Condition and Context: While the School completed a physical observation of its assets, it did not reconcile its detailed fixed asset listing to the physical observation. Criteria: According to 2 CFR 200.313 Equipment, a physical inventory of the property must be performed and the results reconciled with the property records at least once every two years. Cause and Effect: The cause is a lack of resources to perform a physical inventory of the property and equipment. The effect is the possibility of purchasing assets using federal funds that are not properly accounted for in the accounting records. Recommendation: We recommend that in addition to conducting a physical inventory of the School's capital assets on at least a biennial basis, that the School update its accounting records based on the results of the physical inventory. Management’s Response: The School’s responsible officials’ views and planned corrective action are in its corrective action plan at the end of the report.
Condition and Context: While the School completed a physical observation of its assets, it did not reconcile its detailed fixed asset listing to the physical observation. Criteria: According to 2 CFR 200.313 Equipment, a physical inventory of the property must be performed and the results reconciled with the property records at least once every two years. Cause and Effect: The cause is a lack of resources to perform a physical inventory of the property and equipment. The effect is the possibility of purchasing assets using federal funds that are not properly accounted for in the accounting records. Recommendation: We recommend that in addition to conducting a physical inventory of the School's capital assets on at least a biennial basis, that the School update its accounting records based on the results of the physical inventory. Management’s Response: The School’s responsible officials’ views and planned corrective action are in its corrective action plan at the end of the report.
Condition and Context: While the School completed a physical observation of its assets, it did not reconcile its detailed fixed asset listing to the physical observation. Criteria: According to 2 CFR 200.313 Equipment, a physical inventory of the property must be performed and the results reconciled with the property records at least once every two years. Cause and Effect: The cause is a lack of resources to perform a physical inventory of the property and equipment. The effect is the possibility of purchasing assets using federal funds that are not properly accounted for in the accounting records. Recommendation: We recommend that in addition to conducting a physical inventory of the School's capital assets on at least a biennial basis, that the School update its accounting records based on the results of the physical inventory. Management’s Response: The School’s responsible officials’ views and planned corrective action are in its corrective action plan at the end of the report.
Condition and Context: While the School completed a physical observation of its assets, it did not reconcile its detailed fixed asset listing to the physical observation. Criteria: According to 2 CFR 200.313 Equipment, a physical inventory of the property must be performed and the results reconciled with the property records at least once every two years. Cause and Effect: The cause is a lack of resources to perform a physical inventory of the property and equipment. The effect is the possibility of purchasing assets using federal funds that are not properly accounted for in the accounting records. Recommendation: We recommend that in addition to conducting a physical inventory of the School's capital assets on at least a biennial basis, that the School update its accounting records based on the results of the physical inventory. Management’s Response: The School’s responsible officials’ views and planned corrective action are in its corrective action plan at the end of the report.
Condition and Context: While the School completed a physical observation of its assets, it did not reconcile its detailed fixed asset listing to the physical observation. Criteria: According to 2 CFR 200.313 Equipment, a physical inventory of the property must be performed and the results reconciled with the property records at least once every two years. Cause and Effect: The cause is a lack of resources to perform a physical inventory of the property and equipment. The effect is the possibility of purchasing assets using federal funds that are not properly accounted for in the accounting records. Recommendation: We recommend that in addition to conducting a physical inventory of the School's capital assets on at least a biennial basis, that the School update its accounting records based on the results of the physical inventory. Management’s Response: The School’s responsible officials’ views and planned corrective action are in its corrective action plan at the end of the report.
Condition and Context: While the School completed a physical observation of its assets, it did not reconcile its detailed fixed asset listing to the physical observation. Criteria: According to 2 CFR 200.313 Equipment, a physical inventory of the property must be performed and the results reconciled with the property records at least once every two years. Cause and Effect: The cause is a lack of resources to perform a physical inventory of the property and equipment. The effect is the possibility of purchasing assets using federal funds that are not properly accounted for in the accounting records. Recommendation: We recommend that in addition to conducting a physical inventory of the School's capital assets on at least a biennial basis, that the School update its accounting records based on the results of the physical inventory. Management’s Response: The School’s responsible officials’ views and planned corrective action are in its corrective action plan at the end of the report.
Condition and Context: While the School completed a physical observation of its assets, it did not reconcile its detailed fixed asset listing to the physical observation. Criteria: According to 2 CFR 200.313 Equipment, a physical inventory of the property must be performed and the results reconciled with the property records at least once every two years. Cause and Effect: The cause is a lack of resources to perform a physical inventory of the property and equipment. The effect is the possibility of purchasing assets using federal funds that are not properly accounted for in the accounting records. Recommendation: We recommend that in addition to conducting a physical inventory of the School's capital assets on at least a biennial basis, that the School update its accounting records based on the results of the physical inventory. Management’s Response: The School’s responsible officials’ views and planned corrective action are in its corrective action plan at the end of the report.
New York City Department of Investigation (“DOI”) Finding #: 2023-009 Funding Year(s): 7/1/2022 – 6/30/2023 Equitable Sharing Program (FAL #16.922) Contract Numbers: N/A Federal Agency: U.S. Department of Justice Type of Finding: Equipment and Real Property Management - Compliance and Internal Control (Significant Deficiency) Criteria: As stipulated by 2 CFR section 200.313(d)(2), a physical inventory of property and equipment acquired under a federal award must be taken, and the results reconciled with the property records, at least once every two years. Also, as stipulated by 2 CFR Section 200.303, recipients of federal awards are required to establish and maintain an internal control environment that complies with either the guidance in “Standards for Internal Control in the Federal Government” (the “Green Book”) 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”) for the federal funding streams it administers. Condition/Context: From a non-statistical sample of forty (40) pieces of equipment subjected to testing, DOI was unable to provide supporting documentation for two (2) of the selections, that a review and approval of the inventory had taken place at the time the inventory was conducted. Cause/Effect: While DOI had certain procedures in place to monitor their equipment purchased with federal funding, such procedures were not adequate to ensure that each aspect of the equipment and real property management compliance requirements were performed and documented within the requirement timeframe, which resulted in the findings noted above. Without the appropriate internal controls and monitoring procedures in place, federally funded equipment could be inaccurately recorded on inventory records and not discovered and corrected timely, inventory could be misplaced, misappropriated, or otherwise disposed of outside of the requirements of the federal guidelines Questioned Costs: None identified. Identification as a Repeat Finding: This finding is similar to finding #2022-009, included on pages 245 through 247 of the Fiscal 2022 Single Audit report. Recommendation: We recommend that DOI strengthen controls over the inventory process to ensure biennial inventory counts are consistently performed over all equipment within the required timeframe, and that the review and approval of each inventory performed is appropriately documented.
New York City Police Department (“NYPD”) Finding #: 2023-011 Funding Year(s): 9/1/2018 - 8/31/2025 Port Security Grant Program (FAL #97.056) Contract Number(s): EMW-2018-PU-00123-S01, EMW-2019-PU-00316-S01, EMW-2020-PU-00278-S01, EMW-2021-PU-00321-S01, EMW-2022-PU-00311-S01 Federal Agency: U.S. Department of Homeland Security Type of Finding: Equipment and Real Property Management - Compliance and Internal Control (Control Deficiency) 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 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. Condition/Context: The New York City Police Department (“NYPD”) utilizes the City’s Grants Tracking System (“GTS”), a citywide web-based inventory program, designed to standardize the tracking of federally funded equipment. Further, NYPD Command-designated grants coordinators are responsible for monitoring the equipment and updating the inventory on a periodic basis in accordance with federal guidelines. The NYPD Grants Unit periodically generates an inventory listing from GTS that includes the biennial inventory count due date for each item and distributes it to the assigned NYPD Command designated grant coordinators to ensure the inventory count is conducted timely and in accordance with federal requirements. After the completion of biennial inventory count, the NYPD Command-designated grants coordinators update the inventory count information to GTS. From a non-statistical sample of twenty (20) pieces of equipment subjected to testing, we identified one (1) piece of equipment that was disposed of prior to the most recent inventory count, but the equipment was not removed from the active inventory listing. Cause/Effect: While NYPD had certain procedures in place to monitor their equipment purchased with federal funding, such procedures were not adequate to ensure that each aspect of the equipment and real property management compliance requirements were performed and documented within the required timeframe, which resulted in the finding noted above. Without the appropriate internal controls and monitoring procedures in place, federally funded equipment could be inaccurately recorded on inventory records and not discovered and corrected timely, inventory could be misplaced, misappropriated, or otherwise disposed of outside of the requirements of the federal guidelines. Questioned Costs: None identified. Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend that NYPD strengthen controls over the inventory process to ensure dispositions of equipment are updated in the equipment records.
New York City Fire Department (“FDNY”) Finding #: 2023-012 Funding Year(s): 9/1/2018 - 8/31/2024 Port Security Grant Program (FAL #97.056) Contract Number(s): EMW-2018-PU-00004-S01, EMW-2020-PU-00020-S01, EMW-2021-PU-00015-S01, EMW-2019-PU-00013-S01 Federal Agency: U.S. Department of Homeland Security Type of Finding: Equipment and Real Property Management - Compliance and Internal Control (Significant Deficiency) 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 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. Condition/Context: The New York City Fire Department (“FDNY”) utilizes the City’s Grants Tracking System (“GTS”), a citywide web-based inventory program, designed to standardize the tracking of federally funded equipment. Further, FDNY Command-designated grants coordinators are responsible for monitoring the equipment and updating the inventory on a periodic basis in accordance with federal guidelines. The FDNY Grants Unit periodically generates an inventory listing from GTS that includes the biennial inventory count due date for each item and distributes it to the assigned FDNY Command designated grant coordinators to ensure the inventory count is conducted timely and in accordance with federal requirements. After the completion of biennial inventory count, the FDNY Command-designated grants coordinators update the inventory count information to GTS. From a non-statistical sample of twenty (20) pieces of equipment subjected to testing, we identified three (3) pieces of equipment that were disposed of prior to the most recent inventory count but the equipment was not removed from the active inventory listing. Cause/Effect: While FDNY had certain procedures in place to monitor their equipment purchased with federal funding, such procedures were not adequate to ensure that each aspect of the equipment and real property management compliance requirements were consistently performed and documented, which resulted in the findings noted above. Without the appropriate internal controls and monitoring procedures in place, federally funded equipment could be inaccurately recorded on inventory records and not discovered and corrected timely, inventory could be misplaced, misappropriated, or otherwise disposed of outside of the requirements of the federal guidelines Questioned Costs: None identified. Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend that FDNY strengthen controls over the inventory process to ensure dispositions of equipment are updated in the equipment records, inventories performed are reconciled back to equipment records, and biennial inventory counts are consistently performed for all equipment within the required timeframe.
