Finding 2023-002: Equipment Inventory Management (50000) Assistance Listing No. 84.425 – Education Stabilization Funds (ESSER) U.S. Department of Treasury Passed through California Department of Education Criteria: The LEA must maintain documentation to substantiate that all equipment purchases are reasonable, necessary, and allowable in accordance with federal state and program requirements. Also, an LEA must establish and maintain a historical inventory system for equipment with an acquisition cost of $500 or more per unit, which contains all required elements as specified in 2 CFR 200.313(d)(1) and the LEA must conduct a physical inventory of the property and the results must be reconciled with the property records at least once every two years. In addition, the LEA must obtain prior written approval from CDE for capital expenditures to be allowable; and the LEA must follow applicable construction regulations. The LEA must ensure heating, ventilation, and air conditioning (HVAC) systems require the use of American Society of Heating, Refrigeration, and Air Conditioning Engineer (ASHRAE) standards and the LEA must ensure every contract for minor remodeling, renovation, repair, or construction contracts in excess of $2,000 contains a provision stating the prevailing wages that must be paid to laborers and mechanics that are not less than those established for the locality of the project. The LEA is required to have a system of internal control which provides reasonable assurance that all costs charged to the programs are reasonable, necessary, and allowable in accordance with applicable statutes, regulations, and program requirements. Condition: The LEA failed to provide documentation to show a complete inventory that includes all required elements and all equipment purchased with Federal Stimulus funds. For example, the LEA purchased markerboard, Dell Latitude computers, and tables using Federal Stimulus funds with ESSER II (Resource 3212) and ESSER III (Resource 3213); however, the items were not properly documented on the LEA’s inventory to substantiate the total of $28,330.66 in equipment purchased with Federal stimulus funds. In addition, the LEA failed to provide evidence of the physical check at least once every two years. Additionally, the LEA’s procedures for the equipment inventory does not contain all required elements in the asset tag - Percent of Federal Award; Transfer; Disposition; Replacement; Use and Current Condition; Fund Source; and Evidence of the physical check. Cause: The LEA has experienced significant employee turnover, which has caused a lack of oversight of certain compliance requirements. Effect: Equipment purchased with federal funds may not be specifically identified. Questioned Costs: $28,330.66 Context: The finding was the result of Federal Program Monitoring (FPM) procedures performed by the CDE. Recommendation: The County has already cleared this finding with CDE. No further action is needed. Views of Responsible Officials: The County has already cleared this finding with CDE. In addition, we have updated the procurement policies to match Uniform Guidance requirements.
Finding 2023-002: Equipment Inventory Management (50000) Assistance Listing No. 84.425 – Education Stabilization Funds (ESSER) U.S. Department of Treasury Passed through California Department of Education Criteria: The LEA must maintain documentation to substantiate that all equipment purchases are reasonable, necessary, and allowable in accordance with federal state and program requirements. Also, an LEA must establish and maintain a historical inventory system for equipment with an acquisition cost of $500 or more per unit, which contains all required elements as specified in 2 CFR 200.313(d)(1) and the LEA must conduct a physical inventory of the property and the results must be reconciled with the property records at least once every two years. In addition, the LEA must obtain prior written approval from CDE for capital expenditures to be allowable; and the LEA must follow applicable construction regulations. The LEA must ensure heating, ventilation, and air conditioning (HVAC) systems require the use of American Society of Heating, Refrigeration, and Air Conditioning Engineer (ASHRAE) standards and the LEA must ensure every contract for minor remodeling, renovation, repair, or construction contracts in excess of $2,000 contains a provision stating the prevailing wages that must be paid to laborers and mechanics that are not less than those established for the locality of the project. The LEA is required to have a system of internal control which provides reasonable assurance that all costs charged to the programs are reasonable, necessary, and allowable in accordance with applicable statutes, regulations, and program requirements. Condition: The LEA failed to provide documentation to show a complete inventory that includes all required elements and all equipment purchased with Federal Stimulus funds. For example, the LEA purchased markerboard, Dell Latitude computers, and tables using Federal Stimulus funds with ESSER II (Resource 3212) and ESSER III (Resource 3213); however, the items were not properly documented on the LEA’s inventory to substantiate the total of $28,330.66 in equipment purchased with Federal stimulus funds. In addition, the LEA failed to provide evidence of the physical check at least once every two years. Additionally, the LEA’s procedures for the equipment inventory does not contain all required elements in the asset tag - Percent of Federal Award; Transfer; Disposition; Replacement; Use and Current Condition; Fund Source; and Evidence of the physical check. Cause: The LEA has experienced significant employee turnover, which has caused a lack of oversight of certain compliance requirements. Effect: Equipment purchased with federal funds may not be specifically identified. Questioned Costs: $28,330.66 Context: The finding was the result of Federal Program Monitoring (FPM) procedures performed by the CDE. Recommendation: The County has already cleared this finding with CDE. No further action is needed. Views of Responsible Officials: The County has already cleared this finding with CDE. In addition, we have updated the procurement policies to match Uniform Guidance requirements.
Finding 2023-002: Equipment Inventory Management (50000) Assistance Listing No. 84.425 – Education Stabilization Funds (ESSER) U.S. Department of Treasury Passed through California Department of Education Criteria: The LEA must maintain documentation to substantiate that all equipment purchases are reasonable, necessary, and allowable in accordance with federal state and program requirements. Also, an LEA must establish and maintain a historical inventory system for equipment with an acquisition cost of $500 or more per unit, which contains all required elements as specified in 2 CFR 200.313(d)(1) and the LEA must conduct a physical inventory of the property and the results must be reconciled with the property records at least once every two years. In addition, the LEA must obtain prior written approval from CDE for capital expenditures to be allowable; and the LEA must follow applicable construction regulations. The LEA must ensure heating, ventilation, and air conditioning (HVAC) systems require the use of American Society of Heating, Refrigeration, and Air Conditioning Engineer (ASHRAE) standards and the LEA must ensure every contract for minor remodeling, renovation, repair, or construction contracts in excess of $2,000 contains a provision stating the prevailing wages that must be paid to laborers and mechanics that are not less than those established for the locality of the project. The LEA is required to have a system of internal control which provides reasonable assurance that all costs charged to the programs are reasonable, necessary, and allowable in accordance with applicable statutes, regulations, and program requirements. Condition: The LEA failed to provide documentation to show a complete inventory that includes all required elements and all equipment purchased with Federal Stimulus funds. For example, the LEA purchased markerboard, Dell Latitude computers, and tables using Federal Stimulus funds with ESSER II (Resource 3212) and ESSER III (Resource 3213); however, the items were not properly documented on the LEA’s inventory to substantiate the total of $28,330.66 in equipment purchased with Federal stimulus funds. In addition, the LEA failed to provide evidence of the physical check at least once every two years. Additionally, the LEA’s procedures for the equipment inventory does not contain all required elements in the asset tag - Percent of Federal Award; Transfer; Disposition; Replacement; Use and Current Condition; Fund Source; and Evidence of the physical check. Cause: The LEA has experienced significant employee turnover, which has caused a lack of oversight of certain compliance requirements. Effect: Equipment purchased with federal funds may not be specifically identified. Questioned Costs: $28,330.66 Context: The finding was the result of Federal Program Monitoring (FPM) procedures performed by the CDE. Recommendation: The County has already cleared this finding with CDE. No further action is needed. Views of Responsible Officials: The County has already cleared this finding with CDE. In addition, we have updated the procurement policies to match Uniform Guidance requirements.
Finding 2023-002: Equipment Inventory Management (50000) Assistance Listing No. 84.425 – Education Stabilization Funds (ESSER) U.S. Department of Treasury Passed through California Department of Education Criteria: The LEA must maintain documentation to substantiate that all equipment purchases are reasonable, necessary, and allowable in accordance with federal state and program requirements. Also, an LEA must establish and maintain a historical inventory system for equipment with an acquisition cost of $500 or more per unit, which contains all required elements as specified in 2 CFR 200.313(d)(1) and the LEA must conduct a physical inventory of the property and the results must be reconciled with the property records at least once every two years. In addition, the LEA must obtain prior written approval from CDE for capital expenditures to be allowable; and the LEA must follow applicable construction regulations. The LEA must ensure heating, ventilation, and air conditioning (HVAC) systems require the use of American Society of Heating, Refrigeration, and Air Conditioning Engineer (ASHRAE) standards and the LEA must ensure every contract for minor remodeling, renovation, repair, or construction contracts in excess of $2,000 contains a provision stating the prevailing wages that must be paid to laborers and mechanics that are not less than those established for the locality of the project. The LEA is required to have a system of internal control which provides reasonable assurance that all costs charged to the programs are reasonable, necessary, and allowable in accordance with applicable statutes, regulations, and program requirements. Condition: The LEA failed to provide documentation to show a complete inventory that includes all required elements and all equipment purchased with Federal Stimulus funds. For example, the LEA purchased markerboard, Dell Latitude computers, and tables using Federal Stimulus funds with ESSER II (Resource 3212) and ESSER III (Resource 3213); however, the items were not properly documented on the LEA’s inventory to substantiate the total of $28,330.66 in equipment purchased with Federal stimulus funds. In addition, the LEA failed to provide evidence of the physical check at least once every two years. Additionally, the LEA’s procedures for the equipment inventory does not contain all required elements in the asset tag - Percent of Federal Award; Transfer; Disposition; Replacement; Use and Current Condition; Fund Source; and Evidence of the physical check. Cause: The LEA has experienced significant employee turnover, which has caused a lack of oversight of certain compliance requirements. Effect: Equipment purchased with federal funds may not be specifically identified. Questioned Costs: $28,330.66 Context: The finding was the result of Federal Program Monitoring (FPM) procedures performed by the CDE. Recommendation: The County has already cleared this finding with CDE. No further action is needed. Views of Responsible Officials: The County has already cleared this finding with CDE. In addition, we have updated the procurement policies to match Uniform Guidance requirements.
