U.S. Department of Transportation Assistance Listing # 20.106 – Airport Improvement Program 2024-001: Equipment and Real Property Management (Significant Deficiency in Internal Control over Compliance and Immaterial Noncompliance) Criteria: Property records for equipment purchased with federal funds must be maintained at a level of detail that includes a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property (2 CFR section 200.313(d)(1)). Condition: Our testing of the expenditures of Airport Improvement Program funds identified $192,000 of equipment purchased as part of the rehabilitation of the air traffic control tower. This equipment was recorded in the Authority’s property records. However, the property records did not contain the required data elements noted above. Effect: The Authority lacks a policy for recording federally funded equipment purchases within the property records that ensures the required data elements are captured within the property records. As a result, the Authority was not compliant with the equipment and real property management requirements of the Airport Improvement Program. Cause: The Authority’s management during the 2024 fiscal year did not appear to be aware of the equipment and real property management requirements of the Airport Improvement Program. Questioned Costs: None Context: The Authority administered two Airport Improvement Programs during the 2024 fiscal year. Total 2024 expenditures of Airport Improvement Program funds amounted to $1,710,388. Of this amount, $192,000 was for equipment that is subject to the equipment and real property management. Recommendation: We recommend the Authority review its current policies, procedures, and internal controls over the expenditure of federal awards. We recommend management establish a procedure for tracking equipment purchased with federal funding to ensure the property records contain the required data elements of the equipment and real property management compliance requirement of the Airport Improvement Program. Management’s Response: We agree with the auditor’s findings and will implement procedures to ensure our property records capture the date elements required by the equipment and real property management compliance requirement.
U.S. Department of Transportation Assistance Listing # 20.106 – Airport Improvement Program 2024-001: Equipment and Real Property Management (Significant Deficiency in Internal Control over Compliance and Immaterial Noncompliance) Criteria: Property records for equipment purchased with federal funds must be maintained at a level of detail that includes a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property (2 CFR section 200.313(d)(1)). Condition: Our testing of the expenditures of Airport Improvement Program funds identified $192,000 of equipment purchased as part of the rehabilitation of the air traffic control tower. This equipment was recorded in the Authority’s property records. However, the property records did not contain the required data elements noted above. Effect: The Authority lacks a policy for recording federally funded equipment purchases within the property records that ensures the required data elements are captured within the property records. As a result, the Authority was not compliant with the equipment and real property management requirements of the Airport Improvement Program. Cause: The Authority’s management during the 2024 fiscal year did not appear to be aware of the equipment and real property management requirements of the Airport Improvement Program. Questioned Costs: None Context: The Authority administered two Airport Improvement Programs during the 2024 fiscal year. Total 2024 expenditures of Airport Improvement Program funds amounted to $1,710,388. Of this amount, $192,000 was for equipment that is subject to the equipment and real property management. Recommendation: We recommend the Authority review its current policies, procedures, and internal controls over the expenditure of federal awards. We recommend management establish a procedure for tracking equipment purchased with federal funding to ensure the property records contain the required data elements of the equipment and real property management compliance requirement of the Airport Improvement Program. Management’s Response: We agree with the auditor’s findings and will implement procedures to ensure our property records capture the date elements required by the equipment and real property management compliance requirement.
Federal Program 23.002 - Appalachian Area Development 14.228 - Community Development Block Grants/State's Program Award Numbers ARC-20698 ARC-20699 CDBG Subgrant: 1137-21-111-PF-01 Federal Agency U.S. Department of Housing and Urban Development (HUD) Appalachian Regional Commission (ARC) Compliance Requirement Equipment and Real Property Management- 2 CFR §200.310-316 Type of Finding Internal Control over Compliance - Material Weakness Compliance - Noncompliance Questioned Costs None Criteria Per 2 CFR §200.310-316 and the 0MB Compliance Supplement, recipients of federal awards must: Maintain detailed property records including description, serial number, acquisition date, cost, location, and condition Conduct a physical inventory at least once every two years and reconcile results Safeguard assets from loss, damage, or theft File a Notice of Federal Interest for real property acquired with federal funds Follow disposition procedures outlined in 2 CFR §200.311-313 Condition The City of Batesville did not conduct a biennial physical inventory of federally funded equipment and real property as required by 2 CFR §200.313(d)(2). Inventory records were incomplete, decentralized, and lacked key data fields such as asset condition and federal funding source. Infrastructure assets funded by CDBG and ARC grants were not classified as real property, and no Notice of Federal Interest was filed. Additionally, the City could not demonstrate that federally funded assets were safeguarded or reconciled against disposals. Cause The City lacked centralized oversight and formal policies for property management. Staff were unaware of federal requirements related to infrastructure classification and inventory procedures. No training or monitoring mechanisms were in place to ensure compliance. Effect The City is at risk of noncompliance with federal property management standards, including failure to conduct biennial inventories and file Notices of Federal Interest for real property. Although the sewer infrastructure funded by CFDA 14.228 and 23.002 is not susceptible to theft or loss due to its fixed nature, the lack of documentation and oversight represents a material weakness in internal control. No questioned costs were identified, as all expenditures were supported and the assets remain in use. Although Assistance Listing 90.201 was not selected for audit, similar deficiencies in property management were observed during preliminary review, suggesting the issue may be systemic across federal programs. Recommendation Implement a centralized inventory system with required data fields Conduct and document biennial physical inventories File Notices of Federal Interest for applicable real property Provide staff training on federal property standards Deveiop written policies for asset classification, inventory, and disposition Establish internal monitoring procedures to ensure ongoing compliance Views of Responsible Officials Management concurs with the finding. The City will implement a centralized inventory system and conduct a physical inventory by March 31, 2026. Training will be provided to relevant staff, and a formal policy will be adopted to ensure compliance with 2 CFR §200.310-316. The City will consult with HUD and ARC regarding the filing of Notices of Federal Interest for infrastructure assets. Management also acknowledges that similar issues were observed in non-audited programs and will extend corrective actions City-wide.
Finding No.: 2024-005 Federal Agency: U.S. Department of Education AL Program: 84.027 Special Education Grants to States Area: Equipment and Real Property Management Questioned Costs: $1,391 Criteria: FY2024 U.S. Department of Education Special Conditions, paragraph (5) states that “GDOE must ensure that all tangible personal property procured under Department grants is managed in accordance with the requirements of 2 CFR 200.313(a) and (c)-(e ) to ensure that such property is properly inventoried, maintained, and stored to prevent loss, damage, or theft of such property”. 2 CFR 200.313(d) states that regardless of whether equipment is acquired in part or its entirety under the Federal award, the recipient must manage equipment (including replacement equipment) utilizing procedures that meet the requirement of having a control system in place to ensure safeguards for preventing property loss, damage, or theft. Any loss, damage, or theft of equipment must be investigated. The recipient or subrecipient must notify the Federal agency or pass-through entity of any loss, damage, or theft of equipment that will have an impact on the program. Condition: For four (or 10%) of forty items totaling with a net book value of $545,378 subjected to equipment safeguarding test, items were tagged as “A” or active in the property record, however, they were not physically inspected as it was noted to be missing during the audit. Item # Federal Award # Asset # Description Net Book Value Questioned Cost 1 H027A120013 14101 Insprio Premium with ILapel $ - $ - 2 H027A180013 39573 RIFTON SMALL PACER GAIT TRAINER (RED) $ 58 58 3 H027A190013-19A 78062 OTICON XCEED PLAY 2 HEARING AID $ 313 313 4 H027X210013 98153 OTICON XCEED 1 HEARING AIDE $1,020 1,020 $1,391 Cause: Responsible personnel did not properly safeguard the assets and were not made aware that assets are lost, hence, information on the property records were outdated. Finding No.: 2024-005, continued Federal Agency: U.S. Department of Education AL Program: 84.027 Special Education Grants to States Area: Equipment and Real Property Management Questioned Costs: $1,391 Effect: GDOE is in noncompliance with applicable equipment and real property management requirements. Questioned costs of $1,391 was calculated based on the net book value of the equipment identified in the condition. Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable equipment and real property management requirements, specifically, ensuring safeguards for preventing property loss, damage, or theft.
Finding No.: 2024-010 Federal Agency: U.S. Department of Education AL Program: 84.425 Education Stabilization Fund ED Subprogram: 84.425X American Rescue Plan – Outlying Areas State Educational Agency (ARP-OA-SEA) Federal Award No.: S425X210003 Area: Equipment and Real Property Management Questioned Costs: $1,842 Criteria: FY2024 U.S. Department of Education Special Conditions, paragraph (5) states that “GDOE must ensure that all tangible personal property procured under Department grants is managed in accordance with the requirements of 2 CFR 200.313(a) and (c)-(e ) to ensure that such property is properly inventoried, maintained, and stored to prevent loss, damage, or theft of such property”. 2 CFR 200.313(d) states that regardless of whether equipment is acquired in part or its entirety under the Federal award, the recipient must manage equipment (including replacement equipment) utilizing procedures that meet the requirement of having property records that include a description of the property, a serial number or another identification number, the source of funding for the property (including the FAIN), the title holder, the acquisition date, the cost of the property, the percentage of the Federal agency contribution towards the original purchase, the location, use and condition of the property, and any disposition data including the date of disposal and sale price of the property. Condition: For one (or 3%) of forty items, aggregating $84,774 of $5,480,631 in total cost of assets subjected to equipment acquisition test, cost of asset was incorrectly recorded in the property records. Asset # Description Cost per Property Record Cost per Invoice Variance Questioned Cost 99813 APPLE A2696 10.9" IPAD $1,842 $533 $1,309 $1,842 Finding No.: 2024-010, continued Federal Agency: U.S. Department of Education AL Program: 84.425 Education Stabilization Fund ED Subprogram: 84.425X American Rescue Plan – Outlying Areas State Educational Agency (ARP-OA-SEA) Federal Award No.: S425X210003 Area: Equipment and Real Property Management Questioned Costs: $1,842 Cause: Responsible personnel did not properly record the cost of the asset in the property records. Effect: GDOE is in noncompliance with applicable equipment and real property management requirements. Questioned cost is calculated as the value of the asset that was accumulated in the equipment listing and recorded as expenditure in the current fiscal year. Recommendation: Responsible personnel should ensure that asset information are accurately captured in the property records.
Criteria: As noted in finding 2024-002, an effective internal control system should be designed and clearly documented. A key part of the documentation is the use of documented policies and procedures. The policies and procedures should cover general accounting and operational processes as well as compliance with State and Federal regulations as applicable. Federal regulations impacting the Organization include Title 2 CFR 200.318, Title 2 CFR 200.302(b), Title 2 CFR 200.313(d) and Title 2 CFR 200.403(d) (Factors Affecting Allowability of Costs). Condition: As noted in finding 2024-002, Every Woman's Place, Inc. did not have effective policies in place over payroll cost allocations, non-payroll cost allocations, procurement, gift cards, equipment inventory and other indirect program cost allocations. Cause: The Organization did not develop, design or implement adequate internal control policies over key required processes. Effect: As part of the audit, it was determined that indirect costs listed in the Financial Status Reports (FSR) for various programs passed through from the State of Michigan Department of Health and Human Services may have been erroneously calculated leading to questioned costs. The lack of internal controls could also lead to misstatements of financial activity and related program reports. The lack of such policies and procedures increases the risk of error, omission, fraud and abuse in financial statements and related activities. Context: A program audit was performed by the State of Michigan’s Department of Health and Human Services for the fiscal year ending September 30, 2023 (dated November 21, 2025). Based on additional items noted by the State of Michigan, it was determined that indirect costs appear to have been incorrectly calculated. These items were directly related to the lack of clarity and/or policy of the direct / indirect cost methodology being utilized Questioned Costs: Indirect costs presented on FSRs for the fiscal year ended September 30, 2024, that represent questioned costs is $83,141 Recommendation: The Organization should review accounting policies to ensure that the policies are up-to-date and, if applicable, in compliance with the State and Federal Regulations. The Organization should also adopt a proper allocation methodology for direct and indirect costs and require board-approval and annual certification. View of Responsible Officials and Planned Corrective Actions:
Finding No.: 2024-014 Federal Agency: U.S. Department of Interior AL Program: 15.875 Economic, Social, and Political Development of the Territories Federal Award No.: Various Area: Equipment and Real Property Management Questioned Costs: $ Undeterminable Criteria: In accordance with 2 CFR 200.313(b), a State must use, manage and dispose of equipment acquired under a Federal award in accordance with State laws and procedures. 2 CFR 200.313(d) states that regardless of whether equipment is acquired in part or its entirety under the Federal award, the recipient must manage equipment (including replacement equipment) utilizing procedures that meet the following requirements: (1) Property records must include a description of the property, a serial number or another identification number, the source of funding for the property (including the FAIN), the title holder, the acquisition date, the cost of the property, the percentage of the Federal agency contribution towards the original purchase, the location, use and condition of the property, and any disposition data including the date of disposal and sale price of the property. The recipient and subrecipient are responsible for maintaining and updating property records when there is a change in the status of the property. (2) A physical inventory of the property must be conducted, and the results must be reconciled with the property records at least once every two years. (3) A control system must be in place to ensure safeguards for preventing property loss, damage, or theft. Any loss, damage, or theft of equipment must be investigated. The recipient or subrecipient must notify the Federal agency or pass-through entity of any loss, damage, or theft of equipment that will have an impact on the program. (4) Regular maintenance procedures must be in place to ensure the property is in proper working condition. (5) If the recipient or subrecipient is authorized or required to sell the property, proper sales procedures must be in place to ensure the highest possible return. Furthermore, 2 CFR 200.303(a) states that the recipient must establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should align with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control-Integrated Framework” issued by the COSO. Finding No.: 2024-014, continued Federal Agency: U.S. Department of Interior AL Program: 15.875 Economic, Social, and Political Development of the Territories Federal Award No.: Various Area: Equipment and Real Property Management Questioned Costs: $ Undeterminable Conditions: 1. Bureau of Budget and Management Research (BBMR) lacks adequate internal policies and procedures over compliance with the applicable federal property rules and regulations. 2. BBMR’s capital asset records do not meet the criteria above and lacks certain information such as: a. Serial number or asset tag number b. Funding source, including the FAIN c. Title holder d. Percentage of Federal participation in the project costs for the Federal award under which the property was acquired e. Location f. Use and condition g. Date of disposal, if any h. Sale price of the property 3. BBMR’s most recent comprehensive physical inventory of its property was in January 2016; however, the required reconciliation was not completed. As of September 30, 2024, the required biannual physical inventory and reconciliation were not performed. 4. As capital asset records are not effectively maintained, it does not appear that BBMR has effectively developed means to adequately safeguard capital assets from loss, damage, or theft, or to reasonably investigate such occurrences. We are unable to assess the overall cumulative monetary value of these deficiencies. However, the table below summarizes total capital outlays over the past five years. See the Notes to the SEFA for chart/table. Finding No.: 2024-014, continued Federal Agency: U.S. Department of Interior AL Program: 15.875 Economic, Social, and Political Development of the Territories Federal Award No.: Various Area: Equipment and Real Property Management Questioned Costs: $ Undeterminable Cause: The processes over inventory, maintenance and reconciliation of capital assets are not routine. BBMR requires additional funding and human resources to fully implement and develop a useful capital asset management system. Effect: GovGuam is in noncompliance with applicable equipment and real property management requirements. The underlying capital outlays are not considered questioned costs, as we are unable to quantify the extent of noncompliance. Identification as a Repeat Finding: 2023-011 Recommendation: BBMR should complete the required biannual physical inventory and reconciliations and should consider developing a more detailed corrective action plan with timetables for completing planned actions, such as processing required reconciliations and reports, training personnel and coordinating with other governmental units on property management requirements. Views of Responsible Officials: Implementation of a Fixed Assets Module as part of the new FMIS system that will help automate the tracking and reporting of Capital assets, is near completion with final testing in progress. DOA will update the SOP for the Fixed Assets for capital asset reporting accordingly. Review of Assets acquired in FY2024 was completed, with FY2025 in progress. As noted previously, the process is hampered by difficulties in recruiting personnel.
