Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
Cluster: Research and Development Federal Agency: Various Award Names: Various Award Numbers: Various Assistance Listing Title: Various Assistance Listing Number: Various Award Year: 2021- 2022 Pass-through entity: Various Criteria According to 2 CFR section 200.313, procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, at a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition The Health System did not perform a physical inventory of federally purchased fixed assets at least once during the last two years. Additionally, the federal asset listing did not specify all of the details required by 2 CFR section 200.313 (d) (1) such as asset locations, tag numbers, use and condition. The full population of equipment funded with federal research and development dollars, as provided by the Health System, consisted of 9 items with a total historical cost of $105k. Cause The Health System lacks a process to ensure that policies and procedures related to identifying and managing its federally purchased fixed assets in accordance with 2 CFR section 200.313 are followed, including updating property records to include all required data elements and the performance of a physical inventory at least once every two years. Effect The Health System's accounting records for its federally purchased fixed assets could be inaccurate as the Health System has not formally verified the existence, current utilization and continued need for the equipment through this physical inventory process. Additionally, without maintaining tag numbers and records of asset locations, safeguarding of assets could be impacted. Questioned Costs None noted. Recommendation We recommend that the Health System implement a process to ensure its policies and procedures over equipment management are followed, including the performance of a physical inventory of federally purchased fixed assets at least once every two years in accordance with 2 CFR section 200.313(d)(2), and updating its property records to include all details required by 2 CFR section 200.313(d)(1). Management?s Views and Corrective Action Plan Management?s Views and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.
FINDING 2022-005 Information on the federal program: Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listing Numbers: 84.425D, 84.425U Federal Award Numbers: S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Modified Opinion Criteria: 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)...." 2 CFR 200.313(d)(1) states in part: "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 federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property" Condition: An effective internal control system was not in place at the School Corporation to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management compliance requirement. A property record or capital asset listing which would include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, and use and condition of the property is to be maintained for assets purchased that exceed the School Corporation?s capitalization threshold. Additionally, a physical inventory is to be taken and reconciled to the School Corporation?s records once every two years and assets are to be properly maintained and safeguarded to keep the property in good order and prevent loss, damage and theft. The School Corporation did not have policies or procedures in place to ensure that capital assets purchased with federal award funds were added to the capital asset listing, inventoried, and properly maintained and safeguarded. One of the two capital improvement projects completed during the audit period and the paid with Elementary and Secondary School Emergency Relief (ESSER II) Fund award was not added to the School Corporation's capital asset listing. As such this asset was not inventoried during the School Corporation?s most recent inventory The lack of internal controls and noncompliance were systemic issues throughout the audit period. Cause: Management had not established a system of internal controls that would have ensured compliance with the Equipment and Real Property Management compliance requirement. Effect: The failure to establish an effective internal control system enabled material noncompliance to go undetected. Noncompliance with the grant agreement and the Equipment and Real Property Management compliance requirement could have resulted in the loss of federal funds to the School Corporation. Questioned Costs: There were no questioned costs identified. Context: An effective internal control system was not in place at the School Corporation to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management compliance requirement. Identification as a repeat finding, if applicable: No. Recommendation: We recommended that the School Corporation's management establish a system of internal controls to ensure compliance and comply with the grant agreement and the Equipment and Real Property Management compliance requirement. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
FINDING 2022-005 Information on the federal program: Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listing Numbers: 84.425D, 84.425U Federal Award Numbers: S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness, Modified Opinion Criteria: 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)...." 2 CFR 200.313(d)(1) states in part: "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 federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property" Condition: An effective internal control system was not in place at the School Corporation to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management compliance requirement. A property record or capital asset listing which would include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, and use and condition of the property is to be maintained for assets purchased that exceed the School Corporation?s capitalization threshold. Additionally, a physical inventory is to be taken and reconciled to the School Corporation?s records once every two years and assets are to be properly maintained and safeguarded to keep the property in good order and prevent loss, damage and theft. The School Corporation did not have policies or procedures in place to ensure that capital assets purchased with federal award funds were added to the capital asset