Finding 2023-002: Equipment Inventory Management (50000) Assistance Listing No. 84.425 – Education Stabilization Funds (ESSER) U.S. Department of Treasury Passed through California Department of Education Criteria: The LEA must maintain documentation to substantiate that all equipment purchases are reasonable, necessary, and allowable in accordance with federal state and program requirements. Also, an LEA must establish and maintain a historical inventory system for equipment with an acquisition cost of $500 or more per unit, which contains all required elements as specified in 2 CFR 200.313(d)(1) and the LEA must conduct a physical inventory of the property and the results must be reconciled with the property records at least once every two years. In addition, the LEA must obtain prior written approval from CDE for capital expenditures to be allowable; and the LEA must follow applicable construction regulations. The LEA must ensure heating, ventilation, and air conditioning (HVAC) systems require the use of American Society of Heating, Refrigeration, and Air Conditioning Engineer (ASHRAE) standards and the LEA must ensure every contract for minor remodeling, renovation, repair, or construction contracts in excess of $2,000 contains a provision stating the prevailing wages that must be paid to laborers and mechanics that are not less than those established for the locality of the project. The LEA is required to have a system of internal control which provides reasonable assurance that all costs charged to the programs are reasonable, necessary, and allowable in accordance with applicable statutes, regulations, and program requirements. Condition: The LEA failed to provide documentation to show a complete inventory that includes all required elements and all equipment purchased with Federal Stimulus funds. For example, the LEA purchased markerboard, Dell Latitude computers, and tables using Federal Stimulus funds with ESSER II (Resource 3212) and ESSER III (Resource 3213); however, the items were not properly documented on the LEA’s inventory to substantiate the total of $28,330.66 in equipment purchased with Federal stimulus funds. In addition, the LEA failed to provide evidence of the physical check at least once every two years. Additionally, the LEA’s procedures for the equipment inventory does not contain all required elements in the asset tag - Percent of Federal Award; Transfer; Disposition; Replacement; Use and Current Condition; Fund Source; and Evidence of the physical check. Cause: The LEA has experienced significant employee turnover, which has caused a lack of oversight of certain compliance requirements. Effect: Equipment purchased with federal funds may not be specifically identified. Questioned Costs: $28,330.66 Context: The finding was the result of Federal Program Monitoring (FPM) procedures performed by the CDE. Recommendation: The County has already cleared this finding with CDE. No further action is needed. Views of Responsible Officials: The County has already cleared this finding with CDE. In addition, we have updated the procurement policies to match Uniform Guidance requirements.
Finding 2023-002: Equipment Inventory Management (50000) Assistance Listing No. 84.425 – Education Stabilization Funds (ESSER) U.S. Department of Treasury Passed through California Department of Education Criteria: The LEA must maintain documentation to substantiate that all equipment purchases are reasonable, necessary, and allowable in accordance with federal state and program requirements. Also, an LEA must establish and maintain a historical inventory system for equipment with an acquisition cost of $500 or more per unit, which contains all required elements as specified in 2 CFR 200.313(d)(1) and the LEA must conduct a physical inventory of the property and the results must be reconciled with the property records at least once every two years. In addition, the LEA must obtain prior written approval from CDE for capital expenditures to be allowable; and the LEA must follow applicable construction regulations. The LEA must ensure heating, ventilation, and air conditioning (HVAC) systems require the use of American Society of Heating, Refrigeration, and Air Conditioning Engineer (ASHRAE) standards and the LEA must ensure every contract for minor remodeling, renovation, repair, or construction contracts in excess of $2,000 contains a provision stating the prevailing wages that must be paid to laborers and mechanics that are not less than those established for the locality of the project. The LEA is required to have a system of internal control which provides reasonable assurance that all costs charged to the programs are reasonable, necessary, and allowable in accordance with applicable statutes, regulations, and program requirements. Condition: The LEA failed to provide documentation to show a complete inventory that includes all required elements and all equipment purchased with Federal Stimulus funds. For example, the LEA purchased markerboard, Dell Latitude computers, and tables using Federal Stimulus funds with ESSER II (Resource 3212) and ESSER III (Resource 3213); however, the items were not properly documented on the LEA’s inventory to substantiate the total of $28,330.66 in equipment purchased with Federal stimulus funds. In addition, the LEA failed to provide evidence of the physical check at least once every two years. Additionally, the LEA’s procedures for the equipment inventory does not contain all required elements in the asset tag - Percent of Federal Award; Transfer; Disposition; Replacement; Use and Current Condition; Fund Source; and Evidence of the physical check. Cause: The LEA has experienced significant employee turnover, which has caused a lack of oversight of certain compliance requirements. Effect: Equipment purchased with federal funds may not be specifically identified. Questioned Costs: $28,330.66 Context: The finding was the result of Federal Program Monitoring (FPM) procedures performed by the CDE. Recommendation: The County has already cleared this finding with CDE. No further action is needed. Views of Responsible Officials: The County has already cleared this finding with CDE. In addition, we have updated the procurement policies to match Uniform Guidance requirements.
Finding 2023-002: Equipment Inventory Management (50000) Assistance Listing No. 84.425 – Education Stabilization Funds (ESSER) U.S. Department of Treasury Passed through California Department of Education Criteria: The LEA must maintain documentation to substantiate that all equipment purchases are reasonable, necessary, and allowable in accordance with federal state and program requirements. Also, an LEA must establish and maintain a historical inventory system for equipment with an acquisition cost of $500 or more per unit, which contains all required elements as specified in 2 CFR 200.313(d)(1) and the LEA must conduct a physical inventory of the property and the results must be reconciled with the property records at least once every two years. In addition, the LEA must obtain prior written approval from CDE for capital expenditures to be allowable; and the LEA must follow applicable construction regulations. The LEA must ensure heating, ventilation, and air conditioning (HVAC) systems require the use of American Society of Heating, Refrigeration, and Air Conditioning Engineer (ASHRAE) standards and the LEA must ensure every contract for minor remodeling, renovation, repair, or construction contracts in excess of $2,000 contains a provision stating the prevailing wages that must be paid to laborers and mechanics that are not less than those established for the locality of the project. The LEA is required to have a system of internal control which provides reasonable assurance that all costs charged to the programs are reasonable, necessary, and allowable in accordance with applicable statutes, regulations, and program requirements. Condition: The LEA failed to provide documentation to show a complete inventory that includes all required elements and all equipment purchased with Federal Stimulus funds. For example, the LEA purchased markerboard, Dell Latitude computers, and tables using Federal Stimulus funds with ESSER II (Resource 3212) and ESSER III (Resource 3213); however, the items were not properly documented on the LEA’s inventory to substantiate the total of $28,330.66 in equipment purchased with Federal stimulus funds. In addition, the LEA failed to provide evidence of the physical check at least once every two years. Additionally, the LEA’s procedures for the equipment inventory does not contain all required elements in the asset tag - Percent of Federal Award; Transfer; Disposition; Replacement; Use and Current Condition; Fund Source; and Evidence of the physical check. Cause: The LEA has experienced significant employee turnover, which has caused a lack of oversight of certain compliance requirements. Effect: Equipment purchased with federal funds may not be specifically identified. Questioned Costs: $28,330.66 Context: The finding was the result of Federal Program Monitoring (FPM) procedures performed by the CDE. Recommendation: The County has already cleared this finding with CDE. No further action is needed. Views of Responsible Officials: The County has already cleared this finding with CDE. In addition, we have updated the procurement policies to match Uniform Guidance requirements.
Finding 2023-002: Equipment Inventory Management (50000) Assistance Listing No. 84.425 – Education Stabilization Funds (ESSER) U.S. Department of Treasury Passed through California Department of Education Criteria: The LEA must maintain documentation to substantiate that all equipment purchases are reasonable, necessary, and allowable in accordance with federal state and program requirements. Also, an LEA must establish and maintain a historical inventory system for equipment with an acquisition cost of $500 or more per unit, which contains all required elements as specified in 2 CFR 200.313(d)(1) and the LEA must conduct a physical inventory of the property and the results must be reconciled with the property records at least once every two years. In addition, the LEA must obtain prior written approval from CDE for capital expenditures to be allowable; and the LEA must follow applicable construction regulations. The LEA must ensure heating, ventilation, and air conditioning (HVAC) systems require the use of American Society of Heating, Refrigeration, and Air Conditioning Engineer (ASHRAE) standards and the LEA must ensure every contract for minor remodeling, renovation, repair, or construction contracts in excess of $2,000 contains a provision stating the prevailing wages that must be paid to laborers and mechanics that are not less than those established for the locality of the project. The LEA is required to have a system of internal control which provides reasonable assurance that all costs charged to the programs are reasonable, necessary, and allowable in accordance with applicable statutes, regulations, and program requirements. Condition: The LEA failed to provide documentation to show a complete inventory that includes all required elements and all equipment purchased with Federal Stimulus funds. For example, the LEA purchased markerboard, Dell Latitude computers, and tables using Federal Stimulus funds with ESSER II (Resource 3212) and ESSER III (Resource 3213); however, the items were not properly documented on the LEA’s inventory to substantiate the total of $28,330.66 in equipment purchased with Federal stimulus funds. In addition, the LEA failed to provide evidence of the physical check at least once every two years. Additionally, the LEA’s procedures for the equipment inventory does not contain all required elements in the asset tag - Percent of Federal Award; Transfer; Disposition; Replacement; Use and Current Condition; Fund Source; and Evidence of the physical check. Cause: The LEA has experienced significant employee turnover, which has caused a lack of oversight of certain compliance requirements. Effect: Equipment purchased with federal funds may not be specifically identified. Questioned Costs: $28,330.66 Context: The finding was the result of Federal Program Monitoring (FPM) procedures performed by the CDE. Recommendation: The County has already cleared this finding with CDE. No further action is needed. Views of Responsible Officials: The County has already cleared this finding with CDE. In addition, we have updated the procurement policies to match Uniform Guidance requirements.