Statement of Condition Per Title 2 US Code of Federal Regulations Part 200.303a, a non‐federal entity 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 in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR 200.313(d)(1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (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. Per 2 CFR 200.313(d)(2), a physical inventory of program property must be taken and the results reconciled with the property records at least once every two years. The Organization was not able to provide an equipment listing tracking items purchased with federal funding nor did the Organization conduct a physical inventory count. The Organization does not have policies and procedures to ensure that equipment purchases with federal funds is maintained and tracked and that the Organization is performing a physical inventory at a minimum of every two years.
Finding Number: 2023-001 Repeat Finding: Yes Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425D and 84.425U Federal Agency: U.S. Department of Education Federal Award Number: 23SSPCON-311221-01A, 21FESSII-111221-01A, 21FESIII-111221-01A Questioned Costs: None Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Equipment/Real Property Management Condition/Context: The District did not tag and track the capital assets purchased with Education Stabilization Fund monies. Criteria: 2 CFR Section 200.313 (equipment) and section 200.439 (equipment and other capital expenditures) Effect: Noncompliance with grant requirements. Cause: Management oversight. Recommendation: The District should ensure that it tags, tracks, and inventories its capital assets purchased with federal monies. Response: The District concurs with this recommendation and will implement procedures to ensure compliance with grant requirements. Contact person: Clay Bowman, Director of Finance
Finding – Internal control deficiencies over tracking equipment Identification of the Federal Program: Assistance Listing Number and Title: 14.231, Emergency Solutions Grant Coronavirus Program Federal Grantor Name: U.S. Department of Housing and Urban Development Federal Award/Contract Number: NA Pass-through Entity Name: California Department of Housing and Community Development Pass-through Award/Contract Number: 20-ESGCV-3-00002 Compliance Requirement – Equipment and Real Property Management Condition: The City was unable to produce a list of equipment purchased with federal funds. A physical inventory has not been performed for federally purchased equipment. Criteria: Equipment Use, Management, and Disposition Requirements at 2 CFR 200.313(c), 2 CFR 200.313(d), and 2 CFR 200.313(e); A list of equipment and real property purchased with federal funds should be maintained for tracking purposes as there are specific federal guidelines and requirements regarding these purchases and dispositions. Cause: The City is not maintaining adequate records regarding the use, management, and disposition of equipment purchased with ESG-CV funds. Effect: The City may not be in compliance with the Uniform Guidance if federally acquired equipment has been sold and the proceeds were either not reimbursed to the Federal awarding agency or set aside to be used towards the purchase of similar equipment. Questioned Costs: $199,274 Context: The program requires that for dispositions of equipment acquired under grants with a current per-unit fair market value of $5,000 or more, the Federal awarding agency is to be reimbursed for the Federal portion of the current market value or sales proceeds. Identification of a repeat finding: Not a repeat finding. Recommendation: We recommend that the City prepare policies and procedures to ensure adequate equipment records are being maintained. Views of responsible officials: Management concurs with the finding.
Grantor(s): Various Program: Research and Development Cluster Assistance Listing#: Various Title: Research and Development Cluster Award Year: 7/2022 – 6/2023 Award #: N/A Pass-through Number: N/A Criteria Non-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that a physical inventory of the property must be taken, and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)). Condition The University performs a physical inventory of equipment at the department level. Within the Research and Development Cluster, there are 18 departments. Of the 18 departments, 5 departments did not perform the physical inventory at least once in the last two-year period (FY23 and FY22). These 5 departments included 25 individual equipment items that totaled $711,698. The remaining population of 13 departments appropriately performed the physical inventory in the last two-year period over the remaining 125 items totaling $2,294,506 as required. Cause The cause of this finding is due to a lapse in control operation to ensure that the required physical inventory of equipment (or other capitalized assets) acquired under Federal awards was performed by the University at least once every two years. Effect The required physical inventory of equipment (or other capitalized assets) acquired under Federal awards was not performed by the University for 5 departments at least once every two years for R&D related equipment. Questioned Costs None. Recommendation Management should enhance the control in place to ensure that all departments with equipment acquired under Federal Awards are performing the physical inventory when it is requested and ensure that all equipment is verified at least once every two years. Management’s View and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included in this report.
Current Year Finding: Number 2023-005 Federal Programs: COVID-19 Education Stabilization Fund Cluster (ALN 84.425E, 84.425F, 84.425G, 84.425J) HAMPTON UNIVERSITY AND SUBSIDIARIES Schedule of Findings and Questioned Costs Year ended June 30, 2023 15 Federal Award #’s: P425E200695, P425F202060, V425G200028, P425J200072 Federal Award Years: 84.425 E (4/28/2020 – 6/30/2023), 84.425 F (5/7/2020 – 6/30/2023), 84.425 G (10/1/2020 – 9/30/2024), 84.425 J (5/1/2020 – 6/30/2023) Federal Agencies: U.S. Department of Education Pass-Through Entity: None Compliance Requirement: Equipment Criteria: Per the Uniform Guidance, non-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that a control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). Condition and Context: Of the 41 Property tag (Ptag) samples selected for inspection from the total population of equipment on hand, 1 of the 41 Ptags selected for testing had multiple items that were not tagged with a Ptag. The 1 sampled Ptag consisted of 219 equipment items, and during our inspection of these 219 equipment items, we noted that 5 equipment items were not tagged with a Ptag. Cause and Possible Asserted Effect: The equipment was not properly tagged in accordance with the University’s policy to ensure equipment is adequately safeguarded to prevent loss, damage, or theft of the property. Although improperly tagged, the University was able to locate, and KPMG inspected, the 5 pieces of equipment, thereby confirming their existence and that they are secured from theft behind locked doors, and as such, we did not note any instances of noncompliance. Failure to properly tag purchased equipment could result in lost, stolen or damaged equipment not being identified. Identification of questioned Costs: There are no questioned costs related to this finding. Sampling: The sample was not intended to be and was not a statistically valid sample. HAMPTON UNIVERSITY AND SUBSIDIARIES Schedule of Findings and Questioned Costs Year ended June 30, 2023 16 Recommendation: We recommend that the University strengthen its process and controls over the tagging of equipment purchased with federal funds. Identification of Repeat Finding This finding was a repeat of finding 2022-001. Views of Responsible Officials: The University agrees with this finding. As a result of the prior year finding, the University made significant improvements to its equipment management process. The University reviewed all equipment pieces in every building on campus and compared the items against the Ptag information in the Universities Banner System. Any noted discrepancies were updated accordingly. Additionally, the University provided additional training to its staff accountants and temporary workers. Lastly, the University’s internal auditor re-reviewed the equipment that was inspected during the prior year audit and verified that the item was property tagged with a Ptag and that the item was accurately recorded in the University’s Banner IT system. During the current year audit, there were 41 Ptag samples selected for inspection, which consisted of over 800 individual equipment items. The 5 equipment items noted during inspection that were not tagged equate to an error rate that is less than 1%. The University will continue to enhance it procedures to ensure all equipment items are tagged, including the use of a more durable adhesive tag. Management will also perform a monthly audit of various equipment items throughout the year across a variety of departments. The Univesity will also reviewa virtual inspection of its inventory.
Current Year Finding: Number 2023-005 Federal Programs: COVID-19 Education Stabilization Fund Cluster (ALN 84.425E, 84.425F, 84.425G, 84.425J) HAMPTON UNIVERSITY AND SUBSIDIARIES Schedule of Findings and Questioned Costs Year ended June 30, 2023 15 Federal Award #’s: P425E200695, P425F202060, V425G200028, P425J200072 Federal Award Years: 84.425 E (4/28/2020 – 6/30/2023), 84.425 F (5/7/2020 – 6/30/2023), 84.425 G (10/1/2020 – 9/30/2024), 84.425 J (5/1/2020 – 6/30/2023) Federal Agencies: U.S. Department of Education Pass-Through Entity: None Compliance Requirement: Equipment Criteria: Per the Uniform Guidance, non-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that a control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). Condition and Context: Of the 41 Property tag (Ptag) samples selected for inspection from the total population of equipment on hand, 1 of the 41 Ptags selected for testing had multiple items that were not tagged with a Ptag. The 1 sampled Ptag consisted of 219 equipment items, and during our inspection of these 219 equipment items, we noted that 5 equipment items were not tagged with a Ptag. Cause and Possible Asserted Effect: The equipment was not properly tagged in accordance with the University’s policy to ensure equipment is adequately safeguarded to prevent loss, damage, or theft of the property. Although improperly tagged, the University was able to locate, and KPMG inspected, the 5 pieces of equipment, thereby confirming their existence and that they are secured from theft behind locked doors, and as such, we did not note any instances of noncompliance. Failure to properly tag purchased equipment could result in lost, stolen or damaged equipment not being identified. Identification of questioned Costs: There are no questioned costs related to this finding. Sampling: The sample was not intended to be and was not a statistically valid sample. HAMPTON UNIVERSITY AND SUBSIDIARIES Schedule of Findings and Questioned Costs Year ended June 30, 2023 16 Recommendation: We recommend that the University strengthen its process and controls over the tagging of equipment purchased with federal funds. Identification of Repeat Finding This finding was a repeat of finding 2022-001. Views of Responsible Officials: The University agrees with this finding. As a result of the prior year finding, the University made significant improvements to its equipment management process. The University reviewed all equipment pieces in every building on campus and compared the items against the Ptag information in the Universities Banner System. Any noted discrepancies were updated accordingly. Additionally, the University provided additional training to its staff accountants and temporary workers. Lastly, the University’s internal auditor re-reviewed the equipment that was inspected during the prior year audit and verified that the item was property tagged with a Ptag and that the item was accurately recorded in the University’s Banner IT system. During the current year audit, there were 41 Ptag samples selected for inspection, which consisted of over 800 individual equipment items. The 5 equipment items noted during inspection that were not tagged equate to an error rate that is less than 1%. The University will continue to enhance it procedures to ensure all equipment items are tagged, including the use of a more durable adhesive tag. Management will also perform a monthly audit of various equipment items throughout the year across a variety of departments. The Univesity will also reviewa virtual inspection of its inventory.
