FINDING 2023-007 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Numbers: 84.425D, 84.425U Federal Award Numbers and Years (or Other Identifying Numbers): S425D200013, S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Modified Opinion Condition and Context The COVID-19 - Education Stabilization Funds (ESF) may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by the Department of Education (ED) or the pass-through entity. In addition, with prior approval by the ED or the pass-through entity, recipients and subrecipients may use the ESF funds to purchase real property and perform construction or minor remodeling, and for improvements to land, buildings, or equipment that meet the overall purpose of the ESF program, which is "to prevent, prepare for, and respond to" the COVID-19 pandemic. A property record or capital asset listing, which would include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number (FAIN)), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, and use and condition of the property is to be maintained for assets purchased that exceed the School Corporation's capitalization threshold. The School Corporation purchased two servers and completed an HVAC project using Education Stabilization Funds; however, those items were not included on property records that included all the required information. The missing information included a description of the property, source of funding, percentage of federal participation in the project costs, location, and use and condition of the property. In addition, a physical inventory was not completed after the equipment was purchased, nor were any procedures in place to ensure the proper safeguarding and maintenance of the equipment purchased. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d) states in part: ". . . (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. . . ." Cause A proper system of internal controls was not designed by management of the School Corporation. Embedded within a properly designed and implemented internal control system should be internal controls consisting of policies and procedures. Policies reflect the School Corporation's management statements of what should be done to effect internal controls, and procedures should consist of actions that would implement these policies. Effect Without the proper implementation of an effectively designed system of internal controls, the internal control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. As a result, property records were not maintained, physical inventories were not conducted, and safeguarding and maintenance of equipment purchased with the Education Stabilization Funds was not conducted. Noncompliance with the grant agreement and the compliance requirement could result in the loss of future federal funds to the School Corporation. Questioned Costs There were no questioned costs identified. Recommendation We recommended that management of the School Corporation establish a proper system of internal controls and develop policies and procedures to ensure asset records include all necessary information and are added individually, inventories and safeguarding and maintenance of equipment purchased is conducted. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2023-007 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Numbers: 84.425D, 84.425U Federal Award Numbers and Years (or Other Identifying Numbers): S425D200013, S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Modified Opinion Condition and Context The COVID-19 - Education Stabilization Funds (ESF) may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by the Department of Education (ED) or the pass-through entity. In addition, with prior approval by the ED or the pass-through entity, recipients and subrecipients may use the ESF funds to purchase real property and perform construction or minor remodeling, and for improvements to land, buildings, or equipment that meet the overall purpose of the ESF program, which is "to prevent, prepare for, and respond to" the COVID-19 pandemic. A property record or capital asset listing, which would include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number (FAIN)), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, and use and condition of the property is to be maintained for assets purchased that exceed the School Corporation's capitalization threshold. The School Corporation purchased two servers and completed an HVAC project using Education Stabilization Funds; however, those items were not included on property records that included all the required information. The missing information included a description of the property, source of funding, percentage of federal participation in the project costs, location, and use and condition of the property. In addition, a physical inventory was not completed after the equipment was purchased, nor were any procedures in place to ensure the proper safeguarding and maintenance of the equipment purchased. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313(d) states in part: ". . . (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. . . ." Cause A proper system of internal controls was not designed by management of the School Corporation. Embedded within a properly designed and implemented internal control system should be internal controls consisting of policies and procedures. Policies reflect the School Corporation's management statements of what should be done to effect internal controls, and procedures should consist of actions that would implement these policies. Effect Without the proper implementation of an effectively designed system of internal controls, the internal control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. As a result, property records were not maintained, physical inventories were not conducted, and safeguarding and maintenance of equipment purchased with the Education Stabilization Funds was not conducted. Noncompliance with the grant agreement and the compliance requirement could result in the loss of future federal funds to the School Corporation. Questioned Costs There were no questioned costs identified. Recommendation We recommended that management of the School Corporation establish a proper system of internal controls and develop policies and procedures to ensure asset records include all necessary information and are added individually, inventories and safeguarding and maintenance of equipment purchased is conducted. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
2023-001. Equipment and Real Property Management Education Stabilization Fund (ESF) COVID-19: Elementary and Secondary Emergency Relief Fund ALN: 84.425D COVID-19: American Rescue Plan – Elementary and Secondary School Emergency Relief ALN: 84.425U COVID-19: American Rescue Plan – Elementary and Secondary School Emergency Relief – Homeless Children and Youth ALN: 84.425W Criteria: 2 CFR §200.313 of the Uniform Guidance issued by the U.S. Office of Management and Budget requires management to have procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place. This includes maintaining property records that include a description of the property, a serial number or other identification number, the source of funding for the property, including the Federal Award Identification Number (FAIN), and who holds title. In addition, it requires the District to track the acquisition date and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Condition: The District did not include equipment purchased with Federal grant funds in its current year additions in the District’s capital assets inventory records. Cause: The District uses specific codes to identify and track equipment purchased during the year. Since the District did not have adequate procedures in place to review and reconcile the District’s equipment purchase codes to the annual capital assets additions, the equipment purchased under the Federal grants was inadvertently omitted from the current year capital assets inventory additions. Effect: The inability to include and differentiate capital assets acquired with Federal awards in the capital assets inventory records could lead to improper procedures for disposal of those capital assets. Questioned Costs: None reported. Context: The District rarely uses Federal grant funds for the purchase of equipment. As a result of this, when the District was compiling the listing of equipment purchased during the year, to be provided to the District’s third-party capital asset management company, the equipment purchased using Federal grant funds was inadvertently omitted from the listing. Recommendation: The District should implement procedures where there is a formal reconciliation performed annually for all of the District’s equipment expenditure codes and the additions to the District’s capital assets inventory. This will ensure that all equipment purchased with Federal funds is captured and included in the capital assets inventory records. Additionally, all capital assets additions purchased with Federal funds should be managed in accordance with 2 CFR §200.313. Views of Responsible Officials of Auditee: Management agrees with the finding and will ensure that the equipment purchased with Federal funds is identified and included in the District’s capital assets inventory records as part of the capital assets reconciliation process.