FINDING 2023-004 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 Federal Award Numbers and Years (or Other Identifying Numbers): S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Modified Opinion Condition and Context The School Corporation paid $1,467,550 from the COVID-19 - Education Stabilization Fund program for two improvement projects which exceeded the School Corporation's capitalization threshold. The improvements were not added to the School Corporation's capital asset listing. Additionally, the School Corporation completed a capital asset inventory as required; however, because material improvements were not included in the capital asset listing, it was determined that the School Corporation did not reconcile differences in the property records 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: (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, 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 two years. . . ." Cause A proper system of internal controls was not designed by management of the School Corporation, which would include segregation of key functions. 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, improvements purchased were not properly added to the capital asset listing. In addition, a reconcilement between the inventory records and the property records were not completed. Noncompliance with the grant agreement and the compliance requirement could result in the loss of federal funds 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 include all assets. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2023-004 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 Federal Award Numbers and Years (or Other Identifying Numbers): S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Modified Opinion Condition and Context The School Corporation paid $1,467,550 from the COVID-19 - Education Stabilization Fund program for two improvement projects which exceeded the School Corporation's capitalization threshold. The improvements were not added to the School Corporation's capital asset listing. Additionally, the School Corporation completed a capital asset inventory as required; however, because material improvements were not included in the capital asset listing, it was determined that the School Corporation did not reconcile differences in the property records 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: (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, 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 two years. . . ." Cause A proper system of internal controls was not designed by management of the School Corporation, which would include segregation of key functions. 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, improvements purchased were not properly added to the capital asset listing. In addition, a reconcilement between the inventory records and the property records were not completed. Noncompliance with the grant agreement and the compliance requirement could result in the loss of federal funds 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 include all assets. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2023-004 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 Federal Award Numbers and Years (or Other Identifying Numbers): S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Modified Opinion Condition and Context The School Corporation paid $1,467,550 from the COVID-19 - Education Stabilization Fund program for two improvement projects which exceeded the School Corporation's capitalization threshold. The improvements were not added to the School Corporation's capital asset listing. Additionally, the School Corporation completed a capital asset inventory as required; however, because material improvements were not included in the capital asset listing, it was determined that the School Corporation did not reconcile differences in the property records 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: (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, 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 two years. . . ." Cause A proper system of internal controls was not designed by management of the School Corporation, which would include segregation of key functions. 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, improvements purchased were not properly added to the capital asset listing. In addition, a reconcilement between the inventory records and the property records were not completed. Noncompliance with the grant agreement and the compliance requirement could result in the loss of federal funds 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 include all assets. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2023-004 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 Federal Award Numbers and Years (or Other Identifying Numbers): S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Modified Opinion Condition and Context The School Corporation paid $1,467,550 from the COVID-19 - Education Stabilization Fund program for two improvement projects which exceeded the School Corporation's capitalization threshold. The improvements were not added to the School Corporation's capital asset listing. Additionally, the School Corporation completed a capital asset inventory as required; however, because material improvements were not included in the capital asset listing, it was determined that the School Corporation did not reconcile differences in the property records 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: (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, 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 two years. . . ." Cause A proper system of internal controls was not designed by management of the School Corporation, which would include segregation of key functions. 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, improvements purchased were not properly added to the capital asset listing. In addition, a reconcilement between the inventory records and the property records were not completed. Noncompliance with the grant agreement and the compliance requirement could result in the loss of federal funds 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 include all assets. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2023-001 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 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, Other Matters Condition and Context The School Corporation had not properly designed or implemented a system of internal controls, which would include appropriate segregation of duties, that would likely be effective in preventing, or detecting and correcting, noncompliance. The School Corporation had not designed an internal control system and procedures to ensure all assets purchased with federal awards were added to the property records or capital asset listing and were appropriately safeguarded and maintained. 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. The School Corporation maintained and presented the equipment and real property records for the COVID-19 - Education Stabilization Fund grant equipment; however, the records failed to include a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, the use, and condition of the property. 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). . . ." INDIANA STATE BOARD OF ACCOUNTS 14 NINEVEH-HENSLEY-JACKSON UNITED SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. . . . (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep property in good condition. . . ." 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, the property records for the assets acquired with COVID-19 - Education Stabilization Fund award dollars did not contain all the required elements. 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 include all the necessary information. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2023-001 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 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, Other Matters Condition and Context The School Corporation had not properly designed or implemented a system of internal controls, which would include appropriate segregation of duties, that would likely be effective in preventing, or detecting and correcting, noncompliance. The School Corporation had not designed an internal control system and procedures to ensure all assets purchased with federal awards were added to the property records or capital asset listing and were appropriately safeguarded and maintained. 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. The School Corporation maintained and presented the equipment and real property records for the COVID-19 - Education Stabilization Fund grant equipment; however, the records failed to include a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, the use, and condition of the property. 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). . . ." INDIANA STATE BOARD OF ACCOUNTS 14 NINEVEH-HENSLEY-JACKSON UNITED SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. . . . (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep property in good condition. . . ." 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, the property records for the assets acquired with COVID-19 - Education Stabilization Fund award dollars did not contain all the required elements. 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 include all the necessary information. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2023-001 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 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, Other Matters Condition and Context The School Corporation had not properly designed or implemented a system of internal controls, which would include appropriate segregation of duties, that would likely be effective in preventing, or detecting and correcting, noncompliance. The School Corporation had not designed an internal control system and procedures to ensure all assets purchased with federal awards were added to the property records or capital asset listing and were appropriately safeguarded and maintained. 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. The School Corporation maintained and presented the equipment and real property records for the COVID-19 - Education Stabilization Fund grant equipment; however, the records failed to include a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, the use, and condition of the property. 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). . . ." INDIANA STATE BOARD OF ACCOUNTS 14 NINEVEH-HENSLEY-JACKSON UNITED SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. . . . (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep property in good condition. . . ." 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, the property records for the assets acquired with COVID-19 - Education Stabilization Fund award dollars did not contain all the required elements. 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 include all the necessary information. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2023-001 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 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, Other Matters Condition and Context The School Corporation had not properly designed or implemented a system of internal controls, which would include appropriate segregation of duties, that would likely be effective in preventing, or detecting and correcting, noncompliance. The School Corporation had not designed an internal control system and procedures to ensure all assets purchased with federal awards were added to the property records or capital asset listing and were appropriately safeguarded and maintained. 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. The School Corporation maintained and presented the equipment and real property records for the COVID-19 - Education Stabilization Fund grant equipment; however, the records failed to include a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, the use, and condition of the property. 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). . . ." INDIANA STATE BOARD OF ACCOUNTS 14 NINEVEH-HENSLEY-JACKSON UNITED SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. . . . (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep property in good condition. . . ." 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, the property records for the assets acquired with COVID-19 - Education Stabilization Fund award dollars did not contain all the required elements. 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 include all the necessary information. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2023-001 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 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, Other Matters Condition and Context The School Corporation had not properly designed or implemented a system of internal controls, which would include appropriate segregation of duties, that would likely be effective in preventing, or detecting and correcting, noncompliance. The School Corporation had not designed an internal control system and procedures to ensure all assets purchased with federal awards were added to the property records or capital asset listing and were appropriately safeguarded and maintained. 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. The School Corporation maintained and presented the equipment and real property records for the COVID-19 - Education Stabilization Fund grant equipment; however, the records failed to include a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, the use, and condition of the property. 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). . . ." INDIANA STATE BOARD OF ACCOUNTS 14 NINEVEH-HENSLEY-JACKSON UNITED SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. . . . (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep property in good condition. . . ." 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, the property records for the assets acquired with COVID-19 - Education Stabilization Fund award dollars did not contain all the required elements. 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 include all the necessary information. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2023-001 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 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, Other Matters Condition and Context The School Corporation had not properly designed or implemented a system of internal controls, which would include appropriate segregation of duties, that would likely be effective in preventing, or detecting and correcting, noncompliance. The School Corporation had not designed an internal control system and procedures to ensure all assets purchased with federal awards were added to the property records or capital asset listing and were appropriately safeguarded and maintained. 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. The School Corporation maintained and presented the equipment and real property records for the COVID-19 - Education Stabilization Fund grant equipment; however, the records failed to include a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, the use, and condition of the property. 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). . . ." INDIANA STATE BOARD OF ACCOUNTS 14 NINEVEH-HENSLEY-JACKSON UNITED SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. . . . (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep property in good condition. . . ." 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, the property records for the assets acquired with COVID-19 - Education Stabilization Fund award dollars did not contain all the required elements. 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 include all the necessary information. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING #2023-001: EDUCATION STABILIZATION FUNDS – EQUIPMENT AND OTHER CAPITAL EXPENDITURES (50000) Program Names: Elementary and Secondary School Emergency Relief II (ESSER II) Fund, Expanded Learning Opportunities (ELO) Grant: ESSER III State Reserve, Emergency Needs, and Expanded Learning Opportunities (ELO) Grant: ESSER III State Reserve, Learning Loss Assistance Listing Number: 84.425 Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Criteria: Consistent with 2 CFR section 200.311 (real property), section 200.313 (equipment), and section 200.439 (equipment and other capital expenditures) ESF funds may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by ED or the pass-through entity. Condition: Through testing of a representative sample of ESF expenditures, we noted that the classroom projector project did not appear to be pre-approved by the California Department of Education (CDE). Each purchase order provided for the purchase and installation of classroom projectors with a per unit cost in excess of $5,000 (including installation and other ancillary costs). Context: The condition was identified through the testing of ESF expenditures. Cause: District oversight. Effect: The funds spent on these purchases may be subject to review by or return to the awarding agency. Questioned Costs: $718,634 Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the District obtain prior approval from CDE for all capital purchases from the Education Stabilization Fund in excess of $5,000. Views of Responsible Officials: See Corrective Action Plan on following page.
