Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Criteria: Per the Uniform Guidance, non-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that a control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). Condition and Context: Of the 84 samples selected for inspection from the total population of equipment on hand, 8 of the 84 items selected for testing were tagged with the incorrect Property tag (?Ptag?). During the inspection of the items, we noted the Ptag number on 8 pieces of equipment did not match the equipment description per the purchase order. Cause and Possible Asserted Effect: The equipment was not properly tagged in accordance with the University?s policy to ensure equipment is adequately safeguarded to prevent loss, damage, or theft of the property. Although improperly tagged, the University was able to locate, and KPMG inspected, the 8 pieces of equipment, thereby confirming their existence and that they are secured from theft behind locked doors, and as such, we did not note any instances of noncompliance. Failure to properly tag purchased equipment could result in lost, stolen or damaged equipment not being identified. Identification of questioned Costs: There are no questioned costs related to this finding. Sampling: The sample was not intended to be and was not a statistically valid sample.
Criteria: Per the Uniform Guidance, non-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that a control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). Condition and Context: Of the 84 samples selected for inspection from the total population of equipment on hand, 8 of the 84 items selected for testing were tagged with the incorrect Property tag (?Ptag?). During the inspection of the items, we noted the Ptag number on 8 pieces of equipment did not match the equipment description per the purchase order. Cause and Possible Asserted Effect: The equipment was not properly tagged in accordance with the University?s policy to ensure equipment is adequately safeguarded to prevent loss, damage, or theft of the property. Although improperly tagged, the University was able to locate, and KPMG inspected, the 8 pieces of equipment, thereby confirming their existence and that they are secured from theft behind locked doors, and as such, we did not note any instances of noncompliance. Failure to properly tag purchased equipment could result in lost, stolen or damaged equipment not being identified. Identification of questioned Costs: There are no questioned costs related to this finding. Sampling: The sample was not intended to be and was not a statistically valid sample.
Criteria: Per the Uniform Guidance, non-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that a control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). Condition and Context: Of the 84 samples selected for inspection from the total population of equipment on hand, 8 of the 84 items selected for testing were tagged with the incorrect Property tag (?Ptag?). During the inspection of the items, we noted the Ptag number on 8 pieces of equipment did not match the equipment description per the purchase order. Cause and Possible Asserted Effect: The equipment was not properly tagged in accordance with the University?s policy to ensure equipment is adequately safeguarded to prevent loss, damage, or theft of the property. Although improperly tagged, the University was able to locate, and KPMG inspected, the 8 pieces of equipment, thereby confirming their existence and that they are secured from theft behind locked doors, and as such, we did not note any instances of noncompliance. Failure to properly tag purchased equipment could result in lost, stolen or damaged equipment not being identified. Identification of questioned Costs: There are no questioned costs related to this finding. Sampling: The sample was not intended to be and was not a statistically valid sample.
Criteria: Per the Uniform Guidance, non-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that a control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). Condition and Context: Of the 84 samples selected for inspection from the total population of equipment on hand, 8 of the 84 items selected for testing were tagged with the incorrect Property tag (?Ptag?). During the inspection of the items, we noted the Ptag number on 8 pieces of equipment did not match the equipment description per the purchase order. Cause and Possible Asserted Effect: The equipment was not properly tagged in accordance with the University?s policy to ensure equipment is adequately safeguarded to prevent loss, damage, or theft of the property. Although improperly tagged, the University was able to locate, and KPMG inspected, the 8 pieces of equipment, thereby confirming their existence and that they are secured from theft behind locked doors, and as such, we did not note any instances of noncompliance. Failure to properly tag purchased equipment could result in lost, stolen or damaged equipment not being identified. Identification of questioned Costs: There are no questioned costs related to this finding. Sampling: The sample was not intended to be and was not a statistically valid sample.
Criteria: Per the Uniform Guidance, non-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that a control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). Condition and Context: Of the 84 samples selected for inspection from the total population of equipment on hand, 8 of the 84 items selected for testing were tagged with the incorrect Property tag (?Ptag?). During the inspection of the items, we noted the Ptag number on 8 pieces of equipment did not match the equipment description per the purchase order. Cause and Possible Asserted Effect: The equipment was not properly tagged in accordance with the University?s policy to ensure equipment is adequately safeguarded to prevent loss, damage, or theft of the property. Although improperly tagged, the University was able to locate, and KPMG inspected, the 8 pieces of equipment, thereby confirming their existence and that they are secured from theft behind locked doors, and as such, we did not note any instances of noncompliance. Failure to properly tag purchased equipment could result in lost, stolen or damaged equipment not being identified. Identification of questioned Costs: There are no questioned costs related to this finding. Sampling: The sample was not intended to be and was not a statistically valid sample.
2022-001 Character Investigations (Compliance) (repeat finding 2021-003) Condition: The School was unable to locate records indicating character investigations had been performed for all employees in positions that involve regular contact with children. Criteria: The Office of Management and Budget?s (OMB) Compliance Supplement states, ?The Indian Child Protection and Family Violence Act (25 USC 3201 et seq.) requires Indian tribes and tribal organizations that receive funds under the ISDEAA or the Tribally Controlled Schools Act to conduct an investigation of the character of each individual who is employed or is being considered for employment by such Indian tribe or tribal organization in a position that involves regular contact with, or control over, Indian children?. The Act further states that the ?Indian tribe or tribal organization may employ individuals in those positions only if the individuals? meet standards of character, no less stringent than those prescribed under subpart B ? Minimum Standards of Character and Suitability for Employment (25 CFR part 63).? Cause: Management of the School did not adhere to written policy regarding the storage of character investigations (record retention). Effect: The School is not in compliance with the Indian Child Protection and Family Violence Act. Employees who have regular contact with and control over children may not be suitable for such a position. Persons may be employed at the School who may have otherwise been precluded from employment based on a character investigation. Recommendation: Implement existing policies that reflect the requirements of the Indian Child Protection and Family Violence Act. Views of Responsible Official and Planned Corrective Actions: See Corrective Action Plan. (repeat finding 2021-001) Condition: A physical inventory of all equipment and other long term assets owned by the School was not conducted and reconciled to the general fixed asset account group during the year. Criteria: Section 22(G) of the School?s Accountant Policies and Procedures Manual states, ?all equipment and other long term assets owned by the School must be recorded in the general fixed asset account group at cost.? Section 22(H) of the School?s Accountant Policies and Procedures Manual states,?a physical inventory will be taken every year of all equipment and other long term assets owned by the School or under the control of the School. The results of the physical inventory will be used to update the general fixed asset account group.? OMB Uniform Guidance ? 200.313 Equipment (d) (1) states ?Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property? (d) (2) states ?A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years? and (d) (3) states ?A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated.? Cause: Management of the School did not adhere to written policy. Effect: Without verification via physical count, balances carried in the School?s fixed asset account group could be materially misstated. Also, the amount of insurance coverage paid for by the School could be excessive or inadequate if based on unsupported property listings. Recommendation: Implement adopted policies requiring the annual physical inventory of fixed assets and the use of the physical inventory to update the general fixed asset account group. Views of Responsible Officials and Planned Corrective Actions: See corrective action plan.
2022-001 Character Investigations (Compliance) (repeat finding 2021-003) Condition: The School was unable to locate records indicating character investigations had been performed for all employees in positions that involve regular contact with children. Criteria: The Office of Management and Budget?s (OMB) Compliance Supplement states, ?The Indian Child Protection and Family Violence Act (25 USC 3201 et seq.) requires Indian tribes and tribal organizations that receive funds under the ISDEAA or the Tribally Controlled Schools Act to conduct an investigation of the character of each individual who is employed or is being considered for employment by such Indian tribe or tribal organization in a position that involves regular contact with, or control over, Indian children?. The Act further states that the ?Indian tribe or tribal organization may employ individuals in those positions only if the individuals? meet standards of character, no less stringent than those prescribed under subpart B ? Minimum Standards of Character and Suitability for Employment (25 CFR part 63).? Cause: Management of the School did not adhere to written policy regarding the storage of character investigations (record retention). Effect: The School is not in compliance with the Indian Child Protection and Family Violence Act. Employees who have regular contact with and control over children may not be suitable for such a position. Persons may be employed at the School who may have otherwise been precluded from employment based on a character investigation. Recommendation: Implement existing policies that reflect the requirements of the Indian Child Protection and Family Violence Act. Views of Responsible Official and Planned Corrective Actions: See Corrective Action Plan. (repeat finding 2021-001) Condition: A physical inventory of all equipment and other long term assets owned by the School was not conducted and reconciled to the general fixed asset account group during the year. Criteria: Section 22(G) of the School?s Accountant Policies and Procedures Manual states, ?all equipment and other long term assets owned by the School must be recorded in the general fixed asset account group at cost.? Section 22(H) of the School?s Accountant Policies and Procedures Manual states,?a physical inventory will be taken every year of all equipment and other long term assets owned by the School or under the control of the School. The results of the physical inventory will be used to update the general fixed asset account group.? OMB Uniform Guidance ? 200.313 Equipment (d) (1) states ?Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property? (d) (2) states ?A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years? and (d) (3) states ?A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated.? Cause: Management of the School did not adhere to written policy. Effect: Without verification via physical count, balances carried in the School?s fixed asset account group could be materially misstated. Also, the amount of insurance coverage paid for by the School could be excessive or inadequate if based on unsupported property listings. Recommendation: Implement adopted policies requiring the annual physical inventory of fixed assets and the use of the physical inventory to update the general fixed asset account group. Views of Responsible Officials and Planned Corrective Actions: See corrective action plan.
2022-001 Character Investigations (Compliance) (repeat finding 2021-003) Condition: The School was unable to locate records indicating character investigations had been performed for all employees in positions that involve regular contact with children. Criteria: The Office of Management and Budget?s (OMB) Compliance Supplement states, ?The Indian Child Protection and Family Violence Act (25 USC 3201 et seq.) requires Indian tribes and tribal organizations that receive funds under the ISDEAA or the Tribally Controlled Schools Act to conduct an investigation of the character of each individual who is employed or is being considered for employment by such Indian tribe or tribal organization in a position that involves regular contact with, or control over, Indian children?. The Act further states that the ?Indian tribe or tribal organization may employ individuals in those positions only if the individuals? meet standards of character, no less stringent than those prescribed under subpart B ? Minimum Standards of Character and Suitability for Employment (25 CFR part 63).? Cause: Management of the School did not adhere to written policy regarding the storage of character investigations (record retention). Effect: The School is not in compliance with the Indian Child Protection and Family Violence Act. Employees who have regular contact with and control over children may not be suitable for such a position. Persons may be employed at the School who may have otherwise been precluded from employment based on a character investigation. Recommendation: Implement existing policies that reflect the requirements of the Indian Child Protection and Family Violence Act. Views of Responsible Official and Planned Corrective Actions: See Corrective Action Plan. (repeat finding 2021-001) Condition: A physical inventory of all equipment and other long term assets owned by the School was not conducted and reconciled to the general fixed asset account group during the year. Criteria: Section 22(G) of the School?s Accountant Policies and Procedures Manual states, ?all equipment and other long term assets owned by the School must be recorded in the general fixed asset account group at cost.? Section 22(H) of the School?s Accountant Policies and Procedures Manual states,?a physical inventory will be taken every year of all equipment and other long term assets owned by the School or under the control of the School. The results of the physical inventory will be used to update the general fixed asset account group.? OMB Uniform Guidance ? 200.313 Equipment (d) (1) states ?Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property? (d) (2) states ?A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years? and (d) (3) states ?A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated.? Cause: Management of the School did not adhere to written policy. Effect: Without verification via physical count, balances carried in the School?s fixed asset account group could be materially misstated. Also, the amount of insurance coverage paid for by the School could be excessive or inadequate if based on unsupported property listings. Recommendation: Implement adopted policies requiring the annual physical inventory of fixed assets and the use of the physical inventory to update the general fixed asset account group. Views of Responsible Officials and Planned Corrective Actions: See corrective action plan.
2022-001 Character Investigations (Compliance) (repeat finding 2021-003) Condition: The School was unable to locate records indicating character investigations had been performed for all employees in positions that involve regular contact with children. Criteria: The Office of Management and Budget?s (OMB) Compliance Supplement states, ?The Indian Child Protection and Family Violence Act (25 USC 3201 et seq.) requires Indian tribes and tribal organizations that receive funds under the ISDEAA or the Tribally Controlled Schools Act to conduct an investigation of the character of each individual who is employed or is being considered for employment by such Indian tribe or tribal organization in a position that involves regular contact with, or control over, Indian children?. The Act further states that the ?Indian tribe or tribal organization may employ individuals in those positions only if the individuals? meet standards of character, no less stringent than those prescribed under subpart B ? Minimum Standards of Character and Suitability for Employment (25 CFR part 63).? Cause: Management of the School did not adhere to written policy regarding the storage of character investigations (record retention). Effect: The School is not in compliance with the Indian Child Protection and Family Violence Act. Employees who have regular contact with and control over children may not be suitable for such a position. Persons may be employed at the School who may have otherwise been precluded from employment based on a character investigation. Recommendation: Implement existing policies that reflect the requirements of the Indian Child Protection and Family Violence Act. Views of Responsible Official and Planned Corrective Actions: See Corrective Action Plan. (repeat finding 2021-001) Condition: A physical inventory of all equipment and other long term assets owned by the School was not conducted and reconciled to the general fixed asset account group during the year. Criteria: Section 22(G) of the School?s Accountant Policies and Procedures Manual states, ?all equipment and other long term assets owned by the School must be recorded in the general fixed asset account group at cost.? Section 22(H) of the School?s Accountant Policies and Procedures Manual states,?a physical inventory will be taken every year of all equipment and other long term assets owned by the School or under the control of the School. The results of the physical inventory will be used to update the general fixed asset account group.? OMB Uniform Guidance ? 200.313 Equipment (d) (1) states ?Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property? (d) (2) states ?A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years? and (d) (3) states ?A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated.? Cause: Management of the School did not adhere to written policy. Effect: Without verification via physical count, balances carried in the School?s fixed asset account group could be materially misstated. Also, the amount of insurance coverage paid for by the School could be excessive or inadequate if based on unsupported property listings. Recommendation: Implement adopted policies requiring the annual physical inventory of fixed assets and the use of the physical inventory to update the general fixed asset account group. Views of Responsible Officials and Planned Corrective Actions: See corrective action plan.
2022-001 Character Investigations (Compliance) (repeat finding 2021-003) Condition: The School was unable to locate records indicating character investigations had been performed for all employees in positions that involve regular contact with children. Criteria: The Office of Management and Budget?s (OMB) Compliance Supplement states, ?The Indian Child Protection and Family Violence Act (25 USC 3201 et seq.) requires Indian tribes and tribal organizations that receive funds under the ISDEAA or the Tribally Controlled Schools Act to conduct an investigation of the character of each individual who is employed or is being considered for employment by such Indian tribe or tribal organization in a position that involves regular contact with, or control over, Indian children?. The Act further states that the ?Indian tribe or tribal organization may employ individuals in those positions only if the individuals? meet standards of character, no less stringent than those prescribed under subpart B ? Minimum Standards of Character and Suitability for Employment (25 CFR part 63).? Cause: Management of the School did not adhere to written policy regarding the storage of character investigations (record retention). Effect: The School is not in compliance with the Indian Child Protection and Family Violence Act. Employees who have regular contact with and control over children may not be suitable for such a position. Persons may be employed at the School who may have otherwise been precluded from employment based on a character investigation. Recommendation: Implement existing policies that reflect the requirements of the Indian Child Protection and Family Violence Act. Views of Responsible Official and Planned Corrective Actions: See Corrective Action Plan. (repeat finding 2021-001) Condition: A physical inventory of all equipment and other long term assets owned by the School was not conducted and reconciled to the general fixed asset account group during the year. Criteria: Section 22(G) of the School?s Accountant Policies and Procedures Manual states, ?all equipment and other long term assets owned by the School must be recorded in the general fixed asset account group at cost.? Section 22(H) of the School?s Accountant Policies and Procedures Manual states,?a physical inventory will be taken every year of all equipment and other long term assets owned by the School or under the control of the School. The results of the physical inventory will be used to update the general fixed asset account group.? OMB Uniform Guidance ? 200.313 Equipment (d) (1) states ?Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property? (d) (2) states ?A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years? and (d) (3) states ?A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated.? Cause: Management of the School did not adhere to written policy. Effect: Without verification via physical count, balances carried in the School?s fixed asset account group could be materially misstated. Also, the amount of insurance coverage paid for by the School could be excessive or inadequate if based on unsupported property listings. Recommendation: Implement adopted policies requiring the annual physical inventory of fixed assets and the use of the physical inventory to update the general fixed asset account group. Views of Responsible Officials and Planned Corrective Actions: See corrective action plan.
2022-001 Character Investigations (Compliance) (repeat finding 2021-003) Condition: The School was unable to locate records indicating character investigations had been performed for all employees in positions that involve regular contact with children. Criteria: The Office of Management and Budget?s (OMB) Compliance Supplement states, ?The Indian Child Protection and Family Violence Act (25 USC 3201 et seq.) requires Indian tribes and tribal organizations that receive funds under the ISDEAA or the Tribally Controlled Schools Act to conduct an investigation of the character of each individual who is employed or is being considered for employment by such Indian tribe or tribal organization in a position that involves regular contact with, or control over, Indian children?. The Act further states that the ?Indian tribe or tribal organization may employ individuals in those positions only if the individuals? meet standards of character, no less stringent than those prescribed under subpart B ? Minimum Standards of Character and Suitability for Employment (25 CFR part 63).? Cause: Management of the School did not adhere to written policy regarding the storage of character investigations (record retention). Effect: The School is not in compliance with the Indian Child Protection and Family Violence Act. Employees who have regular contact with and control over children may not be suitable for such a position. Persons may be employed at the School who may have otherwise been precluded from employment based on a character investigation. Recommendation: Implement existing policies that reflect the requirements of the Indian Child Protection and Family Violence Act. Views of Responsible Official and Planned Corrective Actions: See Corrective Action Plan. (repeat finding 2021-001) Condition: A physical inventory of all equipment and other long term assets owned by the School was not conducted and reconciled to the general fixed asset account group during the year. Criteria: Section 22(G) of the School?s Accountant Policies and Procedures Manual states, ?all equipment and other long term assets owned by the School must be recorded in the general fixed asset account group at cost.? Section 22(H) of the School?s Accountant Policies and Procedures Manual states,?a physical inventory will be taken every year of all equipment and other long term assets owned by the School or under the control of the School. The results of the physical inventory will be used to update the general fixed asset account group.? OMB Uniform Guidance ? 200.313 Equipment (d) (1) states ?Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property? (d) (2) states ?A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years? and (d) (3) states ?A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated.? Cause: Management of the School did not adhere to written policy. Effect: Without verification via physical count, balances carried in the School?s fixed asset account group could be materially misstated. Also, the amount of insurance coverage paid for by the School could be excessive or inadequate if based on unsupported property listings. Recommendation: Implement adopted policies requiring the annual physical inventory of fixed assets and the use of the physical inventory to update the general fixed asset account group. Views of Responsible Officials and Planned Corrective Actions: See corrective action plan.
2022-001 Character Investigations (Compliance) (repeat finding 2021-003) Condition: The School was unable to locate records indicating character investigations had been performed for all employees in positions that involve regular contact with children. Criteria: The Office of Management and Budget?s (OMB) Compliance Supplement states, ?The Indian Child Protection and Family Violence Act (25 USC 3201 et seq.) requires Indian tribes and tribal organizations that receive funds under the ISDEAA or the Tribally Controlled Schools Act to conduct an investigation of the character of each individual who is employed or is being considered for employment by such Indian tribe or tribal organization in a position that involves regular contact with, or control over, Indian children?. The Act further states that the ?Indian tribe or tribal organization may employ individuals in those positions only if the individuals? meet standards of character, no less stringent than those prescribed under subpart B ? Minimum Standards of Character and Suitability for Employment (25 CFR part 63).? Cause: Management of the School did not adhere to written policy regarding the storage of character investigations (record retention). Effect: The School is not in compliance with the Indian Child Protection and Family Violence Act. Employees who have regular contact with and control over children may not be suitable for such a position. Persons may be employed at the School who may have otherwise been precluded from employment based on a character investigation. Recommendation: Implement existing policies that reflect the requirements of the Indian Child Protection and Family Violence Act. Views of Responsible Official and Planned Corrective Actions: See Corrective Action Plan. (repeat finding 2021-001) Condition: A physical inventory of all equipment and other long term assets owned by the School was not conducted and reconciled to the general fixed asset account group during the year. Criteria: Section 22(G) of the School?s Accountant Policies and Procedures Manual states, ?all equipment and other long term assets owned by the School must be recorded in the general fixed asset account group at cost.? Section 22(H) of the School?s Accountant Policies and Procedures Manual states,?a physical inventory will be taken every year of all equipment and other long term assets owned by the School or under the control of the School. The results of the physical inventory will be used to update the general fixed asset account group.? OMB Uniform Guidance ? 200.313 Equipment (d) (1) states ?Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property? (d) (2) states ?A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years? and (d) (3) states ?A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated.? Cause: Management of the School did not adhere to written policy. Effect: Without verification via physical count, balances carried in the School?s fixed asset account group could be materially misstated. Also, the amount of insurance coverage paid for by the School could be excessive or inadequate if based on unsupported property listings. Recommendation: Implement adopted policies requiring the annual physical inventory of fixed assets and the use of the physical inventory to update the general fixed asset account group. Views of Responsible Officials and Planned Corrective Actions: See corrective action plan.
2022-001 Character Investigations (Compliance) (repeat finding 2021-003) Condition: The School was unable to locate records indicating character investigations had been performed for all employees in positions that involve regular contact with children. Criteria: The Office of Management and Budget?s (OMB) Compliance Supplement states, ?The Indian Child Protection and Family Violence Act (25 USC 3201 et seq.) requires Indian tribes and tribal organizations that receive funds under the ISDEAA or the Tribally Controlled Schools Act to conduct an investigation of the character of each individual who is employed or is being considered for employment by such Indian tribe or tribal organization in a position that involves regular contact with, or control over, Indian children?. The Act further states that the ?Indian tribe or tribal organization may employ individuals in those positions only if the individuals? meet standards of character, no less stringent than those prescribed under subpart B ? Minimum Standards of Character and Suitability for Employment (25 CFR part 63).? Cause: Management of the School did not adhere to written policy regarding the storage of character investigations (record retention). Effect: The School is not in compliance with the Indian Child Protection and Family Violence Act. Employees who have regular contact with and control over children may not be suitable for such a position. Persons may be employed at the School who may have otherwise been precluded from employment based on a character investigation. Recommendation: Implement existing policies that reflect the requirements of the Indian Child Protection and Family Violence Act. Views of Responsible Official and Planned Corrective Actions: See Corrective Action Plan. (repeat finding 2021-001) Condition: A physical inventory of all equipment and other long term assets owned by the School was not conducted and reconciled to the general fixed asset account group during the year. Criteria: Section 22(G) of the School?s Accountant Policies and Procedures Manual states, ?all equipment and other long term assets owned by the School must be recorded in the general fixed asset account group at cost.? Section 22(H) of the School?s Accountant Policies and Procedures Manual states,?a physical inventory will be taken every year of all equipment and other long term assets owned by the School or under the control of the School. The results of the physical inventory will be used to update the general fixed asset account group.? OMB Uniform Guidance ? 200.313 Equipment (d) (1) states ?Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property? (d) (2) states ?A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years? and (d) (3) states ?A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated.? Cause: Management of the School did not adhere to written policy. Effect: Without verification via physical count, balances carried in the School?s fixed asset account group could be materially misstated. Also, the amount of insurance coverage paid for by the School could be excessive or inadequate if based on unsupported property listings. Recommendation: Implement adopted policies requiring the annual physical inventory of fixed assets and the use of the physical inventory to update the general fixed asset account group. Views of Responsible Officials and Planned Corrective Actions: See corrective action plan.
2022-001 Character Investigations (Compliance) (repeat finding 2021-003) Condition: The School was unable to locate records indicating character investigations had been performed for all employees in positions that involve regular contact with children. Criteria: The Office of Management and Budget?s (OMB) Compliance Supplement states, ?The Indian Child Protection and Family Violence Act (25 USC 3201 et seq.) requires Indian tribes and tribal organizations that receive funds under the ISDEAA or the Tribally Controlled Schools Act to conduct an investigation of the character of each individual who is employed or is being considered for employment by such Indian tribe or tribal organization in a position that involves regular contact with, or control over, Indian children?. The Act further states that the ?Indian tribe or tribal organization may employ individuals in those positions only if the individuals? meet standards of character, no less stringent than those prescribed under subpart B ? Minimum Standards of Character and Suitability for Employment (25 CFR part 63).? Cause: Management of the School did not adhere to written policy regarding the storage of character investigations (record retention). Effect: The School is not in compliance with the Indian Child Protection and Family Violence Act. Employees who have regular contact with and control over children may not be suitable for such a position. Persons may be employed at the School who may have otherwise been precluded from employment based on a character investigation. Recommendation: Implement existing policies that reflect the requirements of the Indian Child Protection and Family Violence Act. Views of Responsible Official and Planned Corrective Actions: See Corrective Action Plan. (repeat finding 2021-001) Condition: A physical inventory of all equipment and other long term assets owned by the School was not conducted and reconciled to the general fixed asset account group during the year. Criteria: Section 22(G) of the School?s Accountant Policies and Procedures Manual states, ?all equipment and other long term assets owned by the School must be recorded in the general fixed asset account group at cost.? Section 22(H) of the School?s Accountant Policies and Procedures Manual states,?a physical inventory will be taken every year of all equipment and other long term assets owned by the School or under the control of the School. The results of the physical inventory will be used to update the general fixed asset account group.? OMB Uniform Guidance ? 200.313 Equipment (d) (1) states ?Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property? (d) (2) states ?A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years? and (d) (3) states ?A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated.? Cause: Management of the School did not adhere to written policy. Effect: Without verification via physical count, balances carried in the School?s fixed asset account group could be materially misstated. Also, the amount of insurance coverage paid for by the School could be excessive or inadequate if based on unsupported property listings. Recommendation: Implement adopted policies requiring the annual physical inventory of fixed assets and the use of the physical inventory to update the general fixed asset account group. Views of Responsible Officials and Planned Corrective Actions: See corrective action plan.
2022-001 Character Investigations (Compliance) (repeat finding 2021-003) Condition: The School was unable to locate records indicating character investigations had been performed for all employees in positions that involve regular contact with children. Criteria: The Office of Management and Budget?s (OMB) Compliance Supplement states, ?The Indian Child Protection and Family Violence Act (25 USC 3201 et seq.) requires Indian tribes and tribal organizations that receive funds under the ISDEAA or the Tribally Controlled Schools Act to conduct an investigation of the character of each individual who is employed or is being considered for employment by such Indian tribe or tribal organization in a position that involves regular contact with, or control over, Indian children?. The Act further states that the ?Indian tribe or tribal organization may employ individuals in those positions only if the individuals? meet standards of character, no less stringent than those prescribed under subpart B ? Minimum Standards of Character and Suitability for Employment (25 CFR part 63).? Cause: Management of the School did not adhere to written policy regarding the storage of character investigations (record retention). Effect: The School is not in compliance with the Indian Child Protection and Family Violence Act. Employees who have regular contact with and control over children may not be suitable for such a position. Persons may be employed at the School who may have otherwise been precluded from employment based on a character investigation. Recommendation: Implement existing policies that reflect the requirements of the Indian Child Protection and Family Violence Act. Views of Responsible Official and Planned Corrective Actions: See Corrective Action Plan. (repeat finding 2021-001) Condition: A physical inventory of all equipment and other long term assets owned by the School was not conducted and reconciled to the general fixed asset account group during the year. Criteria: Section 22(G) of the School?s Accountant Policies and Procedures Manual states, ?all equipment and other long term assets owned by the School must be recorded in the general fixed asset account group at cost.? Section 22(H) of the School?s Accountant Policies and Procedures Manual states,?a physical inventory will be taken every year of all equipment and other long term assets owned by the School or under the control of the School. The results of the physical inventory will be used to update the general fixed asset account group.? OMB Uniform Guidance ? 200.313 Equipment (d) (1) states ?Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property? (d) (2) states ?A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years? and (d) (3) states ?A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated.? Cause: Management of the School did not adhere to written policy. Effect: Without verification via physical count, balances carried in the School?s fixed asset account group could be materially misstated. Also, the amount of insurance coverage paid for by the School could be excessive or inadequate if based on unsupported property listings. Recommendation: Implement adopted policies requiring the annual physical inventory of fixed assets and the use of the physical inventory to update the general fixed asset account group. Views of Responsible Officials and Planned Corrective Actions: See corrective action plan.
UNION BAPTIST CHURCH-SCHOOL, INC. Schedule of Findings and Questioned Costs For the Year Ended June 30, 2022 Finding 2022 ? 002 Department of Health and Human Services Federal Assistance Listing No. 93.600 Head Start Program Compliance and Significant Deficiency over Equipment/ Real Property Management Repeat Finding: No Condition: During our discussion with management, we were unable to obtain complete documentation to support the compliance with the equipment/ real property management and related controls. Additionally, documentation was not complete to support that a physical inventory of the property was completed and reconciled to the property records at least once every two years. Criteria: The Uniform Guidance and 45 CF Part 75 require that non-Federal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Per 2 CFR 200.313 equipment stands: 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, 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. Cause: The Organization did not have this requirement in their financial policies and procedures and the property records list was not completed and evidence of a physical inventory has not been documented. Effect: The Organization does not have a proper records management over equipment purchased with federal awards or without federal awards. There is not an adequate listing to determine if the conditions of the equipment are good and whether the equipment should be disposed. Record of inventory has not been documented to reconcile to the equipment records. Recommendation: We recommend the Organization to establish controls procedures and update their financial policies as it relates to equipment/real property management. We also recommend the Organization take the existing equipment records and add the appropriate columns based on the criteria per 2 CFR 200.313. Once this list has been completed, to conduct an inventory to make sure the equipment has been accounted for and reconciled to the Financial Statements. Management Response: See schedule of corrective action.
1. FINDING NUMBER: 2022- 002 2. THIS FINDING IS: X New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: COVID 19: Education Stabilization Fund (2021 & 2022) 4. Project No.: 4998-E2, E3 5. CFDA No.: 84.425D-COVID 19 & 84.425U-COVID 19 6. Passed Through: Illinois State Board of Education 7. Federal Agency: Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation) Equipment and Real Property Management compliance requirements require that complete property records be maintained that include a description of the property, a serial number or other identification number, the source of funding of 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 the sales price of the property. (2 CFR section 200.313(d)(1) 9. Condition The District's property records did not include all equipment purchased with federal funds as per 2 CFR section 200.313(d)(1). 10. Questioned Costs None 11. Context The inventory of equipment is material to the program. 12. Effect The District is not in compliance with Equipment and Real Property Management compliance requirements. 13. Cause The District administrative staff does not maintain a complete list of all equipment purchased with federal funds. 14. Recommendation The District should assign an administrative employee with knowledge of applicable federal grant expenditures to maintain a complete list of property records that meets the requirements of 2 CFR section 200.313(d)(1). 15. Management's response Management will implement the auditor's recommendation for the year ended June 30, 2023.
1. FINDING NUMBER: 2022- 002 2. THIS FINDING IS: X New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: COVID 19: Education Stabilization Fund (2021 & 2022) 4. Project No.: 4998-E2, E3 5. CFDA No.: 84.425D-COVID 19 & 84.425U-COVID 19 6. Passed Through: Illinois State Board of Education 7. Federal Agency: Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation) Equipment and Real Property Management compliance requirements require that complete property records be maintained that include a description of the property, a serial number or other identification number, the source of funding of 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 the sales price of the property. (2 CFR section 200.313(d)(1) 9. Condition The District's property records did not include all equipment purchased with federal funds as per 2 CFR section 200.313(d)(1). 10. Questioned Costs None 11. Context The inventory of equipment is material to the program. 12. Effect The District is not in compliance with Equipment and Real Property Management compliance requirements. 13. Cause The District administrative staff does not maintain a complete list of all equipment purchased with federal funds. 14. Recommendation The District should assign an administrative employee with knowledge of applicable federal grant expenditures to maintain a complete list of property records that meets the requirements of 2 CFR section 200.313(d)(1). 15. Management's response Management will implement the auditor's recommendation for the year ended June 30, 2023.
2022-001 ? Statement of Condition ? ESSER and ARP 84.425C, 84.425U, 84.425D, 84.425U for period ending June 30, 2022. During our review of the ESSER and ARP grant programs, we noted the school had not prepared an equipment inventory. Criteria ? Per 2 CFR sections 200.313 (c ) through (e) of the Compliance Supplement states: Property records must be maintained that include a description of the property, serial number or other identification numbers, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of 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). Cause/Effect of Condition ? The school was unaware that an inventory should be kept. If property purchased with federal funds is not inventoried, the school has no record of these items. Recommendation ? The school should prepare an inventory list of all equipment/property purchased with ESSER or ARP funding. The school?s list should follow 2 CFR section 200.313, (d) (1) guidelines.
2022-001 ? Statement of Condition ? ESSER and ARP 84.425C, 84.425U, 84.425D, 84.425U for period ending June 30, 2022. During our review of the ESSER and ARP grant programs, we noted the school had not prepared an equipment inventory. Criteria ? Per 2 CFR sections 200.313 (c ) through (e) of the Compliance Supplement states: Property records must be maintained that include a description of the property, serial number or other identification numbers, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of 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). Cause/Effect of Condition ? The school was unaware that an inventory should be kept. If property purchased with federal funds is not inventoried, the school has no record of these items. Recommendation ? The school should prepare an inventory list of all equipment/property purchased with ESSER or ARP funding. The school?s list should follow 2 CFR section 200.313, (d) (1) guidelines.
2022-001 ? Statement of Condition ? ESSER and ARP 84.425C, 84.425U, 84.425D, 84.425U for period ending June 30, 2022. During our review of the ESSER and ARP grant programs, we noted the school had not prepared an equipment inventory. Criteria ? Per 2 CFR sections 200.313 (c ) through (e) of the Compliance Supplement states: Property records must be maintained that include a description of the property, serial number or other identification numbers, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of 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). Cause/Effect of Condition ? The school was unaware that an inventory should be kept. If property purchased with federal funds is not inventoried, the school has no record of these items. Recommendation ? The school should prepare an inventory list of all equipment/property purchased with ESSER or ARP funding. The school?s list should follow 2 CFR section 200.313, (d) (1) guidelines.
2022-001 ? Statement of Condition ? ESSER and ARP 84.425C, 84.425U, 84.425D, 84.425U for period ending June 30, 2022. During our review of the ESSER and ARP grant programs, we noted the school had not prepared an equipment inventory. Criteria ? Per 2 CFR sections 200.313 (c ) through (e) of the Compliance Supplement states: Property records must be maintained that include a description of the property, serial number or other identification numbers, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of 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). Cause/Effect of Condition ? The school was unaware that an inventory should be kept. If property purchased with federal funds is not inventoried, the school has no record of these items. Recommendation ? The school should prepare an inventory list of all equipment/property purchased with ESSER or ARP funding. The school?s list should follow 2 CFR section 200.313, (d) (1) guidelines.