Finding No.: 2024-037 Federal Agency: U.S. Department of Health and Human Service AL Program: 93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Federal Award No.: Various Area: Equipment and Real Property Management Questioned Costs: $ Undeterminable Criteria: In accordance with 2 CFR 200.313(b), a State must use, manage and dispose of equipment acquired under a Federal award in accordance with State laws and procedures. 2 CFR 200.313(d) states that regardless of whether equipment is acquired in part or its entirety under the Federal award, the recipient must manage equipment (including replacement equipment) utilizing procedures that meet the following requirements: (1) Property records must include a description of the property, a serial number or another identification number, the source of funding for the property (including the FAIN), the title holder, the acquisition date, the cost of the property, the percentage of the Federal agency contribution towards the original purchase, the location, use and condition of the property, and any disposition data including the date of disposal and sale price of the property. The recipient and subrecipient are responsible for maintaining and updating property records when there is a change in the status of the property. (2) A physical inventory of the property must be conducted, and the results must be reconciled with the property records at least once every two years. (3) A control system must be in place to ensure safeguards for preventing property loss, damage, or theft. Any loss, damage, or theft of equipment must be investigated. The recipient or subrecipient must notify the Federal agency or pass-through entity of any loss, damage, or theft of equipment that will have an impact on the program. (4) Regular maintenance procedures must be in place to ensure the property is in proper working condition. (5) If the recipient or subrecipient is authorized or required to sell the property, proper sales procedures must be in place to ensure the highest possible return. Furthermore, 2 CFR 200.303(a) states that the recipient must establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should align with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control-Integrated Framework” issued by the COSO. Finding No.: 2024-037, continued Federal Agency: U.S. Department of Health and Human Service AL Program: 93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Federal Award No.: Various Area: Equipment and Real Property Management Questioned Costs: $ Undeterminable Conditions: 1. Department of Public Health and Social Services (DPHSS) lacks adequate internal policies and procedures over compliance with the applicable federal property rules and regulations. 2. DPHSS’s capital asset records do not meet the criteria above and certain sources of funding for the property (including the FAIN) information are missing. Furthermore, some assets purchased in prior years (e.g., 2020 through 2023) are tagged as “New”. 3. DPHSS’s most recent comprehensive physical inventory of its property was in January 2016; however, the required reconciliation was not completed. As of September 30, 2024, the required biannual physical inventory and reconciliation were not performed. 4. As capital asset records are not effectively maintained, it does not appear that DPHSS has effectively developed means to adequately safeguard capital assets from loss, damage, or theft, or to reasonably investigate such occurrences. We are unable to assess the overall cumulative monetary value of these deficiencies. However, the table below summarizes total capital outlays over the past five years. See the Notes to the SEFA for chart/table. Cause: The processes over inventory, maintenance and reconciliation of capital assets are not routine. DPHSS requires more funding and human resources to fully implement and develop a useful capital asset management system. Effect: GovGuam is in noncompliance with applicable equipment and real property management requirements. The underlying capital outlays are not considered questioned costs, as we are unable to quantify the extent of noncompliance. Finding No.: 2024-037, continued Federal Agency: U.S. Department of Health and Human Service AL Program: 93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Federal Award No.: Various Area: Equipment and Real Property Management Questioned Costs: $ Undeterminable Identification as a Repeat Finding: 2023-026 Recommendation: DPHSS should complete the required biannual physical inventory and reconciliations and should consider developing a more detailed corrective action plan with timetables for completing planned actions, such as processing required reconciliations and reports, training personnel and coordinating with other governmental units on property management requirements. Views of Responsible Officials: Implementation of a Fixed Assets Module as part of the new FMIS system that will help automate the tracking and reporting of Capital assets, is near completion with final testing in progress. DOA will update the SOP for the Fixed Assets for capital asset reporting accordingly. Review of Assets acquired in FY2024 was completed, with FY2025 in progress. As noted previously, the process is hampered by difficulties in recruiting personnel.
Finding No.: 2024-004 Federal Agency: U.S. Department of Transportation AL Program: 20.106 Airport Improvement Program Federal Award Nos.: All AIP Grants Area: Equipment and Real Property Management Questioned Costs: Undeterminable Criteria: In accordance with 2 CFR section 200.313(b), a State must use, manage and dispose of equipment acquired under a Federal award by the State in accordance with State laws and procedures. SOP 216.1 and 216.6: • A physical inventory of the property must be taken and the results reconciled with the property records annually. SOP 215.1 and 215.2: • Adequate maintenance procedures must be developed to keep the property in good condition. Condition: 1. CPA does not maintain an equipment listing that designates which federal program the assets belong to. 2. Of twelve equipment tested, aggregating $13,328,054 of a total population of $13,952,859 as of September 30, 2024, we noted deficiencies, as follows: a. One (or 8%) listed the item to be in fair condition in the physical count; however, the custodian represented that item is currently non-operational due to breakage and damage, which occurred in February 2024. b. One (or 8%) was not recorded in the physical inventory count. CPA’s reconciliation, however, acknowledged for it to be corrected. Further, it was represented during field work that the item is in very poor condition and is currently inoperable since May 2023. Finding No.: 2024-004, continued Federal Agency: U.S. Department of Transportation AL Program: 20.106 Airport Improvement Program Federal Award Nos.: All AIP Grants Area: Equipment and Real Property Management Questioned Costs: Undeterminable Condition, continued: c. One (or 8%) failed to show the item in blue color, indicating it is a federal asset as designated in its asset listing legend. Further, fields including purchase order, vendor, or serial number showed item was unknown. Moreover, item was not operational until December 2025. d. One (or 8%) did not submit log sheets or maintenance records to confirm that maintenance work was performed during FY2024. It was also represented that the asset was not in use since October 2025. Cause: CPA does not maintain an effective method of tracking U.S. Federally funded assets as the only method of tracking is through manually designating the asset in a different color within the listing generated from the fixed assets register for CPA as a whole. This manual process is subject to potential errors when produced on an annual basis as part of the audit process. Finding No.: 2024-004, continued Federal Agency: U.S. Department of Transportation AL Program: 20.106 Airport Improvement Program Federal Award Nos.: All AIP Grants Area: Equipment and Real Property Management Questioned Costs: Undeterminable Effect or potential effect: The completeness and accuracy of the program assets could not be determined. Identification as a Repeat Finding: Finding 2023-003. Recommendation: CPA should implement a formal asset tracking system or enhance its existing fixed asset register to clearly identify assets acquired with U.S. Federal grant funds (e.g., through dedicated fields or tagging within the system). This will eliminate reliance on manual color-coding and reduce the risk of errors. Additionally, CPA should establish standardized procedures for maintaining and periodically updating this information to ensure accuracy, completeness, and consistency in tracking federally funded assets. Views of Responsible Officials: Management states agreement with the findings. Refer to separate Corrective Action Plan.
Finding Number: 2024-031 Prior Year Finding Number: 2023-034 Compliance Requirement: Equipment and Real Property Management Program: U.S. Department of the Interior Government Department/Agency: Department of Planning and Natural Resources (DPNR) Fish and Wildlife Cluster ALN: 15.605, 15.611 Award #: Various Award Period: Various Criteria - Per 2 CFR section 200.313, Equipment, property records must be maintained that include a description of the property, a serial number or other identification number, the source of property, who holds title, the acquisition date, cost of the property, percentage of Federal participation in the cost of the property, the location, use and conditions of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Further, a physical inventory of equipment should be taken at least once every 2 years and reconciled to the equipment records along with the usage of an appropriate control system to safeguard and maintain equipment. Additionally, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires that non-federal entities receiving Federal awards (i.e., auditee management) establish, document, and maintain internal control designed to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition – The Government’s DPP maintains the equipment register for the Government. DPNR was unable to provide accurate and complete property records which met the stated requirements. Further, no physical inventory was taken in fiscal year 2024. Further, we noted that internal controls were not operating at a level of precision to ensure compliance with the equipment management and real property compliance requirements. Cause – DPNR and DPP do not appear to have a process in place to adequately monitor equipment acquired with Federal funds. Effect or Potential Effect – Inadequate recordkeeping of equipment could lead to misappropriation of assets and noncompliance with Federal regulations resulting in a return of Federal awards received. Questioned Costs – Not determinable. Given the nature of the finding (e.g. unavailability of supporting documentation), we determined that projecting estimated questioned costs to the entire population was inappropriate. Context – This is a condition identified per review of DPNR’s compliance with the specified requirements. Equipment purchased in 2024 totaled $47,748. Recommendation – We recommend that DPNR and DPP improve internal controls to ensure adherence to Federal regulations related to equipment and its related maintenance. There should be timely coordination and communication amongst all Government departments and/or agencies that are responsible for handling and managing such assets. Views of Responsible Officials – The Government concurs with the auditor’s findings and recommendations. The Asset Management Division (AMD) adheres to Federal Equipment guidelines. Assets are tagged, and records are created using the Tyler Munis Resource system (ERP) The completed Standard Operating Policies and Procedures (SOPP) are pending update and approval crucial for enhancing internal controls. Training sessions will occur and additional staff will be needed to support the initiative effectively. The planned corrective actions are presented in the Government’s Corrective Action Plan attached as Appendix B to the Single Audit Report.
Finding Number: 2024-035 Prior Year Finding Number: 2023-036 Compliance Requirement: Equipment and Real Property Management Program: U.S. Department of the Interior Government Department/Agency: Various Economic, Social, and Political Development of the Territories ALN: 15.875 Award #: Various Award Period: Various Criteria - Per 2 CFR section 200.313, Equipment, property records must be maintained that include a description of the property, a serial number or other identification number, the source of property, who holds title, the acquisition date, cost of the property, percentage of Federal participation in the cost of the property, the location, use and conditions of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Further, a physical inventory of equipment should be taken at least once every 2 years and reconciled to the equipment records along with the usage of an appropriate control system to safeguard and maintain equipment. Additionally, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires that non-federal entities receiving Federal awards (i.e., auditee management) establish, document, and maintain internal control designed to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition – The Government’s DPP maintains the equipment register for the Government. DPP was unable to provide an accurate and complete property records which met the stated requirements. Further, no physical inventory was taken in fiscal year 2024. Further, we noted that internal controls were not operating at a level of precision to ensure compliance with the equipment management compliance requirements. Cause – The Government does not appear to have a process in place to adequately monitor equipment acquired with Federal funds. Effect or Potential Effect – There is a risk that inadequate recordkeeping of equipment could lead to misappropriation of assets and noncompliance with Federal regulations resulting in a return of Federal awards received. Questioned Costs – Not determinable. Given the nature of the finding (e.g. unavailability of supporting documentation), we determined that projecting estimated questioned costs to the entire population was inappropriate. Context – This is a condition identified per review of the Government’s compliance with the specified requirements. Equipment purchased in 2024 totaled $ 2,633,484. Recommendation – We recommend that the Government improve internal controls to ensure adherence to Federal regulations related to equipment and its related maintenance. There should be timely coordination and communication amongst all Government departments and/or agencies that are responsible for handling and managing such assets. Views of Responsible Officials – The Government concurs with the auditor’s findings and recommendations. The Government’s Audit Committee is leading the development of a structured, three-tier policy and procedures framework under the Public Finance Management project. Additional staff will be needed to effectively support the initiative and regular training sessions will be provided to staff to ensure they understand and adhere to compliance requirements with monitoring and evaluation occurring by the OMB Compliance Unit supported by the Government’s Audit Committee, to assess and improve the effectiveness of controls. The planned corrective actions are presented in the Government’s Corrective Action Plan attached as Appendix B to the Single Audit Report.
Finding Number: 2024-064 Prior Year Finding Number: 2023-050 Compliance Requirement: Equipment and Real Property Management Program: U.S. Department of Education Government Department/Agency: Department of Education (VIDE) Special Education Cluster ALN: 84.027 (84.027A and 84.027X) Award #: Various Award Period: Various Criteria – Per the Uniform Guidance in 2 CFR Section 200.313, Equipment, property records must be maintained that include a description of the property, a serial number or other identification number, the source of the property, who holds title, the acquisition date, cost of the property, percentage of Federal participation in the cost of the property, the location, use and conditions of the property, and any ultimate disposition date including the date of disposal and sale price of the property. Additionally, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires that non-federal entities receiving Federal awards (i.e., auditee management) establish, document, and maintain internal control designed to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition – While VIDE maintains an equipment listing for fixed assets purchased with federal funding, VIDE was unable to provide a complete equipment listing which met the stated requirements. Further, we noted that internal controls were not operating at a level of precision to ensure compliance with the equipment management compliance requirements. Cause – VIDE does not appear to have adequate policies and procedures in place to adequately monitor equipment acquired with Federal Funds. Effect or Potential Effect – There is a risk that inadequate recordkeeping or equipment could lead to misappropriation of assets and noncompliance with Federal regulations resulting in a return of Federal awards received. Questioned Costs – Not determinable. Given the nature of the finding (e.g. unavailability of supporting documentation), we determined that projecting estimated questioned costs to the entire population was inappropriate. Context – This is a condition identified per review of the VIDE’s compliance with the specified requirements. Recommendation – We recommend that VIDE improve internal controls to ensure adherence to Federal regulations related to equipment and its related maintenance. There should be timely coordination and communication amongst all personnel that are responsible for handling and managing such assets as well as monitoring of the performance of the recording of the equipment. Views of Responsible Officials – The Government concurs with the auditor’s findings and recommendations. VIDE plans to improve management and documentation of federally funded equipment by enhancing its asset tracking system and maintaining centralized records with detailed asset information. The planned corrective actions are presented in the Government’s Corrective Action Plan attached as Appendix B to the Single Audit Report.