FINDING #2023-001: EDUCATION STABILIZATION FUNDS – EQUIPMENT AND OTHER CAPITAL EXPENDITURES (50000) Program Names: Elementary and Secondary School Emergency Relief II (ESSER II) Fund, Expanded Learning Opportunities (ELO) Grant: ESSER III State Reserve, Emergency Needs, and Expanded Learning Opportunities (ELO) Grant: ESSER III State Reserve, Learning Loss Assistance Listing Number: 84.425 Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Criteria: Consistent with 2 CFR section 200.311 (real property), section 200.313 (equipment), and section 200.439 (equipment and other capital expenditures) ESF funds may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by ED or the pass-through entity. Condition: Through testing of a representative sample of ESF expenditures, we noted that the classroom projector project did not appear to be pre-approved by the California Department of Education (CDE). Each purchase order provided for the purchase and installation of classroom projectors with a per unit cost in excess of $5,000 (including installation and other ancillary costs). Context: The condition was identified through the testing of ESF expenditures. Cause: District oversight. Effect: The funds spent on these purchases may be subject to review by or return to the awarding agency. Questioned Costs: $718,634 Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the District obtain prior approval from CDE for all capital purchases from the Education Stabilization Fund in excess of $5,000. Views of Responsible Officials: See Corrective Action Plan on following page.
FINDING #2023-001: EDUCATION STABILIZATION FUNDS – EQUIPMENT AND OTHER CAPITAL EXPENDITURES (50000) Program Names: Elementary and Secondary School Emergency Relief II (ESSER II) Fund, Expanded Learning Opportunities (ELO) Grant: ESSER III State Reserve, Emergency Needs, and Expanded Learning Opportunities (ELO) Grant: ESSER III State Reserve, Learning Loss Assistance Listing Number: 84.425 Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Criteria: Consistent with 2 CFR section 200.311 (real property), section 200.313 (equipment), and section 200.439 (equipment and other capital expenditures) ESF funds may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by ED or the pass-through entity. Condition: Through testing of a representative sample of ESF expenditures, we noted that the classroom projector project did not appear to be pre-approved by the California Department of Education (CDE). Each purchase order provided for the purchase and installation of classroom projectors with a per unit cost in excess of $5,000 (including installation and other ancillary costs). Context: The condition was identified through the testing of ESF expenditures. Cause: District oversight. Effect: The funds spent on these purchases may be subject to review by or return to the awarding agency. Questioned Costs: $718,634 Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the District obtain prior approval from CDE for all capital purchases from the Education Stabilization Fund in excess of $5,000. Views of Responsible Officials: See Corrective Action Plan on following page.
FINDING #2023-001: EDUCATION STABILIZATION FUNDS – EQUIPMENT AND OTHER CAPITAL EXPENDITURES (50000) Program Names: Elementary and Secondary School Emergency Relief II (ESSER II) Fund, Expanded Learning Opportunities (ELO) Grant: ESSER III State Reserve, Emergency Needs, and Expanded Learning Opportunities (ELO) Grant: ESSER III State Reserve, Learning Loss Assistance Listing Number: 84.425 Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Criteria: Consistent with 2 CFR section 200.311 (real property), section 200.313 (equipment), and section 200.439 (equipment and other capital expenditures) ESF funds may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by ED or the pass-through entity. Condition: Through testing of a representative sample of ESF expenditures, we noted that the classroom projector project did not appear to be pre-approved by the California Department of Education (CDE). Each purchase order provided for the purchase and installation of classroom projectors with a per unit cost in excess of $5,000 (including installation and other ancillary costs). Context: The condition was identified through the testing of ESF expenditures. Cause: District oversight. Effect: The funds spent on these purchases may be subject to review by or return to the awarding agency. Questioned Costs: $718,634 Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the District obtain prior approval from CDE for all capital purchases from the Education Stabilization Fund in excess of $5,000. Views of Responsible Officials: See Corrective Action Plan on following page.
FINDING #2023-001: EDUCATION STABILIZATION FUNDS – EQUIPMENT AND OTHER CAPITAL EXPENDITURES (50000) Program Names: Elementary and Secondary School Emergency Relief II (ESSER II) Fund, Expanded Learning Opportunities (ELO) Grant: ESSER III State Reserve, Emergency Needs, and Expanded Learning Opportunities (ELO) Grant: ESSER III State Reserve, Learning Loss Assistance Listing Number: 84.425 Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Criteria: Consistent with 2 CFR section 200.311 (real property), section 200.313 (equipment), and section 200.439 (equipment and other capital expenditures) ESF funds may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by ED or the pass-through entity. Condition: Through testing of a representative sample of ESF expenditures, we noted that the classroom projector project did not appear to be pre-approved by the California Department of Education (CDE). Each purchase order provided for the purchase and installation of classroom projectors with a per unit cost in excess of $5,000 (including installation and other ancillary costs). Context: The condition was identified through the testing of ESF expenditures. Cause: District oversight. Effect: The funds spent on these purchases may be subject to review by or return to the awarding agency. Questioned Costs: $718,634 Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the District obtain prior approval from CDE for all capital purchases from the Education Stabilization Fund in excess of $5,000. Views of Responsible Officials: See Corrective Action Plan on following page.
FINDING #2023-001: EDUCATION STABILIZATION FUNDS – EQUIPMENT AND OTHER CAPITAL EXPENDITURES (50000) Program Names: Elementary and Secondary School Emergency Relief II (ESSER II) Fund, Expanded Learning Opportunities (ELO) Grant: ESSER III State Reserve, Emergency Needs, and Expanded Learning Opportunities (ELO) Grant: ESSER III State Reserve, Learning Loss Assistance Listing Number: 84.425 Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Criteria: Consistent with 2 CFR section 200.311 (real property), section 200.313 (equipment), and section 200.439 (equipment and other capital expenditures) ESF funds may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by ED or the pass-through entity. Condition: Through testing of a representative sample of ESF expenditures, we noted that the classroom projector project did not appear to be pre-approved by the California Department of Education (CDE). Each purchase order provided for the purchase and installation of classroom projectors with a per unit cost in excess of $5,000 (including installation and other ancillary costs). Context: The condition was identified through the testing of ESF expenditures. Cause: District oversight. Effect: The funds spent on these purchases may be subject to review by or return to the awarding agency. Questioned Costs: $718,634 Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the District obtain prior approval from CDE for all capital purchases from the Education Stabilization Fund in excess of $5,000. Views of Responsible Officials: See Corrective Action Plan on following page.
FINDING #2023-001: EDUCATION STABILIZATION FUNDS – EQUIPMENT AND OTHER CAPITAL EXPENDITURES (50000) Program Names: Elementary and Secondary School Emergency Relief II (ESSER II) Fund, Expanded Learning Opportunities (ELO) Grant: ESSER III State Reserve, Emergency Needs, and Expanded Learning Opportunities (ELO) Grant: ESSER III State Reserve, Learning Loss Assistance Listing Number: 84.425 Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Criteria: Consistent with 2 CFR section 200.311 (real property), section 200.313 (equipment), and section 200.439 (equipment and other capital expenditures) ESF funds may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by ED or the pass-through entity. Condition: Through testing of a representative sample of ESF expenditures, we noted that the classroom projector project did not appear to be pre-approved by the California Department of Education (CDE). Each purchase order provided for the purchase and installation of classroom projectors with a per unit cost in excess of $5,000 (including installation and other ancillary costs). Context: The condition was identified through the testing of ESF expenditures. Cause: District oversight. Effect: The funds spent on these purchases may be subject to review by or return to the awarding agency. Questioned Costs: $718,634 Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the District obtain prior approval from CDE for all capital purchases from the Education Stabilization Fund in excess of $5,000. Views of Responsible Officials: See Corrective Action Plan on following page.
Program Information: Federal Program: Research and Development Cluster Assistance Listing Numbers: Various Federal Agencies: Various Award Year: Various Criteria or requirement: 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. Per Title 2, U.S. Code of Federal Regulations Part 200 (2 CRF 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, (Subpart D, Section 200.303), the nonfederal 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. Condition found, including facts that support the deficiency identified in the finding and information to provide proper perspective for judging the prevalence and consequences of the finding: During our procedures over management’s process of observing physical inventory of equipment, 2 of our 40 sample sections were found to have been disposed of without being removed from the inventory listing. Both of these pieces of equipment were indicated as counted during the inventory count despite being disposed of prior to the count date. These two pieces of equipment were significantly aged, had no estimated remaining fair market value, and related to grants that had ended several years ago. Therefore, there are no questioned costs related to the missing equipment. Cause and possible asserted effect: The inventory count control was not operating effectively to detect and properly track the missing equipment. Failure to accurately count equipment and to maintain accurate property records may result in the University not properly safeguarding and maintaining equipment in accordance with Federal requirements. Identification of questioned costs and how they were computed: None Sample Statistically Valid: The sample was not intended to be, and was not, a statistically valid sample. Repeat finding from prior year: No Recommendation: We recommend management enhance their internal control processes and training of people performing inventory counts to ensure the data obtained during the inventory count is appropriately reviewed to ensure that count errors are detected and corrected. Views of Responsible Officials: Management agrees with the finding noted in this report. Management has developed a corrective action plan and is in the process of improving processes and internal control systems to ensure that effective controls are in place over federally purchased equipment.