Current Year Finding: Number 2023-005 Federal Programs: COVID-19 Education Stabilization Fund Cluster (ALN 84.425E, 84.425F, 84.425G, 84.425J) HAMPTON UNIVERSITY AND SUBSIDIARIES Schedule of Findings and Questioned Costs Year ended June 30, 2023 15 Federal Award #’s: P425E200695, P425F202060, V425G200028, P425J200072 Federal Award Years: 84.425 E (4/28/2020 – 6/30/2023), 84.425 F (5/7/2020 – 6/30/2023), 84.425 G (10/1/2020 – 9/30/2024), 84.425 J (5/1/2020 – 6/30/2023) Federal Agencies: U.S. Department of Education Pass-Through Entity: None Compliance Requirement: Equipment Criteria: Per the Uniform Guidance, non-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that a control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). Condition and Context: Of the 41 Property tag (Ptag) samples selected for inspection from the total population of equipment on hand, 1 of the 41 Ptags selected for testing had multiple items that were not tagged with a Ptag. The 1 sampled Ptag consisted of 219 equipment items, and during our inspection of these 219 equipment items, we noted that 5 equipment items were not tagged with a Ptag. Cause and Possible Asserted Effect: The equipment was not properly tagged in accordance with the University’s policy to ensure equipment is adequately safeguarded to prevent loss, damage, or theft of the property. Although improperly tagged, the University was able to locate, and KPMG inspected, the 5 pieces of equipment, thereby confirming their existence and that they are secured from theft behind locked doors, and as such, we did not note any instances of noncompliance. Failure to properly tag purchased equipment could result in lost, stolen or damaged equipment not being identified. Identification of questioned Costs: There are no questioned costs related to this finding. Sampling: The sample was not intended to be and was not a statistically valid sample. HAMPTON UNIVERSITY AND SUBSIDIARIES Schedule of Findings and Questioned Costs Year ended June 30, 2023 16 Recommendation: We recommend that the University strengthen its process and controls over the tagging of equipment purchased with federal funds. Identification of Repeat Finding This finding was a repeat of finding 2022-001. Views of Responsible Officials: The University agrees with this finding. As a result of the prior year finding, the University made significant improvements to its equipment management process. The University reviewed all equipment pieces in every building on campus and compared the items against the Ptag information in the Universities Banner System. Any noted discrepancies were updated accordingly. Additionally, the University provided additional training to its staff accountants and temporary workers. Lastly, the University’s internal auditor re-reviewed the equipment that was inspected during the prior year audit and verified that the item was property tagged with a Ptag and that the item was accurately recorded in the University’s Banner IT system. During the current year audit, there were 41 Ptag samples selected for inspection, which consisted of over 800 individual equipment items. The 5 equipment items noted during inspection that were not tagged equate to an error rate that is less than 1%. The University will continue to enhance it procedures to ensure all equipment items are tagged, including the use of a more durable adhesive tag. Management will also perform a monthly audit of various equipment items throughout the year across a variety of departments. The Univesity will also reviewa virtual inspection of its inventory.
Current Year Finding: Number 2023-005 Federal Programs: COVID-19 Education Stabilization Fund Cluster (ALN 84.425E, 84.425F, 84.425G, 84.425J) HAMPTON UNIVERSITY AND SUBSIDIARIES Schedule of Findings and Questioned Costs Year ended June 30, 2023 15 Federal Award #’s: P425E200695, P425F202060, V425G200028, P425J200072 Federal Award Years: 84.425 E (4/28/2020 – 6/30/2023), 84.425 F (5/7/2020 – 6/30/2023), 84.425 G (10/1/2020 – 9/30/2024), 84.425 J (5/1/2020 – 6/30/2023) Federal Agencies: U.S. Department of Education Pass-Through Entity: None Compliance Requirement: Equipment Criteria: Per the Uniform Guidance, non-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that a control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). Condition and Context: Of the 41 Property tag (Ptag) samples selected for inspection from the total population of equipment on hand, 1 of the 41 Ptags selected for testing had multiple items that were not tagged with a Ptag. The 1 sampled Ptag consisted of 219 equipment items, and during our inspection of these 219 equipment items, we noted that 5 equipment items were not tagged with a Ptag. Cause and Possible Asserted Effect: The equipment was not properly tagged in accordance with the University’s policy to ensure equipment is adequately safeguarded to prevent loss, damage, or theft of the property. Although improperly tagged, the University was able to locate, and KPMG inspected, the 5 pieces of equipment, thereby confirming their existence and that they are secured from theft behind locked doors, and as such, we did not note any instances of noncompliance. Failure to properly tag purchased equipment could result in lost, stolen or damaged equipment not being identified. Identification of questioned Costs: There are no questioned costs related to this finding. Sampling: The sample was not intended to be and was not a statistically valid sample. HAMPTON UNIVERSITY AND SUBSIDIARIES Schedule of Findings and Questioned Costs Year ended June 30, 2023 16 Recommendation: We recommend that the University strengthen its process and controls over the tagging of equipment purchased with federal funds. Identification of Repeat Finding This finding was a repeat of finding 2022-001. Views of Responsible Officials: The University agrees with this finding. As a result of the prior year finding, the University made significant improvements to its equipment management process. The University reviewed all equipment pieces in every building on campus and compared the items against the Ptag information in the Universities Banner System. Any noted discrepancies were updated accordingly. Additionally, the University provided additional training to its staff accountants and temporary workers. Lastly, the University’s internal auditor re-reviewed the equipment that was inspected during the prior year audit and verified that the item was property tagged with a Ptag and that the item was accurately recorded in the University’s Banner IT system. During the current year audit, there were 41 Ptag samples selected for inspection, which consisted of over 800 individual equipment items. The 5 equipment items noted during inspection that were not tagged equate to an error rate that is less than 1%. The University will continue to enhance it procedures to ensure all equipment items are tagged, including the use of a more durable adhesive tag. Management will also perform a monthly audit of various equipment items throughout the year across a variety of departments. The Univesity will also reviewa virtual inspection of its inventory.
Federal Equipment Management Finding Number: 2023-001 Assistance Listing Number and Title: AL# 84.425C, 84.425D, 84.425U, 84.425W COVID-19 Education Stabilization Fund Federal Award Identification Number / Year: None / 2023 Federal Agency: United States Department of Education Compliance Requirement: Equipment and Real Property Management Pass-Through Entity: Ohio Department of Education and Workforce Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. § 200.313(d)(1), which requires that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal Award Identification Number (FAIN)), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. 2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. § 200.313(d)(2), which states, a physical inventory of the property must be performed, and the results reconciled with the property records at least once every 2 years. Due to a failure of internal controls, the Educational Service Center's inventory listing/capital asset records for equipment acquired under the Education Stabilization Fund were not complete and accurate. We identified three equipment items purchased in fiscal year 2023 that exceeded the Educational Service Center’s federal equipment threshold of $1,000 which were not included on the listing. We also identified four separate equipment items inadvertently recorded twice on the listing, with two separate identification numbers, however there was only one of each item purchased. In addition, there was no evidence a physical inventory of the equipment acquired under the Education Stabilization Fund had been performed within the preceding two years. The Educational Service Center should establish and implement policies and procedures to properly track equipment purchased with Federal funds in accordance with 2 C.F.R. §200.313(d). To effectively control equipment and maintain accountability over expenditures, the Educational Service Center should ensure all equipment is properly identified and recorded on their inventory and/or capital asset listing. Failure to do so could result in the Educational Service Center tracking an incorrect number and/or amount of assets, and misuse being undetected in a timely manner. Additionally, a physical inventory should be performed, at a minimum, once every two years to verify that equipment held per the inventory/capital asset listing actually exist and adequate documentation is maintained to support an inspection was performed. This will assist in detecting errors, fraud, theft, or omissions. Officials’ Response: See Corrective Action Plan.
Federal Equipment Management Finding Number: 2023-001 Assistance Listing Number and Title: AL# 84.425C, 84.425D, 84.425U, 84.425W COVID-19 Education Stabilization Fund Federal Award Identification Number / Year: None / 2023 Federal Agency: United States Department of Education Compliance Requirement: Equipment and Real Property Management Pass-Through Entity: Ohio Department of Education and Workforce Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. § 200.313(d)(1), which requires that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal Award Identification Number (FAIN)), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. 2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. § 200.313(d)(2), which states, a physical inventory of the property must be performed, and the results reconciled with the property records at least once every 2 years. Due to a failure of internal controls, the Educational Service Center's inventory listing/capital asset records for equipment acquired under the Education Stabilization Fund were not complete and accurate. We identified three equipment items purchased in fiscal year 2023 that exceeded the Educational Service Center’s federal equipment threshold of $1,000 which were not included on the listing. We also identified four separate equipment items inadvertently recorded twice on the listing, with two separate identification numbers, however there was only one of each item purchased. In addition, there was no evidence a physical inventory of the equipment acquired under the Education Stabilization Fund had been performed within the preceding two years. The Educational Service Center should establish and implement policies and procedures to properly track equipment purchased with Federal funds in accordance with 2 C.F.R. §200.313(d). To effectively control equipment and maintain accountability over expenditures, the Educational Service Center should ensure all equipment is properly identified and recorded on their inventory and/or capital asset listing. Failure to do so could result in the Educational Service Center tracking an incorrect number and/or amount of assets, and misuse being undetected in a timely manner. Additionally, a physical inventory should be performed, at a minimum, once every two years to verify that equipment held per the inventory/capital asset listing actually exist and adequate documentation is maintained to support an inspection was performed. This will assist in detecting errors, fraud, theft, or omissions. Officials’ Response: See Corrective Action Plan.