Finding Number: 2024-070 Prior Year Finding Number: 2023-053 Compliance Requirement: Equipment and Real Property Management Program: U.S. Department of Education Government Department/Agency: Department of Education (VIDE) Consolidated Grant to the Outlying Areas ALN: 84.403A Award #: Various Award Period: Various Criteria – Per the Uniform Guidance in 2 CFR Section 200.313, Equipment, property records must be maintained that include a description of the property, a serial number or other identification number, the source of the property, who holds title, the acquisition date, cost of the property, percentage of Federal participation in the cost of the property, the location, use and conditions of the property, and any ultimate disposition date including the date of disposal and sale price of the property. Additionally, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires that non-federal entities receiving Federal awards (i.e., auditee management) establish, document, and maintain internal control designed to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition – While the VIDE maintains an equipment listing for fixed assets purchased with federal funding, VIDE was unable to provide a complete equipment listing which met the stated requirements. Further, we noted that internal controls were not operating at a level of precision to ensure compliance with the equipment management compliance requirements. Cause – VIDE does not appear to have adequate policies and procedures in place to adequately monitor equipment acquired with Federal Funds. Effect or Potential Effect – There is a risk that inadequate recordkeeping or equipment could lead to misappropriation of assets and noncompliance with Federal regulations resulting in a return of Federal awards received. Questioned Costs – Not determinable. Given the nature of the finding (e.g. unavailability of supporting documentation), we determined that projecting estimated questioned costs to the entire population was inappropriate. Context – This is a condition identified per review of the VIDE’s compliance with the specified requirements. Recommendation – We recommend that VIDE improve internal controls to ensure adherence to Federal regulations related to equipment and its related maintenance. There should be timely coordination and communication amongst all personnel that are responsible for handling and managing such assets as well as monitoring of the performance of the recording of the equipment. Views of Responsible Officials – The Government concurs with the auditor’s findings and recommendations. VIDE plans to improve management and documentation of federally funded equipment by enhancing its asset tracking system and maintaining centralized records with detailed asset information. The planned corrective actions are presented in the Government’s Corrective Action Plan attached as Appendix B to the Single Audit Report.
Finding Number: 2024-075 Prior Year Finding Number: N/A Compliance Requirement: Equipment and Real Property Management Program: U.S. Department of Education Government Department/Agency: Department of Education (VIDE) and Office of Management and Budget (OMB) COVID-19 – Education Stabilization Fund State Educational Agency (Outlying Areas) (ESF-SEA) ALN: 84.425A Award #: S425A200004, S425A210004 Award Period: 06/22/2020 – 09/30/2022 01/13/2021 – 09/30/2023 COVID-19 – Education Stabilization Fund Governors (Outlying Areas) (ESF Governor) ALN: 84.425H Award #: S425H200003, S425H210003 Award Period: 06/29/2020 – 09/30/2022 01/13/2021 – 09/30/2023 COVID-19 – American Rescue Plan – Outlying Areas State Educational Agency (ARP-OA SEA) ALN: 84.425X Award #: S425X210004 Award Period: 04/08/2021 – 09/30/2024 Criteria – Per the Uniform Guidance in 2 CFR Section 200.313, Equipment, property records must be maintained that include a description of the property, a serial number or other identification number, the source of the property, who holds title, the acquisition date, cost of the property, percentage of Federal participation in the cost of the property, the location, use and conditions of the property, and any ultimate disposition date including the date of disposal and sale price of the property. Additionally, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires that non-federal entities receiving Federal awards (i.e., auditee management) establish, document, and maintain internal control designed to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition – While the VIDE maintains an equipment listing for fixed assets purchased with federal funding, VIDE was unable to provide a complete equipment listing which met the stated requirements. Further, we noted that internal controls were not operating at a level of precision to ensure compliance with the equipment management compliance requirements. Cause – VIDE does not appear to have adequate policies and procedures in place to adequately monitor equipment acquired with Federal Funds. Effect or Potential Effect – There is a risk that inadequate recordkeeping or equipment could lead to misappropriation of assets and noncompliance with Federal regulations resulting in a return of Federal awards received. Questioned Costs – Not determinable. Given the nature of the finding (e.g. unavailability of supporting documentation), we determined that projecting estimated questioned costs to the entire population was inappropriate. Context – This is a condition identified per review of the VIDE’s compliance with the specified requirements. Recommendation – We recommend that VIDE improve internal controls to ensure adherence to Federal regulations related to equipment and its related maintenance. There should be timely coordination and communication amongst all personnel that are responsible for handling and managing such assets as well as monitoring of the performance of the recording of the equipment. Views of Responsible Officials – The Government concurs with the auditor’s findings and recommendations. VIDE plans to improve management and documentation of federally funded equipment by enhancing its asset tracking system and maintaining centralized records with detailed asset information. The planned corrective actions are presented in the Government’s Corrective Action Plan attached as Appendix B to the Single Audit Report.
Finding Number: 2024-079 Prior Year Finding Number: N/A Compliance Requirement: Equipment and Real Property Management Program: U.S. Department of Health and Human Services Government Department/Agency: Department of Health (DOH) Epidemiology and Laboratory Capacity for Infectious Disease ALN: 93.323 Award #: Various Award Period: Various Criteria – Per 2 CFR Section 200.313, Equipment, property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. Further, a physical inventory of equipment should be taken at least once every two years and reconciled to the equipment records along with the usage of an appropriate control system to safeguard and maintain equipment. Additionally, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires that non-federal entities receiving Federal awards (i.e., auditee management) establish, document, and maintain internal control designed to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition – The Government’s DPP maintains the equipment register for the Government. DOH was unable to provide accurate and complete property records which met the stated requirements. Further, no physical inventory was taken in fiscal year 2024. Further, we noted that internal controls were not operating at a level of precision to ensure compliance with the equipment management compliance requirements. Cause – DOH does not appear to have a process in place to adequately monitor property and equipment acquired with Federal funds. Effect or Potential Effect – There is a risk that inadequate recordkeeping could lead to misappropriation of assets and noncompliance with Federal regulations, resulting in loss of funding. Questioned Costs – Not determinable. Given the nature of the finding (e.g. unavailability of supporting documentation), we determined that projecting estimated questioned costs to the entire population was inappropriate. Context – This is a condition identified per review of DOH’s compliance with the specified requirements. Recommendation – We recommend that DOH and DPP improve internal controls to ensure adherence to federal regulations related to equipment and its related maintenance. There should be timely coordination and communication amongst all Government departments responsible for handling and managing such assets. Views of Responsible Officials – The Government concurs with the auditor’s findings and recommendations. The Government’s Audit Committee is leading the development of a structured, three-tier policy and procedures framework under the Public Finance Management project. Additional staff will be needed to effectively support the initiative and regular training sessions will be provided to staff to ensure they understand and adhere to compliance requirements with monitoring and evaluation occurring by the OMB Compliance Unit supported by the Government’s Audit Committee, to assess and improve the effectiveness of controls. The planned corrective actions are presented in the Government’s Corrective Action Plan attached as Appendix B to the Single Audit Report.
Finding Number: 2024-081 Prior Year Finding Number: 2023-064 Compliance Requirement: Equipment and Real Property Management Program: U.S. Department of Health and Human Services Government Department/Agency: Department of Human Services (DHS) Head Start Cluster ALN: 93.356, 93.600 Award #: Various Award Period: Various Criteria – Real property, equipment, and intangible property, that are acquired or improved with a federal award must be held in trust by the nonfederal entity as trustee for the beneficiaries of the project or program under which the property was acquired or improved. The Department of Health and Human Services (HHS) awarding agency may require the nonfederal entity to record liens or other appropriate notices of record to indicate that personal or real property has been acquired or improved with a federal award and that use and disposition conditions apply to the property (45 CFR section 75.323 and 45 CFR section 1303 – Subpart E). Real property acquired or improved under a federal award must be used for the authorized purpose so long as it is needed for that purpose, during which time the Head Start Agency (HSA) may not dispose of, replace or encumber the property without prior the Administration for Children and Families (ACF) approval (45 CFR section 75.318; 45 CFR section 75.308(c)(1)(xi)). Equipment acquired under a federal award must be used for the authorized purposes of the project during the period of performance, or until the property is no longer needed for the purposes of the project. A HSA may not dispose of, replace, or encumber title to equipment without prior ACF approval (45 CFR section 75.319; 45 CFR section 75.308(c)(1)(xi)). Per 2 CFR Section 200.313, Equipment, property records must be maintained for equipment acquired under a federal award that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Further, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires that non-federal entities receiving Federal awards (i.e., auditee management) establish, document, and maintain internal control designed to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition – The Government’s DPP maintains the equipment register for DHS. DHS was unable to provide complete property records which met the stated requirements. Further, no physical inventory of equipment was taken in the previous two years. Cause – DHS does not appear to have a process in place to adequately monitor equipment acquired with Federal funds. Effect or Potential Effect – There is a risk that inadequate recordkeeping of equipment could lead to misappropriation of assets and noncompliance with Federal regulations resulting in a return of Federal awards received. Questioned Costs – Not determinable. Given the nature of the finding (e.g. unavailability of supporting documentation), we determined that projecting estimated questioned costs to the entire population was inappropriate. Context – This is a condition identified per review of DHS’ compliance with the specified requirements. Recommendation – We recommend that DHS and DPP improve internal controls to ensure adherence to Federal regulations related to equipment and its related maintenance. There should be timely coordination and communication amongst all Government departments and/or agencies that are responsible for handling and managing such assets. Views of Responsible Officials – The Government concurs with the auditor’s findings and recommendations. DHS will be onboarding dedicated staff for Head Start inventory. DHS will continue to collaborate with DPP to ensure compliance with Federal regulations regarding equipment and its maintenance. The planned corrective actions are presented in the Government’s Corrective Action Plan attached as Appendix B to the Single Audit Report.
Criteria: 2 CFR §200.313 requires that equipment be used in the program for which it was acquired or, when appropriate, other Federal programs. Equipment records shall be maintained, a physical inventory of equipment shall be taken at least once every two years and reconciled to the equipment records, an appropriate control system shall be used to safeguard equipment, and such equipment shall be adequately maintained. Condition: The Organization has not maintained adequate documentary evidence with respect to maintenance of equipment records and does not perform periodic inventories of equipment purchased with Federal funds. Cause: The Organization has not established entity-wide policies and procedures that require various hubs to uniformly follow the equipment management requirements. Effect: The Organization was not in compliance with the Uniform Guidance requirements equipment and real property management requirements. Questioned Costs: None Context: Each hub, or location, of the Organization maintains some form of records for equipment purchased with Federal funds. However, the inconsistency of the records between the locations has resulted in certain documentation of the required elements being incomplete. In addition, not every hub that has purchased equipment with Federal funds performs physical inventory counts for equipment, as required by the Uniform Guidance. Recommendation: The Organization should establish written policies and procedures that require equipment records to be maintained in accordance with Uniform Guidance. The policies and procedures should also require a physical inventory count for equipment purchased with Federal funds to be conducted, at least biannually. The Organization should also consider hiring additional personnel at the organizational level to facilitate implementation of these procedures and ensure compliance by the various hubs. Views of Responsible Officials: See management’s view and corrective action plan at the end of this report.
Federal Agency: U.S. Department of Health and Human Services AL Program: 93.323 Epidemiology and Laboratory Capacity for Infectious Diseases Federal Award No.: NU50CK000513 Area: Equipment and Real Property Management Questioned Costs: $19,824 Criteria: In accordance with 2 CFR 200.303(a), recipients must establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient or subrecipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Additionally, in accordance with 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or another identification number, the source of funding for the property (including the Federal award identification number), the title holder, the acquisition date, the cost of the property, the percentage of the Federal agency contribution towards the original purchase, the location, use and condition of the property, and any disposition data including the date of disposal and sale price of the property. Further, according to 2 CFR Section 200.313(d)(3), a control system must be in place to ensure safeguards for preventing property loss, damage, or theft. Any loss, damage, or theft of equipment must be investigated. The recipient or subrecipient must notify the Federal agency or pass-through entity of any loss, damage, or theft of equipment that will have an impact on the program. Lastly, according to 2 CFR Section 200.313(d)(4), regular maintenance procedures must be in place to ensure the property is in proper working condition. Condition: 1. FSMNG’s capital asset listing does not contain all required information identified in 2 CFR 200.313. The current listing does not clearly determine which program each asset belongs to. No questioned cost identified as the finding is non-monetary. 2. For four (or 21%) of 19 equipment selected for physical inspection testing, FSMNG did not properly safeguard and maintain the federal capital assets to ensure that the property is existing and is in proper working condition. Based on the physical inspection, the following capital assets were either not located or found to be in a broken state, with no evidence indicating that they are currently under repair. Cause: 1. FSMNG’s current policy and procedure for capital asset listing management and maintenance is not in accordance with 2 CFR 200.313(d)(1). 2. FSMNG does not have established maintenance and security procedures to ensure that all federal capital assets are properly maintained and secured in the assigned premises. Effect or Potential Effect: FSMNG is in noncompliance with applicable equipment and real property management requirements and a total questioned costs $19,824 result. The amount of the questioned cost is based on the net book value of the asset. Identification as a Repeat Finding: Finding No. 2023-017. Recommendation: 1. FSMNG should update the structure and contents of their current capital asset listing to include all the information required by 2 CFR 200.313(d)(1). Additionally, FSMNG should improve their policies and procedures on management and maintenance of their capital asset listing. 2. FSMNG should establish safeguarding and maintenance procedures that ensure performance of periodic inspections, timely repairs, and adequate security in each location of all federal capital assets. Views of Responsible Officials: Management agrees with the finding. As set out in the responses to Findings 2024-006 and 2024-011, management recognizes that the current Fixed Asset Register (FAR) needs to be rebuilt, with proper recording aligned to the Fiscal Management Regulations and to the property record requirements of 2 CFR Section 200.313(d)(1). The rebuilt register will capture the required data elements — including the description, serial or identification number, the source of funding for the property including the Federal award identification number, the title holder, acquisition date and cost, the percentage of Federal contribution, and the location, use, and condition of each asset — so that capital assets procured with federal funding under the program can be clearly identified, together with any disposition data. The rebuild must be completed well ahead of the FY2025 audit, as the FAR will then be migrated into the new integrated FMIS (FreeBalance), which maintains a fixed asset register module of its own within the system. Establishing a clean, accurate register prior to migration — with the funding source of each asset identified — will ensure the system-based FAR carries correct and complete records from the outset. Proper advice and guidance has now been provided to the Supply Team on the recording, tracking, reconciliation, safeguarding, and maintenance of capital assets. Once the rebuild of the FAR is completed, the Supply Team will conduct physical checks and counts of assets — which will include locating and confirming the status and condition of the assets identified in this finding — so that adjustments, including deletions and other corrections, can be made for FY2025 and the appropriate action taken on assets found to be missing, broken, or requiring repair or disposition, in line with the safeguarding and maintenance requirements of 2 CFR Sections 200.313(d)(3) and (d)(4). In line with the auditors' recommendation, a written policy with comprehensive procedures will be established covering effective safeguards against loss, damage, or theft of property, together with maintenance protocols to preserve the property in good condition, and these procedures will be enforced to ensure federal capital assets are kept safe and in good working condition. Summary Schedule — Remarks (2024-015): Repeat 2023-017. Finding agreed. Addressed together with 2024-006 and 2024-011 — FAR to be rebuilt aligned to the regulations and 2 CFR 200.313(d)(1) property record elements, identifying assets procured with federal funding including the award identification number. Rebuild ahead of the FY2025 audit and migration into the new FMIS (FreeBalance) FAR module. Physical checks and counts to follow the rebuild, including confirmation of the status of the assets identified. Per the recommendation, a written safeguarding and maintenance policy with comprehensive procedures to be established and enforced per 2 CFR 200.313(d)(3) and (d)(4).