Program Information: Federal Program: Research and Development Cluster Assistance Listing Numbers: Various Federal Agencies: Various Award Year: Various Criteria or requirement: 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. Per Title 2, U.S. Code of Federal Regulations Part 200 (2 CRF 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, (Subpart D, Section 200.303), the nonfederal 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. Condition found, including facts that support the deficiency identified in the finding and information to provide proper perspective for judging the prevalence and consequences of the finding: During our procedures over management’s process of observing physical inventory of equipment, 2 of our 40 sample sections were found to have been disposed of without being removed from the inventory listing. Both of these pieces of equipment were indicated as counted during the inventory count despite being disposed of prior to the count date. These two pieces of equipment were significantly aged, had no estimated remaining fair market value, and related to grants that had ended several years ago. Therefore, there are no questioned costs related to the missing equipment. Cause and possible asserted effect: The inventory count control was not operating effectively to detect and properly track the missing equipment. Failure to accurately count equipment and to maintain accurate property records may result in the University not properly safeguarding and maintaining equipment in accordance with Federal requirements. Identification of questioned costs and how they were computed: None Sample Statistically Valid: The sample was not intended to be, and was not, a statistically valid sample. Repeat finding from prior year: No Recommendation: We recommend management enhance their internal control processes and training of people performing inventory counts to ensure the data obtained during the inventory count is appropriately reviewed to ensure that count errors are detected and corrected. Views of Responsible Officials: Management agrees with the finding noted in this report. Management has developed a corrective action plan and is in the process of improving processes and internal control systems to ensure that effective controls are in place over federally purchased equipment.
Program Information: Federal Program: Research and Development Cluster Assistance Listing Numbers: Various Federal Agencies: Various Award Year: Various Criteria or requirement: 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. Per Title 2, U.S. Code of Federal Regulations Part 200 (2 CRF 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, (Subpart D, Section 200.303), the nonfederal 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. Condition found, including facts that support the deficiency identified in the finding and information to provide proper perspective for judging the prevalence and consequences of the finding: During our procedures over management’s process of observing physical inventory of equipment, 2 of our 40 sample sections were found to have been disposed of without being removed from the inventory listing. Both of these pieces of equipment were indicated as counted during the inventory count despite being disposed of prior to the count date. These two pieces of equipment were significantly aged, had no estimated remaining fair market value, and related to grants that had ended several years ago. Therefore, there are no questioned costs related to the missing equipment. Cause and possible asserted effect: The inventory count control was not operating effectively to detect and properly track the missing equipment. Failure to accurately count equipment and to maintain accurate property records may result in the University not properly safeguarding and maintaining equipment in accordance with Federal requirements. Identification of questioned costs and how they were computed: None Sample Statistically Valid: The sample was not intended to be, and was not, a statistically valid sample. Repeat finding from prior year: No Recommendation: We recommend management enhance their internal control processes and training of people performing inventory counts to ensure the data obtained during the inventory count is appropriately reviewed to ensure that count errors are detected and corrected. Views of Responsible Officials: Management agrees with the finding noted in this report. Management has developed a corrective action plan and is in the process of improving processes and internal control systems to ensure that effective controls are in place over federally purchased equipment.
Program Information: Federal Program: Research and Development Cluster Assistance Listing Numbers: Various Federal Agencies: Various Award Year: Various Criteria or requirement: 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. Per Title 2, U.S. Code of Federal Regulations Part 200 (2 CRF 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, (Subpart D, Section 200.303), the nonfederal 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. Condition found, including facts that support the deficiency identified in the finding and information to provide proper perspective for judging the prevalence and consequences of the finding: During our procedures over management’s process of observing physical inventory of equipment, 2 of our 40 sample sections were found to have been disposed of without being removed from the inventory listing. Both of these pieces of equipment were indicated as counted during the inventory count despite being disposed of prior to the count date. These two pieces of equipment were significantly aged, had no estimated remaining fair market value, and related to grants that had ended several years ago. Therefore, there are no questioned costs related to the missing equipment. Cause and possible asserted effect: The inventory count control was not operating effectively to detect and properly track the missing equipment. Failure to accurately count equipment and to maintain accurate property records may result in the University not properly safeguarding and maintaining equipment in accordance with Federal requirements. Identification of questioned costs and how they were computed: None Sample Statistically Valid: The sample was not intended to be, and was not, a statistically valid sample. Repeat finding from prior year: No Recommendation: We recommend management enhance their internal control processes and training of people performing inventory counts to ensure the data obtained during the inventory count is appropriately reviewed to ensure that count errors are detected and corrected. Views of Responsible Officials: Management agrees with the finding noted in this report. Management has developed a corrective action plan and is in the process of improving processes and internal control systems to ensure that effective controls are in place over federally purchased equipment.
Program Information: Federal Program: Research and Development Cluster Assistance Listing Numbers: Various Federal Agencies: Various Award Year: Various Criteria or requirement: 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. Per Title 2, U.S. Code of Federal Regulations Part 200 (2 CRF 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, (Subpart D, Section 200.303), the nonfederal 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. Condition found, including facts that support the deficiency identified in the finding and information to provide proper perspective for judging the prevalence and consequences of the finding: During our procedures over management’s process of observing physical inventory of equipment, 2 of our 40 sample sections were found to have been disposed of without being removed from the inventory listing. Both of these pieces of equipment were indicated as counted during the inventory count despite being disposed of prior to the count date. These two pieces of equipment were significantly aged, had no estimated remaining fair market value, and related to grants that had ended several years ago. Therefore, there are no questioned costs related to the missing equipment. Cause and possible asserted effect: The inventory count control was not operating effectively to detect and properly track the missing equipment. Failure to accurately count equipment and to maintain accurate property records may result in the University not properly safeguarding and maintaining equipment in accordance with Federal requirements. Identification of questioned costs and how they were computed: None Sample Statistically Valid: The sample was not intended to be, and was not, a statistically valid sample. Repeat finding from prior year: No Recommendation: We recommend management enhance their internal control processes and training of people performing inventory counts to ensure the data obtained during the inventory count is appropriately reviewed to ensure that count errors are detected and corrected. Views of Responsible Officials: Management agrees with the finding noted in this report. Management has developed a corrective action plan and is in the process of improving processes and internal control systems to ensure that effective controls are in place over federally purchased equipment.
Program Information: Federal Program: Research and Development Cluster Assistance Listing Numbers: Various Federal Agencies: Various Award Year: Various Criteria or requirement: 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. Per Title 2, U.S. Code of Federal Regulations Part 200 (2 CRF 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, (Subpart D, Section 200.303), the nonfederal 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. Condition found, including facts that support the deficiency identified in the finding and information to provide proper perspective for judging the prevalence and consequences of the finding: During our procedures over management’s process of observing physical inventory of equipment, 2 of our 40 sample sections were found to have been disposed of without being removed from the inventory listing. Both of these pieces of equipment were indicated as counted during the inventory count despite being disposed of prior to the count date. These two pieces of equipment were significantly aged, had no estimated remaining fair market value, and related to grants that had ended several years ago. Therefore, there are no questioned costs related to the missing equipment. Cause and possible asserted effect: The inventory count control was not operating effectively to detect and properly track the missing equipment. Failure to accurately count equipment and to maintain accurate property records may result in the University not properly safeguarding and maintaining equipment in accordance with Federal requirements. Identification of questioned costs and how they were computed: None Sample Statistically Valid: The sample was not intended to be, and was not, a statistically valid sample. Repeat finding from prior year: No Recommendation: We recommend management enhance their internal control processes and training of people performing inventory counts to ensure the data obtained during the inventory count is appropriately reviewed to ensure that count errors are detected and corrected. Views of Responsible Officials: Management agrees with the finding noted in this report. Management has developed a corrective action plan and is in the process of improving processes and internal control systems to ensure that effective controls are in place over federally purchased equipment.
Program Information: Federal Program: Research and Development Cluster Assistance Listing Numbers: Various Federal Agencies: Various Award Year: Various Criteria or requirement: 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. Per Title 2, U.S. Code of Federal Regulations Part 200 (2 CRF 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, (Subpart D, Section 200.303), the nonfederal 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. Condition found, including facts that support the deficiency identified in the finding and information to provide proper perspective for judging the prevalence and consequences of the finding: During our procedures over management’s process of observing physical inventory of equipment, 2 of our 40 sample sections were found to have been disposed of without being removed from the inventory listing. Both of these pieces of equipment were indicated as counted during the inventory count despite being disposed of prior to the count date. These two pieces of equipment were significantly aged, had no estimated remaining fair market value, and related to grants that had ended several years ago. Therefore, there are no questioned costs related to the missing equipment. Cause and possible asserted effect: The inventory count control was not operating effectively to detect and properly track the missing equipment. Failure to accurately count equipment and to maintain accurate property records may result in the University not properly safeguarding and maintaining equipment in accordance with Federal requirements. Identification of questioned costs and how they were computed: None Sample Statistically Valid: The sample was not intended to be, and was not, a statistically valid sample. Repeat finding from prior year: No Recommendation: We recommend management enhance their internal control processes and training of people performing inventory counts to ensure the data obtained during the inventory count is appropriately reviewed to ensure that count errors are detected and corrected. Views of Responsible Officials: Management agrees with the finding noted in this report. Management has developed a corrective action plan and is in the process of improving processes and internal control systems to ensure that effective controls are in place over federally purchased equipment.