2023-001. Equipment and Real Property Management Education Stabilization Fund (ESF) COVID-19: Elementary and Secondary Emergency Relief Fund ALN: 84.425D COVID-19: American Rescue Plan – Elementary and Secondary School Emergency Relief ALN: 84.425U COVID-19: American Rescue Plan – Elementary and Secondary School Emergency Relief – Homeless Children and Youth ALN: 84.425W Criteria: 2 CFR §200.313 of the Uniform Guidance issued by the U.S. Office of Management and Budget requires management to have procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place. This includes maintaining property records that include a description of the property, a serial number or other identification number, the source of funding for the property, including the Federal Award Identification Number (FAIN), and who holds title. In addition, it requires the District to track the acquisition date and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Condition: The District did not include equipment purchased with Federal grant funds in its current year additions in the District’s capital assets inventory records. Cause: The District uses specific codes to identify and track equipment purchased during the year. Since the District did not have adequate procedures in place to review and reconcile the District’s equipment purchase codes to the annual capital assets additions, the equipment purchased under the Federal grants was inadvertently omitted from the current year capital assets inventory additions. Effect: The inability to include and differentiate capital assets acquired with Federal awards in the capital assets inventory records could lead to improper procedures for disposal of those capital assets. Questioned Costs: None reported. Context: The District rarely uses Federal grant funds for the purchase of equipment. As a result of this, when the District was compiling the listing of equipment purchased during the year, to be provided to the District’s third-party capital asset management company, the equipment purchased using Federal grant funds was inadvertently omitted from the listing. Recommendation: The District should implement procedures where there is a formal reconciliation performed annually for all of the District’s equipment expenditure codes and the additions to the District’s capital assets inventory. This will ensure that all equipment purchased with Federal funds is captured and included in the capital assets inventory records. Additionally, all capital assets additions purchased with Federal funds should be managed in accordance with 2 CFR §200.313. Views of Responsible Officials of Auditee: Management agrees with the finding and will ensure that the equipment purchased with Federal funds is identified and included in the District’s capital assets inventory records as part of the capital assets reconciliation process.
2023-001. Equipment and Real Property Management Education Stabilization Fund (ESF) COVID-19: Elementary and Secondary Emergency Relief Fund ALN: 84.425D COVID-19: American Rescue Plan – Elementary and Secondary School Emergency Relief ALN: 84.425U COVID-19: American Rescue Plan – Elementary and Secondary School Emergency Relief – Homeless Children and Youth ALN: 84.425W Criteria: 2 CFR §200.313 of the Uniform Guidance issued by the U.S. Office of Management and Budget requires management to have procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place. This includes maintaining property records that include a description of the property, a serial number or other identification number, the source of funding for the property, including the Federal Award Identification Number (FAIN), and who holds title. In addition, it requires the District to track the acquisition date and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Condition: The District did not include equipment purchased with Federal grant funds in its current year additions in the District’s capital assets inventory records. Cause: The District uses specific codes to identify and track equipment purchased during the year. Since the District did not have adequate procedures in place to review and reconcile the District’s equipment purchase codes to the annual capital assets additions, the equipment purchased under the Federal grants was inadvertently omitted from the current year capital assets inventory additions. Effect: The inability to include and differentiate capital assets acquired with Federal awards in the capital assets inventory records could lead to improper procedures for disposal of those capital assets. Questioned Costs: None reported. Context: The District rarely uses Federal grant funds for the purchase of equipment. As a result of this, when the District was compiling the listing of equipment purchased during the year, to be provided to the District’s third-party capital asset management company, the equipment purchased using Federal grant funds was inadvertently omitted from the listing. Recommendation: The District should implement procedures where there is a formal reconciliation performed annually for all of the District’s equipment expenditure codes and the additions to the District’s capital assets inventory. This will ensure that all equipment purchased with Federal funds is captured and included in the capital assets inventory records. Additionally, all capital assets additions purchased with Federal funds should be managed in accordance with 2 CFR §200.313. Views of Responsible Officials of Auditee: Management agrees with the finding and will ensure that the equipment purchased with Federal funds is identified and included in the District’s capital assets inventory records as part of the capital assets reconciliation process.
2023-001. Equipment and Real Property Management Education Stabilization Fund (ESF) COVID-19: Elementary and Secondary Emergency Relief Fund ALN: 84.425D COVID-19: American Rescue Plan – Elementary and Secondary School Emergency Relief ALN: 84.425U COVID-19: American Rescue Plan – Elementary and Secondary School Emergency Relief – Homeless Children and Youth ALN: 84.425W Criteria: 2 CFR §200.313 of the Uniform Guidance issued by the U.S. Office of Management and Budget requires management to have procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place. This includes maintaining property records that include a description of the property, a serial number or other identification number, the source of funding for the property, including the Federal Award Identification Number (FAIN), and who holds title. In addition, it requires the District to track the acquisition date and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Condition: The District did not include equipment purchased with Federal grant funds in its current year additions in the District’s capital assets inventory records. Cause: The District uses specific codes to identify and track equipment purchased during the year. Since the District did not have adequate procedures in place to review and reconcile the District’s equipment purchase codes to the annual capital assets additions, the equipment purchased under the Federal grants was inadvertently omitted from the current year capital assets inventory additions. Effect: The inability to include and differentiate capital assets acquired with Federal awards in the capital assets inventory records could lead to improper procedures for disposal of those capital assets. Questioned Costs: None reported. Context: The District rarely uses Federal grant funds for the purchase of equipment. As a result of this, when the District was compiling the listing of equipment purchased during the year, to be provided to the District’s third-party capital asset management company, the equipment purchased using Federal grant funds was inadvertently omitted from the listing. Recommendation: The District should implement procedures where there is a formal reconciliation performed annually for all of the District’s equipment expenditure codes and the additions to the District’s capital assets inventory. This will ensure that all equipment purchased with Federal funds is captured and included in the capital assets inventory records. Additionally, all capital assets additions purchased with Federal funds should be managed in accordance with 2 CFR §200.313. Views of Responsible Officials of Auditee: Management agrees with the finding and will ensure that the equipment purchased with Federal funds is identified and included in the District’s capital assets inventory records as part of the capital assets reconciliation process.
2023-001. Equipment and Real Property Management Education Stabilization Fund (ESF) COVID-19: Elementary and Secondary Emergency Relief Fund ALN: 84.425D COVID-19: American Rescue Plan – Elementary and Secondary School Emergency Relief ALN: 84.425U COVID-19: American Rescue Plan – Elementary and Secondary School Emergency Relief – Homeless Children and Youth ALN: 84.425W Criteria: 2 CFR §200.313 of the Uniform Guidance issued by the U.S. Office of Management and Budget requires management to have procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place. This includes maintaining property records that include a description of the property, a serial number or other identification number, the source of funding for the property, including the Federal Award Identification Number (FAIN), and who holds title. In addition, it requires the District to track the acquisition date and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Condition: The District did not include equipment purchased with Federal grant funds in its current year additions in the District’s capital assets inventory records. Cause: The District uses specific codes to identify and track equipment purchased during the year. Since the District did not have adequate procedures in place to review and reconcile the District’s equipment purchase codes to the annual capital assets additions, the equipment purchased under the Federal grants was inadvertently omitted from the current year capital assets inventory additions. Effect: The inability to include and differentiate capital assets acquired with Federal awards in the capital assets inventory records could lead to improper procedures for disposal of those capital assets. Questioned Costs: None reported. Context: The District rarely uses Federal grant funds for the purchase of equipment. As a result of this, when the District was compiling the listing of equipment purchased during the year, to be provided to the District’s third-party capital asset management company, the equipment purchased using Federal grant funds was inadvertently omitted from the listing. Recommendation: The District should implement procedures where there is a formal reconciliation performed annually for all of the District’s equipment expenditure codes and the additions to the District’s capital assets inventory. This will ensure that all equipment purchased with Federal funds is captured and included in the capital assets inventory records. Additionally, all capital assets additions purchased with Federal funds should be managed in accordance with 2 CFR §200.313. Views of Responsible Officials of Auditee: Management agrees with the finding and will ensure that the equipment purchased with Federal funds is identified and included in the District’s capital assets inventory records as part of the capital assets reconciliation process.