Finding 2024 – 007: Equipment and Real Property Management (Compliance; Internal Controls Over Compliance) (Repeat Finding: 2023-007) Material Weakness – 93.U01 Title V Criteria: Non-federal entities that acquire, manage, or dispose of equipment and real property purchased with federal funds are required to establish and maintain effective internal controls and inventory procedures to ensure proper management, safeguarding, and accountability of such assets. According to 2 CFR § 200.310–200.314, non-federal entities must adequately safeguard all assets and assure that they are used solely for authorized purposes. Specifically, 2 CFR § 200.313(d) requires that property records be maintained for equipment, a physical inventory be taken at least once every two years and reconciled to the property records, and that adequate maintenance procedures be implemented to keep the property in good condition. Additionally, 2 CFR § 200.407, 200.439, 200.313, and 200.311 require non-federal entities to obtain prior written approval from the federal awarding agency or pass-through entity before using federal funds to purchase or lease equipment (with a per-unit cost of $10,000 or more), land, or buildings. Condition: The Organization was unable to provide sufficient documentation to support compliance with federal equipment and real property management requirements for purchases made under the Title V program. The general ledger did not allow for sufficient identification of transactions related to the Title V program as all expenditures were recorded through journal entries without supporting transaction-level detail. Due to this limitation, we were unable to select equipment purchases for testing or verify if capital purchases were included in the Title V budget. The Organization also does not have an adequate system of controls established to identify, mark, record, or maintain equipment and real property purchased with federal funds, and no periodic physical inventory of such assets is being performed. Questioned Costs: None. Cause: The Organization did not maintain adequate financial records to demonstrate compliance with Uniform Guidance requirements. The lack of a complete and detailed general ledger further limited the ability to track and substantiate transactions. The Organization also does not have sufficiently established control policies and procedures to ensure that prior written approval is obtained for capital expenditures as required by federal regulations and the grant contract. Lastly, the Organization lacks established control policies for identifying, marking, recording, or maintaining equipment and real property, as well as for conducting periodic inventories. Effect: Without sufficient documentation, the Organization was unable to demonstrate compliance with federal equipment purchases, increasing the risk of noncompliance and potential disallowed costs. Additionally, these expenditures may be subject to repayment or further review by the granting agency. Also the Organization is not in compliance with federal requirements for prior written approval of capital expenditures and for equipment and real property management. As a result, there is an increased risk that federal funds may be used for unallowable purposes, and the Organization may be unable to distinguish federally funded property from other property or detect if such property is misplaced or stolen. Recommendation: We recommend that management strengthen documentation and recordkeeping procedures to ensure compliance with federal record retention requirements. The Organization should implement a standardized process for tracking federal grant expenditures, ensuring proper coding within the accounting system, conduct periodic internal reviews to verify completeness and accuracy of financial records, and provide training to finance staff on Uniform Guidance requirements for grant record retention and reporting. We further recommend that the Organization becomes familiar with the requirements of 2 CFR Part 200 and establishes appropriate internal control policies and procedures to ensure that prior written approval is obtained for all capital expenditures with federal funds. Lastly we recommend that the Organization implement procedures for maintaining property records, conducting periodic physical inventories, and ensuring all staff are trained on these requirements. Views of Responsible Officials: See the corrective action plan that accompanies the schedule of findings and questioned costs.
Equipment and Real Property Management Federal Program Title: Research and Development Cluster Federal Agency: U.S. Department of Defense; National Science Foundation; and U.S. Department of Health and Human Services Assistance Listing Number: See below Pass-Through Agency: Texas A&M University Health Science Center; and Harvard University Award Number: See below Award Period: See below Statistically Valid Sample: No and not intended to be a statistically valid sample Type of Finding: Significant Deficiency and Noncompliance Questioned Costs: None Repeat Finding: No A recipient’s property records for equipment acquired with federal funds must be maintained accurately and include all of the following: a description of the equipment; serial number or other identification number; the source of funding for the equipment, including the federal award identification number; indication of who holds the title; acquisition date; cost of the equipment; the percentage of federal participation in the cost of the equipment; the location, use, and condition of the equipment; and ultimate disposition data, including the date of disposal and sale price (Title 2, Code of Federal Regulations (CFR), Section 200.313(d)(1)). A control system must be developed to ensure that adequate safeguards are in place to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft must be investigated (Title 2, CFR, Section 200.313(d)(3)). The Engineering Experiment Station did not maintain accurate and complete property records for 3 (5 percent) of 63 equipment items tested. Specifically: For two items, the property records contained incorrect locations. The errors occurred because the Engineering Experiment Station either (1) did not enter property records accurately and completely into its asset management system or (2) did not always follow its policies and procedures to update property records as needed. The Engineering Experiment Station was not able to locate one item selected for testing. As a result, the institution could not demonstrate that the item was properly safeguarded. After auditors brought the issue to the Engineering Experiment Station’s attention, the institution filed a missing or stolen property report. Not maintaining accurate and complete property records and not adequately safeguarding equipment increases the risk that equipment may be misused, lost, or stolen. The following awards were affected by the equipment issues discussed above: See chart or table in the Schedule of Findings and Questioned Costs. Recommendation: The Engineering Experiment Station should strengthen controls to ensure that it: Maintains accurate and complete property records for all equipment acquired with federal funds. Adequately safeguards its equipment to prevent loss or theft of equipment. Views of Responsible Officials: The Texas A&M Engineering Experiment Station (TEES) acknowledges and agrees with the finding. TEES will work to develop and implement corrective action to further improve processes.
Equipment and Real Property Management Federal Program Title: Research and Development Cluster Federal Agency: U.S. Department of Defense; National Science Foundation; and U.S. Department of Health and Human Services Assistance Listing Number: See below Pass-Through Agency: Texas A&M University Health Science Center; and Harvard University Award Number: See below Award Period: See below Statistically Valid Sample: No and not intended to be a statistically valid sample Type of Finding: Significant Deficiency and Noncompliance Questioned Costs: None Repeat Finding: No A recipient’s property records for equipment acquired with federal funds must be maintained accurately and include all of the following: a description of the equipment; serial number or other identification number; the source of funding for the equipment, including the federal award identification number; indication of who holds the title; acquisition date; cost of the equipment; the percentage of federal participation in the cost of the equipment; the location, use, and condition of the equipment; and ultimate disposition data, including the date of disposal and sale price (Title 2, Code of Federal Regulations (CFR), Section 200.313(d)(1)). A control system must be developed to ensure that adequate safeguards are in place to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft must be investigated (Title 2, CFR, Section 200.313(d)(3)). The Engineering Experiment Station did not maintain accurate and complete property records for 3 (5 percent) of 63 equipment items tested. Specifically: For two items, the property records contained incorrect locations. The errors occurred because the Engineering Experiment Station either (1) did not enter property records accurately and completely into its asset management system or (2) did not always follow its policies and procedures to update property records as needed. The Engineering Experiment Station was not able to locate one item selected for testing. As a result, the institution could not demonstrate that the item was properly safeguarded. After auditors brought the issue to the Engineering Experiment Station’s attention, the institution filed a missing or stolen property report. Not maintaining accurate and complete property records and not adequately safeguarding equipment increases the risk that equipment may be misused, lost, or stolen. The following awards were affected by the equipment issues discussed above: See chart or table in the Schedule of Findings and Questioned Costs. Recommendation: The Engineering Experiment Station should strengthen controls to ensure that it: Maintains accurate and complete property records for all equipment acquired with federal funds. Adequately safeguards its equipment to prevent loss or theft of equipment. Views of Responsible Officials: The Texas A&M Engineering Experiment Station (TEES) acknowledges and agrees with the finding. TEES will work to develop and implement corrective action to further improve processes.
Equipment and Real Property Management Federal Program Title: Research and Development Cluster Federal Agency: U.S. Department of Defense; National Science Foundation; and U.S. Department of Health and Human Services Assistance Listing Number: See below Pass-Through Agency: Texas A&M University Health Science Center; and Harvard University Award Number: See below Award Period: See below Statistically Valid Sample: No and not intended to be a statistically valid sample Type of Finding: Significant Deficiency and Noncompliance Questioned Costs: None Repeat Finding: No A recipient’s property records for equipment acquired with federal funds must be maintained accurately and include all of the following: a description of the equipment; serial number or other identification number; the source of funding for the equipment, including the federal award identification number; indication of who holds the title; acquisition date; cost of the equipment; the percentage of federal participation in the cost of the equipment; the location, use, and condition of the equipment; and ultimate disposition data, including the date of disposal and sale price (Title 2, Code of Federal Regulations (CFR), Section 200.313(d)(1)). A control system must be developed to ensure that adequate safeguards are in place to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft must be investigated (Title 2, CFR, Section 200.313(d)(3)). The Engineering Experiment Station did not maintain accurate and complete property records for 3 (5 percent) of 63 equipment items tested. Specifically: For two items, the property records contained incorrect locations. The errors occurred because the Engineering Experiment Station either (1) did not enter property records accurately and completely into its asset management system or (2) did not always follow its policies and procedures to update property records as needed. The Engineering Experiment Station was not able to locate one item selected for testing. As a result, the institution could not demonstrate that the item was properly safeguarded. After auditors brought the issue to the Engineering Experiment Station’s attention, the institution filed a missing or stolen property report. Not maintaining accurate and complete property records and not adequately safeguarding equipment increases the risk that equipment may be misused, lost, or stolen. The following awards were affected by the equipment issues discussed above: See chart or table in the Schedule of Findings and Questioned Costs. Recommendation: The Engineering Experiment Station should strengthen controls to ensure that it: Maintains accurate and complete property records for all equipment acquired with federal funds. Adequately safeguards its equipment to prevent loss or theft of equipment. Views of Responsible Officials: The Texas A&M Engineering Experiment Station (TEES) acknowledges and agrees with the finding. TEES will work to develop and implement corrective action to further improve processes.
Equipment and Real Property Management Federal Program Title: Research and Development Cluster Federal Agency: U.S. Department of Defense; National Science Foundation; and U.S. Department of Health and Human Services Assistance Listing Number: See below Pass-Through Agency: Texas A&M University Health Science Center; and Harvard University Award Number: See below Award Period: See below Statistically Valid Sample: No and not intended to be a statistically valid sample Type of Finding: Significant Deficiency and Noncompliance Questioned Costs: None Repeat Finding: No A recipient’s property records for equipment acquired with federal funds must be maintained accurately and include all of the following: a description of the equipment; serial number or other identification number; the source of funding for the equipment, including the federal award identification number; indication of who holds the title; acquisition date; cost of the equipment; the percentage of federal participation in the cost of the equipment; the location, use, and condition of the equipment; and ultimate disposition data, including the date of disposal and sale price (Title 2, Code of Federal Regulations (CFR), Section 200.313(d)(1)). A control system must be developed to ensure that adequate safeguards are in place to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft must be investigated (Title 2, CFR, Section 200.313(d)(3)). The Engineering Experiment Station did not maintain accurate and complete property records for 3 (5 percent) of 63 equipment items tested. Specifically: For two items, the property records contained incorrect locations. The errors occurred because the Engineering Experiment Station either (1) did not enter property records accurately and completely into its asset management system or (2) did not always follow its policies and procedures to update property records as needed. The Engineering Experiment Station was not able to locate one item selected for testing. As a result, the institution could not demonstrate that the item was properly safeguarded. After auditors brought the issue to the Engineering Experiment Station’s attention, the institution filed a missing or stolen property report. Not maintaining accurate and complete property records and not adequately safeguarding equipment increases the risk that equipment may be misused, lost, or stolen. The following awards were affected by the equipment issues discussed above: See chart or table in the Schedule of Findings and Questioned Costs. Recommendation: The Engineering Experiment Station should strengthen controls to ensure that it: Maintains accurate and complete property records for all equipment acquired with federal funds. Adequately safeguards its equipment to prevent loss or theft of equipment. Views of Responsible Officials: The Texas A&M Engineering Experiment Station (TEES) acknowledges and agrees with the finding. TEES will work to develop and implement corrective action to further improve processes.