listing, inventoried, and properly maintained and safeguarded. One of the two capital improvement projects completed during the audit period and the paid with Elementary and Secondary School Emergency Relief (ESSER II) Fund award was not added to the School Corporation's capital asset listing. As such this asset was not inventoried during the School Corporation?s most recent inventory The lack of internal controls and noncompliance were systemic issues throughout the audit period. Cause: Management had not established a system of internal controls that would have ensured compliance with the Equipment and Real Property Management compliance requirement. Effect: The failure to establish an effective internal control system enabled material noncompliance to go undetected. Noncompliance with the grant agreement and the Equipment and Real Property Management compliance requirement could have resulted in the loss of federal funds to the School Corporation. Questioned Costs: There were no questioned costs identified. Context: An effective internal control system was not in place at the School Corporation to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management compliance requirement. Identification as a repeat finding, if applicable: No. Recommendation: We recommended that the School Corporation's management establish a system of internal controls to ensure compliance and comply with the grant agreement and the Equipment and Real Property Management compliance requirement. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
FINDING 2022-006 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Award Numbers and Years (or Other Identifying Numbers): S425D200013, S425U200013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness Criteria: 2 CFR 200.303 states in part: ?The non-Federal entity must: ?Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in `Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the `Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)??." 2 CFR 200.313(d) states in part: "(1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at lease once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. . . . ? Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and Equipment and Real Property Management compliance requirement. Cause: Management had not developed a system of internal controls that would have ensured compliance with the Equipment and Real Property Management compliance requirement. Effect: The failure to establish an effective internal control system enabled material noncompliance to go undetected. Noncompliance with the grant agreement and the Equipment and Real Property Management compliance requirement could have resulted in the loss of federal funds to the School Corporation. Questioned Costs: There were no questioned costs identified. Context: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and Equipment and Real Property Management. The School paid for chiller repairs and purchased a new air conditioning unit using education stabilization funds. These capital improvements were not added to a detailed listing of capital assets that would include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, and the use and condition of the property. In addition, a physical inventory had not been taken in the past two years. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Identification as a repeat finding: No. Recommendation: We recommended that the School Corporation's management establish internal controls to ensure compliance and comply with the grant agreement and the Equipment and Real Property Management compliance requirement. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
FINDING 2022-006 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Award Numbers and Years (or Other Identifying Numbers): S425D200013, S425U200013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness Criteria: 2 CFR 200.303 states in part: ?The non-Federal entity must: ?Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in `Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the `Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)??." 2 CFR 200.313(d) states in part: "(1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at lease once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. . . . ? Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and Equipment and Real Property Management compliance requirement. Cause: Management had not developed a system of internal controls that would have ensured compliance with the Equipment and Real Property Management compliance requirement. Effect: The failure to establish an effective internal control system enabled material noncompliance to go undetected. Noncompliance with the grant agreement and the Equipment and Real Property Management compliance requirement could have resulted in the loss of federal funds to the School Corporation. Questioned Costs: There were no questioned costs identified. Context: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and Equipment and Real Property Management. The School paid for chiller repairs and purchased a new air conditioning unit using education stabilization funds. These capital improvements were not added to a detailed listing of capital assets that would include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, and the use and condition of the property. In addition, a physical inventory had not been taken in the past two years. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Identification as a repeat finding: No. Recommendation: We recommended that the School Corporation's management establish internal controls to ensure compliance and comply with the grant agreement and the Equipment and Real Property Management compliance requirement. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