2023-001. Equipment and Real Property Management Education Stabilization Fund (ESF) COVID-19: Elementary and Secondary Emergency Relief Fund ALN: 84.425D COVID-19: American Rescue Plan – Elementary and Secondary School Emergency Relief ALN: 84.425U COVID-19: American Rescue Plan – Elementary and Secondary School Emergency Relief – Homeless Children and Youth ALN: 84.425W Criteria: 2 CFR §200.313 of the Uniform Guidance issued by the U.S. Office of Management and Budget requires management to have procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place. This includes maintaining property records that include a description of the property, a serial number or other identification number, the source of funding for the property, including the Federal Award Identification Number (FAIN), and who holds title. In addition, it requires the District to track the acquisition date and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Condition: The District did not include equipment purchased with Federal grant funds in its current year additions in the District’s capital assets inventory records. Cause: The District uses specific codes to identify and track equipment purchased during the year. Since the District did not have adequate procedures in place to review and reconcile the District’s equipment purchase codes to the annual capital assets additions, the equipment purchased under the Federal grants was inadvertently omitted from the current year capital assets inventory additions. Effect: The inability to include and differentiate capital assets acquired with Federal awards in the capital assets inventory records could lead to improper procedures for disposal of those capital assets. Questioned Costs: None reported. Context: The District rarely uses Federal grant funds for the purchase of equipment. As a result of this, when the District was compiling the listing of equipment purchased during the year, to be provided to the District’s third-party capital asset management company, the equipment purchased using Federal grant funds was inadvertently omitted from the listing. Recommendation: The District should implement procedures where there is a formal reconciliation performed annually for all of the District’s equipment expenditure codes and the additions to the District’s capital assets inventory. This will ensure that all equipment purchased with Federal funds is captured and included in the capital assets inventory records. Additionally, all capital assets additions purchased with Federal funds should be managed in accordance with 2 CFR §200.313. Views of Responsible Officials of Auditee: Management agrees with the finding and will ensure that the equipment purchased with Federal funds is identified and included in the District’s capital assets inventory records as part of the capital assets reconciliation process.
(2023-067) Title: Internal control over ESF subrecipient monitoring procedures needs improvement Prior Year Findings: See schedule of Findings and Questioned Costs for chart/table State Department: Education State Bureau: Commissioner’s Office Federal Agency: U.S. Department of Education Assistance Listing Title: Education Stabilization Fund (ESF) (COVID-19) Assistance Listing Number: 84.425D, 84.425R, 84.425U Federal Award Identification Number: See E-93 to E-94 Compliance Area: Subrecipient monitoring Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.313; 2 CFR 200.332 The Department must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the Department is managing the award in compliance with Federal statutes, regulations, and the terms and conditions of the award. For equipment acquired with Federal funding, records must be maintained that include: • a description and identification number; • the source of funding, including the Federal Award Identification Number; • who holds title and the acquisition date; • the cost of the property, including the percentage of Federal participation in the project costs for the Federal award under which the property was acquired; • the location, use and condition; and • any ultimate disposition data including the date of disposal and sale price of the property. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. The Department must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Condition: The Education Stabilization Fund (ESF) provides funding to school administrative units (SAUs) to purchase equipment for use in preventing, preparing for, or responding to the COVID-19 pandemic. SAUs were required to submit applications to the Office of Federal Emergency Relief Programs (OFERP) under the Department of Education outlining identified uses for ESF, including planned equipment purchases. Program coordinators within OFERP were responsible for reviewing and approving applications submitted by SAUs. Once there was an approved application on file, SAUs could submit reimbursement requests to the Department for equipment purchases identified and approved in the application. All SAU equipment purchases reimbursed with ESF are subject to applicable inventory control, log maintenance, and disposition requirements consistent with Federal regulations for equipment and real property management. During fiscal year 2023, the Department did not have policies and procedures in place to track SAU equipment purchases reimbursed with ESF; therefore, the Department does not have assurance that: • a complete and accurate record of all equipment purchased with ESF funds was maintained by each SAU. • proper monitoring activities surrounding subrecipient compliance with Federal regulations for equipment and real property management were conducted. Context: In fiscal year 2023, ESF expenditures totaled $178.2 million, of which $167.8 million was paid to subrecipient SAUs. Cause: • Lack of policies and procedures • Lack of supervisory oversight Effect: • Noncompliance with Federal regulations • Subrecipients may not be in compliance with equipment and real property management requirements. • Assets purchased with ESF funds may not be properly safeguarded or maintained. Recommendation: We recommend that the Department implement policies and procedures to ensure that a complete and accurate record of all equipment purchased under ESF is maintained by the Department and by each SAU. This record should be utilized during subrecipient monitoring activities to verify subrecipient compliance with Federal regulations. Corrective Action Plan: See F-29 Management’s Response: The Department agrees with this finding. The Office of Federal Emergency Relief Programs has developed and will be implementing a procedure to maintain complete and accurate records of all equipment purchased with ESF by each SAU. Contact: Shelly Chasse-Johndro, Director of OFERP, DOE, 207-458-3180 (State Number: 23-1235-04)
(2023-067) Title: Internal control over ESF subrecipient monitoring procedures needs improvement Prior Year Findings: See schedule of Findings and Questioned Costs for chart/table State Department: Education State Bureau: Commissioner’s Office Federal Agency: U.S. Department of Education Assistance Listing Title: Education Stabilization Fund (ESF) (COVID-19) Assistance Listing Number: 84.425D, 84.425R, 84.425U Federal Award Identification Number: See E-93 to E-94 Compliance Area: Subrecipient monitoring Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.313; 2 CFR 200.332 The Department must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the Department is managing the award in compliance with Federal statutes, regulations, and the terms and conditions of the award. For equipment acquired with Federal funding, records must be maintained that include: • a description and identification number; • the source of funding, including the Federal Award Identification Number; • who holds title and the acquisition date; • the cost of the property, including the percentage of Federal participation in the project costs for the Federal award under which the property was acquired; • the location, use and condition; and • any ultimate disposition data including the date of disposal and sale price of the property. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. The Department must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Condition: The Education Stabilization Fund (ESF) provides funding to school administrative units (SAUs) to purchase equipment for use in preventing, preparing for, or responding to the COVID-19 pandemic. SAUs were required to submit applications to the Office of Federal Emergency Relief Programs (OFERP) under the Department of Education outlining identified uses for ESF, including planned equipment purchases. Program coordinators within OFERP were responsible for reviewing and approving applications submitted by SAUs. Once there was an approved application on file, SAUs could submit reimbursement requests to the Department for equipment purchases identified and approved in the application. All SAU equipment purchases reimbursed with ESF are subject to applicable inventory control, log maintenance, and disposition requirements consistent with Federal regulations for equipment and real property management. During fiscal year 2023, the Department did not have policies and procedures in place to track SAU equipment purchases reimbursed with ESF; therefore, the Department does not have assurance that: • a complete and accurate record of all equipment purchased with ESF funds was maintained by each SAU. • proper monitoring activities surrounding subrecipient compliance with Federal regulations for equipment and real property management were conducted. Context: In fiscal year 2023, ESF expenditures totaled $178.2 million, of which $167.8 million was paid to subrecipient SAUs. Cause: • Lack of policies and procedures • Lack of supervisory oversight Effect: • Noncompliance with Federal regulations • Subrecipients may not be in compliance with equipment and real property management requirements. • Assets purchased with ESF funds may not be properly safeguarded or maintained. Recommendation: We recommend that the Department implement policies and procedures to ensure that a complete and accurate record of all equipment purchased under ESF is maintained by the Department and by each SAU. This record should be utilized during subrecipient monitoring activities to verify subrecipient compliance with Federal regulations. Corrective Action Plan: See F-29 Management’s Response: The Department agrees with this finding. The Office of Federal Emergency Relief Programs has developed and will be implementing a procedure to maintain complete and accurate records of all equipment purchased with ESF by each SAU. Contact: Shelly Chasse-Johndro, Director of OFERP, DOE, 207-458-3180 (State Number: 23-1235-04)
