Finding 1105556 (2024-003)

Federal Program Name ACL Independent Living State Grants-ACL Title VII-Chapter 1, Part B CFDA # 93.369 Federal Agency Department of Human Services Criteria The Organization is responsible for staying in compliance with equipment and real property management attribute related to the grant. To be considered in compliance, all property and equipment must be maintained in property records and reconciled to a physical inventory. Condition All assets were noted in the property records except for one. The assets was not able to be reconciled to the physical inventory taken during the year. Context Physical inventory is taken once a year at each location by room. We obtained the physical inventory records for the year as well as the master inventory list used to maintain inventory. Cause Management overlooked recording the asset in the master inventory list. Effect The potential negative impact of not following compliance standards for the grant could lead to revocation of the grant. Recommendation We recommend that management takes the time to go through the inventory master list and ensures all assets have been recorded and have reconciled to the physical inventory. Management’s Response Management agrees with this finding.