FINDING 2022-006 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Award Numbers and Years (or Other Identifying Numbers): S425D200013, S425U200013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness Criteria: 2 CFR 200.303 states in part: ?The non-Federal entity must: ?Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in `Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the `Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)??." 2 CFR 200.313(d) states in part: "(1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at lease once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. . . . ? Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and Equipment and Real Property Management compliance requirement. Cause: Management had not developed a system of internal controls that would have ensured compliance with the Equipment and Real Property Management compliance requirement. Effect: The failure to establish an effective internal control system enabled material noncompliance to go undetected. Noncompliance with the grant agreement and the Equipment and Real Property Management compliance requirement could have resulted in the loss of federal funds to the School Corporation. Questioned Costs: There were no questioned costs identified. Context: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and Equipment and Real Property Management. The School paid for chiller repairs and purchased a new air conditioning unit using education stabilization funds. These capital improvements were not added to a detailed listing of capital assets that would include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, and the use and condition of the property. In addition, a physical inventory had not been taken in the past two years. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Identification as a repeat finding: No. Recommendation: We recommended that the School Corporation's management establish internal controls to ensure compliance and comply with the grant agreement and the Equipment and Real Property Management compliance requirement. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
Finding: The District overcharged the Education Stabilization Fund program for equipment. Criteria: Consistent with 2 CFR section 200.313 (equipment), Education Stabilization Funds (ESF) may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by Education Department (ED) or the pass-through entity. In addition, with prior approval by the ED or the pass-through entity, recipients and subrecipients may also use ESF funds to purchase real property, perform construction or minor remodeling, and for improvements to land, buildings, or equipment that meet the overall purpose of the ESF program, which is ?to prevent, prepare for, and respond to? the COVID-19 pandemic. Condition: The District expended Education Stabilization Fund program funding to purchase three vehicles at a price above the amount approved by the Iowa Department of Education. Context: The District obtained approval to buy up to eight vehicles for up to $40,000 each. The District purchased three vehicles in the amounts of $55,348; $48,351, and $54,214, which exceeded the maximum approved amount per vehicle and charged the program for the full purchase price. Effect: The District overspent allowable funds as approved by the Iowa Department of Education for equipment by $37,913. Questioned Costs: $37,913 Identification as a repeat finding: This is not a repeat finding. Cause: The District did not compare the actual cost of each vehicle to the Iowa Department of Education approval. Recommendation: We recommend the District request an amendment if the actual cost exceeds the prior approval limits or only charge the program for the approved portion.
Finding: The District overcharged the Education Stabilization Fund program for equipment. Criteria: Consistent with 2 CFR section 200.313 (equipment), Education Stabilization Funds (ESF) may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by Education Department (ED) or the pass-through entity. In addition, with prior approval by the ED or the pass-through entity, recipients and subrecipients may also use ESF funds to purchase real property, perform construction or minor remodeling, and for improvements to land, buildings, or equipment that meet the overall purpose of the ESF program, which is ?to prevent, prepare for, and respond to? the COVID-19 pandemic. Condition: The District expended Education Stabilization Fund program funding to purchase three vehicles at a price above the amount approved by the Iowa Department of Education. Context: The District obtained approval to buy up to eight vehicles for up to $40,000 each. The District purchased three vehicles in the amounts of $55,348; $48,351, and $54,214, which exceeded the maximum approved amount per vehicle and charged the program for the full purchase price. Effect: The District overspent allowable funds as approved by the Iowa Department of Education for equipment by $37,913. Questioned Costs: $37,913 Identification as a repeat finding: This is not a repeat finding. Cause: The District did not compare the actual cost of each vehicle to the Iowa Department of Education approval. Recommendation: We recommend the District request an amendment if the actual cost exceeds the prior approval limits or only charge the program for the approved portion.
Finding: The District overcharged the Education Stabilization Fund program for equipment. Criteria: Consistent with 2 CFR section 200.313 (equipment), Education Stabilization Funds (ESF) may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by Education Department (ED) or the pass-through entity. In addition, with prior approval by the ED or the pass-through entity, recipients and subrecipients may also use ESF funds to purchase real property, perform construction or minor remodeling, and for improvements to land, buildings, or equipment that meet the overall purpose of the ESF program, which is ?to prevent, prepare for, and respond to? the COVID-19 pandemic. Condition: The District expended Education Stabilization Fund program funding to purchase three vehicles at a price above the amount approved by the Iowa Department of Education. Context: The District obtained approval to buy up to eight vehicles for up to $40,000 each. The District purchased three vehicles in the amounts of $55,348; $48,351, and $54,214, which exceeded the maximum approved amount per vehicle and charged the program for the full purchase price. Effect: The District overspent allowable funds as approved by the Iowa Department of Education for equipment by $37,913. Questioned Costs: $37,913 Identification as a repeat finding: This is not a repeat finding. Cause: The District did not compare the actual cost of each vehicle to the Iowa Department of Education approval. Recommendation: We recommend the District request an amendment if the actual cost exceeds the prior approval limits or only charge the program for the approved portion.
FA 2022-003 Improve Controls over Equipment Compliance Requirement: Equipment and Real Property Management Internal Control Impact: Significant Deficiency Compliance Impact: Nonmaterial Noncompliance Federal Awarding Agency: U.S. Department of Education Pass-Through Entity: Georgia Department of Education AL Numbers and Titles: COVID-19 ? 84.425D ? Elementary and Secondary School Emergency Relief Fund COVID-19 ? 84.425U ? American Rescue Plan Elementary and Secondary School Emergency Relief Fund Federal Award Numbers: S425D200012 (Year: 2020), S425D210012 (Year: 2021) S425U210012 (Year: 2021) Questioned Costs: None Identified Description: The policies and procedures of the School District were insufficient to provide adequate internal controls over equipment and real property management as it relates to the Elementary and Secondary School Emergency Relief Fund program. Background: On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. The CARES Act was designed to mitigate the economic effects of the COVID-19 pandemic in a variety of ways, including providing additional funding for local educational agencies (LEAs) navigating the impact of the COVID-19 outbreak. Provisions included in Title VIII of the CARES Act created the Education Stabilization Fund to provide financial resources to educational entities to prevent, prepare for, and respond to coronavirus. The CARES Act allocated $30.75 billion, the Coronavirus Response and Relief Supplemental Appropriations Act allocated an additional $81.9 billion, and the American Rescue Plan Act added $165.1 billion in funding to the Education Stabilization Fund. Multiple Education Stabilization Fund subprograms were created and allotted funding through the various COVID-19-related legislation. Of these programs, the Elementary and Secondary School Emergency Relief (ESSER) Fund was created to address the impact that COVID-19 has had, and continues to have, on elementary and secondary schools across the nation. ESSER funding was granted to the Georgia Department of Education (GaDOE) by the U.S. Department of Education (ED). GaDOE is responsible for distributing funds to LEAs and overseeing the expenditure of funds by LEAs. ESSER funds totaling $199,433,680.30 were expended and reported on the DeKalb County Board of Education?s Schedule of Expenditures of Federal Awards (SEFA) for fiscal year 2022. Criteria: As a recipient of federal awards, the School District is required to establish and maintain effective internal control over federal awards that provides reasonable assurance of managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards pursuant to Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Section 200.303 ? Internal Controls. Provisions included in the Uniform Guidance, Section 200.313(d)(1) state, ?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.? In addition, the Uniform Guidance, Section 200.313(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.? Condition: The following deficiencies were noted when reviewing the ESSER program equipment listing and related invoice documentation: ? Equipment items totaling $163,730.00 were included on the financial statement capital asset listing but were excluded from the program equipment listing; therefore, property records did not include the following required components for the omitted equipment items: (1) A description of the property, (2) a serial number or other identification number, (3) the source of funding for the property (including the FAIN), (4) who holds title, (5) the acquisition date, (6) cost of the property, (7) percentage of Federal participation in the project costs for the Federal award under which the property was acquired, (8) the location, and (9) use and condition of the property. ? Building improvements of $3,573,167.42 were excluded from the program equipment listing. ? Because these items were not included on the program equipment listing, a complete physical inventory was not performed and reconciled back to the property records. Cause: In discussing this deficiency with the School District, they stated that those items included on the capital asset listing and excluded from the program equipment listing were discovered after preparation and submission of the program equipment listing but prior to the submission of the financial statement capital asset listing. In addition, the building improvements are capitalized at a higher threshold for financial statement purposes and were overlooked by the School District when preparing the program equipment listing. Effect: The School District is not in compliance with the Uniform Guidance or GaDOE guidance related to the ESSER program. Failure to maintain a complete and accurate equipment listing and reconcile results of the physical inventory performed to the property records exposes the School District to unnecessary risk of error and misuse of equipment and/or Federal funds. Recommendation: The School District should develop and maintain an equipment listing that reflects all required information, including a description, an identifying number, the source of funding, the title holder, the acquisition date, the cost, the percentage of federal participation in the project costs, the location, the use and condition, and any ultimate disposal data for each piece of equipment. In addition, management should implement controls to ensure that a complete physical inventory of equipment is performed, and the results are reconciled back to the equipment listing at least once every two years. Further, management should develop and implement a monitoring process to ensure that control procedures are being followed. Views of Responsible Officials: We concur with this finding.