Federal Equipment Management Finding Number: 2023-001 Assistance Listing Number and Title: AL# 84.425C, 84.425D, 84.425U, 84.425W COVID-19 Education Stabilization Fund Federal Award Identification Number / Year: None / 2023 Federal Agency: United States Department of Education Compliance Requirement: Equipment and Real Property Management Pass-Through Entity: Ohio Department of Education and Workforce Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. § 200.313(d)(1), which requires that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal Award Identification Number (FAIN)), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. 2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. § 200.313(d)(2), which states, a physical inventory of the property must be performed, and the results reconciled with the property records at least once every 2 years. Due to a failure of internal controls, the Educational Service Center's inventory listing/capital asset records for equipment acquired under the Education Stabilization Fund were not complete and accurate. We identified three equipment items purchased in fiscal year 2023 that exceeded the Educational Service Center’s federal equipment threshold of $1,000 which were not included on the listing. We also identified four separate equipment items inadvertently recorded twice on the listing, with two separate identification numbers, however there was only one of each item purchased. In addition, there was no evidence a physical inventory of the equipment acquired under the Education Stabilization Fund had been performed within the preceding two years. The Educational Service Center should establish and implement policies and procedures to properly track equipment purchased with Federal funds in accordance with 2 C.F.R. §200.313(d). To effectively control equipment and maintain accountability over expenditures, the Educational Service Center should ensure all equipment is properly identified and recorded on their inventory and/or capital asset listing. Failure to do so could result in the Educational Service Center tracking an incorrect number and/or amount of assets, and misuse being undetected in a timely manner. Additionally, a physical inventory should be performed, at a minimum, once every two years to verify that equipment held per the inventory/capital asset listing actually exist and adequate documentation is maintained to support an inspection was performed. This will assist in detecting errors, fraud, theft, or omissions. Officials’ Response: See Corrective Action Plan.
Federal Equipment Management Finding Number: 2023-001 Assistance Listing Number and Title: AL# 84.425C, 84.425D, 84.425U, 84.425W COVID-19 Education Stabilization Fund Federal Award Identification Number / Year: None / 2023 Federal Agency: United States Department of Education Compliance Requirement: Equipment and Real Property Management Pass-Through Entity: Ohio Department of Education and Workforce Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. § 200.313(d)(1), which requires that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal Award Identification Number (FAIN)), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. 2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. § 200.313(d)(2), which states, a physical inventory of the property must be performed, and the results reconciled with the property records at least once every 2 years. Due to a failure of internal controls, the Educational Service Center's inventory listing/capital asset records for equipment acquired under the Education Stabilization Fund were not complete and accurate. We identified three equipment items purchased in fiscal year 2023 that exceeded the Educational Service Center’s federal equipment threshold of $1,000 which were not included on the listing. We also identified four separate equipment items inadvertently recorded twice on the listing, with two separate identification numbers, however there was only one of each item purchased. In addition, there was no evidence a physical inventory of the equipment acquired under the Education Stabilization Fund had been performed within the preceding two years. The Educational Service Center should establish and implement policies and procedures to properly track equipment purchased with Federal funds in accordance with 2 C.F.R. §200.313(d). To effectively control equipment and maintain accountability over expenditures, the Educational Service Center should ensure all equipment is properly identified and recorded on their inventory and/or capital asset listing. Failure to do so could result in the Educational Service Center tracking an incorrect number and/or amount of assets, and misuse being undetected in a timely manner. Additionally, a physical inventory should be performed, at a minimum, once every two years to verify that equipment held per the inventory/capital asset listing actually exist and adequate documentation is maintained to support an inspection was performed. This will assist in detecting errors, fraud, theft, or omissions. Officials’ Response: See Corrective Action Plan.
Federal Equipment Management Finding Number: 2023-001 Assistance Listing Number and Title: AL# 84.425C, 84.425D, 84.425U, 84.425W COVID-19 Education Stabilization Fund Federal Award Identification Number / Year: None / 2023 Federal Agency: United States Department of Education Compliance Requirement: Equipment and Real Property Management Pass-Through Entity: Ohio Department of Education and Workforce Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. § 200.313(d)(1), which requires that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal Award Identification Number (FAIN)), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. 2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. § 200.313(d)(2), which states, a physical inventory of the property must be performed, and the results reconciled with the property records at least once every 2 years. Due to a failure of internal controls, the Educational Service Center's inventory listing/capital asset records for equipment acquired under the Education Stabilization Fund were not complete and accurate. We identified three equipment items purchased in fiscal year 2023 that exceeded the Educational Service Center’s federal equipment threshold of $1,000 which were not included on the listing. We also identified four separate equipment items inadvertently recorded twice on the listing, with two separate identification numbers, however there was only one of each item purchased. In addition, there was no evidence a physical inventory of the equipment acquired under the Education Stabilization Fund had been performed within the preceding two years. The Educational Service Center should establish and implement policies and procedures to properly track equipment purchased with Federal funds in accordance with 2 C.F.R. §200.313(d). To effectively control equipment and maintain accountability over expenditures, the Educational Service Center should ensure all equipment is properly identified and recorded on their inventory and/or capital asset listing. Failure to do so could result in the Educational Service Center tracking an incorrect number and/or amount of assets, and misuse being undetected in a timely manner. Additionally, a physical inventory should be performed, at a minimum, once every two years to verify that equipment held per the inventory/capital asset listing actually exist and adequate documentation is maintained to support an inspection was performed. This will assist in detecting errors, fraud, theft, or omissions. Officials’ Response: See Corrective Action Plan.
Federal Equipment Management Finding Number: 2023-001 Assistance Listing Number and Title: AL# 84.425C, 84.425D, 84.425U, 84.425W COVID-19 Education Stabilization Fund Federal Award Identification Number / Year: None / 2023 Federal Agency: United States Department of Education Compliance Requirement: Equipment and Real Property Management Pass-Through Entity: Ohio Department of Education and Workforce Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. § 200.313(d)(1), which requires that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal Award Identification Number (FAIN)), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. 2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. § 200.313(d)(2), which states, a physical inventory of the property must be performed, and the results reconciled with the property records at least once every 2 years. Due to a failure of internal controls, the Educational Service Center's inventory listing/capital asset records for equipment acquired under the Education Stabilization Fund were not complete and accurate. We identified three equipment items purchased in fiscal year 2023 that exceeded the Educational Service Center’s federal equipment threshold of $1,000 which were not included on the listing. We also identified four separate equipment items inadvertently recorded twice on the listing, with two separate identification numbers, however there was only one of each item purchased. In addition, there was no evidence a physical inventory of the equipment acquired under the Education Stabilization Fund had been performed within the preceding two years. The Educational Service Center should establish and implement policies and procedures to properly track equipment purchased with Federal funds in accordance with 2 C.F.R. §200.313(d). To effectively control equipment and maintain accountability over expenditures, the Educational Service Center should ensure all equipment is properly identified and recorded on their inventory and/or capital asset listing. Failure to do so could result in the Educational Service Center tracking an incorrect number and/or amount of assets, and misuse being undetected in a timely manner. Additionally, a physical inventory should be performed, at a minimum, once every two years to verify that equipment held per the inventory/capital asset listing actually exist and adequate documentation is maintained to support an inspection was performed. This will assist in detecting errors, fraud, theft, or omissions. Officials’ Response: See Corrective Action Plan.
Federal Equipment Management Finding Number: 2023-001 Assistance Listing Number and Title: AL# 84.425C, 84.425D, 84.425U, 84.425W COVID-19 Education Stabilization Fund Federal Award Identification Number / Year: None / 2023 Federal Agency: United States Department of Education Compliance Requirement: Equipment and Real Property Management Pass-Through Entity: Ohio Department of Education and Workforce Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. § 200.313(d)(1), which requires that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal Award Identification Number (FAIN)), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. 2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. § 200.313(d)(2), which states, a physical inventory of the property must be performed, and the results reconciled with the property records at least once every 2 years. Due to a failure of internal controls, the Educational Service Center's inventory listing/capital asset records for equipment acquired under the Education Stabilization Fund were not complete and accurate. We identified three equipment items purchased in fiscal year 2023 that exceeded the Educational Service Center’s federal equipment threshold of $1,000 which were not included on the listing. We also identified four separate equipment items inadvertently recorded twice on the listing, with two separate identification numbers, however there was only one of each item purchased. In addition, there was no evidence a physical inventory of the equipment acquired under the Education Stabilization Fund had been performed within the preceding two years. The Educational Service Center should establish and implement policies and procedures to properly track equipment purchased with Federal funds in accordance with 2 C.F.R. §200.313(d). To effectively control equipment and maintain accountability over expenditures, the Educational Service Center should ensure all equipment is properly identified and recorded on their inventory and/or capital asset listing. Failure to do so could result in the Educational Service Center tracking an incorrect number and/or amount of assets, and misuse being undetected in a timely manner. Additionally, a physical inventory should be performed, at a minimum, once every two years to verify that equipment held per the inventory/capital asset listing actually exist and adequate documentation is maintained to support an inspection was performed. This will assist in detecting errors, fraud, theft, or omissions. Officials’ Response: See Corrective Action Plan.
Federal Equipment Management Finding Number: 2023-001 Assistance Listing Number and Title: AL# 84.425C, 84.425D, 84.425U, 84.425W COVID-19 Education Stabilization Fund Federal Award Identification Number / Year: None / 2023 Federal Agency: United States Department of Education Compliance Requirement: Equipment and Real Property Management Pass-Through Entity: Ohio Department of Education and Workforce Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. § 200.313(d)(1), which requires that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal Award Identification Number (FAIN)), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. 2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. § 200.313(d)(2), which states, a physical inventory of the property must be performed, and the results reconciled with the property records at least once every 2 years. Due to a failure of internal controls, the Educational Service Center's inventory listing/capital asset records for equipment acquired under the Education Stabilization Fund were not complete and accurate. We identified three equipment items purchased in fiscal year 2023 that exceeded the Educational Service Center’s federal equipment threshold of $1,000 which were not included on the listing. We also identified four separate equipment items inadvertently recorded twice on the listing, with two separate identification numbers, however there was only one of each item purchased. In addition, there was no evidence a physical inventory of the equipment acquired under the Education Stabilization Fund had been performed within the preceding two years. The Educational Service Center should establish and implement policies and procedures to properly track equipment purchased with Federal funds in accordance with 2 C.F.R. §200.313(d). To effectively control equipment and maintain accountability over expenditures, the Educational Service Center should ensure all equipment is properly identified and recorded on their inventory and/or capital asset listing. Failure to do so could result in the Educational Service Center tracking an incorrect number and/or amount of assets, and misuse being undetected in a timely manner. Additionally, a physical inventory should be performed, at a minimum, once every two years to verify that equipment held per the inventory/capital asset listing actually exist and adequate documentation is maintained to support an inspection was performed. This will assist in detecting errors, fraud, theft, or omissions. Officials’ Response: See Corrective Action Plan.