Program Information: Federal Program: Research and Development Cluster Assistance Listing Numbers: Various Federal Agencies: Various Award Year: Various Criteria or requirement: 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. Per Title 2, U.S. Code of Federal Regulations Part 200 (2 CRF 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, (Subpart D, Section 200.303), the nonfederal 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. Condition found, including facts that support the deficiency identified in the finding and information to provide proper perspective for judging the prevalence and consequences of the finding: During our procedures over management’s process of observing physical inventory of equipment, 2 of our 40 sample sections were found to have been disposed of without being removed from the inventory listing. Both of these pieces of equipment were indicated as counted during the inventory count despite being disposed of prior to the count date. These two pieces of equipment were significantly aged, had no estimated remaining fair market value, and related to grants that had ended several years ago. Therefore, there are no questioned costs related to the missing equipment. Cause and possible asserted effect: The inventory count control was not operating effectively to detect and properly track the missing equipment. Failure to accurately count equipment and to maintain accurate property records may result in the University not properly safeguarding and maintaining equipment in accordance with Federal requirements. Identification of questioned costs and how they were computed: None Sample Statistically Valid: The sample was not intended to be, and was not, a statistically valid sample. Repeat finding from prior year: No Recommendation: We recommend management enhance their internal control processes and training of people performing inventory counts to ensure the data obtained during the inventory count is appropriately reviewed to ensure that count errors are detected and corrected. Views of Responsible Officials: Management agrees with the finding noted in this report. Management has developed a corrective action plan and is in the process of improving processes and internal control systems to ensure that effective controls are in place over federally purchased equipment.
Program Information: Federal Program: Research and Development Cluster Assistance Listing Numbers: Various Federal Agencies: Various Award Year: Various Criteria or requirement: 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. Per Title 2, U.S. Code of Federal Regulations Part 200 (2 CRF 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, (Subpart D, Section 200.303), the nonfederal 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. Condition found, including facts that support the deficiency identified in the finding and information to provide proper perspective for judging the prevalence and consequences of the finding: During our procedures over management’s process of observing physical inventory of equipment, 2 of our 40 sample sections were found to have been disposed of without being removed from the inventory listing. Both of these pieces of equipment were indicated as counted during the inventory count despite being disposed of prior to the count date. These two pieces of equipment were significantly aged, had no estimated remaining fair market value, and related to grants that had ended several years ago. Therefore, there are no questioned costs related to the missing equipment. Cause and possible asserted effect: The inventory count control was not operating effectively to detect and properly track the missing equipment. Failure to accurately count equipment and to maintain accurate property records may result in the University not properly safeguarding and maintaining equipment in accordance with Federal requirements. Identification of questioned costs and how they were computed: None Sample Statistically Valid: The sample was not intended to be, and was not, a statistically valid sample. Repeat finding from prior year: No Recommendation: We recommend management enhance their internal control processes and training of people performing inventory counts to ensure the data obtained during the inventory count is appropriately reviewed to ensure that count errors are detected and corrected. Views of Responsible Officials: Management agrees with the finding noted in this report. Management has developed a corrective action plan and is in the process of improving processes and internal control systems to ensure that effective controls are in place over federally purchased equipment.
Program Information: Federal Program: Research and Development Cluster Assistance Listing Numbers: Various Federal Agencies: Various Award Year: Various Criteria or requirement: 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. Per Title 2, U.S. Code of Federal Regulations Part 200 (2 CRF 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, (Subpart D, Section 200.303), the nonfederal 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. Condition found, including facts that support the deficiency identified in the finding and information to provide proper perspective for judging the prevalence and consequences of the finding: During our procedures over management’s process of observing physical inventory of equipment, 2 of our 40 sample sections were found to have been disposed of without being removed from the inventory listing. Both of these pieces of equipment were indicated as counted during the inventory count despite being disposed of prior to the count date. These two pieces of equipment were significantly aged, had no estimated remaining fair market value, and related to grants that had ended several years ago. Therefore, there are no questioned costs related to the missing equipment. Cause and possible asserted effect: The inventory count control was not operating effectively to detect and properly track the missing equipment. Failure to accurately count equipment and to maintain accurate property records may result in the University not properly safeguarding and maintaining equipment in accordance with Federal requirements. Identification of questioned costs and how they were computed: None Sample Statistically Valid: The sample was not intended to be, and was not, a statistically valid sample. Repeat finding from prior year: No Recommendation: We recommend management enhance their internal control processes and training of people performing inventory counts to ensure the data obtained during the inventory count is appropriately reviewed to ensure that count errors are detected and corrected. Views of Responsible Officials: Management agrees with the finding noted in this report. Management has developed a corrective action plan and is in the process of improving processes and internal control systems to ensure that effective controls are in place over federally purchased equipment.
Program Information: Federal Program: Research and Development Cluster Assistance Listing Numbers: Various Federal Agencies: Various Award Year: Various Criteria or requirement: 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. Per Title 2, U.S. Code of Federal Regulations Part 200 (2 CRF 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, (Subpart D, Section 200.303), the nonfederal 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. Condition found, including facts that support the deficiency identified in the finding and information to provide proper perspective for judging the prevalence and consequences of the finding: During our procedures over management’s process of observing physical inventory of equipment, 2 of our 40 sample sections were found to have been disposed of without being removed from the inventory listing. Both of these pieces of equipment were indicated as counted during the inventory count despite being disposed of prior to the count date. These two pieces of equipment were significantly aged, had no estimated remaining fair market value, and related to grants that had ended several years ago. Therefore, there are no questioned costs related to the missing equipment. Cause and possible asserted effect: The inventory count control was not operating effectively to detect and properly track the missing equipment. Failure to accurately count equipment and to maintain accurate property records may result in the University not properly safeguarding and maintaining equipment in accordance with Federal requirements. Identification of questioned costs and how they were computed: None Sample Statistically Valid: The sample was not intended to be, and was not, a statistically valid sample. Repeat finding from prior year: No Recommendation: We recommend management enhance their internal control processes and training of people performing inventory counts to ensure the data obtained during the inventory count is appropriately reviewed to ensure that count errors are detected and corrected. Views of Responsible Officials: Management agrees with the finding noted in this report. Management has developed a corrective action plan and is in the process of improving processes and internal control systems to ensure that effective controls are in place over federally purchased equipment.
Program Information: Federal Program: Research and Development Cluster Assistance Listing Numbers: Various Federal Agencies: Various Award Year: Various Criteria or requirement: 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. Per Title 2, U.S. Code of Federal Regulations Part 200 (2 CRF 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, (Subpart D, Section 200.303), the nonfederal 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. Condition found, including facts that support the deficiency identified in the finding and information to provide proper perspective for judging the prevalence and consequences of the finding: During our procedures over management’s process of observing physical inventory of equipment, 2 of our 40 sample sections were found to have been disposed of without being removed from the inventory listing. Both of these pieces of equipment were indicated as counted during the inventory count despite being disposed of prior to the count date. These two pieces of equipment were significantly aged, had no estimated remaining fair market value, and related to grants that had ended several years ago. Therefore, there are no questioned costs related to the missing equipment. Cause and possible asserted effect: The inventory count control was not operating effectively to detect and properly track the missing equipment. Failure to accurately count equipment and to maintain accurate property records may result in the University not properly safeguarding and maintaining equipment in accordance with Federal requirements. Identification of questioned costs and how they were computed: None Sample Statistically Valid: The sample was not intended to be, and was not, a statistically valid sample. Repeat finding from prior year: No Recommendation: We recommend management enhance their internal control processes and training of people performing inventory counts to ensure the data obtained during the inventory count is appropriately reviewed to ensure that count errors are detected and corrected. Views of Responsible Officials: Management agrees with the finding noted in this report. Management has developed a corrective action plan and is in the process of improving processes and internal control systems to ensure that effective controls are in place over federally purchased equipment.
Program Information: Federal Program: Research and Development Cluster Assistance Listing Numbers: Various Federal Agencies: Various Award Year: Various Criteria or requirement: 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. Per Title 2, U.S. Code of Federal Regulations Part 200 (2 CRF 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, (Subpart D, Section 200.303), the nonfederal 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. Condition found, including facts that support the deficiency identified in the finding and information to provide proper perspective for judging the prevalence and consequences of the finding: During our procedures over management’s process of observing physical inventory of equipment, 2 of our 40 sample sections were found to have been disposed of without being removed from the inventory listing. Both of these pieces of equipment were indicated as counted during the inventory count despite being disposed of prior to the count date. These two pieces of equipment were significantly aged, had no estimated remaining fair market value, and related to grants that had ended several years ago. Therefore, there are no questioned costs related to the missing equipment. Cause and possible asserted effect: The inventory count control was not operating effectively to detect and properly track the missing equipment. Failure to accurately count equipment and to maintain accurate property records may result in the University not properly safeguarding and maintaining equipment in accordance with Federal requirements. Identification of questioned costs and how they were computed: None Sample Statistically Valid: The sample was not intended to be, and was not, a statistically valid sample. Repeat finding from prior year: No Recommendation: We recommend management enhance their internal control processes and training of people performing inventory counts to ensure the data obtained during the inventory count is appropriately reviewed to ensure that count errors are detected and corrected. Views of Responsible Officials: Management agrees with the finding noted in this report. Management has developed a corrective action plan and is in the process of improving processes and internal control systems to ensure that effective controls are in place over federally purchased equipment.