Equipment and Real Property Management Federal Program Title: Research and Development Cluster Federal Agency: U.S. Department of Defense; National Science Foundation; and U.S. Department of Health and Human Services Assistance Listing Number: See below Pass-Through Agency: Texas A&M University Health Science Center; and Harvard University Award Number: See below Award Period: See below Statistically Valid Sample: No and not intended to be a statistically valid sample Type of Finding: Significant Deficiency and Noncompliance Questioned Costs: None Repeat Finding: No A recipient’s property records for equipment acquired with federal funds must be maintained accurately and include all of the following: a description of the equipment; serial number or other identification number; the source of funding for the equipment, including the federal award identification number; indication of who holds the title; acquisition date; cost of the equipment; the percentage of federal participation in the cost of the equipment; the location, use, and condition of the equipment; and ultimate disposition data, including the date of disposal and sale price (Title 2, Code of Federal Regulations (CFR), Section 200.313(d)(1)). A control system must be developed to ensure that adequate safeguards are in place to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft must be investigated (Title 2, CFR, Section 200.313(d)(3)). The Engineering Experiment Station did not maintain accurate and complete property records for 3 (5 percent) of 63 equipment items tested. Specifically: For two items, the property records contained incorrect locations. The errors occurred because the Engineering Experiment Station either (1) did not enter property records accurately and completely into its asset management system or (2) did not always follow its policies and procedures to update property records as needed. The Engineering Experiment Station was not able to locate one item selected for testing. As a result, the institution could not demonstrate that the item was properly safeguarded. After auditors brought the issue to the Engineering Experiment Station’s attention, the institution filed a missing or stolen property report. Not maintaining accurate and complete property records and not adequately safeguarding equipment increases the risk that equipment may be misused, lost, or stolen. The following awards were affected by the equipment issues discussed above: See chart or table in the Schedule of Findings and Questioned Costs. Recommendation: The Engineering Experiment Station should strengthen controls to ensure that it: Maintains accurate and complete property records for all equipment acquired with federal funds. Adequately safeguards its equipment to prevent loss or theft of equipment. Views of Responsible Officials: The Texas A&M Engineering Experiment Station (TEES) acknowledges and agrees with the finding. TEES will work to develop and implement corrective action to further improve processes.
Equipment and Real Property Management Federal Program Title: Research and Development Cluster Federal Agency: U.S. Department of Defense; National Science Foundation; and U.S. Department of Health and Human Services Assistance Listing Number: See below Pass-Through Agency: Texas A&M University Health Science Center; and Harvard University Award Number: See below Award Period: See below Statistically Valid Sample: No and not intended to be a statistically valid sample Type of Finding: Significant Deficiency and Noncompliance Questioned Costs: None Repeat Finding: No A recipient’s property records for equipment acquired with federal funds must be maintained accurately and include all of the following: a description of the equipment; serial number or other identification number; the source of funding for the equipment, including the federal award identification number; indication of who holds the title; acquisition date; cost of the equipment; the percentage of federal participation in the cost of the equipment; the location, use, and condition of the equipment; and ultimate disposition data, including the date of disposal and sale price (Title 2, Code of Federal Regulations (CFR), Section 200.313(d)(1)). A control system must be developed to ensure that adequate safeguards are in place to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft must be investigated (Title 2, CFR, Section 200.313(d)(3)). The Engineering Experiment Station did not maintain accurate and complete property records for 3 (5 percent) of 63 equipment items tested. Specifically: For two items, the property records contained incorrect locations. The errors occurred because the Engineering Experiment Station either (1) did not enter property records accurately and completely into its asset management system or (2) did not always follow its policies and procedures to update property records as needed. The Engineering Experiment Station was not able to locate one item selected for testing. As a result, the institution could not demonstrate that the item was properly safeguarded. After auditors brought the issue to the Engineering Experiment Station’s attention, the institution filed a missing or stolen property report. Not maintaining accurate and complete property records and not adequately safeguarding equipment increases the risk that equipment may be misused, lost, or stolen. The following awards were affected by the equipment issues discussed above: See chart or table in the Schedule of Findings and Questioned Costs. Recommendation: The Engineering Experiment Station should strengthen controls to ensure that it: Maintains accurate and complete property records for all equipment acquired with federal funds. Adequately safeguards its equipment to prevent loss or theft of equipment. Views of Responsible Officials: The Texas A&M Engineering Experiment Station (TEES) acknowledges and agrees with the finding. TEES will work to develop and implement corrective action to further improve processes.
Equipment and Real Property Management Federal Program Title: Research and Development Cluster Federal Agency: U.S. Department of Defense; National Science Foundation; and U.S. Department of Health and Human Services Assistance Listing Number: See below Pass-Through Agency: Texas A&M University Health Science Center; and Harvard University Award Number: See below Award Period: See below Statistically Valid Sample: No and not intended to be a statistically valid sample Type of Finding: Significant Deficiency and Noncompliance Questioned Costs: None Repeat Finding: No A recipient’s property records for equipment acquired with federal funds must be maintained accurately and include all of the following: a description of the equipment; serial number or other identification number; the source of funding for the equipment, including the federal award identification number; indication of who holds the title; acquisition date; cost of the equipment; the percentage of federal participation in the cost of the equipment; the location, use, and condition of the equipment; and ultimate disposition data, including the date of disposal and sale price (Title 2, Code of Federal Regulations (CFR), Section 200.313(d)(1)). A control system must be developed to ensure that adequate safeguards are in place to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft must be investigated (Title 2, CFR, Section 200.313(d)(3)). The Engineering Experiment Station did not maintain accurate and complete property records for 3 (5 percent) of 63 equipment items tested. Specifically: For two items, the property records contained incorrect locations. The errors occurred because the Engineering Experiment Station either (1) did not enter property records accurately and completely into its asset management system or (2) did not always follow its policies and procedures to update property records as needed. The Engineering Experiment Station was not able to locate one item selected for testing. As a result, the institution could not demonstrate that the item was properly safeguarded. After auditors brought the issue to the Engineering Experiment Station’s attention, the institution filed a missing or stolen property report. Not maintaining accurate and complete property records and not adequately safeguarding equipment increases the risk that equipment may be misused, lost, or stolen. The following awards were affected by the equipment issues discussed above: See chart or table in the Schedule of Findings and Questioned Costs. Recommendation: The Engineering Experiment Station should strengthen controls to ensure that it: Maintains accurate and complete property records for all equipment acquired with federal funds. Adequately safeguards its equipment to prevent loss or theft of equipment. Views of Responsible Officials: The Texas A&M Engineering Experiment Station (TEES) acknowledges and agrees with the finding. TEES will work to develop and implement corrective action to further improve processes.
Equipment and Real Property Management Federal Program Title: Research and Development Cluster Federal Agency: U.S. Department of Defense; National Science Foundation; and U.S. Department of Health and Human Services Assistance Listing Number: See below Pass-Through Agency: Texas A&M University Health Science Center; and Harvard University Award Number: See below Award Period: See below Statistically Valid Sample: No and not intended to be a statistically valid sample Type of Finding: Significant Deficiency and Noncompliance Questioned Costs: None Repeat Finding: No A recipient’s property records for equipment acquired with federal funds must be maintained accurately and include all of the following: a description of the equipment; serial number or other identification number; the source of funding for the equipment, including the federal award identification number; indication of who holds the title; acquisition date; cost of the equipment; the percentage of federal participation in the cost of the equipment; the location, use, and condition of the equipment; and ultimate disposition data, including the date of disposal and sale price (Title 2, Code of Federal Regulations (CFR), Section 200.313(d)(1)). A control system must be developed to ensure that adequate safeguards are in place to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft must be investigated (Title 2, CFR, Section 200.313(d)(3)). The Engineering Experiment Station did not maintain accurate and complete property records for 3 (5 percent) of 63 equipment items tested. Specifically: For two items, the property records contained incorrect locations. The errors occurred because the Engineering Experiment Station either (1) did not enter property records accurately and completely into its asset management system or (2) did not always follow its policies and procedures to update property records as needed. The Engineering Experiment Station was not able to locate one item selected for testing. As a result, the institution could not demonstrate that the item was properly safeguarded. After auditors brought the issue to the Engineering Experiment Station’s attention, the institution filed a missing or stolen property report. Not maintaining accurate and complete property records and not adequately safeguarding equipment increases the risk that equipment may be misused, lost, or stolen. The following awards were affected by the equipment issues discussed above: See chart or table in the Schedule of Findings and Questioned Costs. Recommendation: The Engineering Experiment Station should strengthen controls to ensure that it: Maintains accurate and complete property records for all equipment acquired with federal funds. Adequately safeguards its equipment to prevent loss or theft of equipment. Views of Responsible Officials: The Texas A&M Engineering Experiment Station (TEES) acknowledges and agrees with the finding. TEES will work to develop and implement corrective action to further improve processes.
Equipment and Real Property Management Federal Program Title: Research and Development Cluster Federal Agency: U.S. Department of Defense; National Science Foundation; and U.S. Department of Health and Human Services Assistance Listing Number: See below Pass-Through Agency: Texas A&M University Health Science Center; and Harvard University Award Number: See below Award Period: See below Statistically Valid Sample: No and not intended to be a statistically valid sample Type of Finding: Significant Deficiency and Noncompliance Questioned Costs: None Repeat Finding: No A recipient’s property records for equipment acquired with federal funds must be maintained accurately and include all of the following: a description of the equipment; serial number or other identification number; the source of funding for the equipment, including the federal award identification number; indication of who holds the title; acquisition date; cost of the equipment; the percentage of federal participation in the cost of the equipment; the location, use, and condition of the equipment; and ultimate disposition data, including the date of disposal and sale price (Title 2, Code of Federal Regulations (CFR), Section 200.313(d)(1)). A control system must be developed to ensure that adequate safeguards are in place to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft must be investigated (Title 2, CFR, Section 200.313(d)(3)). The Engineering Experiment Station did not maintain accurate and complete property records for 3 (5 percent) of 63 equipment items tested. Specifically: For two items, the property records contained incorrect locations. The errors occurred because the Engineering Experiment Station either (1) did not enter property records accurately and completely into its asset management system or (2) did not always follow its policies and procedures to update property records as needed. The Engineering Experiment Station was not able to locate one item selected for testing. As a result, the institution could not demonstrate that the item was properly safeguarded. After auditors brought the issue to the Engineering Experiment Station’s attention, the institution filed a missing or stolen property report. Not maintaining accurate and complete property records and not adequately safeguarding equipment increases the risk that equipment may be misused, lost, or stolen. The following awards were affected by the equipment issues discussed above: See chart or table in the Schedule of Findings and Questioned Costs. Recommendation: The Engineering Experiment Station should strengthen controls to ensure that it: Maintains accurate and complete property records for all equipment acquired with federal funds. Adequately safeguards its equipment to prevent loss or theft of equipment. Views of Responsible Officials: The Texas A&M Engineering Experiment Station (TEES) acknowledges and agrees with the finding. TEES will work to develop and implement corrective action to further improve processes.
Equipment and Real Property Management Federal Program Title: Research and Development Cluster Federal Agency: U.S. Department of Defense; National Science Foundation; and U.S. Department of Health and Human Services Assistance Listing Number: See below Pass-Through Agency: Texas A&M University Health Science Center; and Harvard University Award Number: See below Award Period: See below Statistically Valid Sample: No and not intended to be a statistically valid sample Type of Finding: Significant Deficiency and Noncompliance Questioned Costs: None Repeat Finding: No A recipient’s property records for equipment acquired with federal funds must be maintained accurately and include all of the following: a description of the equipment; serial number or other identification number; the source of funding for the equipment, including the federal award identification number; indication of who holds the title; acquisition date; cost of the equipment; the percentage of federal participation in the cost of the equipment; the location, use, and condition of the equipment; and ultimate disposition data, including the date of disposal and sale price (Title 2, Code of Federal Regulations (CFR), Section 200.313(d)(1)). A control system must be developed to ensure that adequate safeguards are in place to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft must be investigated (Title 2, CFR, Section 200.313(d)(3)). The Engineering Experiment Station did not maintain accurate and complete property records for 3 (5 percent) of 63 equipment items tested. Specifically: For two items, the property records contained incorrect locations. The errors occurred because the Engineering Experiment Station either (1) did not enter property records accurately and completely into its asset management system or (2) did not always follow its policies and procedures to update property records as needed. The Engineering Experiment Station was not able to locate one item selected for testing. As a result, the institution could not demonstrate that the item was properly safeguarded. After auditors brought the issue to the Engineering Experiment Station’s attention, the institution filed a missing or stolen property report. Not maintaining accurate and complete property records and not adequately safeguarding equipment increases the risk that equipment may be misused, lost, or stolen. The following awards were affected by the equipment issues discussed above: See chart or table in the Schedule of Findings and Questioned Costs. Recommendation: The Engineering Experiment Station should strengthen controls to ensure that it: Maintains accurate and complete property records for all equipment acquired with federal funds. Adequately safeguards its equipment to prevent loss or theft of equipment. Views of Responsible Officials: The Texas A&M Engineering Experiment Station (TEES) acknowledges and agrees with the finding. TEES will work to develop and implement corrective action to further improve processes.
Equipment and Real Property Management Federal Program Title: Research and Development Cluster Federal Agency: U.S. Department of Defense; National Science Foundation; and U.S. Department of Health and Human Services Assistance Listing Number: See below Pass-Through Agency: Texas A&M University Health Science Center; and Harvard University Award Number: See below Award Period: See below Statistically Valid Sample: No and not intended to be a statistically valid sample Type of Finding: Significant Deficiency and Noncompliance Questioned Costs: None Repeat Finding: No A recipient’s property records for equipment acquired with federal funds must be maintained accurately and include all of the following: a description of the equipment; serial number or other identification number; the source of funding for the equipment, including the federal award identification number; indication of who holds the title; acquisition date; cost of the equipment; the percentage of federal participation in the cost of the equipment; the location, use, and condition of the equipment; and ultimate disposition data, including the date of disposal and sale price (Title 2, Code of Federal Regulations (CFR), Section 200.313(d)(1)). A control system must be developed to ensure that adequate safeguards are in place to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft must be investigated (Title 2, CFR, Section 200.313(d)(3)). The Engineering Experiment Station did not maintain accurate and complete property records for 3 (5 percent) of 63 equipment items tested. Specifically: For two items, the property records contained incorrect locations. The errors occurred because the Engineering Experiment Station either (1) did not enter property records accurately and completely into its asset management system or (2) did not always follow its policies and procedures to update property records as needed. The Engineering Experiment Station was not able to locate one item selected for testing. As a result, the institution could not demonstrate that the item was properly safeguarded. After auditors brought the issue to the Engineering Experiment Station’s attention, the institution filed a missing or stolen property report. Not maintaining accurate and complete property records and not adequately safeguarding equipment increases the risk that equipment may be misused, lost, or stolen. The following awards were affected by the equipment issues discussed above: See chart or table in the Schedule of Findings and Questioned Costs. Recommendation: The Engineering Experiment Station should strengthen controls to ensure that it: Maintains accurate and complete property records for all equipment acquired with federal funds. Adequately safeguards its equipment to prevent loss or theft of equipment. Views of Responsible Officials: The Texas A&M Engineering Experiment Station (TEES) acknowledges and agrees with the finding. TEES will work to develop and implement corrective action to further improve processes.