Federal Equipment Management Finding Number: 2023-001 Assistance Listing Number and Title: AL# 84.425C, 84.425D, 84.425U, 84.425W COVID-19 Education Stabilization Fund Federal Award Identification Number / Year: None / 2023 Federal Agency: United States Department of Education Compliance Requirement: Equipment and Real Property Management Pass-Through Entity: Ohio Department of Education and Workforce Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. § 200.313(d)(1), which requires that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal Award Identification Number (FAIN)), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. 2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. § 200.313(d)(2), which states, a physical inventory of the property must be performed, and the results reconciled with the property records at least once every 2 years. Due to a failure of internal controls, the Educational Service Center's inventory listing/capital asset records for equipment acquired under the Education Stabilization Fund were not complete and accurate. We identified three equipment items purchased in fiscal year 2023 that exceeded the Educational Service Center’s federal equipment threshold of $1,000 which were not included on the listing. We also identified four separate equipment items inadvertently recorded twice on the listing, with two separate identification numbers, however there was only one of each item purchased. In addition, there was no evidence a physical inventory of the equipment acquired under the Education Stabilization Fund had been performed within the preceding two years. The Educational Service Center should establish and implement policies and procedures to properly track equipment purchased with Federal funds in accordance with 2 C.F.R. §200.313(d). To effectively control equipment and maintain accountability over expenditures, the Educational Service Center should ensure all equipment is properly identified and recorded on their inventory and/or capital asset listing. Failure to do so could result in the Educational Service Center tracking an incorrect number and/or amount of assets, and misuse being undetected in a timely manner. Additionally, a physical inventory should be performed, at a minimum, once every two years to verify that equipment held per the inventory/capital asset listing actually exist and adequate documentation is maintained to support an inspection was performed. This will assist in detecting errors, fraud, theft, or omissions. Officials’ Response: See Corrective Action Plan.
Federal Equipment Management Finding Number: 2023-001 Assistance Listing Number and Title: AL# 84.425C, 84.425D, 84.425U, 84.425W COVID-19 Education Stabilization Fund Federal Award Identification Number / Year: None / 2023 Federal Agency: United States Department of Education Compliance Requirement: Equipment and Real Property Management Pass-Through Entity: Ohio Department of Education and Workforce Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. § 200.313(d)(1), which requires that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal Award Identification Number (FAIN)), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. 2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. § 200.313(d)(2), which states, a physical inventory of the property must be performed, and the results reconciled with the property records at least once every 2 years. Due to a failure of internal controls, the Educational Service Center's inventory listing/capital asset records for equipment acquired under the Education Stabilization Fund were not complete and accurate. We identified three equipment items purchased in fiscal year 2023 that exceeded the Educational Service Center’s federal equipment threshold of $1,000 which were not included on the listing. We also identified four separate equipment items inadvertently recorded twice on the listing, with two separate identification numbers, however there was only one of each item purchased. In addition, there was no evidence a physical inventory of the equipment acquired under the Education Stabilization Fund had been performed within the preceding two years. The Educational Service Center should establish and implement policies and procedures to properly track equipment purchased with Federal funds in accordance with 2 C.F.R. §200.313(d). To effectively control equipment and maintain accountability over expenditures, the Educational Service Center should ensure all equipment is properly identified and recorded on their inventory and/or capital asset listing. Failure to do so could result in the Educational Service Center tracking an incorrect number and/or amount of assets, and misuse being undetected in a timely manner. Additionally, a physical inventory should be performed, at a minimum, once every two years to verify that equipment held per the inventory/capital asset listing actually exist and adequate documentation is maintained to support an inspection was performed. This will assist in detecting errors, fraud, theft, or omissions. Officials’ Response: See Corrective Action Plan.
Federal Equipment Management Finding Number: 2023-001 Assistance Listing Number and Title: AL# 84.425C, 84.425D, 84.425U, 84.425W COVID-19 Education Stabilization Fund Federal Award Identification Number / Year: None / 2023 Federal Agency: United States Department of Education Compliance Requirement: Equipment and Real Property Management Pass-Through Entity: Ohio Department of Education and Workforce Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. § 200.313(d)(1), which requires that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal Award Identification Number (FAIN)), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. 2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. § 200.313(d)(2), which states, a physical inventory of the property must be performed, and the results reconciled with the property records at least once every 2 years. Due to a failure of internal controls, the Educational Service Center's inventory listing/capital asset records for equipment acquired under the Education Stabilization Fund were not complete and accurate. We identified three equipment items purchased in fiscal year 2023 that exceeded the Educational Service Center’s federal equipment threshold of $1,000 which were not included on the listing. We also identified four separate equipment items inadvertently recorded twice on the listing, with two separate identification numbers, however there was only one of each item purchased. In addition, there was no evidence a physical inventory of the equipment acquired under the Education Stabilization Fund had been performed within the preceding two years. The Educational Service Center should establish and implement policies and procedures to properly track equipment purchased with Federal funds in accordance with 2 C.F.R. §200.313(d). To effectively control equipment and maintain accountability over expenditures, the Educational Service Center should ensure all equipment is properly identified and recorded on their inventory and/or capital asset listing. Failure to do so could result in the Educational Service Center tracking an incorrect number and/or amount of assets, and misuse being undetected in a timely manner. Additionally, a physical inventory should be performed, at a minimum, once every two years to verify that equipment held per the inventory/capital asset listing actually exist and adequate documentation is maintained to support an inspection was performed. This will assist in detecting errors, fraud, theft, or omissions. Officials’ Response: See Corrective Action Plan.
Federal Equipment Management Finding Number: 2023-001 Assistance Listing Number and Title: AL# 84.425C, 84.425D, 84.425U, 84.425W COVID-19 Education Stabilization Fund Federal Award Identification Number / Year: None / 2023 Federal Agency: United States Department of Education Compliance Requirement: Equipment and Real Property Management Pass-Through Entity: Ohio Department of Education and Workforce Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. § 200.313(d)(1), which requires that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal Award Identification Number (FAIN)), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. 2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. § 200.313(d)(2), which states, a physical inventory of the property must be performed, and the results reconciled with the property records at least once every 2 years. Due to a failure of internal controls, the Educational Service Center's inventory listing/capital asset records for equipment acquired under the Education Stabilization Fund were not complete and accurate. We identified three equipment items purchased in fiscal year 2023 that exceeded the Educational Service Center’s federal equipment threshold of $1,000 which were not included on the listing. We also identified four separate equipment items inadvertently recorded twice on the listing, with two separate identification numbers, however there was only one of each item purchased. In addition, there was no evidence a physical inventory of the equipment acquired under the Education Stabilization Fund had been performed within the preceding two years. The Educational Service Center should establish and implement policies and procedures to properly track equipment purchased with Federal funds in accordance with 2 C.F.R. §200.313(d). To effectively control equipment and maintain accountability over expenditures, the Educational Service Center should ensure all equipment is properly identified and recorded on their inventory and/or capital asset listing. Failure to do so could result in the Educational Service Center tracking an incorrect number and/or amount of assets, and misuse being undetected in a timely manner. Additionally, a physical inventory should be performed, at a minimum, once every two years to verify that equipment held per the inventory/capital asset listing actually exist and adequate documentation is maintained to support an inspection was performed. This will assist in detecting errors, fraud, theft, or omissions. Officials’ Response: See Corrective Action Plan.
Federal Equipment Management Finding Number: 2023-001 Assistance Listing Number and Title: AL# 84.425C, 84.425D, 84.425U, 84.425W COVID-19 Education Stabilization Fund Federal Award Identification Number / Year: None / 2023 Federal Agency: United States Department of Education Compliance Requirement: Equipment and Real Property Management Pass-Through Entity: Ohio Department of Education and Workforce Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. § 200.313(d)(1), which requires that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal Award Identification Number (FAIN)), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. 2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. § 200.313(d)(2), which states, a physical inventory of the property must be performed, and the results reconciled with the property records at least once every 2 years. Due to a failure of internal controls, the Educational Service Center's inventory listing/capital asset records for equipment acquired under the Education Stabilization Fund were not complete and accurate. We identified three equipment items purchased in fiscal year 2023 that exceeded the Educational Service Center’s federal equipment threshold of $1,000 which were not included on the listing. We also identified four separate equipment items inadvertently recorded twice on the listing, with two separate identification numbers, however there was only one of each item purchased. In addition, there was no evidence a physical inventory of the equipment acquired under the Education Stabilization Fund had been performed within the preceding two years. The Educational Service Center should establish and implement policies and procedures to properly track equipment purchased with Federal funds in accordance with 2 C.F.R. §200.313(d). To effectively control equipment and maintain accountability over expenditures, the Educational Service Center should ensure all equipment is properly identified and recorded on their inventory and/or capital asset listing. Failure to do so could result in the Educational Service Center tracking an incorrect number and/or amount of assets, and misuse being undetected in a timely manner. Additionally, a physical inventory should be performed, at a minimum, once every two years to verify that equipment held per the inventory/capital asset listing actually exist and adequate documentation is maintained to support an inspection was performed. This will assist in detecting errors, fraud, theft, or omissions. Officials’ Response: See Corrective Action Plan.
Finding 2023-002 – EQUIPMENT Type: Material Weakness in Internal Control / Noncompliance Program: COVID 19 Education Stabilization Fund (ALN 84.425D – ESSER II Formula) Condition: The District was unable to locate all Chromebooks selected for testing that were purchased with ESSER II Formula funds. Also, some Chromebooks that were located did not have adequate identification tags. Criteria: As detailed in 2 CFR 200.313, “Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property.” Cause: Inadequate inventory and tag procedures. Effect: Missing equipment potentially not being used for its intended purpose, and property records are not in compliance with 2 CFR 200.313. For equipment that is missing the proper identification tags, the sale or otherwise disposition of the equipment may not be properly recorded. Context: Of the 53 Chromebooks selected for testing, 3 could not be located and 5 of the identification tags did not include the source of funding for the property. Recommendation: We recommend that the District review/update inventory procedures to ensure that all equipment purchased with Federal funds is adequately tracked. Also, we recommend that the District review/update equipment tagging procedures to ensure that equipment purchased with Federal funds properly identify the source of funding. Management’s Resp: We are in agreement with this finding.