FA 2022-003 Improve Controls over Equipment Compliance Requirement: Equipment and Real Property Management Internal Control Impact: Significant Deficiency Compliance Impact: Nonmaterial Noncompliance Federal Awarding Agency: U.S. Department of Education Pass-Through Entity: Georgia Department of Education AL Numbers and Titles: COVID-19 ? 84.425D ? Elementary and Secondary School Emergency Relief Fund COVID-19 ? 84.425U ? American Rescue Plan Elementary and Secondary School Emergency Relief Fund Federal Award Numbers: S425D200012 (Year: 2020), S425D210012 (Year: 2021) S425U210012 (Year: 2021) Questioned Costs: None Identified Description: The policies and procedures of the School District were insufficient to provide adequate internal controls over equipment and real property management as it relates to the Elementary and Secondary School Emergency Relief Fund program. Background: On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. The CARES Act was designed to mitigate the economic effects of the COVID-19 pandemic in a variety of ways, including providing additional funding for local educational agencies (LEAs) navigating the impact of the COVID-19 outbreak. Provisions included in Title VIII of the CARES Act created the Education Stabilization Fund to provide financial resources to educational entities to prevent, prepare for, and respond to coronavirus. The CARES Act allocated $30.75 billion, the Coronavirus Response and Relief Supplemental Appropriations Act allocated an additional $81.9 billion, and the American Rescue Plan Act added $165.1 billion in funding to the Education Stabilization Fund. Multiple Education Stabilization Fund subprograms were created and allotted funding through the various COVID-19-related legislation. Of these programs, the Elementary and Secondary School Emergency Relief (ESSER) Fund was created to address the impact that COVID-19 has had, and continues to have, on elementary and secondary schools across the nation. ESSER funding was granted to the Georgia Department of Education (GaDOE) by the U.S. Department of Education (ED). GaDOE is responsible for distributing funds to LEAs and overseeing the expenditure of funds by LEAs. ESSER funds totaling $199,433,680.30 were expended and reported on the DeKalb County Board of Education?s Schedule of Expenditures of Federal Awards (SEFA) for fiscal year 2022. Criteria: As a recipient of federal awards, the School District is required to establish and maintain effective internal control over federal awards that provides reasonable assurance of managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards pursuant to Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Section 200.303 ? Internal Controls. Provisions included in the Uniform Guidance, Section 200.313(d)(1) state, ?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.? In addition, the Uniform Guidance, Section 200.313(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.? Condition: The following deficiencies were noted when reviewing the ESSER program equipment listing and related invoice documentation: ? Equipment items totaling $163,730.00 were included on the financial statement capital asset listing but were excluded from the program equipment listing; therefore, property records did not include the following required components for the omitted equipment items: (1) A description of the property, (2) a serial number or other identification number, (3) the source of funding for the property (including the FAIN), (4) who holds title, (5) the acquisition date, (6) cost of the property, (7) percentage of Federal participation in the project costs for the Federal award under which the property was acquired, (8) the location, and (9) use and condition of the property. ? Building improvements of $3,573,167.42 were excluded from the program equipment listing. ? Because these items were not included on the program equipment listing, a complete physical inventory was not performed and reconciled back to the property records. Cause: In discussing this deficiency with the School District, they stated that those items included on the capital asset listing and excluded from the program equipment listing were discovered after preparation and submission of the program equipment listing but prior to the submission of the financial statement capital asset listing. In addition, the building improvements are capitalized at a higher threshold for financial statement purposes and were overlooked by the School District when preparing the program equipment listing. Effect: The School District is not in compliance with the Uniform Guidance or GaDOE guidance related to the ESSER program. Failure to maintain a complete and accurate equipment listing and reconcile results of the physical inventory performed to the property records exposes the School District to unnecessary risk of error and misuse of equipment and/or Federal funds. Recommendation: The School District should develop and maintain an equipment listing that reflects all required information, including a description, an identifying number, the source of funding, the title holder, the acquisition date, the cost, the percentage of federal participation in the project costs, the location, the use and condition, and any ultimate disposal data for each piece of equipment. In addition, management should implement controls to ensure that a complete physical inventory of equipment is performed, and the results are reconciled back to the equipment listing at least once every two years. Further, management should develop and implement a monitoring process to ensure that control procedures are being followed. Views of Responsible Officials: We concur with this finding.
2022-002. Equipment and Real Property Management United States Department of Education, passed-through New York State Department of Education: Education Stabilization Fund (ESF) COVID-19: Governor?s Emergency Education Relief (GEER) Fund ALN: 84.425C COVID-19: Elementary and Secondary School Emergency Relief (ESSER) Fund ALN: 84.425D COVID-19: American Rescue Plan ? Elementary and Secondary School Emergency Relief (ARP ESSER) Fund ALN: 84.425U Criteria: 2 CFR ?200.313 of the Uniform Guidance issued by the U.S. Office of Management and Budget requires management to have procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a federal award, until disposition takes place, which includes maintaining property records that include a description of the property, a serial number or other identification number, the source of funding for the property (including 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. Condition: The District did not tag and include as an addition, equipment purchased using federal grant funds during the current year, in the District?s capital assets inventory. Cause: Due to the District not having procedures in place to reconcile the District?s equipment codes to the annual capital assets additions, the equipment purchased under the federal grant was inadvertently omitted from the current year capital assets inventory additions. Effect: This could result in the improper use or disposal of capital assets purchased from federal funds. Questioned Costs: None reported. Context: The District rarely uses federal grant funds for the purchase of equipment. Additionally, there were significant changes in personnel within the Business Office during the year. As a result, when the capital assets additions were being compiled and sent to the District?s third party capital assets management company, the equipment purchased using federal grant funds was inadvertently omitted from the listing. Identification of a Repeat Finding: This is not a repeat finding. Recommendation: The District should implement procedures where there is a formal reconciliation performed annually between all of the District?s equipment expenditure codes and the additions to the District?s capital assets inventory. Additionally, all capital assets additions purchased with federal funds should be immediately tagged and managed in accordance with 2 CFR ?200.313. Views of Responsible Officials of Auditee: Management agrees with the finding and will ensure that the equipment gets properly tagged and added to the District?s capital assets inventory record.
2022-002. Equipment and Real Property Management United States Department of Education, passed-through New York State Department of Education: Education Stabilization Fund (ESF) COVID-19: Governor?s Emergency Education Relief (GEER) Fund ALN: 84.425C COVID-19: Elementary and Secondary School Emergency Relief (ESSER) Fund ALN: 84.425D COVID-19: American Rescue Plan ? Elementary and Secondary School Emergency Relief (ARP ESSER) Fund ALN: 84.425U Criteria: 2 CFR ?200.313 of the Uniform Guidance issued by the U.S. Office of Management and Budget requires management to have procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a federal award, until disposition takes place, which includes maintaining property records that include a description of the property, a serial number or other identification number, the source of funding for the property (including 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. Condition: The District did not tag and include as an addition, equipment purchased using federal grant funds during the current year, in the District?s capital assets inventory. Cause: Due to the District not having procedures in place to reconcile the District?s equipment codes to the annual capital assets additions, the equipment purchased under the federal grant was inadvertently omitted from the current year capital assets inventory additions. Effect: This could result in the improper use or disposal of capital assets purchased from federal funds. Questioned Costs: None reported. Context: The District rarely uses federal grant funds for the purchase of equipment. Additionally, there were significant changes in personnel within the Business Office during the year. As a result, when the capital assets additions were being compiled and sent to the District?s third party capital assets management company, the equipment purchased using federal grant funds was inadvertently omitted from the listing. Identification of a Repeat Finding: This is not a repeat finding. Recommendation: The District should implement procedures where there is a formal reconciliation performed annually between all of the District?s equipment expenditure codes and the additions to the District?s capital assets inventory. Additionally, all capital assets additions purchased with federal funds should be immediately tagged and managed in accordance with 2 CFR ?200.313. Views of Responsible Officials of Auditee: Management agrees with the finding and will ensure that the equipment gets properly tagged and added to the District?s capital assets inventory record.
2022-002. Equipment and Real Property Management United States Department of Education, passed-through New York State Department of Education: Education Stabilization Fund (ESF) COVID-19: Governor?s Emergency Education Relief (GEER) Fund ALN: 84.425C COVID-19: Elementary and Secondary School Emergency Relief (ESSER) Fund ALN: 84.425D COVID-19: American Rescue Plan ? Elementary and Secondary School Emergency Relief (ARP ESSER) Fund ALN: 84.425U Criteria: 2 CFR ?200.313 of the Uniform Guidance issued by the U.S. Office of Management and Budget requires management to have procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a federal award, until disposition takes place, which includes maintaining property records that include a description of the property, a serial number or other identification number, the source of funding for the property (including 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. Condition: The District did not tag and include as an addition, equipment purchased using federal grant funds during the current year, in the District?s capital assets inventory. Cause: Due to the District not having procedures in place to reconcile the District?s equipment codes to the annual capital assets additions, the equipment purchased under the federal grant was inadvertently omitted from the current year capital assets inventory additions. Effect: This could result in the improper use or disposal of capital assets purchased from federal funds. Questioned Costs: None reported. Context: The District rarely uses federal grant funds for the purchase of equipment. Additionally, there were significant changes in personnel within the Business Office during the year. As a result, when the capital assets additions were being compiled and sent to the District?s third party capital assets management company, the equipment purchased using federal grant funds was inadvertently omitted from the listing. Identification of a Repeat Finding: This is not a repeat finding. Recommendation: The District should implement procedures where there is a formal reconciliation performed annually between all of the District?s equipment expenditure codes and the additions to the District?s capital assets inventory. Additionally, all capital assets additions purchased with federal funds should be immediately tagged and managed in accordance with 2 CFR ?200.313. Views of Responsible Officials of Auditee: Management agrees with the finding and will ensure that the equipment gets properly tagged and added to the District?s capital assets inventory record.
2022-002. Equipment and Real Property Management United States Department of Education, passed-through New York State Department of Education: Education Stabilization Fund (ESF) COVID-19: Governor?s Emergency Education Relief (GEER) Fund ALN: 84.425C COVID-19: Elementary and Secondary School Emergency Relief (ESSER) Fund ALN: 84.425D COVID-19: American Rescue Plan ? Elementary and Secondary School Emergency Relief (ARP ESSER) Fund ALN: 84.425U Criteria: 2 CFR ?200.313 of the Uniform Guidance issued by the U.S. Office of Management and Budget requires management to have procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a federal award, until disposition takes place, which includes maintaining property records that include a description of the property, a serial number or other identification number, the source of funding for the property (including 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. Condition: The District did not tag and include as an addition, equipment purchased using federal grant funds during the current year, in the District?s capital assets inventory. Cause: Due to the District not having procedures in place to reconcile the District?s equipment codes to the annual capital assets additions, the equipment purchased under the federal grant was inadvertently omitted from the current year capital assets inventory additions. Effect: This could result in the improper use or disposal of capital assets purchased from federal funds. Questioned Costs: None reported. Context: The District rarely uses federal grant funds for the purchase of equipment. Additionally, there were significant changes in personnel within the Business Office during the year. As a result, when the capital assets additions were being compiled and sent to the District?s third party capital assets management company, the equipment purchased using federal grant funds was inadvertently omitted from the listing. Identification of a Repeat Finding: This is not a repeat finding. Recommendation: The District should implement procedures where there is a formal reconciliation performed annually between all of the District?s equipment expenditure codes and the additions to the District?s capital assets inventory. Additionally, all capital assets additions purchased with federal funds should be immediately tagged and managed in accordance with 2 CFR ?200.313. Views of Responsible Officials of Auditee: Management agrees with the finding and will ensure that the equipment gets properly tagged and added to the District?s capital assets inventory record.
2022-002. Equipment and Real Property Management United States Department of Education, passed-through New York State Department of Education: Education Stabilization Fund (ESF) COVID-19: Governor?s Emergency Education Relief (GEER) Fund ALN: 84.425C COVID-19: Elementary and Secondary School Emergency Relief (ESSER) Fund ALN: 84.425D COVID-19: American Rescue Plan ? Elementary and Secondary School Emergency Relief (ARP ESSER) Fund ALN: 84.425U Criteria: 2 CFR ?200.313 of the Uniform Guidance issued by the U.S. Office of Management and Budget requires management to have procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a federal award, until disposition takes place, which includes maintaining property records that include a description of the property, a serial number or other identification number, the source of funding for the property (including 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. Condition: The District did not tag and include as an addition, equipment purchased using federal grant funds during the current year, in the District?s capital assets inventory. Cause: Due to the District not having procedures in place to reconcile the District?s equipment codes to the annual capital assets additions, the equipment purchased under the federal grant was inadvertently omitted from the current year capital assets inventory additions. Effect: This could result in the improper use or disposal of capital assets purchased from federal funds. Questioned Costs: None reported. Context: The District rarely uses federal grant funds for the purchase of equipment. Additionally, there were significant changes in personnel within the Business Office during the year. As a result, when the capital assets additions were being compiled and sent to the District?s third party capital assets management company, the equipment purchased using federal grant funds was inadvertently omitted from the listing. Identification of a Repeat Finding: This is not a repeat finding. Recommendation: The District should implement procedures where there is a formal reconciliation performed annually between all of the District?s equipment expenditure codes and the additions to the District?s capital assets inventory. Additionally, all capital assets additions purchased with federal funds should be immediately tagged and managed in accordance with 2 CFR ?200.313. Views of Responsible Officials of Auditee: Management agrees with the finding and will ensure that the equipment gets properly tagged and added to the District?s capital assets inventory record.
2022-002. Equipment and Real Property Management United States Department of Education, passed-through New York State Department of Education: Education Stabilization Fund (ESF) COVID-19: Governor?s Emergency Education Relief (GEER) Fund ALN: 84.425C COVID-19: Elementary and Secondary School Emergency Relief (ESSER) Fund ALN: 84.425D COVID-19: American Rescue Plan ? Elementary and Secondary School Emergency Relief (ARP ESSER) Fund ALN: 84.425U Criteria: 2 CFR ?200.313 of the Uniform Guidance issued by the U.S. Office of Management and Budget requires management to have procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a federal award, until disposition takes place, which includes maintaining property records that include a description of the property, a serial number or other identification number, the source of funding for the property (including 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. Condition: The District did not tag and include as an addition, equipment purchased using federal grant funds during the current year, in the District?s capital assets inventory. Cause: Due to the District not having procedures in place to reconcile the District?s equipment codes to the annual capital assets additions, the equipment purchased under the federal grant was inadvertently omitted from the current year capital assets inventory additions. Effect: This could result in the improper use or disposal of capital assets purchased from federal funds. Questioned Costs: None reported. Context: The District rarely uses federal grant funds for the purchase of equipment. Additionally, there were significant changes in personnel within the Business Office during the year. As a result, when the capital assets additions were being compiled and sent to the District?s third party capital assets management company, the equipment purchased using federal grant funds was inadvertently omitted from the listing. Identification of a Repeat Finding: This is not a repeat finding. Recommendation: The District should implement procedures where there is a formal reconciliation performed annually between all of the District?s equipment expenditure codes and the additions to the District?s capital assets inventory. Additionally, all capital assets additions purchased with federal funds should be immediately tagged and managed in accordance with 2 CFR ?200.313. Views of Responsible Officials of Auditee: Management agrees with the finding and will ensure that the equipment gets properly tagged and added to the District?s capital assets inventory record.
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.