(2023-067) Title: Internal control over ESF subrecipient monitoring procedures needs improvement Prior Year Findings: See schedule of Findings and Questioned Costs for chart/table State Department: Education State Bureau: Commissioner’s Office Federal Agency: U.S. Department of Education Assistance Listing Title: Education Stabilization Fund (ESF) (COVID-19) Assistance Listing Number: 84.425D, 84.425R, 84.425U Federal Award Identification Number: See E-93 to E-94 Compliance Area: Subrecipient monitoring Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.313; 2 CFR 200.332 The Department must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the Department is managing the award in compliance with Federal statutes, regulations, and the terms and conditions of the award. For equipment acquired with Federal funding, records must be maintained that include: • a description and identification number; • the source of funding, including the Federal Award Identification Number; • who holds title and the acquisition date; • the cost of the property, including the percentage of Federal participation in the project costs for the Federal award under which the property was acquired; • the location, use and condition; and • any ultimate disposition data including the date of disposal and sale price of the property. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. The Department must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Condition: The Education Stabilization Fund (ESF) provides funding to school administrative units (SAUs) to purchase equipment for use in preventing, preparing for, or responding to the COVID-19 pandemic. SAUs were required to submit applications to the Office of Federal Emergency Relief Programs (OFERP) under the Department of Education outlining identified uses for ESF, including planned equipment purchases. Program coordinators within OFERP were responsible for reviewing and approving applications submitted by SAUs. Once there was an approved application on file, SAUs could submit reimbursement requests to the Department for equipment purchases identified and approved in the application. All SAU equipment purchases reimbursed with ESF are subject to applicable inventory control, log maintenance, and disposition requirements consistent with Federal regulations for equipment and real property management. During fiscal year 2023, the Department did not have policies and procedures in place to track SAU equipment purchases reimbursed with ESF; therefore, the Department does not have assurance that: • a complete and accurate record of all equipment purchased with ESF funds was maintained by each SAU. • proper monitoring activities surrounding subrecipient compliance with Federal regulations for equipment and real property management were conducted. Context: In fiscal year 2023, ESF expenditures totaled $178.2 million, of which $167.8 million was paid to subrecipient SAUs. Cause: • Lack of policies and procedures • Lack of supervisory oversight Effect: • Noncompliance with Federal regulations • Subrecipients may not be in compliance with equipment and real property management requirements. • Assets purchased with ESF funds may not be properly safeguarded or maintained. Recommendation: We recommend that the Department implement policies and procedures to ensure that a complete and accurate record of all equipment purchased under ESF is maintained by the Department and by each SAU. This record should be utilized during subrecipient monitoring activities to verify subrecipient compliance with Federal regulations. Corrective Action Plan: See F-29 Management’s Response: The Department agrees with this finding. The Office of Federal Emergency Relief Programs has developed and will be implementing a procedure to maintain complete and accurate records of all equipment purchased with ESF by each SAU. Contact: Shelly Chasse-Johndro, Director of OFERP, DOE, 207-458-3180 (State Number: 23-1235-04)
FINDING 2023-009 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listings Number: 84.425D Federal Award Number and Year (or Other Identifying Number): S425D200013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Modified Opinion Condition and Context The School Corporation had not properly designed or implemented a system of internal controls, which would include appropriate segregation of duties, that would likely be effective in preventing, or detecting and correcting, noncompliance related to the Equipment and Real Property Management compliance requirement. The School Corporation made one equipment purchase, a school bus in the amount of $204,961, with grant funds. The school bus was acquired in June 2021, late in the prior audit period, and the expenditure was reimbursed under the ESSER II award in July 2021 in the current audit period. The School Corporation did not maintain a capital asset ledger during the audit period, so the equipment purchased was not properly added to an asset ledger or property record. In addition, while the bus was maintained and safeguarded from theft there was no identified internal controls that would prevent, or detect and correct, noncompliance with these requirements if they were to occur. The School Corporation did not perform a physical inventory of equipment at least once every two years as required. The lack of internal controls and noncompliance were systemic issues throughout the audit period. INDIANA STATE BOARD OF ACCOUNTS 30 CROTHERSVILLE COMMUNITY SCHOOLS SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.313 (d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. . . ." Cause A proper system of internal controls was not designed by management of the School Corporation, which would include segregation of key functions. Embedded within a properly designed and implemented internal control system should be internal controls consisting of policies and procedures. Policies reflect the School Corporation's management statements of what should be done to effect internal controls, and procedures should consist of actions that would implement these policies. Effect Without the proper implementation of an effectively designed system of internal controls, the internal control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. As a result, a capital asset ledger was not maintained and the required inventory was not completed. Noncompliance with the provisions of federal statutes, regulations, and the terms and conditions of the federal award could result in the loss of future federal funding to the School Corporation. INDIANA STATE BOARD OF ACCOUNTS 31 CROTHERSVILLE COMMUNITY SCHOOLS SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Questioned Costs There were no questioned costs identified. Recommendation We recommended that management of the School Corporation establish a proper system of internal controls and develop policies and procedures to ensure asset records are maintained and that a physical inventory is taken every two years. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
Findings and Questioned Costs Relating to Federal Awards: Finding No. 2023-001 - Equipment and Real Property Management: Federal Program: Research and Development Cluster Name of Federal Agency: U.S. Department of Health and Human Services Category: Other matters Compliance requirement: F. Equipment and Real Property Management Criteria: 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: As a result of our audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have performed a physical inventory on or before July 13, 2023. Cause: The property inventory was scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed. Effect: Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost: None. Context: Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: The Foundation should continue monitoring and reviewing guidelines for federal awards under the Research and Development Cluster to ensure it is current on the applicable requirements and changes therein. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years.