Equipment and Real Property Management Federal Program Title: Research and Development Cluster Federal Agency: U.S. Department of Defense; National Science Foundation; and U.S. Department of Health and Human Services Assistance Listing Number: See below Pass-Through Agency: Texas A&M University Health Science Center; and Harvard University Award Number: See below Award Period: See below Statistically Valid Sample: No and not intended to be a statistically valid sample Type of Finding: Significant Deficiency and Noncompliance Questioned Costs: None Repeat Finding: No A recipient’s property records for equipment acquired with federal funds must be maintained accurately and include all of the following: a description of the equipment; serial number or other identification number; the source of funding for the equipment, including the federal award identification number; indication of who holds the title; acquisition date; cost of the equipment; the percentage of federal participation in the cost of the equipment; the location, use, and condition of the equipment; and ultimate disposition data, including the date of disposal and sale price (Title 2, Code of Federal Regulations (CFR), Section 200.313(d)(1)). A control system must be developed to ensure that adequate safeguards are in place to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft must be investigated (Title 2, CFR, Section 200.313(d)(3)). The Engineering Experiment Station did not maintain accurate and complete property records for 3 (5 percent) of 63 equipment items tested. Specifically: For two items, the property records contained incorrect locations. The errors occurred because the Engineering Experiment Station either (1) did not enter property records accurately and completely into its asset management system or (2) did not always follow its policies and procedures to update property records as needed. The Engineering Experiment Station was not able to locate one item selected for testing. As a result, the institution could not demonstrate that the item was properly safeguarded. After auditors brought the issue to the Engineering Experiment Station’s attention, the institution filed a missing or stolen property report. Not maintaining accurate and complete property records and not adequately safeguarding equipment increases the risk that equipment may be misused, lost, or stolen. The following awards were affected by the equipment issues discussed above: See chart or table in the Schedule of Findings and Questioned Costs. Recommendation: The Engineering Experiment Station should strengthen controls to ensure that it: Maintains accurate and complete property records for all equipment acquired with federal funds. Adequately safeguards its equipment to prevent loss or theft of equipment. Views of Responsible Officials: The Texas A&M Engineering Experiment Station (TEES) acknowledges and agrees with the finding. TEES will work to develop and implement corrective action to further improve processes.
Equipment and Real Property Management Federal Program Title: Research and Development Cluster Federal Agency: U.S. Department of Defense; National Science Foundation; and U.S. Department of Health and Human Services Assistance Listing Number: See below Pass-Through Agency: Texas A&M University Health Science Center; and Harvard University Award Number: See below Award Period: See below Statistically Valid Sample: No and not intended to be a statistically valid sample Type of Finding: Significant Deficiency and Noncompliance Questioned Costs: None Repeat Finding: No A recipient’s property records for equipment acquired with federal funds must be maintained accurately and include all of the following: a description of the equipment; serial number or other identification number; the source of funding for the equipment, including the federal award identification number; indication of who holds the title; acquisition date; cost of the equipment; the percentage of federal participation in the cost of the equipment; the location, use, and condition of the equipment; and ultimate disposition data, including the date of disposal and sale price (Title 2, Code of Federal Regulations (CFR), Section 200.313(d)(1)). A control system must be developed to ensure that adequate safeguards are in place to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft must be investigated (Title 2, CFR, Section 200.313(d)(3)). The Engineering Experiment Station did not maintain accurate and complete property records for 3 (5 percent) of 63 equipment items tested. Specifically: For two items, the property records contained incorrect locations. The errors occurred because the Engineering Experiment Station either (1) did not enter property records accurately and completely into its asset management system or (2) did not always follow its policies and procedures to update property records as needed. The Engineering Experiment Station was not able to locate one item selected for testing. As a result, the institution could not demonstrate that the item was properly safeguarded. After auditors brought the issue to the Engineering Experiment Station’s attention, the institution filed a missing or stolen property report. Not maintaining accurate and complete property records and not adequately safeguarding equipment increases the risk that equipment may be misused, lost, or stolen. The following awards were affected by the equipment issues discussed above: See chart or table in the Schedule of Findings and Questioned Costs. Recommendation: The Engineering Experiment Station should strengthen controls to ensure that it: Maintains accurate and complete property records for all equipment acquired with federal funds. Adequately safeguards its equipment to prevent loss or theft of equipment. Views of Responsible Officials: The Texas A&M Engineering Experiment Station (TEES) acknowledges and agrees with the finding. TEES will work to develop and implement corrective action to further improve processes.
Equipment and Real Property Management Federal Program Title: Research and Development Cluster Federal Agency: U.S. Department of Defense; National Science Foundation; and U.S. Department of Health and Human Services Assistance Listing Number: See below Pass-Through Agency: Texas A&M University Health Science Center; and Harvard University Award Number: See below Award Period: See below Statistically Valid Sample: No and not intended to be a statistically valid sample Type of Finding: Significant Deficiency and Noncompliance Questioned Costs: None Repeat Finding: No A recipient’s property records for equipment acquired with federal funds must be maintained accurately and include all of the following: a description of the equipment; serial number or other identification number; the source of funding for the equipment, including the federal award identification number; indication of who holds the title; acquisition date; cost of the equipment; the percentage of federal participation in the cost of the equipment; the location, use, and condition of the equipment; and ultimate disposition data, including the date of disposal and sale price (Title 2, Code of Federal Regulations (CFR), Section 200.313(d)(1)). A control system must be developed to ensure that adequate safeguards are in place to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft must be investigated (Title 2, CFR, Section 200.313(d)(3)). The Engineering Experiment Station did not maintain accurate and complete property records for 3 (5 percent) of 63 equipment items tested. Specifically: For two items, the property records contained incorrect locations. The errors occurred because the Engineering Experiment Station either (1) did not enter property records accurately and completely into its asset management system or (2) did not always follow its policies and procedures to update property records as needed. The Engineering Experiment Station was not able to locate one item selected for testing. As a result, the institution could not demonstrate that the item was properly safeguarded. After auditors brought the issue to the Engineering Experiment Station’s attention, the institution filed a missing or stolen property report. Not maintaining accurate and complete property records and not adequately safeguarding equipment increases the risk that equipment may be misused, lost, or stolen. The following awards were affected by the equipment issues discussed above: See chart or table in the Schedule of Findings and Questioned Costs. Recommendation: The Engineering Experiment Station should strengthen controls to ensure that it: Maintains accurate and complete property records for all equipment acquired with federal funds. Adequately safeguards its equipment to prevent loss or theft of equipment. Views of Responsible Officials: The Texas A&M Engineering Experiment Station (TEES) acknowledges and agrees with the finding. TEES will work to develop and implement corrective action to further improve processes.
Equipment and Real Property Management Federal Program Title: Research and Development Cluster Federal Agency: U.S. Department of Defense; National Science Foundation; and U.S. Department of Health and Human Services Assistance Listing Number: See below Pass-Through Agency: Texas A&M University Health Science Center; and Harvard University Award Number: See below Award Period: See below Statistically Valid Sample: No and not intended to be a statistically valid sample Type of Finding: Significant Deficiency and Noncompliance Questioned Costs: None Repeat Finding: No A recipient’s property records for equipment acquired with federal funds must be maintained accurately and include all of the following: a description of the equipment; serial number or other identification number; the source of funding for the equipment, including the federal award identification number; indication of who holds the title; acquisition date; cost of the equipment; the percentage of federal participation in the cost of the equipment; the location, use, and condition of the equipment; and ultimate disposition data, including the date of disposal and sale price (Title 2, Code of Federal Regulations (CFR), Section 200.313(d)(1)). A control system must be developed to ensure that adequate safeguards are in place to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft must be investigated (Title 2, CFR, Section 200.313(d)(3)). The Engineering Experiment Station did not maintain accurate and complete property records for 3 (5 percent) of 63 equipment items tested. Specifically: For two items, the property records contained incorrect locations. The errors occurred because the Engineering Experiment Station either (1) did not enter property records accurately and completely into its asset management system or (2) did not always follow its policies and procedures to update property records as needed. The Engineering Experiment Station was not able to locate one item selected for testing. As a result, the institution could not demonstrate that the item was properly safeguarded. After auditors brought the issue to the Engineering Experiment Station’s attention, the institution filed a missing or stolen property report. Not maintaining accurate and complete property records and not adequately safeguarding equipment increases the risk that equipment may be misused, lost, or stolen. The following awards were affected by the equipment issues discussed above: See chart or table in the Schedule of Findings and Questioned Costs. Recommendation: The Engineering Experiment Station should strengthen controls to ensure that it: Maintains accurate and complete property records for all equipment acquired with federal funds. Adequately safeguards its equipment to prevent loss or theft of equipment. Views of Responsible Officials: The Texas A&M Engineering Experiment Station (TEES) acknowledges and agrees with the finding. TEES will work to develop and implement corrective action to further improve processes.
Equipment and Real Property Management Federal Program Title: Research and Development Cluster Federal Agency: U.S. Department of Defense; National Science Foundation; and U.S. Department of Health and Human Services Assistance Listing Number: See below Pass-Through Agency: Texas A&M University Health Science Center; and Harvard University Award Number: See below Award Period: See below Statistically Valid Sample: No and not intended to be a statistically valid sample Type of Finding: Significant Deficiency and Noncompliance Questioned Costs: None Repeat Finding: No A recipient’s property records for equipment acquired with federal funds must be maintained accurately and include all of the following: a description of the equipment; serial number or other identification number; the source of funding for the equipment, including the federal award identification number; indication of who holds the title; acquisition date; cost of the equipment; the percentage of federal participation in the cost of the equipment; the location, use, and condition of the equipment; and ultimate disposition data, including the date of disposal and sale price (Title 2, Code of Federal Regulations (CFR), Section 200.313(d)(1)). A control system must be developed to ensure that adequate safeguards are in place to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft must be investigated (Title 2, CFR, Section 200.313(d)(3)). The Engineering Experiment Station did not maintain accurate and complete property records for 3 (5 percent) of 63 equipment items tested. Specifically: For two items, the property records contained incorrect locations. The errors occurred because the Engineering Experiment Station either (1) did not enter property records accurately and completely into its asset management system or (2) did not always follow its policies and procedures to update property records as needed. The Engineering Experiment Station was not able to locate one item selected for testing. As a result, the institution could not demonstrate that the item was properly safeguarded. After auditors brought the issue to the Engineering Experiment Station’s attention, the institution filed a missing or stolen property report. Not maintaining accurate and complete property records and not adequately safeguarding equipment increases the risk that equipment may be misused, lost, or stolen. The following awards were affected by the equipment issues discussed above: See chart or table in the Schedule of Findings and Questioned Costs. Recommendation: The Engineering Experiment Station should strengthen controls to ensure that it: Maintains accurate and complete property records for all equipment acquired with federal funds. Adequately safeguards its equipment to prevent loss or theft of equipment. Views of Responsible Officials: The Texas A&M Engineering Experiment Station (TEES) acknowledges and agrees with the finding. TEES will work to develop and implement corrective action to further improve processes.
Equipment and Real Property Management Federal Program Title: Research and Development Cluster Federal Agency: U.S. Department of Defense; National Science Foundation; and U.S. Department of Health and Human Services Assistance Listing Number: See below Pass-Through Agency: Texas A&M University Health Science Center; and Harvard University Award Number: See below Award Period: See below Statistically Valid Sample: No and not intended to be a statistically valid sample Type of Finding: Significant Deficiency and Noncompliance Questioned Costs: None Repeat Finding: No A recipient’s property records for equipment acquired with federal funds must be maintained accurately and include all of the following: a description of the equipment; serial number or other identification number; the source of funding for the equipment, including the federal award identification number; indication of who holds the title; acquisition date; cost of the equipment; the percentage of federal participation in the cost of the equipment; the location, use, and condition of the equipment; and ultimate disposition data, including the date of disposal and sale price (Title 2, Code of Federal Regulations (CFR), Section 200.313(d)(1)). A control system must be developed to ensure that adequate safeguards are in place to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft must be investigated (Title 2, CFR, Section 200.313(d)(3)). The Engineering Experiment Station did not maintain accurate and complete property records for 3 (5 percent) of 63 equipment items tested. Specifically: For two items, the property records contained incorrect locations. The errors occurred because the Engineering Experiment Station either (1) did not enter property records accurately and completely into its asset management system or (2) did not always follow its policies and procedures to update property records as needed. The Engineering Experiment Station was not able to locate one item selected for testing. As a result, the institution could not demonstrate that the item was properly safeguarded. After auditors brought the issue to the Engineering Experiment Station’s attention, the institution filed a missing or stolen property report. Not maintaining accurate and complete property records and not adequately safeguarding equipment increases the risk that equipment may be misused, lost, or stolen. The following awards were affected by the equipment issues discussed above: See chart or table in the Schedule of Findings and Questioned Costs. Recommendation: The Engineering Experiment Station should strengthen controls to ensure that it: Maintains accurate and complete property records for all equipment acquired with federal funds. Adequately safeguards its equipment to prevent loss or theft of equipment. Views of Responsible Officials: The Texas A&M Engineering Experiment Station (TEES) acknowledges and agrees with the finding. TEES will work to develop and implement corrective action to further improve processes.
Equipment and Real Property Management Federal Program Title: Research and Development Cluster Federal Agency: U.S. Department of Defense; National Science Foundation; and U.S. Department of Health and Human Services Assistance Listing Number: See below Pass-Through Agency: Texas A&M University Health Science Center; and Harvard University Award Number: See below Award Period: See below Statistically Valid Sample: No and not intended to be a statistically valid sample Type of Finding: Significant Deficiency and Noncompliance Questioned Costs: None Repeat Finding: No A recipient’s property records for equipment acquired with federal funds must be maintained accurately and include all of the following: a description of the equipment; serial number or other identification number; the source of funding for the equipment, including the federal award identification number; indication of who holds the title; acquisition date; cost of the equipment; the percentage of federal participation in the cost of the equipment; the location, use, and condition of the equipment; and ultimate disposition data, including the date of disposal and sale price (Title 2, Code of Federal Regulations (CFR), Section 200.313(d)(1)). A control system must be developed to ensure that adequate safeguards are in place to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft must be investigated (Title 2, CFR, Section 200.313(d)(3)). The Engineering Experiment Station did not maintain accurate and complete property records for 3 (5 percent) of 63 equipment items tested. Specifically: For two items, the property records contained incorrect locations. The errors occurred because the Engineering Experiment Station either (1) did not enter property records accurately and completely into its asset management system or (2) did not always follow its policies and procedures to update property records as needed. The Engineering Experiment Station was not able to locate one item selected for testing. As a result, the institution could not demonstrate that the item was properly safeguarded. After auditors brought the issue to the Engineering Experiment Station’s attention, the institution filed a missing or stolen property report. Not maintaining accurate and complete property records and not adequately safeguarding equipment increases the risk that equipment may be misused, lost, or stolen. The following awards were affected by the equipment issues discussed above: See chart or table in the Schedule of Findings and Questioned Costs. Recommendation: The Engineering Experiment Station should strengthen controls to ensure that it: Maintains accurate and complete property records for all equipment acquired with federal funds. Adequately safeguards its equipment to prevent loss or theft of equipment. Views of Responsible Officials: The Texas A&M Engineering Experiment Station (TEES) acknowledges and agrees with the finding. TEES will work to develop and implement corrective action to further improve processes.
Equipment and Real Property Management Federal Program Title: Research and Development Cluster Federal Agency: U.S. Department of Defense; National Science Foundation; and U.S. Department of Health and Human Services Assistance Listing Number: See below Pass-Through Agency: Texas A&M University Health Science Center; and Harvard University Award Number: See below Award Period: See below Statistically Valid Sample: No and not intended to be a statistically valid sample Type of Finding: Significant Deficiency and Noncompliance Questioned Costs: None Repeat Finding: No A recipient’s property records for equipment acquired with federal funds must be maintained accurately and include all of the following: a description of the equipment; serial number or other identification number; the source of funding for the equipment, including the federal award identification number; indication of who holds the title; acquisition date; cost of the equipment; the percentage of federal participation in the cost of the equipment; the location, use, and condition of the equipment; and ultimate disposition data, including the date of disposal and sale price (Title 2, Code of Federal Regulations (CFR), Section 200.313(d)(1)). A control system must be developed to ensure that adequate safeguards are in place to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft must be investigated (Title 2, CFR, Section 200.313(d)(3)). The Engineering Experiment Station did not maintain accurate and complete property records for 3 (5 percent) of 63 equipment items tested. Specifically: For two items, the property records contained incorrect locations. The errors occurred because the Engineering Experiment Station either (1) did not enter property records accurately and completely into its asset management system or (2) did not always follow its policies and procedures to update property records as needed. The Engineering Experiment Station was not able to locate one item selected for testing. As a result, the institution could not demonstrate that the item was properly safeguarded. After auditors brought the issue to the Engineering Experiment Station’s attention, the institution filed a missing or stolen property report. Not maintaining accurate and complete property records and not adequately safeguarding equipment increases the risk that equipment may be misused, lost, or stolen. The following awards were affected by the equipment issues discussed above: See chart or table in the Schedule of Findings and Questioned Costs. Recommendation: The Engineering Experiment Station should strengthen controls to ensure that it: Maintains accurate and complete property records for all equipment acquired with federal funds. Adequately safeguards its equipment to prevent loss or theft of equipment. Views of Responsible Officials: The Texas A&M Engineering Experiment Station (TEES) acknowledges and agrees with the finding. TEES will work to develop and implement corrective action to further improve processes.
Equipment and Real Property Management Federal Program Title: Research and Development Cluster Federal Agency: U.S. Department of Defense; National Science Foundation; and U.S. Department of Health and Human Services Assistance Listing Number: See below Pass-Through Agency: Texas A&M University Health Science Center; and Harvard University Award Number: See below Award Period: See below Statistically Valid Sample: No and not intended to be a statistically valid sample Type of Finding: Significant Deficiency and Noncompliance Questioned Costs: None Repeat Finding: No A recipient’s property records for equipment acquired with federal funds must be maintained accurately and include all of the following: a description of the equipment; serial number or other identification number; the source of funding for the equipment, including the federal award identification number; indication of who holds the title; acquisition date; cost of the equipment; the percentage of federal participation in the cost of the equipment; the location, use, and condition of the equipment; and ultimate disposition data, including the date of disposal and sale price (Title 2, Code of Federal Regulations (CFR), Section 200.313(d)(1)). A control system must be developed to ensure that adequate safeguards are in place to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft must be investigated (Title 2, CFR, Section 200.313(d)(3)). The Engineering Experiment Station did not maintain accurate and complete property records for 3 (5 percent) of 63 equipment items tested. Specifically: For two items, the property records contained incorrect locations. The errors occurred because the Engineering Experiment Station either (1) did not enter property records accurately and completely into its asset management system or (2) did not always follow its policies and procedures to update property records as needed. The Engineering Experiment Station was not able to locate one item selected for testing. As a result, the institution could not demonstrate that the item was properly safeguarded. After auditors brought the issue to the Engineering Experiment Station’s attention, the institution filed a missing or stolen property report. Not maintaining accurate and complete property records and not adequately safeguarding equipment increases the risk that equipment may be misused, lost, or stolen. The following awards were affected by the equipment issues discussed above: See chart or table in the Schedule of Findings and Questioned Costs. Recommendation: The Engineering Experiment Station should strengthen controls to ensure that it: Maintains accurate and complete property records for all equipment acquired with federal funds. Adequately safeguards its equipment to prevent loss or theft of equipment. Views of Responsible Officials: The Texas A&M Engineering Experiment Station (TEES) acknowledges and agrees with the finding. TEES will work to develop and implement corrective action to further improve processes.
Equipment and Real Property Management Federal Program Title: Research and Development Cluster Federal Agency: U.S. Department of Defense; National Science Foundation; and U.S. Department of Health and Human Services Assistance Listing Number: See below Pass-Through Agency: Texas A&M University Health Science Center; and Harvard University Award Number: See below Award Period: See below Statistically Valid Sample: No and not intended to be a statistically valid sample Type of Finding: Significant Deficiency and Noncompliance Questioned Costs: None Repeat Finding: No A recipient’s property records for equipment acquired with federal funds must be maintained accurately and include all of the following: a description of the equipment; serial number or other identification number; the source of funding for the equipment, including the federal award identification number; indication of who holds the title; acquisition date; cost of the equipment; the percentage of federal participation in the cost of the equipment; the location, use, and condition of the equipment; and ultimate disposition data, including the date of disposal and sale price (Title 2, Code of Federal Regulations (CFR), Section 200.313(d)(1)). A control system must be developed to ensure that adequate safeguards are in place to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft must be investigated (Title 2, CFR, Section 200.313(d)(3)). The Engineering Experiment Station did not maintain accurate and complete property records for 3 (5 percent) of 63 equipment items tested. Specifically: For two items, the property records contained incorrect locations. The errors occurred because the Engineering Experiment Station either (1) did not enter property records accurately and completely into its asset management system or (2) did not always follow its policies and procedures to update property records as needed. The Engineering Experiment Station was not able to locate one item selected for testing. As a result, the institution could not demonstrate that the item was properly safeguarded. After auditors brought the issue to the Engineering Experiment Station’s attention, the institution filed a missing or stolen property report. Not maintaining accurate and complete property records and not adequately safeguarding equipment increases the risk that equipment may be misused, lost, or stolen. The following awards were affected by the equipment issues discussed above: See chart or table in the Schedule of Findings and Questioned Costs. Recommendation: The Engineering Experiment Station should strengthen controls to ensure that it: Maintains accurate and complete property records for all equipment acquired with federal funds. Adequately safeguards its equipment to prevent loss or theft of equipment. Views of Responsible Officials: The Texas A&M Engineering Experiment Station (TEES) acknowledges and agrees with the finding. TEES will work to develop and implement corrective action to further improve processes.
Equipment and Real Property Management Federal Program Title: Research and Development Cluster Federal Agency: U.S. Department of Defense; National Science Foundation; and U.S. Department of Health and Human Services Assistance Listing Number: See below Pass-Through Agency: Texas A&M University Health Science Center; and Harvard University Award Number: See below Award Period: See below Statistically Valid Sample: No and not intended to be a statistically valid sample Type of Finding: Significant Deficiency and Noncompliance Questioned Costs: None Repeat Finding: No A recipient’s property records for equipment acquired with federal funds must be maintained accurately and include all of the following: a description of the equipment; serial number or other identification number; the source of funding for the equipment, including the federal award identification number; indication of who holds the title; acquisition date; cost of the equipment; the percentage of federal participation in the cost of the equipment; the location, use, and condition of the equipment; and ultimate disposition data, including the date of disposal and sale price (Title 2, Code of Federal Regulations (CFR), Section 200.313(d)(1)). A control system must be developed to ensure that adequate safeguards are in place to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft must be investigated (Title 2, CFR, Section 200.313(d)(3)). The Engineering Experiment Station did not maintain accurate and complete property records for 3 (5 percent) of 63 equipment items tested. Specifically: For two items, the property records contained incorrect locations. The errors occurred because the Engineering Experiment Station either (1) did not enter property records accurately and completely into its asset management system or (2) did not always follow its policies and procedures to update property records as needed. The Engineering Experiment Station was not able to locate one item selected for testing. As a result, the institution could not demonstrate that the item was properly safeguarded. After auditors brought the issue to the Engineering Experiment Station’s attention, the institution filed a missing or stolen property report. Not maintaining accurate and complete property records and not adequately safeguarding equipment increases the risk that equipment may be misused, lost, or stolen. The following awards were affected by the equipment issues discussed above: See chart or table in the Schedule of Findings and Questioned Costs. Recommendation: The Engineering Experiment Station should strengthen controls to ensure that it: Maintains accurate and complete property records for all equipment acquired with federal funds. Adequately safeguards its equipment to prevent loss or theft of equipment. Views of Responsible Officials: The Texas A&M Engineering Experiment Station (TEES) acknowledges and agrees with the finding. TEES will work to develop and implement corrective action to further improve processes.
Equipment and Real Property Management Federal Program Title: Research and Development Cluster Federal Agency: U.S. Department of Defense; National Science Foundation; and U.S. Department of Health and Human Services Assistance Listing Number: See below Pass-Through Agency: Texas A&M University Health Science Center; and Harvard University Award Number: See below Award Period: See below Statistically Valid Sample: No and not intended to be a statistically valid sample Type of Finding: Significant Deficiency and Noncompliance Questioned Costs: None Repeat Finding: No A recipient’s property records for equipment acquired with federal funds must be maintained accurately and include all of the following: a description of the equipment; serial number or other identification number; the source of funding for the equipment, including the federal award identification number; indication of who holds the title; acquisition date; cost of the equipment; the percentage of federal participation in the cost of the equipment; the location, use, and condition of the equipment; and ultimate disposition data, including the date of disposal and sale price (Title 2, Code of Federal Regulations (CFR), Section 200.313(d)(1)). A control system must be developed to ensure that adequate safeguards are in place to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft must be investigated (Title 2, CFR, Section 200.313(d)(3)). The Engineering Experiment Station did not maintain accurate and complete property records for 3 (5 percent) of 63 equipment items tested. Specifically: For two items, the property records contained incorrect locations. The errors occurred because the Engineering Experiment Station either (1) did not enter property records accurately and completely into its asset management system or (2) did not always follow its policies and procedures to update property records as needed. The Engineering Experiment Station was not able to locate one item selected for testing. As a result, the institution could not demonstrate that the item was properly safeguarded. After auditors brought the issue to the Engineering Experiment Station’s attention, the institution filed a missing or stolen property report. Not maintaining accurate and complete property records and not adequately safeguarding equipment increases the risk that equipment may be misused, lost, or stolen. The following awards were affected by the equipment issues discussed above: See chart or table in the Schedule of Findings and Questioned Costs. Recommendation: The Engineering Experiment Station should strengthen controls to ensure that it: Maintains accurate and complete property records for all equipment acquired with federal funds. Adequately safeguards its equipment to prevent loss or theft of equipment. Views of Responsible Officials: The Texas A&M Engineering Experiment Station (TEES) acknowledges and agrees with the finding. TEES will work to develop and implement corrective action to further improve processes.
Equipment and Real Property Management Federal Program Title: Research and Development Cluster Federal Agency: U.S. Department of Defense; National Science Foundation; and U.S. Department of Health and Human Services Assistance Listing Number: See below Pass-Through Agency: Texas A&M University Health Science Center; and Harvard University Award Number: See below Award Period: See below Statistically Valid Sample: No and not intended to be a statistically valid sample Type of Finding: Significant Deficiency and Noncompliance Questioned Costs: None Repeat Finding: No A recipient’s property records for equipment acquired with federal funds must be maintained accurately and include all of the following: a description of the equipment; serial number or other identification number; the source of funding for the equipment, including the federal award identification number; indication of who holds the title; acquisition date; cost of the equipment; the percentage of federal participation in the cost of the equipment; the location, use, and condition of the equipment; and ultimate disposition data, including the date of disposal and sale price (Title 2, Code of Federal Regulations (CFR), Section 200.313(d)(1)). A control system must be developed to ensure that adequate safeguards are in place to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft must be investigated (Title 2, CFR, Section 200.313(d)(3)). The Engineering Experiment Station did not maintain accurate and complete property records for 3 (5 percent) of 63 equipment items tested. Specifically: For two items, the property records contained incorrect locations. The errors occurred because the Engineering Experiment Station either (1) did not enter property records accurately and completely into its asset management system or (2) did not always follow its policies and procedures to update property records as needed. The Engineering Experiment Station was not able to locate one item selected for testing. As a result, the institution could not demonstrate that the item was properly safeguarded. After auditors brought the issue to the Engineering Experiment Station’s attention, the institution filed a missing or stolen property report. Not maintaining accurate and complete property records and not adequately safeguarding equipment increases the risk that equipment may be misused, lost, or stolen. The following awards were affected by the equipment issues discussed above: See chart or table in the Schedule of Findings and Questioned Costs. Recommendation: The Engineering Experiment Station should strengthen controls to ensure that it: Maintains accurate and complete property records for all equipment acquired with federal funds. Adequately safeguards its equipment to prevent loss or theft of equipment. Views of Responsible Officials: The Texas A&M Engineering Experiment Station (TEES) acknowledges and agrees with the finding. TEES will work to develop and implement corrective action to further improve processes.