Program Information: Federal Program: Research and Development Cluster Assistance Listing Numbers: Various Federal Agencies: Various Award Year: Various Criteria or requirement: 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. Per Title 2, U.S. Code of Federal Regulations Part 200 (2 CRF 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, (Subpart D, Section 200.303), the nonfederal 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. Condition found, including facts that support the deficiency identified in the finding and information to provide proper perspective for judging the prevalence and consequences of the finding: During our procedures over management’s process of observing physical inventory of equipment, 2 of our 40 sample sections were found to have been disposed of without being removed from the inventory listing. Both of these pieces of equipment were indicated as counted during the inventory count despite being disposed of prior to the count date. These two pieces of equipment were significantly aged, had no estimated remaining fair market value, and related to grants that had ended several years ago. Therefore, there are no questioned costs related to the missing equipment. Cause and possible asserted effect: The inventory count control was not operating effectively to detect and properly track the missing equipment. Failure to accurately count equipment and to maintain accurate property records may result in the University not properly safeguarding and maintaining equipment in accordance with Federal requirements. Identification of questioned costs and how they were computed: None Sample Statistically Valid: The sample was not intended to be, and was not, a statistically valid sample. Repeat finding from prior year: No Recommendation: We recommend management enhance their internal control processes and training of people performing inventory counts to ensure the data obtained during the inventory count is appropriately reviewed to ensure that count errors are detected and corrected. Views of Responsible Officials: Management agrees with the finding noted in this report. Management has developed a corrective action plan and is in the process of improving processes and internal control systems to ensure that effective controls are in place over federally purchased equipment.
Program Information: Federal Program: Research and Development Cluster Assistance Listing Numbers: Various Federal Agencies: Various Award Year: Various Criteria or requirement: 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. Per Title 2, U.S. Code of Federal Regulations Part 200 (2 CRF 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, (Subpart D, Section 200.303), the nonfederal 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. Condition found, including facts that support the deficiency identified in the finding and information to provide proper perspective for judging the prevalence and consequences of the finding: During our procedures over management’s process of observing physical inventory of equipment, 2 of our 40 sample sections were found to have been disposed of without being removed from the inventory listing. Both of these pieces of equipment were indicated as counted during the inventory count despite being disposed of prior to the count date. These two pieces of equipment were significantly aged, had no estimated remaining fair market value, and related to grants that had ended several years ago. Therefore, there are no questioned costs related to the missing equipment. Cause and possible asserted effect: The inventory count control was not operating effectively to detect and properly track the missing equipment. Failure to accurately count equipment and to maintain accurate property records may result in the University not properly safeguarding and maintaining equipment in accordance with Federal requirements. Identification of questioned costs and how they were computed: None Sample Statistically Valid: The sample was not intended to be, and was not, a statistically valid sample. Repeat finding from prior year: No Recommendation: We recommend management enhance their internal control processes and training of people performing inventory counts to ensure the data obtained during the inventory count is appropriately reviewed to ensure that count errors are detected and corrected. Views of Responsible Officials: Management agrees with the finding noted in this report. Management has developed a corrective action plan and is in the process of improving processes and internal control systems to ensure that effective controls are in place over federally purchased equipment.
Program Information: Federal Program: Research and Development Cluster Assistance Listing Numbers: Various Federal Agencies: Various Award Year: Various Criteria or requirement: 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. Per Title 2, U.S. Code of Federal Regulations Part 200 (2 CRF 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, (Subpart D, Section 200.303), the nonfederal 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. Condition found, including facts that support the deficiency identified in the finding and information to provide proper perspective for judging the prevalence and consequences of the finding: During our procedures over management’s process of observing physical inventory of equipment, 2 of our 40 sample sections were found to have been disposed of without being removed from the inventory listing. Both of these pieces of equipment were indicated as counted during the inventory count despite being disposed of prior to the count date. These two pieces of equipment were significantly aged, had no estimated remaining fair market value, and related to grants that had ended several years ago. Therefore, there are no questioned costs related to the missing equipment. Cause and possible asserted effect: The inventory count control was not operating effectively to detect and properly track the missing equipment. Failure to accurately count equipment and to maintain accurate property records may result in the University not properly safeguarding and maintaining equipment in accordance with Federal requirements. Identification of questioned costs and how they were computed: None Sample Statistically Valid: The sample was not intended to be, and was not, a statistically valid sample. Repeat finding from prior year: No Recommendation: We recommend management enhance their internal control processes and training of people performing inventory counts to ensure the data obtained during the inventory count is appropriately reviewed to ensure that count errors are detected and corrected. Views of Responsible Officials: Management agrees with the finding noted in this report. Management has developed a corrective action plan and is in the process of improving processes and internal control systems to ensure that effective controls are in place over federally purchased equipment.
Program Information: Federal Program: Research and Development Cluster Assistance Listing Numbers: Various Federal Agencies: Various Award Year: Various Criteria or requirement: 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. Per Title 2, U.S. Code of Federal Regulations Part 200 (2 CRF 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, (Subpart D, Section 200.303), the nonfederal 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. Condition found, including facts that support the deficiency identified in the finding and information to provide proper perspective for judging the prevalence and consequences of the finding: During our procedures over management’s process of observing physical inventory of equipment, 2 of our 40 sample sections were found to have been disposed of without being removed from the inventory listing. Both of these pieces of equipment were indicated as counted during the inventory count despite being disposed of prior to the count date. These two pieces of equipment were significantly aged, had no estimated remaining fair market value, and related to grants that had ended several years ago. Therefore, there are no questioned costs related to the missing equipment. Cause and possible asserted effect: The inventory count control was not operating effectively to detect and properly track the missing equipment. Failure to accurately count equipment and to maintain accurate property records may result in the University not properly safeguarding and maintaining equipment in accordance with Federal requirements. Identification of questioned costs and how they were computed: None Sample Statistically Valid: The sample was not intended to be, and was not, a statistically valid sample. Repeat finding from prior year: No Recommendation: We recommend management enhance their internal control processes and training of people performing inventory counts to ensure the data obtained during the inventory count is appropriately reviewed to ensure that count errors are detected and corrected. Views of Responsible Officials: Management agrees with the finding noted in this report. Management has developed a corrective action plan and is in the process of improving processes and internal control systems to ensure that effective controls are in place over federally purchased equipment.
Program Information: Federal Program: Research and Development Cluster Assistance Listing Numbers: Various Federal Agencies: Various Award Year: Various Criteria or requirement: 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. Per Title 2, U.S. Code of Federal Regulations Part 200 (2 CRF 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, (Subpart D, Section 200.303), the nonfederal 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. Condition found, including facts that support the deficiency identified in the finding and information to provide proper perspective for judging the prevalence and consequences of the finding: During our procedures over management’s process of observing physical inventory of equipment, 2 of our 40 sample sections were found to have been disposed of without being removed from the inventory listing. Both of these pieces of equipment were indicated as counted during the inventory count despite being disposed of prior to the count date. These two pieces of equipment were significantly aged, had no estimated remaining fair market value, and related to grants that had ended several years ago. Therefore, there are no questioned costs related to the missing equipment. Cause and possible asserted effect: The inventory count control was not operating effectively to detect and properly track the missing equipment. Failure to accurately count equipment and to maintain accurate property records may result in the University not properly safeguarding and maintaining equipment in accordance with Federal requirements. Identification of questioned costs and how they were computed: None Sample Statistically Valid: The sample was not intended to be, and was not, a statistically valid sample. Repeat finding from prior year: No Recommendation: We recommend management enhance their internal control processes and training of people performing inventory counts to ensure the data obtained during the inventory count is appropriately reviewed to ensure that count errors are detected and corrected. Views of Responsible Officials: Management agrees with the finding noted in this report. Management has developed a corrective action plan and is in the process of improving processes and internal control systems to ensure that effective controls are in place over federally purchased equipment.
Program Information: Federal Program: Research and Development Cluster Assistance Listing Numbers: Various Federal Agencies: Various Award Year: Various Criteria or requirement: 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. Per Title 2, U.S. Code of Federal Regulations Part 200 (2 CRF 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, (Subpart D, Section 200.303), the nonfederal 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. Condition found, including facts that support the deficiency identified in the finding and information to provide proper perspective for judging the prevalence and consequences of the finding: During our procedures over management’s process of observing physical inventory of equipment, 2 of our 40 sample sections were found to have been disposed of without being removed from the inventory listing. Both of these pieces of equipment were indicated as counted during the inventory count despite being disposed of prior to the count date. These two pieces of equipment were significantly aged, had no estimated remaining fair market value, and related to grants that had ended several years ago. Therefore, there are no questioned costs related to the missing equipment. Cause and possible asserted effect: The inventory count control was not operating effectively to detect and properly track the missing equipment. Failure to accurately count equipment and to maintain accurate property records may result in the University not properly safeguarding and maintaining equipment in accordance with Federal requirements. Identification of questioned costs and how they were computed: None Sample Statistically Valid: The sample was not intended to be, and was not, a statistically valid sample. Repeat finding from prior year: No Recommendation: We recommend management enhance their internal control processes and training of people performing inventory counts to ensure the data obtained during the inventory count is appropriately reviewed to ensure that count errors are detected and corrected. Views of Responsible Officials: Management agrees with the finding noted in this report. Management has developed a corrective action plan and is in the process of improving processes and internal control systems to ensure that effective controls are in place over federally purchased equipment.
