Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison used a portion of these federal funds, and similar funding from prior years, to purchase equipment needed for research activities. When UW-Madison purchases equipment using federal funding (federal equipment), it must maintain comprehensive records of each federal equipment item, periodically conduct a physical inventory of the equipment, and reimburse the federal agency that originally funded the equipment purchase with any proceeds from the disposal of the equipment no longer needed for research activities. Criteria: Under 2 CFR s. 200.313 (d) (2), UW-Madison is required to biennially complete a physical inventory of all federal equipment and reconcile the results with its records. UW System Policy 334, Accountability for Capital Equipment, and UW Madison Procedure 3008.6, Physical Inventory Procedure, require biennial physical inventories of federal equipment. To comply with these policies and procedures, UW Madison has assigned central accounting staff the responsibility for tracking federal equipment and scheduling physical inventories. Staff within various UW Madison departments are responsible for safekeeping the equipment, locating items during physical inventories, and authorizing disposal when specific equipment is no longer useful. Under 2 CFR s. 200.313 (e) UW Madison is required to potentially provide repayment to the federal agency that originally funded the equipment purchase when federal equipment is no longer needed for research activities. Condition: UW-Madison did not perform a physical inventory of all federal equipment during the period from July 1, 2020, through June 30, 2022. Context: Based on available records, UW Madison reported a total federal equipment acquisition value of $332.9 million as of June 30, 2022. Based on these records, and from July 1, 2020, through June 30, 2022, UW Madison had 7,102 federal equipment items subject to the biennial physical inventory requirement. UW Madison performed a physical inventory of 2,688 federal equipment items from July 1, 2020, through June 30, 2022, but during this period it did not perform a physical inventory of 4,414 federal equipment items (62.2 percent). We discussed UW Madison?s procedures with the central accounting staff responsible for scheduling physical inventories of UW Madison departments, obtained documentation of physical inventories UW Madison performed, and conducted other testing of UW Madison?s management of federal equipment. Questioned Costs: None. Effect: Without completion of regular physical inventories of federal equipment, UW Madison is at increased risk of theft or loss of equipment, it cannot be assured that federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses, which may result in a failure to reimburse the federal agency that originally funded the equipment purchase with any proceeds from its disposal. Cause: Due to staffing turnover of both central accounting staff and department staff, UW-Madison indicated that it waived the requirement to perform physical inventories of equipment items by June 30, 2022. However, UW Madison did not provide documentation of the waiver or federal approval to waive this requirement. We found two of the four UW Madison central accounting positions experienced turnover in spring 2021, which contributed to a backlog in the physical inventories UW Madison had planned to complete during FY 2020 21. As a result, during FY 2021 22 UW Madison central accounting staff stated that they focused on eliminating the backlog rather than on initiating new physical inventories at certain departments. Given the volume of equipment managed by UW Madison and the various locations of the equipment, it is important that physical inventories are performed regularly to limit the risk of theft or loss of federal equipment. Recommendation: We recommend the University of Wisconsin Madison conduct physical inventories of federal equipment as required by federal regulations and its existing policies and procedures, or seek a waiver from the federal cognizant agency. Finding 2022-700: Research and Development Cluster?Physical Inventory Requirements for Federal Equipment Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.