Findings and Questioned Costs Relating to Federal Awards: Finding No. 2023-001 - Equipment and Real Property Management: Federal Program: Research and Development Cluster Name of Federal Agency: U.S. Department of Health and Human Services Category: Other matters Compliance requirement: F. Equipment and Real Property Management Criteria: 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: As a result of our audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have performed a physical inventory on or before July 13, 2023. Cause: The property inventory was scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed. Effect: Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost: None. Context: Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: The Foundation should continue monitoring and reviewing guidelines for federal awards under the Research and Development Cluster to ensure it is current on the applicable requirements and changes therein. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years.
Findings and Questioned Costs Relating to Federal Awards: Finding No. 2023-001 - Equipment and Real Property Management: Federal Program: Research and Development Cluster Name of Federal Agency: U.S. Department of Health and Human Services Category: Other matters Compliance requirement: F. Equipment and Real Property Management Criteria: 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: As a result of our audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have performed a physical inventory on or before July 13, 2023. Cause: The property inventory was scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed. Effect: Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost: None. Context: Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: The Foundation should continue monitoring and reviewing guidelines for federal awards under the Research and Development Cluster to ensure it is current on the applicable requirements and changes therein. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years.
Findings and Questioned Costs Relating to Federal Awards: Finding No. 2023-001 - Equipment and Real Property Management: Federal Program: Research and Development Cluster Name of Federal Agency: U.S. Department of Health and Human Services Category: Other matters Compliance requirement: F. Equipment and Real Property Management Criteria: 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: As a result of our audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have performed a physical inventory on or before July 13, 2023. Cause: The property inventory was scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed. Effect: Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost: None. Context: Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: The Foundation should continue monitoring and reviewing guidelines for federal awards under the Research and Development Cluster to ensure it is current on the applicable requirements and changes therein. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years.
Findings and Questioned Costs Relating to Federal Awards: Finding No. 2023-001 - Equipment and Real Property Management: Federal Program: Research and Development Cluster Name of Federal Agency: U.S. Department of Health and Human Services Category: Other matters Compliance requirement: F. Equipment and Real Property Management Criteria: 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: As a result of our audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have performed a physical inventory on or before July 13, 2023. Cause: The property inventory was scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed. Effect: Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost: None. Context: Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: The Foundation should continue monitoring and reviewing guidelines for federal awards under the Research and Development Cluster to ensure it is current on the applicable requirements and changes therein. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years.
Findings and Questioned Costs Relating to Federal Awards: Finding No. 2023-001 - Equipment and Real Property Management: Federal Program: Research and Development Cluster Name of Federal Agency: U.S. Department of Health and Human Services Category: Other matters Compliance requirement: F. Equipment and Real Property Management Criteria: 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: As a result of our audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have performed a physical inventory on or before July 13, 2023. Cause: The property inventory was scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed. Effect: Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost: None. Context: Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: The Foundation should continue monitoring and reviewing guidelines for federal awards under the Research and Development Cluster to ensure it is current on the applicable requirements and changes therein. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years.
Findings and Questioned Costs Relating to Federal Awards: Finding No. 2023-001 - Equipment and Real Property Management: Federal Program: Research and Development Cluster Name of Federal Agency: U.S. Department of Health and Human Services Category: Other matters Compliance requirement: F. Equipment and Real Property Management Criteria: 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: As a result of our audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have performed a physical inventory on or before July 13, 2023. Cause: The property inventory was scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed. Effect: Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost: None. Context: Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: The Foundation should continue monitoring and reviewing guidelines for federal awards under the Research and Development Cluster to ensure it is current on the applicable requirements and changes therein. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years.
Findings and Questioned Costs Relating to Federal Awards: Finding No. 2023-001 - Equipment and Real Property Management: Federal Program: Research and Development Cluster Name of Federal Agency: U.S. Department of Health and Human Services Category: Other matters Compliance requirement: F. Equipment and Real Property Management Criteria: 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: As a result of our audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have performed a physical inventory on or before July 13, 2023. Cause: The property inventory was scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed. Effect: Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost: None. Context: Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: The Foundation should continue monitoring and reviewing guidelines for federal awards under the Research and Development Cluster to ensure it is current on the applicable requirements and changes therein. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years.
Findings and Questioned Costs Relating to Federal Awards: Finding No. 2023-001 - Equipment and Real Property Management: Federal Program: Research and Development Cluster Name of Federal Agency: U.S. Department of Health and Human Services Category: Other matters Compliance requirement: F. Equipment and Real Property Management Criteria: 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: As a result of our audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have performed a physical inventory on or before July 13, 2023. Cause: The property inventory was scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed. Effect: Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost: None. Context: Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: The Foundation should continue monitoring and reviewing guidelines for federal awards under the Research and Development Cluster to ensure it is current on the applicable requirements and changes therein. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years.
Findings and Questioned Costs Relating to Federal Awards: Finding No. 2023-001 - Equipment and Real Property Management: Federal Program: Research and Development Cluster Name of Federal Agency: U.S. Department of Health and Human Services Category: Other matters Compliance requirement: F. Equipment and Real Property Management Criteria: 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: As a result of our audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have performed a physical inventory on or before July 13, 2023. Cause: The property inventory was scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed. Effect: Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost: None. Context: Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: The Foundation should continue monitoring and reviewing guidelines for federal awards under the Research and Development Cluster to ensure it is current on the applicable requirements and changes therein. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years.
Findings and Questioned Costs Relating to Federal Awards: Finding No. 2023-001 - Equipment and Real Property Management: Federal Program: Research and Development Cluster Name of Federal Agency: U.S. Department of Health and Human Services Category: Other matters Compliance requirement: F. Equipment and Real Property Management Criteria: 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: As a result of our audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have performed a physical inventory on or before July 13, 2023. Cause: The property inventory was scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed. Effect: Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost: None. Context: Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: The Foundation should continue monitoring and reviewing guidelines for federal awards under the Research and Development Cluster to ensure it is current on the applicable requirements and changes therein. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years.
Findings and Questioned Costs Relating to Federal Awards: Finding No. 2023-001 - Equipment and Real Property Management: Federal Program: Research and Development Cluster Name of Federal Agency: U.S. Department of Health and Human Services Category: Other matters Compliance requirement: F. Equipment and Real Property Management Criteria: 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: As a result of our audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have performed a physical inventory on or before July 13, 2023. Cause: The property inventory was scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed. Effect: Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost: None. Context: Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: The Foundation should continue monitoring and reviewing guidelines for federal awards under the Research and Development Cluster to ensure it is current on the applicable requirements and changes therein. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years.
Findings and Questioned Costs Relating to Federal Awards: Finding No. 2023-001 - Equipment and Real Property Management: Federal Program: Research and Development Cluster Name of Federal Agency: U.S. Department of Health and Human Services Category: Other matters Compliance requirement: F. Equipment and Real Property Management Criteria: 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: As a result of our audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have performed a physical inventory on or before July 13, 2023. Cause: The property inventory was scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed. Effect: Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost: None. Context: Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: The Foundation should continue monitoring and reviewing guidelines for federal awards under the Research and Development Cluster to ensure it is current on the applicable requirements and changes therein. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years.
Findings and Questioned Costs Relating to Federal Awards: Finding No. 2023-001 - Equipment and Real Property Management: Federal Program: Research and Development Cluster Name of Federal Agency: U.S. Department of Health and Human Services Category: Other matters Compliance requirement: F. Equipment and Real Property Management Criteria: 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: As a result of our audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have performed a physical inventory on or before July 13, 2023. Cause: The property inventory was scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed. Effect: Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost: None. Context: Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: The Foundation should continue monitoring and reviewing guidelines for federal awards under the Research and Development Cluster to ensure it is current on the applicable requirements and changes therein. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years.
Findings and Questioned Costs Relating to Federal Awards: Finding No. 2023-001 - Equipment and Real Property Management: Federal Program: Research and Development Cluster Name of Federal Agency: U.S. Department of Health and Human Services Category: Other matters Compliance requirement: F. Equipment and Real Property Management Criteria: 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: As a result of our audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have performed a physical inventory on or before July 13, 2023. Cause: The property inventory was scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed. Effect: Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost: None. Context: Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: The Foundation should continue monitoring and reviewing guidelines for federal awards under the Research and Development Cluster to ensure it is current on the applicable requirements and changes therein. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years.
Findings and Questioned Costs Relating to Federal Awards: Finding No. 2023-001 - Equipment and Real Property Management: Federal Program: Research and Development Cluster Name of Federal Agency: U.S. Department of Health and Human Services Category: Other matters Compliance requirement: F. Equipment and Real Property Management Criteria: 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: As a result of our audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have performed a physical inventory on or before July 13, 2023. Cause: The property inventory was scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed. Effect: Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost: None. Context: Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: The Foundation should continue monitoring and reviewing guidelines for federal awards under the Research and Development Cluster to ensure it is current on the applicable requirements and changes therein. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years.
Findings and Questioned Costs Relating to Federal Awards: Finding No. 2023-001 - Equipment and Real Property Management: Federal Program: Research and Development Cluster Name of Federal Agency: U.S. Department of Health and Human Services Category: Other matters Compliance requirement: F. Equipment and Real Property Management Criteria: 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: As a result of our audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have performed a physical inventory on or before July 13, 2023. Cause: The property inventory was scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed. Effect: Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost: None. Context: Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: The Foundation should continue monitoring and reviewing guidelines for federal awards under the Research and Development Cluster to ensure it is current on the applicable requirements and changes therein. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years.
Findings and Questioned Costs Relating to Federal Awards: Finding No. 2023-001 - Equipment and Real Property Management: Federal Program: Research and Development Cluster Name of Federal Agency: U.S. Department of Health and Human Services Category: Other matters Compliance requirement: F. Equipment and Real Property Management Criteria: 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: As a result of our audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have performed a physical inventory on or before July 13, 2023. Cause: The property inventory was scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed. Effect: Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost: None. Context: Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: The Foundation should continue monitoring and reviewing guidelines for federal awards under the Research and Development Cluster to ensure it is current on the applicable requirements and changes therein. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years.
Findings and Questioned Costs Relating to Federal Awards: Finding No. 2023-001 - Equipment and Real Property Management: Federal Program: Research and Development Cluster Name of Federal Agency: U.S. Department of Health and Human Services Category: Other matters Compliance requirement: F. Equipment and Real Property Management Criteria: 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: As a result of our audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have performed a physical inventory on or before July 13, 2023. Cause: The property inventory was scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed. Effect: Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost: None. Context: Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: The Foundation should continue monitoring and reviewing guidelines for federal awards under the Research and Development Cluster to ensure it is current on the applicable requirements and changes therein. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years.
Findings and Questioned Costs Relating to Federal Awards: Finding No. 2023-001 - Equipment and Real Property Management: Federal Program: Research and Development Cluster Name of Federal Agency: U.S. Department of Health and Human Services Category: Other matters Compliance requirement: F. Equipment and Real Property Management Criteria: 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: As a result of our audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have performed a physical inventory on or before July 13, 2023. Cause: The property inventory was scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed. Effect: Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost: None. Context: Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: The Foundation should continue monitoring and reviewing guidelines for federal awards under the Research and Development Cluster to ensure it is current on the applicable requirements and changes therein. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years.
Findings and Questioned Costs Relating to Federal Awards: Finding No. 2023-001 - Equipment and Real Property Management: Federal Program: Research and Development Cluster Name of Federal Agency: U.S. Department of Health and Human Services Category: Other matters Compliance requirement: F. Equipment and Real Property Management Criteria: 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: As a result of our audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have performed a physical inventory on or before July 13, 2023. Cause: The property inventory was scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed. Effect: Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost: None. Context: Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: The Foundation should continue monitoring and reviewing guidelines for federal awards under the Research and Development Cluster to ensure it is current on the applicable requirements and changes therein. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years.