Equipment and Real Property Management Federal Program Title: Research and Development Cluster Federal Agency: U.S. Department of Defense; National Science Foundation; and U.S. Department of Health and Human Services Assistance Listing Number: See below Pass-Through Agency: Texas A&M University Health Science Center; and Harvard University Award Number: See below Award Period: See below Statistically Valid Sample: No and not intended to be a statistically valid sample Type of Finding: Significant Deficiency and Noncompliance Questioned Costs: None Repeat Finding: No A recipient’s property records for equipment acquired with federal funds must be maintained accurately and include all of the following: a description of the equipment; serial number or other identification number; the source of funding for the equipment, including the federal award identification number; indication of who holds the title; acquisition date; cost of the equipment; the percentage of federal participation in the cost of the equipment; the location, use, and condition of the equipment; and ultimate disposition data, including the date of disposal and sale price (Title 2, Code of Federal Regulations (CFR), Section 200.313(d)(1)). A control system must be developed to ensure that adequate safeguards are in place to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft must be investigated (Title 2, CFR, Section 200.313(d)(3)). The Engineering Experiment Station did not maintain accurate and complete property records for 3 (5 percent) of 63 equipment items tested. Specifically: For two items, the property records contained incorrect locations. The errors occurred because the Engineering Experiment Station either (1) did not enter property records accurately and completely into its asset management system or (2) did not always follow its policies and procedures to update property records as needed. The Engineering Experiment Station was not able to locate one item selected for testing. As a result, the institution could not demonstrate that the item was properly safeguarded. After auditors brought the issue to the Engineering Experiment Station’s attention, the institution filed a missing or stolen property report. Not maintaining accurate and complete property records and not adequately safeguarding equipment increases the risk that equipment may be misused, lost, or stolen. The following awards were affected by the equipment issues discussed above: See chart or table in the Schedule of Findings and Questioned Costs. Recommendation: The Engineering Experiment Station should strengthen controls to ensure that it: Maintains accurate and complete property records for all equipment acquired with federal funds. Adequately safeguards its equipment to prevent loss or theft of equipment. Views of Responsible Officials: The Texas A&M Engineering Experiment Station (TEES) acknowledges and agrees with the finding. TEES will work to develop and implement corrective action to further improve processes.
Equipment and Real Property Management Federal Program Title: Research and Development Cluster Federal Agency: U.S. Department of Defense; National Science Foundation; and U.S. Department of Health and Human Services Assistance Listing Number: See below Pass-Through Agency: Texas A&M University Health Science Center; and Harvard University Award Number: See below Award Period: See below Statistically Valid Sample: No and not intended to be a statistically valid sample Type of Finding: Significant Deficiency and Noncompliance Questioned Costs: None Repeat Finding: No A recipient’s property records for equipment acquired with federal funds must be maintained accurately and include all of the following: a description of the equipment; serial number or other identification number; the source of funding for the equipment, including the federal award identification number; indication of who holds the title; acquisition date; cost of the equipment; the percentage of federal participation in the cost of the equipment; the location, use, and condition of the equipment; and ultimate disposition data, including the date of disposal and sale price (Title 2, Code of Federal Regulations (CFR), Section 200.313(d)(1)). A control system must be developed to ensure that adequate safeguards are in place to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft must be investigated (Title 2, CFR, Section 200.313(d)(3)). The Engineering Experiment Station did not maintain accurate and complete property records for 3 (5 percent) of 63 equipment items tested. Specifically: For two items, the property records contained incorrect locations. The errors occurred because the Engineering Experiment Station either (1) did not enter property records accurately and completely into its asset management system or (2) did not always follow its policies and procedures to update property records as needed. The Engineering Experiment Station was not able to locate one item selected for testing. As a result, the institution could not demonstrate that the item was properly safeguarded. After auditors brought the issue to the Engineering Experiment Station’s attention, the institution filed a missing or stolen property report. Not maintaining accurate and complete property records and not adequately safeguarding equipment increases the risk that equipment may be misused, lost, or stolen. The following awards were affected by the equipment issues discussed above: See chart or table in the Schedule of Findings and Questioned Costs. Recommendation: The Engineering Experiment Station should strengthen controls to ensure that it: Maintains accurate and complete property records for all equipment acquired with federal funds. Adequately safeguards its equipment to prevent loss or theft of equipment. Views of Responsible Officials: The Texas A&M Engineering Experiment Station (TEES) acknowledges and agrees with the finding. TEES will work to develop and implement corrective action to further improve processes.
Equipment and Real Property Management Federal Program Title: Research and Development Cluster Federal Agency: U.S. Department of Defense; National Science Foundation; and U.S. Department of Health and Human Services Assistance Listing Number: See below Pass-Through Agency: Texas A&M University Health Science Center; and Harvard University Award Number: See below Award Period: See below Statistically Valid Sample: No and not intended to be a statistically valid sample Type of Finding: Significant Deficiency and Noncompliance Questioned Costs: None Repeat Finding: No A recipient’s property records for equipment acquired with federal funds must be maintained accurately and include all of the following: a description of the equipment; serial number or other identification number; the source of funding for the equipment, including the federal award identification number; indication of who holds the title; acquisition date; cost of the equipment; the percentage of federal participation in the cost of the equipment; the location, use, and condition of the equipment; and ultimate disposition data, including the date of disposal and sale price (Title 2, Code of Federal Regulations (CFR), Section 200.313(d)(1)). A control system must be developed to ensure that adequate safeguards are in place to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft must be investigated (Title 2, CFR, Section 200.313(d)(3)). The Engineering Experiment Station did not maintain accurate and complete property records for 3 (5 percent) of 63 equipment items tested. Specifically: For two items, the property records contained incorrect locations. The errors occurred because the Engineering Experiment Station either (1) did not enter property records accurately and completely into its asset management system or (2) did not always follow its policies and procedures to update property records as needed. The Engineering Experiment Station was not able to locate one item selected for testing. As a result, the institution could not demonstrate that the item was properly safeguarded. After auditors brought the issue to the Engineering Experiment Station’s attention, the institution filed a missing or stolen property report. Not maintaining accurate and complete property records and not adequately safeguarding equipment increases the risk that equipment may be misused, lost, or stolen. The following awards were affected by the equipment issues discussed above: See chart or table in the Schedule of Findings and Questioned Costs. Recommendation: The Engineering Experiment Station should strengthen controls to ensure that it: Maintains accurate and complete property records for all equipment acquired with federal funds. Adequately safeguards its equipment to prevent loss or theft of equipment. Views of Responsible Officials: The Texas A&M Engineering Experiment Station (TEES) acknowledges and agrees with the finding. TEES will work to develop and implement corrective action to further improve processes.
Equipment and Real Property Management Federal Program Title: Research and Development Cluster Federal Agency: U.S. Department of Defense; National Science Foundation; and U.S. Department of Health and Human Services Assistance Listing Number: See below Pass-Through Agency: Texas A&M University Health Science Center; and Harvard University Award Number: See below Award Period: See below Statistically Valid Sample: No and not intended to be a statistically valid sample Type of Finding: Significant Deficiency and Noncompliance Questioned Costs: None Repeat Finding: No A recipient’s property records for equipment acquired with federal funds must be maintained accurately and include all of the following: a description of the equipment; serial number or other identification number; the source of funding for the equipment, including the federal award identification number; indication of who holds the title; acquisition date; cost of the equipment; the percentage of federal participation in the cost of the equipment; the location, use, and condition of the equipment; and ultimate disposition data, including the date of disposal and sale price (Title 2, Code of Federal Regulations (CFR), Section 200.313(d)(1)). A control system must be developed to ensure that adequate safeguards are in place to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft must be investigated (Title 2, CFR, Section 200.313(d)(3)). The Engineering Experiment Station did not maintain accurate and complete property records for 3 (5 percent) of 63 equipment items tested. Specifically: For two items, the property records contained incorrect locations. The errors occurred because the Engineering Experiment Station either (1) did not enter property records accurately and completely into its asset management system or (2) did not always follow its policies and procedures to update property records as needed. The Engineering Experiment Station was not able to locate one item selected for testing. As a result, the institution could not demonstrate that the item was properly safeguarded. After auditors brought the issue to the Engineering Experiment Station’s attention, the institution filed a missing or stolen property report. Not maintaining accurate and complete property records and not adequately safeguarding equipment increases the risk that equipment may be misused, lost, or stolen. The following awards were affected by the equipment issues discussed above: See chart or table in the Schedule of Findings and Questioned Costs. Recommendation: The Engineering Experiment Station should strengthen controls to ensure that it: Maintains accurate and complete property records for all equipment acquired with federal funds. Adequately safeguards its equipment to prevent loss or theft of equipment. Views of Responsible Officials: The Texas A&M Engineering Experiment Station (TEES) acknowledges and agrees with the finding. TEES will work to develop and implement corrective action to further improve processes.
Equipment and Real Property Management Federal Program Title: Research and Development Cluster Federal Agency: U.S. Department of Defense; National Science Foundation; and U.S. Department of Health and Human Services Assistance Listing Number: See below Pass-Through Agency: Texas A&M University Health Science Center; and Harvard University Award Number: See below Award Period: See below Statistically Valid Sample: No and not intended to be a statistically valid sample Type of Finding: Significant Deficiency and Noncompliance Questioned Costs: None Repeat Finding: No A recipient’s property records for equipment acquired with federal funds must be maintained accurately and include all of the following: a description of the equipment; serial number or other identification number; the source of funding for the equipment, including the federal award identification number; indication of who holds the title; acquisition date; cost of the equipment; the percentage of federal participation in the cost of the equipment; the location, use, and condition of the equipment; and ultimate disposition data, including the date of disposal and sale price (Title 2, Code of Federal Regulations (CFR), Section 200.313(d)(1)). A control system must be developed to ensure that adequate safeguards are in place to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft must be investigated (Title 2, CFR, Section 200.313(d)(3)). The Engineering Experiment Station did not maintain accurate and complete property records for 3 (5 percent) of 63 equipment items tested. Specifically: For two items, the property records contained incorrect locations. The errors occurred because the Engineering Experiment Station either (1) did not enter property records accurately and completely into its asset management system or (2) did not always follow its policies and procedures to update property records as needed. The Engineering Experiment Station was not able to locate one item selected for testing. As a result, the institution could not demonstrate that the item was properly safeguarded. After auditors brought the issue to the Engineering Experiment Station’s attention, the institution filed a missing or stolen property report. Not maintaining accurate and complete property records and not adequately safeguarding equipment increases the risk that equipment may be misused, lost, or stolen. The following awards were affected by the equipment issues discussed above: See chart or table in the Schedule of Findings and Questioned Costs. Recommendation: The Engineering Experiment Station should strengthen controls to ensure that it: Maintains accurate and complete property records for all equipment acquired with federal funds. Adequately safeguards its equipment to prevent loss or theft of equipment. Views of Responsible Officials: The Texas A&M Engineering Experiment Station (TEES) acknowledges and agrees with the finding. TEES will work to develop and implement corrective action to further improve processes.
Equipment and Real Property Management Federal Program Title: Research and Development Cluster Federal Agency: U.S. Department of Defense; National Science Foundation; and U.S. Department of Health and Human Services Assistance Listing Number: See below Pass-Through Agency: Texas A&M University Health Science Center; and Harvard University Award Number: See below Award Period: See below Statistically Valid Sample: No and not intended to be a statistically valid sample Type of Finding: Significant Deficiency and Noncompliance Questioned Costs: None Repeat Finding: No A recipient’s property records for equipment acquired with federal funds must be maintained accurately and include all of the following: a description of the equipment; serial number or other identification number; the source of funding for the equipment, including the federal award identification number; indication of who holds the title; acquisition date; cost of the equipment; the percentage of federal participation in the cost of the equipment; the location, use, and condition of the equipment; and ultimate disposition data, including the date of disposal and sale price (Title 2, Code of Federal Regulations (CFR), Section 200.313(d)(1)). A control system must be developed to ensure that adequate safeguards are in place to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft must be investigated (Title 2, CFR, Section 200.313(d)(3)). The Engineering Experiment Station did not maintain accurate and complete property records for 3 (5 percent) of 63 equipment items tested. Specifically: For two items, the property records contained incorrect locations. The errors occurred because the Engineering Experiment Station either (1) did not enter property records accurately and completely into its asset management system or (2) did not always follow its policies and procedures to update property records as needed. The Engineering Experiment Station was not able to locate one item selected for testing. As a result, the institution could not demonstrate that the item was properly safeguarded. After auditors brought the issue to the Engineering Experiment Station’s attention, the institution filed a missing or stolen property report. Not maintaining accurate and complete property records and not adequately safeguarding equipment increases the risk that equipment may be misused, lost, or stolen. The following awards were affected by the equipment issues discussed above: See chart or table in the Schedule of Findings and Questioned Costs. Recommendation: The Engineering Experiment Station should strengthen controls to ensure that it: Maintains accurate and complete property records for all equipment acquired with federal funds. Adequately safeguards its equipment to prevent loss or theft of equipment. Views of Responsible Officials: The Texas A&M Engineering Experiment Station (TEES) acknowledges and agrees with the finding. TEES will work to develop and implement corrective action to further improve processes.
Equipment and Real Property Management Federal Program Title: Research and Development Cluster Federal Agency: U.S. Department of Defense; National Science Foundation; and U.S. Department of Health and Human Services Assistance Listing Number: See below Pass-Through Agency: Texas A&M University Health Science Center; and Harvard University Award Number: See below Award Period: See below Statistically Valid Sample: No and not intended to be a statistically valid sample Type of Finding: Significant Deficiency and Noncompliance Questioned Costs: None Repeat Finding: No A recipient’s property records for equipment acquired with federal funds must be maintained accurately and include all of the following: a description of the equipment; serial number or other identification number; the source of funding for the equipment, including the federal award identification number; indication of who holds the title; acquisition date; cost of the equipment; the percentage of federal participation in the cost of the equipment; the location, use, and condition of the equipment; and ultimate disposition data, including the date of disposal and sale price (Title 2, Code of Federal Regulations (CFR), Section 200.313(d)(1)). A control system must be developed to ensure that adequate safeguards are in place to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft must be investigated (Title 2, CFR, Section 200.313(d)(3)). The Engineering Experiment Station did not maintain accurate and complete property records for 3 (5 percent) of 63 equipment items tested. Specifically: For two items, the property records contained incorrect locations. The errors occurred because the Engineering Experiment Station either (1) did not enter property records accurately and completely into its asset management system or (2) did not always follow its policies and procedures to update property records as needed. The Engineering Experiment Station was not able to locate one item selected for testing. As a result, the institution could not demonstrate that the item was properly safeguarded. After auditors brought the issue to the Engineering Experiment Station’s attention, the institution filed a missing or stolen property report. Not maintaining accurate and complete property records and not adequately safeguarding equipment increases the risk that equipment may be misused, lost, or stolen. The following awards were affected by the equipment issues discussed above: See chart or table in the Schedule of Findings and Questioned Costs. Recommendation: The Engineering Experiment Station should strengthen controls to ensure that it: Maintains accurate and complete property records for all equipment acquired with federal funds. Adequately safeguards its equipment to prevent loss or theft of equipment. Views of Responsible Officials: The Texas A&M Engineering Experiment Station (TEES) acknowledges and agrees with the finding. TEES will work to develop and implement corrective action to further improve processes.