 campuses every two years. The third-party does not have a detailed listing when performing their inventory and thus the University must reconcile what was located by the thirdparty to their detailed equipment listing and understand why certain items were not located. If not located, follow-up is performed on an asset-by-asset basis by the University requesting the custodian of the asset confirm the equipment is on-hand. While we University provided evidence of the third-party inventory being performed, including a related manual reconciliation process, we were unable to obtain an aggregated reconciliation between the University equipment records and the third-party inventory results that included all follow-up information as the process is currently manual and disaggregated. Additionally, when scanning through the detailed listing of federal assets, certain equipment was noted to have an inventory date outside of the past 2 years. Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Cause The University’s process for reviewing third-party equipment inventory results and conducting follow-up is manual, which can cause delays. Additionally, an aggregated reconciliation is not maintained, which can result in an incomplete or inaccurate inventory listing. Effect The lack of a formal reconciliation may result in incomplete equipment inventory records and/or certain assets not being physically inspected within the required 2-year period. Questioned Costs There are no questioned costs associated with this finding. Recommendation We recommend the University update their policies and procedures to require an aggregated reconciliation be maintained between third-party equipment inventory results and University equipment records. Additionally, the University should develop a more automated approach to resolving discrepancies between the third-party equipment inventory results and the federally funded equipment listing, rather than utilizing a manual process, which can cause delays. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings
2023-002 – Equipment Management Cluster: Research and Development Cluster (“R&D Cluster”) Grantor: Various - All R&D Cluster awards with equipment Award Name: Various - All R&D Cluster awards with equipment Award Year: FY2023 Pass-through entities and ID Number: Various - All R&D Cluster awards with equipment Assistance Listing Number: Various – All R&D Cluster awards with equipment Condition The University has a process in place whereby a third-party is engaged to scan all equipment (federal and nonfederal) across their 3 campuses every two years. The third-party does not have a detailed listing when performing their inventory and thus the University must reconcile what was located by the thirdparty to their detailed equipment listing and understand why certain items were not located. If not located, follow-up is performed on an asset-by-asset basis by the University requesting the custodian of the asset confirm the equipment is on-hand. While we University provided evidence of the third-party inventory being performed, including a related manual reconciliation process, we were unable to obtain an aggregated reconciliation between the University equipment records and the third-party inventory results that included all follow-up information as the process is currently manual and disaggregated. Additionally, when scanning through the detailed listing of federal assets, certain equipment was noted to have an inventory date outside of the past 2 years. Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Cause The University’s process for reviewing third-party equipment inventory results and conducting follow-up is manual, which can cause delays. Additionally, an aggregated reconciliation is not maintained, which can result in an incomplete or inaccurate inventory listing. Effect The lack of a formal reconciliation may result in incomplete equipment inventory records and/or certain assets not being physically inspected within the required 2-year period. Questioned Costs There are no questioned costs associated with this finding. Recommendation We recommend the University update their policies and procedures to require an aggregated reconciliation be maintained between third-party equipment inventory results and University equipment records. Additionally, the University should develop a more automated approach to resolving discrepancies between the third-party equipment inventory results and the federally funded equipment listing, rather than utilizing a manual process, which can cause delays. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings
2023-002 – Equipment Management Cluster: Research and Development Cluster (“R&D Cluster”) Grantor: Various - All R&D Cluster awards with equipment Award Name: Various - All R&D Cluster awards with equipment Award Year: FY2023 Pass-through entities and ID Number: Various - All R&D Cluster awards with equipment Assistance Listing Number: Various – All R&D Cluster awards with equipment Condition The University has a process in place whereby a third-party is engaged to scan all equipment (federal and nonfederal) across their 3 campuses every two years. The third-party does not have a detailed listing when performing their inventory and thus the University must reconcile what was located by the thirdparty to their detailed equipment listing and understand why certain items were not located. If not located, follow-up is performed on an asset-by-asset basis by the University requesting the custodian of the asset confirm the equipment is on-hand. While we University provided evidence of the third-party inventory being performed, including a related manual reconciliation process, we were unable to obtain an aggregated reconciliation between the University equipment records and the third-party inventory results that included all follow-up information as the process is currently manual and disaggregated. Additionally, when scanning through the detailed listing of federal assets, certain equipment was noted to have an inventory date outside of the past 2 years. Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Cause The University’s process for reviewing third-party equipment inventory results and conducting follow-up is manual, which can cause delays. Additionally, an aggregated reconciliation is not maintained, which can result in an incomplete or inaccurate inventory listing. Effect The lack of a formal reconciliation may result in incomplete equipment inventory records and/or certain assets not being physically inspected within the required 2-year period. Questioned Costs There are no questioned costs associated with this finding. Recommendation We recommend the University update their policies and procedures to require an aggregated reconciliation be maintained between third-party equipment inventory results and University equipment records. Additionally, the University should develop a more automated approach to resolving discrepancies between the third-party equipment inventory results and the federally funded equipment listing, rather than utilizing a manual process, which can cause delays. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings
2023-002 – Equipment Management Cluster: Research and Development Cluster (“R&D Cluster”) Grantor: Various - All R&D Cluster awards with equipment Award Name: Various - All R&D Cluster awards with equipment Award Year: FY2023 Pass-through entities and ID Number: Various - All R&D Cluster awards with equipment Assistance Listing Number: Various – All R&D Cluster awards with equipment Condition The University has a process in place whereby a third-party is engaged to scan all equipment (federal and nonfederal) across their 3 campuses every two years. The third-party does not have a detailed listing when performing their inventory and thus the University must reconcile what was located by the thirdparty to their detailed equipment listing and understand why certain items were not located. If not located, follow-up is performed on an asset-by-asset basis by the University requesting the custodian of the asset confirm the equipment is on-hand. While we University provided evidence of the third-party inventory being performed, including a related manual reconciliation process, we were unable to obtain an aggregated reconciliation between the University equipment records and the third-party inventory results that included all follow-up information as the process is currently manual and disaggregated. Additionally, when scanning through the detailed listing of federal assets, certain equipment was noted to have an inventory date outside of the past 2 years. Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Cause The University’s process for reviewing third-party equipment inventory results and conducting follow-up is manual, which can cause delays. Additionally, an aggregated reconciliation is not maintained, which can result in an incomplete or inaccurate inventory listing. Effect The lack of a formal reconciliation may result in incomplete equipment inventory records and/or certain assets not being physically inspected within the required 2-year period. Questioned Costs There are no questioned costs associated with this finding. Recommendation We recommend the University update their policies and procedures to require an aggregated reconciliation be maintained between third-party equipment inventory results and University equipment records. Additionally, the University should develop a more automated approach to resolving discrepancies between the third-party equipment inventory results and the federally funded equipment listing, rather than utilizing a manual process, which can cause delays. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings
2023-002 – Equipment Management Cluster: Research and Development Cluster (“R&D Cluster”) Grantor: Various - All R&D Cluster awards with equipment Award Name: Various - All R&D Cluster awards with equipment Award Year: FY2023 Pass-through entities and ID Number: Various - All R&D Cluster awards with equipment Assistance Listing Number: Various – All R&D Cluster awards with equipment Condition The University has a process in place whereby a third-party is engaged to scan all equipment (federal and nonfederal) across their 3 campuses every two years. The third-party does not have a detailed listing when performing their inventory and thus the University must reconcile what was located by the thirdparty to their detailed equipment listing and understand why certain items were not located. If not located, follow-up is performed on an asset-by-asset basis by the University requesting the custodian of the asset confirm the equipment is on-hand. While we University provided evidence of the third-party inventory being performed, including a related manual reconciliation process, we were unable to obtain an aggregated reconciliation between the University equipment records and the third-party inventory results that included all follow-up information as the process is currently manual and disaggregated. Additionally, when scanning through the detailed listing of federal assets, certain equipment was noted to have an inventory date outside of the past 2 years. Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Cause The University’s process for reviewing third-party equipment inventory results and conducting follow-up is manual, which can cause delays. Additionally, an aggregated reconciliation is not maintained, which can result in an incomplete or inaccurate inventory listing. Effect The lack of a formal reconciliation may result in incomplete equipment inventory records and/or certain assets not being physically inspected within the required 2-year period. Questioned Costs There are no questioned costs associated with this finding. Recommendation We recommend the University update their policies and procedures to require an aggregated reconciliation be maintained between third-party equipment inventory results and University equipment records. Additionally, the University should develop a more automated approach to resolving discrepancies between the third-party equipment inventory results and the federally funded equipment listing, rather than utilizing a manual process, which can cause delays. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings
2023-002 – Equipment Management Cluster: Research and Development Cluster (“R&D Cluster”) Grantor: Various - All R&D Cluster awards with equipment Award Name: Various - All R&D Cluster awards with equipment Award Year: FY2023 Pass-through entities and ID Number: Various - All R&D Cluster awards with equipment Assistance Listing Number: Various – All R&D Cluster awards with equipment Condition The University has a process in place whereby a third-party is engaged to scan all equipment (federal and nonfederal) across their 3 campuses every two years. The third-party does not have a detailed listing when performing their inventory and thus the University must reconcile what was located by the thirdparty to their detailed equipment listing and understand why certain items were not located. If not located, follow-up is performed on an asset-by-asset basis by the University requesting the custodian of the asset confirm the equipment is on-hand. While we University provided evidence of the third-party inventory being performed, including a related manual reconciliation process, we were unable to obtain an aggregated reconciliation between the University equipment records and the third-party inventory results that included all follow-up information as the process is currently manual and disaggregated. Additionally, when scanning through the detailed listing of federal assets, certain equipment was noted to have an inventory date outside of the past 2 years. Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Cause The University’s process for reviewing third-party equipment inventory results and conducting follow-up is manual, which can cause delays. Additionally, an aggregated reconciliation is not maintained, which can result in an incomplete or inaccurate inventory listing. Effect The lack of a formal reconciliation may result in incomplete equipment inventory records and/or certain assets not being physically inspected within the required 2-year period. Questioned Costs There are no questioned costs associated with this finding. Recommendation We recommend the University update their policies and procedures to require an aggregated reconciliation be maintained between third-party equipment inventory results and University equipment records. Additionally, the University should develop a more automated approach to resolving discrepancies between the third-party equipment inventory results and the federally funded equipment listing, rather than utilizing a manual process, which can cause delays. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings
2023-002 – Equipment Management Cluster: Research and Development Cluster (“R&D Cluster”) Grantor: Various - All R&D Cluster awards with equipment Award Name: Various - All R&D Cluster awards with equipment Award Year: FY2023 Pass-through entities and ID Number: Various - All R&D Cluster awards with equipment Assistance Listing Number: Various – All R&D Cluster awards with equipment Condition The University has a process in place whereby a third-party is engaged to scan all equipment (federal and nonfederal) across their 3 campuses every two years. The third-party does not have a detailed listing when performing their inventory and thus the University must reconcile what was located by the thirdparty to their detailed equipment listing and understand why certain items were not located. If not located, follow-up is performed on an asset-by-asset basis by the University requesting the custodian of the asset confirm the equipment is on-hand. While we University provided evidence of the third-party inventory being performed, including a related manual reconciliation process, we were unable to obtain an aggregated reconciliation between the University equipment records and the third-party inventory results that included all follow-up information as the process is currently manual and disaggregated. Additionally, when scanning through the detailed listing of federal assets, certain equipment was noted to have an inventory date outside of the past 2 years. Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Cause The University’s process for reviewing third-party equipment inventory results and conducting follow-up is manual, which can cause delays. Additionally, an aggregated reconciliation is not maintained, which can result in an incomplete or inaccurate inventory listing. Effect The lack of a formal reconciliation may result in incomplete equipment inventory records and/or certain assets not being physically inspected within the required 2-year period. Questioned Costs There are no questioned costs associated with this finding. Recommendation We recommend the University update their policies and procedures to require an aggregated reconciliation be maintained between third-party equipment inventory results and University equipment records. Additionally, the University should develop a more automated approach to resolving discrepancies between the third-party equipment inventory results and the federally funded equipment listing, rather than utilizing a manual process, which can cause delays. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings
2023-002 – Equipment Management Cluster: Research and Development Cluster (“R&D Cluster”) Grantor: Various - All R&D Cluster awards with equipment Award Name: Various - All R&D Cluster awards with equipment Award Year: FY2023 Pass-through entities and ID Number: Various - All R&D Cluster awards with equipment Assistance Listing Number: Various – All R&D Cluster awards with equipment Condition The University has a process in place whereby a third-party is engaged to scan all equipment (federal and nonfederal) across their 3 campuses every two years. The third-party does not have a detailed listing when performing their inventory and thus the University must reconcile what was located by the thirdparty to their detailed equipment listing and understand why certain items were not located. If not located, follow-up is performed on an asset-by-asset basis by the University requesting the custodian of the asset confirm the equipment is on-hand. While we University provided evidence of the third-party inventory being performed, including a related manual reconciliation process, we were unable to obtain an aggregated reconciliation between the University equipment records and the third-party inventory results that included all follow-up information as the process is currently manual and disaggregated. Additionally, when scanning through the detailed listing of federal assets, certain equipment was noted to have an inventory date outside of the past 2 years. Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Cause The University’s process for reviewing third-party equipment inventory results and conducting follow-up is manual, which can cause delays. Additionally, an aggregated reconciliation is not maintained, which can result in an incomplete or inaccurate inventory listing. Effect The lack of a formal reconciliation may result in incomplete equipment inventory records and/or certain assets not being physically inspected within the required 2-year period. Questioned Costs There are no questioned costs associated with this finding. Recommendation We recommend the University update their policies and procedures to require an aggregated reconciliation be maintained between third-party equipment inventory results and University equipment records. Additionally, the University should develop a more automated approach to resolving discrepancies between the third-party equipment inventory results and the federally funded equipment listing, rather than utilizing a manual process, which can cause delays. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings
2023-002 – Equipment Management Cluster: Research and Development Cluster (“R&D Cluster”) Grantor: Various - All R&D Cluster awards with equipment Award Name: Various - All R&D Cluster awards with equipment Award Year: FY2023 Pass-through entities and ID Number: Various - All R&D Cluster awards with equipment Assistance Listing Number: Various – All R&D Cluster awards with equipment Condition The University has a process in place whereby a third-party is engaged to scan all equipment (federal and nonfederal) across their 3 campuses every two years. The third-party does not have a detailed listing when performing their inventory and thus the University must reconcile what was located by the thirdparty to their detailed equipment listing and understand why certain items were not located. If not located, follow-up is performed on an asset-by-asset basis by the University requesting the custodian of the asset confirm the equipment is on-hand. While we University provided evidence of the third-party inventory being performed, including a related manual reconciliation process, we were unable to obtain an aggregated reconciliation between the University equipment records and the third-party inventory results that included all follow-up information as the process is currently manual and disaggregated. Additionally, when scanning through the detailed listing of federal assets, certain equipment was noted to have an inventory date outside of the past 2 years. Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Cause The University’s process for reviewing third-party equipment inventory results and conducting follow-up is manual, which can cause delays. Additionally, an aggregated reconciliation is not maintained, which can result in an incomplete or inaccurate inventory listing. Effect The lack of a formal reconciliation may result in incomplete equipment inventory records and/or certain assets not being physically inspected within the required 2-year period. Questioned Costs There are no questioned costs associated with this finding. Recommendation We recommend the University update their policies and procedures to require an aggregated reconciliation be maintained between third-party equipment inventory results and University equipment records. Additionally, the University should develop a more automated approach to resolving discrepancies between the third-party equipment inventory results and the federally funded equipment listing, rather than utilizing a manual process, which can cause delays. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings
2023-002 – Equipment Management Cluster: Research and Development Cluster (“R&D Cluster”) Grantor: Various - All R&D Cluster awards with equipment Award Name: Various - All R&D Cluster awards with equipment Award Year: FY2023 Pass-through entities and ID Number: Various - All R&D Cluster awards with equipment Assistance Listing Number: Various – All R&D Cluster awards with equipment Condition The University has a process in place whereby a third-party is engaged to scan all equipment (federal and nonfederal) across their 3 campuses every two years. The third-party does not have a detailed listing when performing their inventory and thus the University must reconcile what was located by the thirdparty to their detailed equipment listing and understand why certain items were not located. If not located, follow-up is performed on an asset-by-asset basis by the University requesting the custodian of the asset confirm the equipment is on-hand. While we University provided evidence of the third-party inventory being performed, including a related manual reconciliation process, we were unable to obtain an aggregated reconciliation between the University equipment records and the third-party inventory results that included all follow-up information as the process is currently manual and disaggregated. Additionally, when scanning through the detailed listing of federal assets, certain equipment was noted to have an inventory date outside of the past 2 years. Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Cause The University’s process for reviewing third-party equipment inventory results and conducting follow-up is manual, which can cause delays. Additionally, an aggregated reconciliation is not maintained, which can result in an incomplete or inaccurate inventory listing. Effect The lack of a formal reconciliation may result in incomplete equipment inventory records and/or certain assets not being physically inspected within the required 2-year period. Questioned Costs There are no questioned costs associated with this finding. Recommendation We recommend the University update their policies and procedures to require an aggregated reconciliation be maintained between third-party equipment inventory results and University equipment records. Additionally, the University should develop a more automated approach to resolving discrepancies between the third-party equipment inventory results and the federally funded equipment listing, rather than utilizing a manual process, which can cause delays. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings
2023-002 – Equipment Management Cluster: Research and Development Cluster (“R&D Cluster”) Grantor: Various - All R&D Cluster awards with equipment Award Name: Various - All R&D Cluster awards with equipment Award Year: FY2023 Pass-through entities and ID Number: Various - All R&D Cluster awards with equipment Assistance Listing Number: Various – All R&D Cluster awards with equipment Condition The University has a process in place whereby a third-party is engaged to scan all equipment (federal and nonfederal) across their 3 campuses every two years. The third-party does not have a detailed listing when performing their inventory and thus the University must reconcile what was located by the thirdparty to their detailed equipment listing and understand why certain items were not located. If not located, follow-up is performed on an asset-by-asset basis by the University requesting the custodian of the asset confirm the equipment is on-hand. While we University provided evidence of the third-party inventory being performed, including a related manual reconciliation process, we were unable to obtain an aggregated reconciliation between the University equipment records and the third-party inventory results that included all follow-up information as the process is currently manual and disaggregated. Additionally, when scanning through the detailed listing of federal assets, certain equipment was noted to have an inventory date outside of the past 2 years. Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Cause The University’s process for reviewing third-party equipment inventory results and conducting follow-up is manual, which can cause delays. Additionally, an aggregated reconciliation is not maintained, which can result in an incomplete or inaccurate inventory listing. Effect The lack of a formal reconciliation may result in incomplete equipment inventory records and/or certain assets not being physically inspected within the required 2-year period. Questioned Costs There are no questioned costs associated with this finding. Recommendation We recommend the University update their policies and procedures to require an aggregated reconciliation be maintained between third-party equipment inventory results and University equipment records. Additionally, the University should develop a more automated approach to resolving discrepancies between the third-party equipment inventory results and the federally funded equipment listing, rather than utilizing a manual process, which can cause delays. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings
2023-002 – Equipment Management Cluster: Research and Development Cluster (“R&D Cluster”) Grantor: Various - All R&D Cluster awards with equipment Award Name: Various - All R&D Cluster awards with equipment Award Year: FY2023 Pass-through entities and ID Number: Various - All R&D Cluster awards with equipment Assistance Listing Number: Various – All R&D Cluster awards with equipment Condition The University has a process in place whereby a third-party is engaged to scan all equipment (federal and nonfederal) across their 3 campuses every two years. The third-party does not have a detailed listing when performing their inventory and thus the University must reconcile what was located by the thirdparty to their detailed equipment listing and understand why certain items were not located. If not located, follow-up is performed on an asset-by-asset basis by the University requesting the custodian of the asset confirm the equipment is on-hand. While we University provided evidence of the third-party inventory being performed, including a related manual reconciliation process, we were unable to obtain an aggregated reconciliation between the University equipment records and the third-party inventory results that included all follow-up information as the process is currently manual and disaggregated. Additionally, when scanning through the detailed listing of federal assets, certain equipment was noted to have an inventory date outside of the past 2 years. Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Cause The University’s process for reviewing third-party equipment inventory results and conducting follow-up is manual, which can cause delays. Additionally, an aggregated reconciliation is not maintained, which can result in an incomplete or inaccurate inventory listing. Effect The lack of a formal reconciliation may result in incomplete equipment inventory records and/or certain assets not being physically inspected within the required 2-year period. Questioned Costs There are no questioned costs associated with this finding. Recommendation We recommend the University update their policies and procedures to require an aggregated reconciliation be maintained between third-party equipment inventory results and University equipment records. Additionally, the University should develop a more automated approach to resolving discrepancies between the third-party equipment inventory results and the federally funded equipment listing, rather than utilizing a manual process, which can cause delays. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings