2023-096: Perform Complete Physical Inventory Applicable to: University of Virginia-Academic Division Prior Year Finding Number: N/A Type of Finding: Internal Control and Compliance Severity of Deficiency: Significant Deficiency Information System Security Control Family: N/A ALPT or Cluster Name and ALN: Research and Development Cluster (R&D) - Various at the University of Virginia Federal Award Number and Year: Various - 2023 Name of Federal Agency: Various Type of Compliance Requirement - Criteria: Equipment and Real Property Management - 2 CFR § 200.313(d)(2) Known Questioned Costs: $0 The Academic Division has not inventoried 6,810 assets, or 34 percent, of the University’s 19,749 active assets in the past two fiscal periods. The assets not inventoried have a total net book value of approximately $28 million as of June 30, 2023. Academic Division’s policy FIN-034 requires an annual physical inventory of capital assets to properly safeguard assets and maintain fiscal accountability. Additionally, the Academic Division obtains equipment using federal awards, therefore it must comply with Title 2 U.S. Code of Federal Regulations (CFR) § 200.313(d)(2) that requires the Academic Division to take a physical inventory of property and reconcile to the property records at least once every two years. Management attributes the incomplete inventory to the Academic Division’s migration to a new financial system and asset scanner integration issues during the fiscal year. By not performing a complete physical inventory, the University increases the risk of misappropriation of property and may contribute to the inclusion of inaccurate information in the financial system, which could lead to misstatements in the financial statements. The Academic Division should ensure it completes a physical inventory in accordance with its policies and procedures and federal regulations. Views of Responsible Officials: Views of responsible officials are in the report related to their agency, which can be found at www.apa.virginia.gov. In summary, the views of responsible officials in the agency report do not express a disagreement with the finding.
2023-096: Perform Complete Physical Inventory Applicable to: University of Virginia-Academic Division Prior Year Finding Number: N/A Type of Finding: Internal Control and Compliance Severity of Deficiency: Significant Deficiency Information System Security Control Family: N/A ALPT or Cluster Name and ALN: Research and Development Cluster (R&D) - Various at the University of Virginia Federal Award Number and Year: Various - 2023 Name of Federal Agency: Various Type of Compliance Requirement - Criteria: Equipment and Real Property Management - 2 CFR § 200.313(d)(2) Known Questioned Costs: $0 The Academic Division has not inventoried 6,810 assets, or 34 percent, of the University’s 19,749 active assets in the past two fiscal periods. The assets not inventoried have a total net book value of approximately $28 million as of June 30, 2023. Academic Division’s policy FIN-034 requires an annual physical inventory of capital assets to properly safeguard assets and maintain fiscal accountability. Additionally, the Academic Division obtains equipment using federal awards, therefore it must comply with Title 2 U.S. Code of Federal Regulations (CFR) § 200.313(d)(2) that requires the Academic Division to take a physical inventory of property and reconcile to the property records at least once every two years. Management attributes the incomplete inventory to the Academic Division’s migration to a new financial system and asset scanner integration issues during the fiscal year. By not performing a complete physical inventory, the University increases the risk of misappropriation of property and may contribute to the inclusion of inaccurate information in the financial system, which could lead to misstatements in the financial statements. The Academic Division should ensure it completes a physical inventory in accordance with its policies and procedures and federal regulations. Views of Responsible Officials: Views of responsible officials are in the report related to their agency, which can be found at www.apa.virginia.gov. In summary, the views of responsible officials in the agency report do not express a disagreement with the finding.
2023-096: Perform Complete Physical Inventory Applicable to: University of Virginia-Academic Division Prior Year Finding Number: N/A Type of Finding: Internal Control and Compliance Severity of Deficiency: Significant Deficiency Information System Security Control Family: N/A ALPT or Cluster Name and ALN: Research and Development Cluster (R&D) - Various at the University of Virginia Federal Award Number and Year: Various - 2023 Name of Federal Agency: Various Type of Compliance Requirement - Criteria: Equipment and Real Property Management - 2 CFR § 200.313(d)(2) Known Questioned Costs: $0 The Academic Division has not inventoried 6,810 assets, or 34 percent, of the University’s 19,749 active assets in the past two fiscal periods. The assets not inventoried have a total net book value of approximately $28 million as of June 30, 2023. Academic Division’s policy FIN-034 requires an annual physical inventory of capital assets to properly safeguard assets and maintain fiscal accountability. Additionally, the Academic Division obtains equipment using federal awards, therefore it must comply with Title 2 U.S. Code of Federal Regulations (CFR) § 200.313(d)(2) that requires the Academic Division to take a physical inventory of property and reconcile to the property records at least once every two years. Management attributes the incomplete inventory to the Academic Division’s migration to a new financial system and asset scanner integration issues during the fiscal year. By not performing a complete physical inventory, the University increases the risk of misappropriation of property and may contribute to the inclusion of inaccurate information in the financial system, which could lead to misstatements in the financial statements. The Academic Division should ensure it completes a physical inventory in accordance with its policies and procedures and federal regulations. Views of Responsible Officials: Views of responsible officials are in the report related to their agency, which can be found at www.apa.virginia.gov. In summary, the views of responsible officials in the agency report do not express a disagreement with the finding.
2023-096: Perform Complete Physical Inventory Applicable to: University of Virginia-Academic Division Prior Year Finding Number: N/A Type of Finding: Internal Control and Compliance Severity of Deficiency: Significant Deficiency Information System Security Control Family: N/A ALPT or Cluster Name and ALN: Research and Development Cluster (R&D) - Various at the University of Virginia Federal Award Number and Year: Various - 2023 Name of Federal Agency: Various Type of Compliance Requirement - Criteria: Equipment and Real Property Management - 2 CFR § 200.313(d)(2) Known Questioned Costs: $0 The Academic Division has not inventoried 6,810 assets, or 34 percent, of the University’s 19,749 active assets in the past two fiscal periods. The assets not inventoried have a total net book value of approximately $28 million as of June 30, 2023. Academic Division’s policy FIN-034 requires an annual physical inventory of capital assets to properly safeguard assets and maintain fiscal accountability. Additionally, the Academic Division obtains equipment using federal awards, therefore it must comply with Title 2 U.S. Code of Federal Regulations (CFR) § 200.313(d)(2) that requires the Academic Division to take a physical inventory of property and reconcile to the property records at least once every two years. Management attributes the incomplete inventory to the Academic Division’s migration to a new financial system and asset scanner integration issues during the fiscal year. By not performing a complete physical inventory, the University increases the risk of misappropriation of property and may contribute to the inclusion of inaccurate information in the financial system, which could lead to misstatements in the financial statements. The Academic Division should ensure it completes a physical inventory in accordance with its policies and procedures and federal regulations. Views of Responsible Officials: Views of responsible officials are in the report related to their agency, which can be found at www.apa.virginia.gov. In summary, the views of responsible officials in the agency report do not express a disagreement with the finding.
2023-096: Perform Complete Physical Inventory Applicable to: University of Virginia-Academic Division Prior Year Finding Number: N/A Type of Finding: Internal Control and Compliance Severity of Deficiency: Significant Deficiency Information System Security Control Family: N/A ALPT or Cluster Name and ALN: Research and Development Cluster (R&D) - Various at the University of Virginia Federal Award Number and Year: Various - 2023 Name of Federal Agency: Various Type of Compliance Requirement - Criteria: Equipment and Real Property Management - 2 CFR § 200.313(d)(2) Known Questioned Costs: $0 The Academic Division has not inventoried 6,810 assets, or 34 percent, of the University’s 19,749 active assets in the past two fiscal periods. The assets not inventoried have a total net book value of approximately $28 million as of June 30, 2023. Academic Division’s policy FIN-034 requires an annual physical inventory of capital assets to properly safeguard assets and maintain fiscal accountability. Additionally, the Academic Division obtains equipment using federal awards, therefore it must comply with Title 2 U.S. Code of Federal Regulations (CFR) § 200.313(d)(2) that requires the Academic Division to take a physical inventory of property and reconcile to the property records at least once every two years. Management attributes the incomplete inventory to the Academic Division’s migration to a new financial system and asset scanner integration issues during the fiscal year. By not performing a complete physical inventory, the University increases the risk of misappropriation of property and may contribute to the inclusion of inaccurate information in the financial system, which could lead to misstatements in the financial statements. The Academic Division should ensure it completes a physical inventory in accordance with its policies and procedures and federal regulations. Views of Responsible Officials: Views of responsible officials are in the report related to their agency, which can be found at www.apa.virginia.gov. In summary, the views of responsible officials in the agency report do not express a disagreement with the finding.