Criteria:According to 2 CFR 200.313(d)(1) property records must be maintained that include a description of the property, a serial number or other identification number the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Condition: During the purchasing process accessory fit out equipment that was purchased under the grant was not identified and entered in the property records. Effect: The grantee is not in compliance with the requirements of 2 CFR 200.313(d)(1). Cause: The grantee did not identify accessory fit out equipment that was purchased under the grant in the property records. Questioned Costs: None Context/Sampling Property purchased was traced back to the property records maintained by the City and six of the eight items purchased were not identified as fixed assets and included in those records. Prior Year None Finding: Recommendation: The grantee needs to put a process in place to ensure that all capital equipment including accessory fit out equipment is captured at time of purchase and receipt and is entered in the property records. Client Response: The City recognizes the importance of internal controls and plans to enhance procedures to ensure that all capital equipment is captured at time of purchase and receipt and properly entered in the property records. The City has actively reviewed its procedures for purchasing and disposition of fixed assets and will make the necessary adjustment to ensure the fixed assets system remains up to date. Covid interruptions with related illnesses, early retirements and hiring difficulties all contributed to a negative impact on productivity
2 CFR Section 3474.1 gives regulatory effect to the Department of Education for 2 CFR Section 200.313(b) through (d) which require that:(c) Equipment must be used in the program or project for which it was acquired as long as needed, whether or not the project or program continues to be supported by the Federal award or, when appropriate, under other Federal awards; however, the non-Federal entity must not encumber the equipment without prior approval of the Federal awarding agency. (d) Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: 1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal award identification number), who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. 2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every 2 years. 3. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. 3. Adequate maintenance procedures must be developed to keep the property in good condition. 4. If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. During prior year testing, we identified certain assets acquired with federal funds that were not capitalized or recorded in any identified asset tracking system. During current year testing, we found that this omission had not been corrected. The Academy should implement additional procedures to ensure any equipment purchased with federal funds are input into an asset tracking system. In addition, we recommend the Academy review the omitted items and add them to their inventory system to track going forward.
2 CFR Section 3474.1 gives regulatory effect to the Department of Education for 2 CFR Section 200.313(b) through (d) which require that:(c) Equipment must be used in the program or project for which it was acquired as long as needed, whether or not the project or program continues to be supported by the Federal award or, when appropriate, under other Federal awards; however, the non-Federal entity must not encumber the equipment without prior approval of the Federal awarding agency. (d) Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: 1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal award identification number), who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. 2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every 2 years. 3. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. 3. Adequate maintenance procedures must be developed to keep the property in good condition. 4. If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. During prior year testing, we identified certain assets acquired with federal funds that were not capitalized or recorded in any identified asset tracking system. During current year testing, we found that this omission had not been corrected. The Academy should implement additional procedures to ensure any equipment purchased with federal funds are input into an asset tracking system. In addition, we recommend the Academy review the omitted items and add them to their inventory system to track going forward.
2 CFR Section 3474.1 gives regulatory effect to the Department of Education for 2 CFR Section 200.313(b) through (d) which require that:(c) Equipment must be used in the program or project for which it was acquired as long as needed, whether or not the project or program continues to be supported by the Federal award or, when appropriate, under other Federal awards; however, the non-Federal entity must not encumber the equipment without prior approval of the Federal awarding agency. (d) Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: 1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal award identification number), who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. 2. A physical inventory of the property must be taken and the results reconciled with the property records at least once every 2 years. 3. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. 3. Adequate maintenance procedures must be developed to keep the property in good condition. 4. If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. During prior year testing, we identified certain assets acquired with federal funds that were not capitalized or recorded in any identified asset tracking system. During current year testing, we found that this omission had not been corrected. The Academy should implement additional procedures to ensure any equipment purchased with federal funds are input into an asset tracking system. In addition, we recommend the Academy review the omitted items and add them to their inventory system to track going forward.
FINDING 2023-003 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Numbers: 84.425D, 84.425U, 84.425C Federal Award Numbers and Years (or Other Identifying Numbers): S425D200013, S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Modified Opinion Condition and Context The School Corporation had not properly designed or implemented a system of internal controls, which would include appropriate segregation of duties, that would likely be effective in preventing, or detecting and correcting, noncompliance. A property record or capital asset listing, which would include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number (FAIN)), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, and use and condition of the property, is to be maintained for assets purchased that exceed the School Corporation's capitalization threshold. In addition, a physical inventory of all assets should be completed at least every two years. The School Corporation purchased eight assets, totaling $131,205, which exceeded the School Corporation's capitalization threshold. Two of the eight assets were selected for testing. Neither of the two assets were determined to have property records, nor were the assets on the inventory listing. Additionally, the School Corporation did not complete a capital asset inventory every two years as required. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: INDIANA STATE BOARD OF ACCOUNTS 19 RANDOLPH EASTERN SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. . . ." Cause A proper system of internal controls was not designed by management of the School Corporation. Embedded within a properly designed and implemented internal control system should be internal controls consisting of policies and procedures. Policies reflect the School Corporation's management statements of what should be done to effect internal controls, and procedures should consist of actions that would implement these policies. Effect Without the proper implementation of an effectively designed system of internal controls, the internal control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. As a result, there was not a complete asset listing nor was there a physical inventory completed as required. Noncompliance with the provisions of federal statutes, regulations, and the terms and conditions of the federal award could result in the loss of future federal funding to the School Corporation. Questioned Costs There were no questioned costs identified. Recommendation We recommended that management of the School Corporation establish a proper system of internal controls and develop policies and procedures to ensure asset records are maintained and that a physical inventory is taken every two years. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2023-003 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Numbers: 84.425D, 84.425U, 84.425C Federal Award Numbers and Years (or Other Identifying Numbers): S425D200013, S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Modified Opinion Condition and Context The School Corporation had not properly designed or implemented a system of internal controls, which would include appropriate segregation of duties, that would likely be effective in preventing, or detecting and correcting, noncompliance. A property record or capital asset listing, which would include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number (FAIN)), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, and use and condition of the property, is to be maintained for assets purchased that exceed the School Corporation's capitalization threshold. In addition, a physical inventory of all assets should be completed at least every two years. The School Corporation purchased eight assets, totaling $131,205, which exceeded the School Corporation's capitalization threshold. Two of the eight assets were selected for testing. Neither of the two assets were determined to have property records, nor were the assets on the inventory listing. Additionally, the School Corporation did not complete a capital asset inventory every two years as required. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: INDIANA STATE BOARD OF ACCOUNTS 19 RANDOLPH EASTERN SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. . . ." Cause A proper system of internal controls was not designed by management of the School Corporation. Embedded within a properly designed and implemented internal control system should be internal controls consisting of policies and procedures. Policies reflect the School Corporation's management statements of what should be done to effect internal controls, and procedures should consist of actions that would implement these policies. Effect Without the proper implementation of an effectively designed system of internal controls, the internal control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. As a result, there was not a complete asset listing nor was there a physical inventory completed as required. Noncompliance with the provisions of federal statutes, regulations, and the terms and conditions of the federal award could result in the loss of future federal funding to the School Corporation. Questioned Costs There were no questioned costs identified. Recommendation We recommended that management of the School Corporation establish a proper system of internal controls and develop policies and procedures to ensure asset records are maintained and that a physical inventory is taken every two years. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2023-003 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Numbers: 84.425D, 84.425U, 84.425C Federal Award Numbers and Years (or Other Identifying Numbers): S425D200013, S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Modified Opinion Condition and Context The School Corporation had not properly designed or implemented a system of internal controls, which would include appropriate segregation of duties, that would likely be effective in preventing, or detecting and correcting, noncompliance. A property record or capital asset listing, which would include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number (FAIN)), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, and use and condition of the property, is to be maintained for assets purchased that exceed the School Corporation's capitalization threshold. In addition, a physical inventory of all assets should be completed at least every two years. The School Corporation purchased eight assets, totaling $131,205, which exceeded the School Corporation's capitalization threshold. Two of the eight assets were selected for testing. Neither of the two assets were determined to have property records, nor were the assets on the inventory listing. Additionally, the School Corporation did not complete a capital asset inventory every two years as required. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: INDIANA STATE BOARD OF ACCOUNTS 19 RANDOLPH EASTERN SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. . . ." Cause A proper system of internal controls was not designed by management of the School Corporation. Embedded within a properly designed and implemented internal control system should be internal controls consisting of policies and procedures. Policies reflect the School Corporation's management statements of what should be done to effect internal controls, and procedures should consist of actions that would implement these policies. Effect Without the proper implementation of an effectively designed system of internal controls, the internal control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. As a result, there was not a complete asset listing nor was there a physical inventory completed as required. Noncompliance with the provisions of federal statutes, regulations, and the terms and conditions of the federal award could result in the loss of future federal funding to the School Corporation. Questioned Costs There were no questioned costs identified. Recommendation We recommended that management of the School Corporation establish a proper system of internal controls and develop policies and procedures to ensure asset records are maintained and that a physical inventory is taken every two years. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2023-003 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Numbers: 84.425D, 84.425U, 84.425C Federal Award Numbers and Years (or Other Identifying Numbers): S425D200013, S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Modified Opinion Condition and Context The School Corporation had not properly designed or implemented a system of internal controls, which would include appropriate segregation of duties, that would likely be effective in preventing, or detecting and correcting, noncompliance. A property record or capital asset listing, which would include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number (FAIN)), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, and use and condition of the property, is to be maintained for assets purchased that exceed the School Corporation's capitalization threshold. In addition, a physical inventory of all assets should be completed at least every two years. The School Corporation purchased eight assets, totaling $131,205, which exceeded the School Corporation's capitalization threshold. Two of the eight assets were selected for testing. Neither of the two assets were determined to have property records, nor were the assets on the inventory listing. Additionally, the School Corporation did not complete a capital asset inventory every two years as required. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: INDIANA STATE BOARD OF ACCOUNTS 19 RANDOLPH EASTERN SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. . . ." Cause A proper system of internal controls was not designed by management of the School Corporation. Embedded within a properly designed and implemented internal control system should be internal controls consisting of policies and procedures. Policies reflect the School Corporation's management statements of what should be done to effect internal controls, and procedures should consist of actions that would implement these policies. Effect Without the proper implementation of an effectively designed system of internal controls, the internal control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. As a result, there was not a complete asset listing nor was there a physical inventory completed as required. Noncompliance with the provisions of federal statutes, regulations, and the terms and conditions of the federal award could result in the loss of future federal funding to the School Corporation. Questioned Costs There were no questioned costs identified. Recommendation We recommended that management of the School Corporation establish a proper system of internal controls and develop policies and procedures to ensure asset records are maintained and that a physical inventory is taken every two years. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2023-003 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Numbers: 84.425D, 84.425U, 84.425C Federal Award Numbers and Years (or Other Identifying Numbers): S425D200013, S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Modified Opinion Condition and Context The School Corporation had not properly designed or implemented a system of internal controls, which would include appropriate segregation of duties, that would likely be effective in preventing, or detecting and correcting, noncompliance. A property record or capital asset listing, which would include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number (FAIN)), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, and use and condition of the property, is to be maintained for assets purchased that exceed the School Corporation's capitalization threshold. In addition, a physical inventory of all assets should be completed at least every two years. The School Corporation purchased eight assets, totaling $131,205, which exceeded the School Corporation's capitalization threshold. Two of the eight assets were selected for testing. Neither of the two assets were determined to have property records, nor were the assets on the inventory listing. Additionally, the School Corporation did not complete a capital asset inventory every two years as required. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: INDIANA STATE BOARD OF ACCOUNTS 19 RANDOLPH EASTERN SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. . . ." Cause A proper system of internal controls was not designed by management of the School Corporation. Embedded within a properly designed and implemented internal control system should be internal controls consisting of policies and procedures. Policies reflect the School Corporation's management statements of what should be done to effect internal controls, and procedures should consist of actions that would implement these policies. Effect Without the proper implementation of an effectively designed system of internal controls, the internal control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. As a result, there was not a complete asset listing nor was there a physical inventory completed as required. Noncompliance with the provisions of federal statutes, regulations, and the terms and conditions of the federal award could result in the loss of future federal funding to the School Corporation. Questioned Costs There were no questioned costs identified. Recommendation We recommended that management of the School Corporation establish a proper system of internal controls and develop policies and procedures to ensure asset records are maintained and that a physical inventory is taken every two years. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2023-003 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Numbers: 84.425D, 84.425U, 84.425C Federal Award Numbers and Years (or Other Identifying Numbers): S425D200013, S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Modified Opinion Condition and Context The School Corporation had not properly designed or implemented a system of internal controls, which would include appropriate segregation of duties, that would likely be effective in preventing, or detecting and correcting, noncompliance. A property record or capital asset listing, which would include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number (FAIN)), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, and use and condition of the property, is to be maintained for assets purchased that exceed the School Corporation's capitalization threshold. In addition, a physical inventory of all assets should be completed at least every two years. The School Corporation purchased eight assets, totaling $131,205, which exceeded the School Corporation's capitalization threshold. Two of the eight assets were selected for testing. Neither of the two assets were determined to have property records, nor were the assets on the inventory listing. Additionally, the School Corporation did not complete a capital asset inventory every two years as required. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: INDIANA STATE BOARD OF ACCOUNTS 19 RANDOLPH EASTERN SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. . . ." Cause A proper system of internal controls was not designed by management of the School Corporation. Embedded within a properly designed and implemented internal control system should be internal controls consisting of policies and procedures. Policies reflect the School Corporation's management statements of what should be done to effect internal controls, and procedures should consist of actions that would implement these policies. Effect Without the proper implementation of an effectively designed system of internal controls, the internal control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. As a result, there was not a complete asset listing nor was there a physical inventory completed as required. Noncompliance with the provisions of federal statutes, regulations, and the terms and conditions of the federal award could result in the loss of future federal funding to the School Corporation. Questioned Costs There were no questioned costs identified. Recommendation We recommended that management of the School Corporation establish a proper system of internal controls and develop policies and procedures to ensure asset records are maintained and that a physical inventory is taken every two years. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2023-003 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Numbers: 84.425D, 84.425U, 84.425C Federal Award Numbers and Years (or Other Identifying Numbers): S425D200013, S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Modified Opinion Condition and Context The School Corporation had not properly designed or implemented a system of internal controls, which would include appropriate segregation of duties, that would likely be effective in preventing, or detecting and correcting, noncompliance. A property record or capital asset listing, which would include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number (FAIN)), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, and use and condition of the property, is to be maintained for assets purchased that exceed the School Corporation's capitalization threshold. In addition, a physical inventory of all assets should be completed at least every two years. The School Corporation purchased eight assets, totaling $131,205, which exceeded the School Corporation's capitalization threshold. Two of the eight assets were selected for testing. Neither of the two assets were determined to have property records, nor were the assets on the inventory listing. Additionally, the School Corporation did not complete a capital asset inventory every two years as required. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: INDIANA STATE BOARD OF ACCOUNTS 19 RANDOLPH EASTERN SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. . . ." Cause A proper system of internal controls was not designed by management of the School Corporation. Embedded within a properly designed and implemented internal control system should be internal controls consisting of policies and procedures. Policies reflect the School Corporation's management statements of what should be done to effect internal controls, and procedures should consist of actions that would implement these policies. Effect Without the proper implementation of an effectively designed system of internal controls, the internal control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. As a result, there was not a complete asset listing nor was there a physical inventory completed as required. Noncompliance with the provisions of federal statutes, regulations, and the terms and conditions of the federal award could result in the loss of future federal funding to the School Corporation. Questioned Costs There were no questioned costs identified. Recommendation We recommended that management of the School Corporation establish a proper system of internal controls and develop policies and procedures to ensure asset records are maintained and that a physical inventory is taken every two years. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2023-003 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Numbers: 84.425D, 84.425U, 84.425C Federal Award Numbers and Years (or Other Identifying Numbers): S425D200013, S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Modified Opinion Condition and Context The School Corporation had not properly designed or implemented a system of internal controls, which would include appropriate segregation of duties, that would likely be effective in preventing, or detecting and correcting, noncompliance. A property record or capital asset listing, which would include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number (FAIN)), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, and use and condition of the property, is to be maintained for assets purchased that exceed the School Corporation's capitalization threshold. In addition, a physical inventory of all assets should be completed at least every two years. The School Corporation purchased eight assets, totaling $131,205, which exceeded the School Corporation's capitalization threshold. Two of the eight assets were selected for testing. Neither of the two assets were determined to have property records, nor were the assets on the inventory listing. Additionally, the School Corporation did not complete a capital asset inventory every two years as required. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: INDIANA STATE BOARD OF ACCOUNTS 19 RANDOLPH EASTERN SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. . . ." Cause A proper system of internal controls was not designed by management of the School Corporation. Embedded within a properly designed and implemented internal control system should be internal controls consisting of policies and procedures. Policies reflect the School Corporation's management statements of what should be done to effect internal controls, and procedures should consist of actions that would implement these policies. Effect Without the proper implementation of an effectively designed system of internal controls, the internal control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. As a result, there was not a complete asset listing nor was there a physical inventory completed as required. Noncompliance with the provisions of federal statutes, regulations, and the terms and conditions of the federal award could result in the loss of future federal funding to the School Corporation. Questioned Costs There were no questioned costs identified. Recommendation We recommended that management of the School Corporation establish a proper system of internal controls and develop policies and procedures to ensure asset records are maintained and that a physical inventory is taken every two years. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2023-003 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Numbers: 84.425D, 84.425U, 84.425C Federal Award Numbers and Years (or Other Identifying Numbers): S425D200013, S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Modified Opinion Condition and Context The School Corporation had not properly designed or implemented a system of internal controls, which would include appropriate segregation of duties, that would likely be effective in preventing, or detecting and correcting, noncompliance. A property record or capital asset listing, which would include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number (FAIN)), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, and use and condition of the property, is to be maintained for assets purchased that exceed the School Corporation's capitalization threshold. In addition, a physical inventory of all assets should be completed at least every two years. The School Corporation purchased eight assets, totaling $131,205, which exceeded the School Corporation's capitalization threshold. Two of the eight assets were selected for testing. Neither of the two assets were determined to have property records, nor were the assets on the inventory listing. Additionally, the School Corporation did not complete a capital asset inventory every two years as required. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: INDIANA STATE BOARD OF ACCOUNTS 19 RANDOLPH EASTERN SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. . . ." Cause A proper system of internal controls was not designed by management of the School Corporation. Embedded within a properly designed and implemented internal control system should be internal controls consisting of policies and procedures. Policies reflect the School Corporation's management statements of what should be done to effect internal controls, and procedures should consist of actions that would implement these policies. Effect Without the proper implementation of an effectively designed system of internal controls, the internal control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. As a result, there was not a complete asset listing nor was there a physical inventory completed as required. Noncompliance with the provisions of federal statutes, regulations, and the terms and conditions of the federal award could result in the loss of future federal funding to the School Corporation. Questioned Costs There were no questioned costs identified. Recommendation We recommended that management of the School Corporation establish a proper system of internal controls and develop policies and procedures to ensure asset records are maintained and that a physical inventory is taken every two years. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
2023-015 Oregon Housing and Community Services Fully implement controls to ensure subrecipients are in compliance with program requirements Federal Awarding Agency: U.S. Department of Housing and Urban Development Assistance Listing Number and Name: 14.231 Emergency Solutions Grants Program (COVID-19) Federal Award Numbers and Years: E-20-DW-41-0001, 2020 (COVID-19) Compliance Requirements: Activities Allowed or Unallowed; Allowable Costs/Cost Principles; Equipment and Real Property Management; Matching, Level of Effort, Earmarking; Procurement, Suspension, and Debarment, Special Tests and Provisions Type of Finding: Material Weakness Prior Year Findings: 2022-018, 2022-019, 2022-020, 2022-021, 2022-024 Questioned Costs: N/A Criteria: 2 CFR 200.303(a); 2 CFR 200.311; 2 CFR 200.313; 2 CFR 200.317 - .327; 24 CFR 576.100; 24 CFR 576.101(c); 24 CFR 576.102(c) The Emergency Solutions Grants (ESG/ESG-CV) program is operated by the department via pass-through funds to subrecipients. With the significant influx of pandemic relief funds, the department expanded the number of subrecipients partnered with from 17 longstanding community action agencies (CAAs) to a total of 45 CAA and non-CAA subrecipients. During fiscal year 2023, 98% of program expenditures were passed through to 40 of these subrecipients. Department management is responsible for establishing and maintaining effective internal control that provides reasonable assurance program expenditures are in compliance with the terms and conditions of the federal award. However, the significant increases to federal funding the creation and implementation of a new award system for non-CAA recipients, and the increase in the number of subrecipients, along with a period of high employee turnover led to delays in the department’s development and implementation of sufficient subrecipient monitoring processes that would meet this objective. Department management subsequently contracted with a private auditing firm to assist in the monitoring of the program activities and expenditures of funds passed through to the subrecipients to remedy the noted control weaknesses. Department staff and the private auditing firm are currently working through the monitoring backlog. However, at the time of the audit, monitoring of only 16 of the 40 subrecipients had been completed which represents 58% of the fiscal year 2023 pass-through expenditures. Additionally, the completed monitoring was only performed over fiscal year 2022 expenditures as the department works to catch up on monitoring of prior year expenditures. Incomplete monitoring could lead to program noncompliance. We recommend department management complete the review and monitoring of program funds passed through to subrecipients for compliance with all applicable program requirements.
