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 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.
Finding 2022 002: Inaccurate Property Management Records Federal Agency: U.S. Department of Agriculture (USDA) U.S. Department of Commerce (USDOC) U.S. Department of Defense (USDOD) U.S. Director of National Intelligence (USDNI) U.S. Department of Housing and Urban Development (USHUD) U.S. Department of Interior (USDOI) U.S. Department of Justice (USDOJ) U.S. Department of Transportation (USDOT) National Aeronautics and Space Administration (NASA) National Endowment for the Humanities (NEH) National Science Foundation (NSF) U.S. Department of Veteran Affairs (USDVA) U.S. Environmental Protection Agency (USEPA) U.S. Department of Energy (USDOE) U.S. Department of Education (USDE) Smithsonian Institution U.S. Department of Health and Human Services (USDHHS) Corporation for National and Community Service All Pass-Through Entities Program Name: Research and Development Cluster ALN # and Program Expenditures: Various ($482,298,931) Federal Award Numbers: Various ? See schedule of award numbers Federal Award Year: Various ? See schedule of award numbers Questioned Costs: None Compliance Requirement: Equipment Condition Found: The University did not consistently follow its property management policies and procedures related to equipment purchased with federal funding from the Research and Development (R&D) Cluster program. The University conducts research at multiple locations throughout their campus, where equipment purchased with federal funds is utilized and maintained. The University identifies all equipment in its property management records with individually assigned asset numbers and each individual asset record includes the specific location of the asset, the federal award general ledger account number that funded the purchase of the asset, and other required information. An asset tag with the assigned asset number is affixed to each asset in accordance with University policy. During our physical observation of 60 pieces of equipment purchased with R&D Cluster funds (with a total cost value of $1,542,384), we noted the following: - Nine items (with a total cost value of $200,035) did not have property management tags affixed at the time of our observation. - Eight items (with a total cost value of $103,583) had property management tags with asset numbers that were inconsistent with the equipment listing. Upon further review, we noted the property management records contained a temporary asset tag number that had not been updated for the permanent tag subsequently affixed by department personnel. Further, we noted adequate management review controls had not been established to ensure property management records were accurately updated and equipment was properly tagged. The net book value of equipment related to the R&D Cluster program totaled $217,101,257 at June 30, 2022. Criteria: According to 2 CFR 200.313(d)(1), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include procedures to ensure that accurate property records are maintained and equipment items are properly tagged. Cause: In discussing these conditions with University officials, they stated the University?s procedures for tagging equipment were delayed because the University?s personnel operated in a remote environment during fiscal years 2021 and 2022. Additionally, physical inventory procedures, which are designed detect differences between perpetual and actual information, were waived during fiscal years 2020 and 2021 as a result of the pandemic. Possible Asserted Effect: Failure to maintain accurate property records may prohibit the University from properly safeguarding and maintaining equipment and may result in federal programs not receiving the appropriate share of proceeds from the disposals of equipment purchased with federal funds. Repeat Finding: A similar finding was not reported in the prior year audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend the University review its procedures for updating property records to ensure they accurately reflect equipment information. We also recommend the University properly tag equipment in accordance with its policy. Views of University Officials: The University agrees with the finding. All departments of the University will be reminded that tagging is an integral part of the internal control process for capital assets and training will be made available before June 30, 2023.