Findings and Questioned Costs Relating to Federal Awards: Finding No. 2023-001 - Equipment and Real Property Management: Federal Program: Research and Development Cluster Name of Federal Agency: U.S. Department of Health and Human Services Category: Other matters Compliance requirement: F. Equipment and Real Property Management Criteria: 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: As a result of our audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have performed a physical inventory on or before July 13, 2023. Cause: The property inventory was scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed. Effect: Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost: None. Context: Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: The Foundation should continue monitoring and reviewing guidelines for federal awards under the Research and Development Cluster to ensure it is current on the applicable requirements and changes therein. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years.
Findings and Questioned Costs Relating to Federal Awards: Finding No. 2023-001 - Equipment and Real Property Management: Federal Program: Research and Development Cluster Name of Federal Agency: U.S. Department of Health and Human Services Category: Other matters Compliance requirement: F. Equipment and Real Property Management Criteria: 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: As a result of our audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have performed a physical inventory on or before July 13, 2023. Cause: The property inventory was scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed. Effect: Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost: None. Context: Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: The Foundation should continue monitoring and reviewing guidelines for federal awards under the Research and Development Cluster to ensure it is current on the applicable requirements and changes therein. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years.
Findings and Questioned Costs Relating to Federal Awards: Finding No. 2023-001 - Equipment and Real Property Management: Federal Program: Research and Development Cluster Name of Federal Agency: U.S. Department of Health and Human Services Category: Other matters Compliance requirement: F. Equipment and Real Property Management Criteria: 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: As a result of our audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have performed a physical inventory on or before July 13, 2023. Cause: The property inventory was scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed. Effect: Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost: None. Context: Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: The Foundation should continue monitoring and reviewing guidelines for federal awards under the Research and Development Cluster to ensure it is current on the applicable requirements and changes therein. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years.
Findings and Questioned Costs Relating to Federal Awards: Finding No. 2023-001 - Equipment and Real Property Management: Federal Program: Research and Development Cluster Name of Federal Agency: U.S. Department of Health and Human Services Category: Other matters Compliance requirement: F. Equipment and Real Property Management Criteria: 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: As a result of our audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have performed a physical inventory on or before July 13, 2023. Cause: The property inventory was scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed. Effect: Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost: None. Context: Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: The Foundation should continue monitoring and reviewing guidelines for federal awards under the Research and Development Cluster to ensure it is current on the applicable requirements and changes therein. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years.
Findings and Questioned Costs Relating to Federal Awards: Finding No. 2023-001 - Equipment and Real Property Management: Federal Program: Research and Development Cluster Name of Federal Agency: U.S. Department of Health and Human Services Category: Other matters Compliance requirement: F. Equipment and Real Property Management Criteria: 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: As a result of our audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have performed a physical inventory on or before July 13, 2023. Cause: The property inventory was scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed. Effect: Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost: None. Context: Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: The Foundation should continue monitoring and reviewing guidelines for federal awards under the Research and Development Cluster to ensure it is current on the applicable requirements and changes therein. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years.
Findings and Questioned Costs Relating to Federal Awards: Finding No. 2023-001 - Equipment and Real Property Management: Federal Program: Research and Development Cluster Name of Federal Agency: U.S. Department of Health and Human Services Category: Other matters Compliance requirement: F. Equipment and Real Property Management Criteria: 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: As a result of our audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have performed a physical inventory on or before July 13, 2023. Cause: The property inventory was scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed. Effect: Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost: None. Context: Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: The Foundation should continue monitoring and reviewing guidelines for federal awards under the Research and Development Cluster to ensure it is current on the applicable requirements and changes therein. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years.
Findings and Questioned Costs Relating to Federal Awards: Finding No. 2023-001 - Equipment and Real Property Management: Federal Program: Research and Development Cluster Name of Federal Agency: U.S. Department of Health and Human Services Category: Other matters Compliance requirement: F. Equipment and Real Property Management Criteria: 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: As a result of our audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have performed a physical inventory on or before July 13, 2023. Cause: The property inventory was scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed. Effect: Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost: None. Context: Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: The Foundation should continue monitoring and reviewing guidelines for federal awards under the Research and Development Cluster to ensure it is current on the applicable requirements and changes therein. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years.
Findings and Questioned Costs Relating to Federal Awards: Finding No. 2023-001 - Equipment and Real Property Management: Federal Program: Research and Development Cluster Name of Federal Agency: U.S. Department of Health and Human Services Category: Other matters Compliance requirement: F. Equipment and Real Property Management Criteria: 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: As a result of our audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have performed a physical inventory on or before July 13, 2023. Cause: The property inventory was scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed. Effect: Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost: None. Context: Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: The Foundation should continue monitoring and reviewing guidelines for federal awards under the Research and Development Cluster to ensure it is current on the applicable requirements and changes therein. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years.
Findings and Questioned Costs Relating to Federal Awards: Finding No. 2023-001 - Equipment and Real Property Management: Federal Program: Research and Development Cluster Name of Federal Agency: U.S. Department of Health and Human Services Category: Other matters Compliance requirement: F. Equipment and Real Property Management Criteria: 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: As a result of our audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have performed a physical inventory on or before July 13, 2023. Cause: The property inventory was scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed. Effect: Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost: None. Context: Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: The Foundation should continue monitoring and reviewing guidelines for federal awards under the Research and Development Cluster to ensure it is current on the applicable requirements and changes therein. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years.
Findings and Questioned Costs Relating to Federal Awards: Finding No. 2023-001 - Equipment and Real Property Management: Federal Program: Research and Development Cluster Name of Federal Agency: U.S. Department of Health and Human Services Category: Other matters Compliance requirement: F. Equipment and Real Property Management Criteria: 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: As a result of our audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have performed a physical inventory on or before July 13, 2023. Cause: The property inventory was scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed. Effect: Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost: None. Context: Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: The Foundation should continue monitoring and reviewing guidelines for federal awards under the Research and Development Cluster to ensure it is current on the applicable requirements and changes therein. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years.
Findings and Questioned Costs Relating to Federal Awards: Finding No. 2023-001 - Equipment and Real Property Management: Federal Program: Research and Development Cluster Name of Federal Agency: U.S. Department of Health and Human Services Category: Other matters Compliance requirement: F. Equipment and Real Property Management Criteria: 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: As a result of our audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have performed a physical inventory on or before July 13, 2023. Cause: The property inventory was scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed. Effect: Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost: None. Context: Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: The Foundation should continue monitoring and reviewing guidelines for federal awards under the Research and Development Cluster to ensure it is current on the applicable requirements and changes therein. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years.