2023-096: Perform Complete Physical Inventory Applicable to: University of Virginia-Academic Division Prior Year Finding Number: N/A Type of Finding: Internal Control and Compliance Severity of Deficiency: Significant Deficiency Information System Security Control Family: N/A ALPT or Cluster Name and ALN: Research and Development Cluster (R&D) - Various at the University of Virginia Federal Award Number and Year: Various - 2023 Name of Federal Agency: Various Type of Compliance Requirement - Criteria: Equipment and Real Property Management - 2 CFR § 200.313(d)(2) Known Questioned Costs: $0 The Academic Division has not inventoried 6,810 assets, or 34 percent, of the University’s 19,749 active assets in the past two fiscal periods. The assets not inventoried have a total net book value of approximately $28 million as of June 30, 2023. Academic Division’s policy FIN-034 requires an annual physical inventory of capital assets to properly safeguard assets and maintain fiscal accountability. Additionally, the Academic Division obtains equipment using federal awards, therefore it must comply with Title 2 U.S. Code of Federal Regulations (CFR) § 200.313(d)(2) that requires the Academic Division to take a physical inventory of property and reconcile to the property records at least once every two years. Management attributes the incomplete inventory to the Academic Division’s migration to a new financial system and asset scanner integration issues during the fiscal year. By not performing a complete physical inventory, the University increases the risk of misappropriation of property and may contribute to the inclusion of inaccurate information in the financial system, which could lead to misstatements in the financial statements. The Academic Division should ensure it completes a physical inventory in accordance with its policies and procedures and federal regulations. Views of Responsible Officials: Views of responsible officials are in the report related to their agency, which can be found at www.apa.virginia.gov. In summary, the views of responsible officials in the agency report do not express a disagreement with the finding.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (“SEFA”) Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Criteria 2 CFR 200.313(d) requires that a physical inventory of equipment acquired in whole or in part under a Federal award must be taken and the results reconciled with the property records at least once every two years. Condition Through our testing of federal equipment and real property management across three campuses, we noted the following: • One campus has a control by which all custodians are responsible for the completion of their federal equipment inventory on a 2-year rolling basis, which includes timely review and approval of the Physical Inventory Certification Form. Through our testing of 12 custodians, out of a population of 120, we noted that 11 custodians did not complete the Physical Inventory Certification Form within the two-year timeframe. On average these certifications were completed 263 days late. • At a second campus, we noted a similar control in which a Department Inventorial Equipment Certification form is periodically required to be signed and submitted by each custodian. Through our testing of timeliness and approval of equipment inventories being performed by custodian, we selected 15 custodians, out of a population of 153, to ensure timely submission and approval of this form and noted the following: o Three of the sampled custodians submitted forms in early FY2022 and the next form was not due based on campus policy until FY2024; due dates for which were all beyond the two-year requirement. On average, using the scheduled due dates based on campus policy, these inventories would be 63 days late. o Eleven of the sampled custodians submitted the latest certifications during FY2022, FY2023 or FY2024, however, when compared to the date of the previous submission, the submissions were on average 274 days late when compared to the Uniform Guidance biennial requirement. • At a third campus, we selected seven custodians for equipment observation procedures and for those seven custodians also obtained their annual inventory certification form, which was completed on a timely basis. One of the certifications that is attested to on this form is that the last inventory date on the equipment for which the custodian is responsible has been inventoried within the last two years. Through review of the underlying detail for these seven custodians, we noted two custodians with equipment that had not been inventoried within the two-year timeframe. For context, one custodian had 261 out of 972 pieces of equipment that had not been inventoried within the two year-period; a second custodian had 542 out of 569 assets that had not been inventoried within the two-year period, including 473 pieces having last inventory dates during calendar years 2012-2019. Cause • In the case of the first campus, we understand that many of the custodians continue to work remotely and adhering to the required timeframe has been difficult to enforce. • In the case of the second campus, federal equipment inventory dates are assigned based on a system algorithm, which allocates due dates ratably across the custodians. This algorithm does not, however, take into account when the last inventory was completed and the biennial requirement. Additionally, we understand this campus has custodians working remotely and request extensions on their inventory requirement, however, when granting such extensions, the biennial requirement is not considered. • In the case of the third campus, the custodians indicated that they completed the inventories as certified, however, due to the volume of assets they either do not update the dates in the equipment management system or update them well after-the-fact due to a manual process. There is no central review of the underlying equipment management system detail to validate “last inventory dates” and thus no monitoring to ensure inventory dates are updated by custodians in the equipment management system. Effect Federal equipment inventories that are not completed in a timely manner, could result in assets purchased with federal funds not being appropriately safeguarded. Questioned Costs None noted. Recommendation We recommend the campuses review their federal equipment policies and procedures and implement controls to ensure federal equipment inventories are completed on a timely basis in accordance with the Uniform Guidance requirements and that underlying details in the equipment management systems get updated timely, as applicable. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.