Program Information: Federal Program: Research and Development Cluster Assistance Listing Numbers: Various Federal Agencies: Various Award Year: Various Criteria or requirement: 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. Per Title 2, U.S. Code of Federal Regulations Part 200 (2 CRF 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, (Subpart D, Section 200.303), the nonfederal 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. Condition found, including facts that support the deficiency identified in the finding and information to provide proper perspective for judging the prevalence and consequences of the finding: During our procedures over management’s process of observing physical inventory of equipment, 2 of our 40 sample sections were found to have been disposed of without being removed from the inventory listing. Both of these pieces of equipment were indicated as counted during the inventory count despite being disposed of prior to the count date. These two pieces of equipment were significantly aged, had no estimated remaining fair market value, and related to grants that had ended several years ago. Therefore, there are no questioned costs related to the missing equipment. Cause and possible asserted effect: The inventory count control was not operating effectively to detect and properly track the missing equipment. Failure to accurately count equipment and to maintain accurate property records may result in the University not properly safeguarding and maintaining equipment in accordance with Federal requirements. Identification of questioned costs and how they were computed: None Sample Statistically Valid: The sample was not intended to be, and was not, a statistically valid sample. Repeat finding from prior year: No Recommendation: We recommend management enhance their internal control processes and training of people performing inventory counts to ensure the data obtained during the inventory count is appropriately reviewed to ensure that count errors are detected and corrected. Views of Responsible Officials: Management agrees with the finding noted in this report. Management has developed a corrective action plan and is in the process of improving processes and internal control systems to ensure that effective controls are in place over federally purchased equipment.
Program Information: Federal Program: Research and Development Cluster Assistance Listing Numbers: Various Federal Agencies: Various Award Year: Various Criteria or requirement: 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. Per Title 2, U.S. Code of Federal Regulations Part 200 (2 CRF 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, (Subpart D, Section 200.303), the nonfederal 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. Condition found, including facts that support the deficiency identified in the finding and information to provide proper perspective for judging the prevalence and consequences of the finding: During our procedures over management’s process of observing physical inventory of equipment, 2 of our 40 sample sections were found to have been disposed of without being removed from the inventory listing. Both of these pieces of equipment were indicated as counted during the inventory count despite being disposed of prior to the count date. These two pieces of equipment were significantly aged, had no estimated remaining fair market value, and related to grants that had ended several years ago. Therefore, there are no questioned costs related to the missing equipment. Cause and possible asserted effect: The inventory count control was not operating effectively to detect and properly track the missing equipment. Failure to accurately count equipment and to maintain accurate property records may result in the University not properly safeguarding and maintaining equipment in accordance with Federal requirements. Identification of questioned costs and how they were computed: None Sample Statistically Valid: The sample was not intended to be, and was not, a statistically valid sample. Repeat finding from prior year: No Recommendation: We recommend management enhance their internal control processes and training of people performing inventory counts to ensure the data obtained during the inventory count is appropriately reviewed to ensure that count errors are detected and corrected. Views of Responsible Officials: Management agrees with the finding noted in this report. Management has developed a corrective action plan and is in the process of improving processes and internal control systems to ensure that effective controls are in place over federally purchased equipment.
Program Information: Federal Program: Research and Development Cluster Assistance Listing Numbers: Various Federal Agencies: Various Award Year: Various Criteria or requirement: 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. Per Title 2, U.S. Code of Federal Regulations Part 200 (2 CRF 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, (Subpart D, Section 200.303), the nonfederal 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. Condition found, including facts that support the deficiency identified in the finding and information to provide proper perspective for judging the prevalence and consequences of the finding: During our procedures over management’s process of observing physical inventory of equipment, 2 of our 40 sample sections were found to have been disposed of without being removed from the inventory listing. Both of these pieces of equipment were indicated as counted during the inventory count despite being disposed of prior to the count date. These two pieces of equipment were significantly aged, had no estimated remaining fair market value, and related to grants that had ended several years ago. Therefore, there are no questioned costs related to the missing equipment. Cause and possible asserted effect: The inventory count control was not operating effectively to detect and properly track the missing equipment. Failure to accurately count equipment and to maintain accurate property records may result in the University not properly safeguarding and maintaining equipment in accordance with Federal requirements. Identification of questioned costs and how they were computed: None Sample Statistically Valid: The sample was not intended to be, and was not, a statistically valid sample. Repeat finding from prior year: No Recommendation: We recommend management enhance their internal control processes and training of people performing inventory counts to ensure the data obtained during the inventory count is appropriately reviewed to ensure that count errors are detected and corrected. Views of Responsible Officials: Management agrees with the finding noted in this report. Management has developed a corrective action plan and is in the process of improving processes and internal control systems to ensure that effective controls are in place over federally purchased equipment.
Program Information: Federal Program: Research and Development Cluster Assistance Listing Numbers: Various Federal Agencies: Various Award Year: Various Criteria or requirement: 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. Per Title 2, U.S. Code of Federal Regulations Part 200 (2 CRF 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, (Subpart D, Section 200.303), the nonfederal 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. Condition found, including facts that support the deficiency identified in the finding and information to provide proper perspective for judging the prevalence and consequences of the finding: During our procedures over management’s process of observing physical inventory of equipment, 2 of our 40 sample sections were found to have been disposed of without being removed from the inventory listing. Both of these pieces of equipment were indicated as counted during the inventory count despite being disposed of prior to the count date. These two pieces of equipment were significantly aged, had no estimated remaining fair market value, and related to grants that had ended several years ago. Therefore, there are no questioned costs related to the missing equipment. Cause and possible asserted effect: The inventory count control was not operating effectively to detect and properly track the missing equipment. Failure to accurately count equipment and to maintain accurate property records may result in the University not properly safeguarding and maintaining equipment in accordance with Federal requirements. Identification of questioned costs and how they were computed: None Sample Statistically Valid: The sample was not intended to be, and was not, a statistically valid sample. Repeat finding from prior year: No Recommendation: We recommend management enhance their internal control processes and training of people performing inventory counts to ensure the data obtained during the inventory count is appropriately reviewed to ensure that count errors are detected and corrected. Views of Responsible Officials: Management agrees with the finding noted in this report. Management has developed a corrective action plan and is in the process of improving processes and internal control systems to ensure that effective controls are in place over federally purchased equipment.
Program Information: Federal Program: Research and Development Cluster Assistance Listing Numbers: Various Federal Agencies: Various Award Year: Various Criteria or requirement: 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. Per Title 2, U.S. Code of Federal Regulations Part 200 (2 CRF 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, (Subpart D, Section 200.303), the nonfederal 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. Condition found, including facts that support the deficiency identified in the finding and information to provide proper perspective for judging the prevalence and consequences of the finding: During our procedures over management’s process of observing physical inventory of equipment, 2 of our 40 sample sections were found to have been disposed of without being removed from the inventory listing. Both of these pieces of equipment were indicated as counted during the inventory count despite being disposed of prior to the count date. These two pieces of equipment were significantly aged, had no estimated remaining fair market value, and related to grants that had ended several years ago. Therefore, there are no questioned costs related to the missing equipment. Cause and possible asserted effect: The inventory count control was not operating effectively to detect and properly track the missing equipment. Failure to accurately count equipment and to maintain accurate property records may result in the University not properly safeguarding and maintaining equipment in accordance with Federal requirements. Identification of questioned costs and how they were computed: None Sample Statistically Valid: The sample was not intended to be, and was not, a statistically valid sample. Repeat finding from prior year: No Recommendation: We recommend management enhance their internal control processes and training of people performing inventory counts to ensure the data obtained during the inventory count is appropriately reviewed to ensure that count errors are detected and corrected. Views of Responsible Officials: Management agrees with the finding noted in this report. Management has developed a corrective action plan and is in the process of improving processes and internal control systems to ensure that effective controls are in place over federally purchased equipment.
Program Information: Federal Program: Research and Development Cluster Assistance Listing Numbers: Various Federal Agencies: Various Award Year: Various Criteria or requirement: 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. Per Title 2, U.S. Code of Federal Regulations Part 200 (2 CRF 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, (Subpart D, Section 200.303), the nonfederal 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. Condition found, including facts that support the deficiency identified in the finding and information to provide proper perspective for judging the prevalence and consequences of the finding: During our procedures over management’s process of observing physical inventory of equipment, 2 of our 40 sample sections were found to have been disposed of without being removed from the inventory listing. Both of these pieces of equipment were indicated as counted during the inventory count despite being disposed of prior to the count date. These two pieces of equipment were significantly aged, had no estimated remaining fair market value, and related to grants that had ended several years ago. Therefore, there are no questioned costs related to the missing equipment. Cause and possible asserted effect: The inventory count control was not operating effectively to detect and properly track the missing equipment. Failure to accurately count equipment and to maintain accurate property records may result in the University not properly safeguarding and maintaining equipment in accordance with Federal requirements. Identification of questioned costs and how they were computed: None Sample Statistically Valid: The sample was not intended to be, and was not, a statistically valid sample. Repeat finding from prior year: No Recommendation: We recommend management enhance their internal control processes and training of people performing inventory counts to ensure the data obtained during the inventory count is appropriately reviewed to ensure that count errors are detected and corrected. Views of Responsible Officials: Management agrees with the finding noted in this report. Management has developed a corrective action plan and is in the process of improving processes and internal control systems to ensure that effective controls are in place over federally purchased equipment.