Findings and Questioned Costs Relating to Federal Awards: Finding No. 2023-001 - Equipment and Real Property Management: Federal Program: Research and Development Cluster Name of Federal Agency: U.S. Department of Health and Human Services Category: Other matters Compliance requirement: F. Equipment and Real Property Management Criteria: 2 CFR section 200.313(d), Equipment Management Requirements, states that: Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: As a result of our audit procedures, we noted that the last physical inventory of property was taken on July 13, 2021, accordingly, the Foundation should have performed a physical inventory on or before July 13, 2023. Cause: The property inventory was scheduled for the fiscal year ended June 30, 2023, however, due to medical complications of the employee in-charge of fixed assets, the inventory was postponed. Effect: Conducting physical inventory ensures compliance with regulations and helps maintain accountability for the use of federal expenditures, prevents fraud and abuse, and helps identify surplus or underutilized equipment, leading to more efficient allocation of resources. Questioned Cost: None. Context: Since the last property inventory was taken on July 13, 2021, the next property inventory should have been performed on or before July 13, 2023. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: The Foundation should continue monitoring and reviewing guidelines for federal awards under the Research and Development Cluster to ensure it is current on the applicable requirements and changes therein. Also, there should be reminders set to the corresponding personnel to perform the property inventories, at least, every two years.
Federal Agency: U.S. Department of Justice Federal Program Name: DEA Asset Forfeitures Assistance Listing Number: 16.922 Federal Award Identification Number and Year: Unknown Award Period: July 1, 2022 - June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR section 200.313(d)(2) requires that a physical inventory of the property to be taken and the results reconciled with the property records at least once every two years. Condition: Internal controls were not in place to ensure that all compliance requirements per the grant were being met. Questioned costs: None. Context: CLA notes that a physical inventory count was not performed within the last 2 years on 8 of the 8 assets selected for testing. Cause: Procedures were not in place to ensure that a physical inventory count is being performed every 2 years for assets purchased with federal funds. Effect: Failing to complete a physical inventory count of assets purchased with federal funds. Repeat Finding: No. Recommendation: Procedures should be updated to ensure all assets purchased with federal funds go through a physical inventory count every 2 years. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-004 Information on the federal program: Subject: Education Stabilization Fund – Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listing Number: 84.425D Federal Award Numbers and Years (or Other Identifying Numbers): S425D210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness Criteria: 2 CFR 200.313(d) states in part: "Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. . . ." Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management Requirements compliance requirements. Cause: The School Corporation's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: The School Corporation did not keep a Capital Asset Listing during the audit period. Additionally, we noted no inventory was performed during the audit period. The finding is isolated to the ESSER II (84.425D) grant. Identification as a repeat finding: No. Recommendation: We recommended that the School Corporation's management establish a system of internal controls related to the grant agreement and Equipment and Real Property Management compliance requirements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
Finding No. 2023-004 Significant Deficiency: Equipment and Real Property Management – Compliance and Control Finding ALN 84.425 – COVID-19: Education Stabilization Fund Federal Agency: U.S. Department of Education Pass-Through Entity: Missouri Department of Elementary and Secondary Education Criteria Or Specific Requirement: According to Uniform Guidance, 2 CFR Section 200.313 (d)(2), a physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Condition: The District did not perform a physical inventory over a two-year period. The District does not have controls in place to ensure bi-annual inventories will be performed to capture equipment purchase with federal funds. Cause: The District did maintain a property and equipment listing for federally funded purchases, however, there was no support a bi-annual inventory was performed. The District has two inventory technicians and equipment is maintained at over sixty locations. The staffing was not sufficient to ensure bi-annual could be completed within the proper timeframe. Effect Or Potential Effect: The District is not in compliance with the Uniform Guidance compliance requirements regarding equipment management. Questioned Costs: Not applicable. Context: No evidence could be obtained to verify a bi-annual inventory was performed. Identification As A Repeat Finding: N/A Recommendation: We recommend that the District implement procedures and controls to ensure bi-annual inventories are performed in accordance with the Uniform Guidance. Views Of Responsible Officials: The District capitalization policy requires a periodic inventory of all capital assets. Inadequate staffing prevented the physical inventory for the fiscal year, but the finance department will seek assistance of an asset services firm for the next fiscal year and thereafter as needed.
Finding No. 2023-004 Significant Deficiency: Equipment and Real Property Management – Compliance and Control Finding ALN 84.425 – COVID-19: Education Stabilization Fund Federal Agency: U.S. Department of Education Pass-Through Entity: Missouri Department of Elementary and Secondary Education Criteria Or Specific Requirement: According to Uniform Guidance, 2 CFR Section 200.313 (d)(2), a physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Condition: The District did not perform a physical inventory over a two-year period. The District does not have controls in place to ensure bi-annual inventories will be performed to capture equipment purchase with federal funds. Cause: The District did maintain a property and equipment listing for federally funded purchases, however, there was no support a bi-annual inventory was performed. The District has two inventory technicians and equipment is maintained at over sixty locations. The staffing was not sufficient to ensure bi-annual could be completed within the proper timeframe. Effect Or Potential Effect: The District is not in compliance with the Uniform Guidance compliance requirements regarding equipment management. Questioned Costs: Not applicable. Context: No evidence could be obtained to verify a bi-annual inventory was performed. Identification As A Repeat Finding: N/A Recommendation: We recommend that the District implement procedures and controls to ensure bi-annual inventories are performed in accordance with the Uniform Guidance. Views Of Responsible Officials: The District capitalization policy requires a periodic inventory of all capital assets. Inadequate staffing prevented the physical inventory for the fiscal year, but the finance department will seek assistance of an asset services firm for the next fiscal year and thereafter as needed.
Finding No. 2023-004 Significant Deficiency: Equipment and Real Property Management – Compliance and Control Finding ALN 84.425 – COVID-19: Education Stabilization Fund Federal Agency: U.S. Department of Education Pass-Through Entity: Missouri Department of Elementary and Secondary Education Criteria Or Specific Requirement: According to Uniform Guidance, 2 CFR Section 200.313 (d)(2), a physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Condition: The District did not perform a physical inventory over a two-year period. The District does not have controls in place to ensure bi-annual inventories will be performed to capture equipment purchase with federal funds. Cause: The District did maintain a property and equipment listing for federally funded purchases, however, there was no support a bi-annual inventory was performed. The District has two inventory technicians and equipment is maintained at over sixty locations. The staffing was not sufficient to ensure bi-annual could be completed within the proper timeframe. Effect Or Potential Effect: The District is not in compliance with the Uniform Guidance compliance requirements regarding equipment management. Questioned Costs: Not applicable. Context: No evidence could be obtained to verify a bi-annual inventory was performed. Identification As A Repeat Finding: N/A Recommendation: We recommend that the District implement procedures and controls to ensure bi-annual inventories are performed in accordance with the Uniform Guidance. Views Of Responsible Officials: The District capitalization policy requires a periodic inventory of all capital assets. Inadequate staffing prevented the physical inventory for the fiscal year, but the finance department will seek assistance of an asset services firm for the next fiscal year and thereafter as needed.