Equipment means tangible personal property, including information technology systems, having a useful life of more than one year and a per-unit acquisition cost which equals or exceeds the lesser of the capitalization level established by the non-Federal entity for financial statement purposes or $5,000 (2 CFR 200.1_Equipment). Title to equipment acquired by a non-Federal entity under grants and cooperative agreements vests in the non-Federal entity subject to certain obligations and conditions (2 CFR 200.313(a)). Non-Federal Entities Other Than States Non-Federal entities other than States must follow 2 CFR 200.313(c) through (e) which require that: 1. Equipment, including replacement equipment, be used in the program or project for which it was acquired as long as needed, whether or not the project or program continues to be supported by the Federal award or, when appropriate, under other Federal awards; however, the non-Federal entity must not encumber the equipment without prior approval of the Federal awarding agency (2 CFR 200.313(c) and (e)). 2. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal award identification number), who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property (2 CFR 200.313(d)(1)). 3. A physical inventory of the property must be taken and the results reconciled with the property records at least once every 2 years (2 CFR 200.313(d)(2)). 4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR 200.313(d)(4)). 6. If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return (2 CFR 200.313(d)(5)). 7. When original or replacement equipment acquired under a Federal award is no longer needed for a Federal program (whether the original project or program or other activities currently or previously supported by the Federal government), the non-Federal entity must request disposition instructions from the Federal awarding agency if required by the terms and conditions of the award. Items of equipment with a current per-unit fair market value of $5,000 or less may be retained, sold, or otherwise disposed of with no further obligation to the Federal awarding agency. If the Federal awarding agency fails to provide requested disposition instructions within 120 days, items of equipment with a current per-unit fair market value in excess of $5,000 may be retained or sold. The Federal awarding agency is entitled to the Federal interest in the equipment, which is the amount calculated by multiplying the current market value or sale proceeds by the Federal agency’s participation in total project costs (2 CFR 200.313(e). While testing equipment acquisitions acquired using ESSER funds, instances were noted where equipment purchased and other capital projects were not added to the District’s records. Without proper controls over equipment requirements, there is an increased risk that the District is not in compliance with applicable federal regulations. Additionally, noncompliance could result in federal funding being reduced or taken away, or other sanctions imposed by the federal grantor agency. The District should establish (or perform existing) controls to include the required clauses of 2 CFR 200.313 to ensure equipment is being properly safeguarded and tracked. Further, the District should properly add the equipment acquisition purchased from ESSER funds to its capital asset records in accordance with federal guidelines.
Equipment means tangible personal property, including information technology systems, having a useful life of more than one year and a per-unit acquisition cost which equals or exceeds the lesser of the capitalization level established by the non-Federal entity for financial statement purposes or $5,000 (2 CFR 200.1_Equipment). Title to equipment acquired by a non-Federal entity under grants and cooperative agreements vests in the non-Federal entity subject to certain obligations and conditions (2 CFR 200.313(a)). Non-Federal Entities Other Than States Non-Federal entities other than States must follow 2 CFR 200.313(c) through (e) which require that: 1. Equipment, including replacement equipment, be used in the program or project for which it was acquired as long as needed, whether or not the project or program continues to be supported by the Federal award or, when appropriate, under other Federal awards; however, the non-Federal entity must not encumber the equipment without prior approval of the Federal awarding agency (2 CFR 200.313(c) and (e)). 2. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal award identification number), who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property (2 CFR 200.313(d)(1)). 3. A physical inventory of the property must be taken and the results reconciled with the property records at least once every 2 years (2 CFR 200.313(d)(2)). 4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR 200.313(d)(4)). 6. If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return (2 CFR 200.313(d)(5)). 7. When original or replacement equipment acquired under a Federal award is no longer needed for a Federal program (whether the original project or program or other activities currently or previously supported by the Federal government), the non-Federal entity must request disposition instructions from the Federal awarding agency if required by the terms and conditions of the award. Items of equipment with a current per-unit fair market value of $5,000 or less may be retained, sold, or otherwise disposed of with no further obligation to the Federal awarding agency. If the Federal awarding agency fails to provide requested disposition instructions within 120 days, items of equipment with a current per-unit fair market value in excess of $5,000 may be retained or sold. The Federal awarding agency is entitled to the Federal interest in the equipment, which is the amount calculated by multiplying the current market value or sale proceeds by the Federal agency’s participation in total project costs (2 CFR 200.313(e). While testing equipment acquisitions acquired using ESSER funds, instances were noted where equipment purchased and other capital projects were not added to the District’s records. Without proper controls over equipment requirements, there is an increased risk that the District is not in compliance with applicable federal regulations. Additionally, noncompliance could result in federal funding being reduced or taken away, or other sanctions imposed by the federal grantor agency. The District should establish (or perform existing) controls to include the required clauses of 2 CFR 200.313 to ensure equipment is being properly safeguarded and tracked. Further, the District should properly add the equipment acquisition purchased from ESSER funds to its capital asset records in accordance with federal guidelines.
Equipment means tangible personal property, including information technology systems, having a useful life of more than one year and a per-unit acquisition cost which equals or exceeds the lesser of the capitalization level established by the non-Federal entity for financial statement purposes or $5,000 (2 CFR 200.1_Equipment). Title to equipment acquired by a non-Federal entity under grants and cooperative agreements vests in the non-Federal entity subject to certain obligations and conditions (2 CFR 200.313(a)). Non-Federal Entities Other Than States Non-Federal entities other than States must follow 2 CFR 200.313(c) through (e) which require that: 1. Equipment, including replacement equipment, be used in the program or project for which it was acquired as long as needed, whether or not the project or program continues to be supported by the Federal award or, when appropriate, under other Federal awards; however, the non-Federal entity must not encumber the equipment without prior approval of the Federal awarding agency (2 CFR 200.313(c) and (e)). 2. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal award identification number), who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property (2 CFR 200.313(d)(1)). 3. A physical inventory of the property must be taken and the results reconciled with the property records at least once every 2 years (2 CFR 200.313(d)(2)). 4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR 200.313(d)(4)). 6. If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return (2 CFR 200.313(d)(5)). 7. When original or replacement equipment acquired under a Federal award is no longer needed for a Federal program (whether the original project or program or other activities currently or previously supported by the Federal government), the non-Federal entity must request disposition instructions from the Federal awarding agency if required by the terms and conditions of the award. Items of equipment with a current per-unit fair market value of $5,000 or less may be retained, sold, or otherwise disposed of with no further obligation to the Federal awarding agency. If the Federal awarding agency fails to provide requested disposition instructions within 120 days, items of equipment with a current per-unit fair market value in excess of $5,000 may be retained or sold. The Federal awarding agency is entitled to the Federal interest in the equipment, which is the amount calculated by multiplying the current market value or sale proceeds by the Federal agency’s participation in total project costs (2 CFR 200.313(e). While testing equipment acquisitions acquired using ESSER funds, instances were noted where equipment purchased and other capital projects were not added to the District’s records. Without proper controls over equipment requirements, there is an increased risk that the District is not in compliance with applicable federal regulations. Additionally, noncompliance could result in federal funding being reduced or taken away, or other sanctions imposed by the federal grantor agency. The District should establish (or perform existing) controls to include the required clauses of 2 CFR 200.313 to ensure equipment is being properly safeguarded and tracked. Further, the District should properly add the equipment acquisition purchased from ESSER funds to its capital asset records in accordance with federal guidelines.
Equipment means tangible personal property, including information technology systems, having a useful life of more than one year and a per-unit acquisition cost which equals or exceeds the lesser of the capitalization level established by the non-Federal entity for financial statement purposes or $5,000 (2 CFR 200.1_Equipment). Title to equipment acquired by a non-Federal entity under grants and cooperative agreements vests in the non-Federal entity subject to certain obligations and conditions (2 CFR 200.313(a)). Non-Federal Entities Other Than States Non-Federal entities other than States must follow 2 CFR 200.313(c) through (e) which require that: 1. Equipment, including replacement equipment, be used in the program or project for which it was acquired as long as needed, whether or not the project or program continues to be supported by the Federal award or, when appropriate, under other Federal awards; however, the non-Federal entity must not encumber the equipment without prior approval of the Federal awarding agency (2 CFR 200.313(c) and (e)). 2. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal award identification number), who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property (2 CFR 200.313(d)(1)). 3. A physical inventory of the property must be taken and the results reconciled with the property records at least once every 2 years (2 CFR 200.313(d)(2)). 4. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated (2 CFR 200.313(d)(3)). 5. Adequate maintenance procedures must be developed to keep the property in good condition (2 CFR 200.313(d)(4)). 6. If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return (2 CFR 200.313(d)(5)). 7. When original or replacement equipment acquired under a Federal award is no longer needed for a Federal program (whether the original project or program or other activities currently or previously supported by the Federal government), the non-Federal entity must request disposition instructions from the Federal awarding agency if required by the terms and conditions of the award. Items of equipment with a current per-unit fair market value of $5,000 or less may be retained, sold, or otherwise disposed of with no further obligation to the Federal awarding agency. If the Federal awarding agency fails to provide requested disposition instructions within 120 days, items of equipment with a current per-unit fair market value in excess of $5,000 may be retained or sold. The Federal awarding agency is entitled to the Federal interest in the equipment, which is the amount calculated by multiplying the current market value or sale proceeds by the Federal agency’s participation in total project costs (2 CFR 200.313(e). While testing equipment acquisitions acquired using ESSER funds, instances were noted where equipment purchased and other capital projects were not added to the District’s records. Without proper controls over equipment requirements, there is an increased risk that the District is not in compliance with applicable federal regulations. Additionally, noncompliance could result in federal funding being reduced or taken away, or other sanctions imposed by the federal grantor agency. The District should establish (or perform existing) controls to include the required clauses of 2 CFR 200.313 to ensure equipment is being properly safeguarded and tracked. Further, the District should properly add the equipment acquisition purchased from ESSER funds to its capital asset records in accordance with federal guidelines.