Finding Text
Information on the Federal Program: Assistance Listing Number 81.086— Upper Midwest Inter‐Tribal EV Charging Community Network. Compliance Requirement: Equipment and Real Property Type of Finding: Noncompliance and material weakness in internal control over compliance. Criteria: 2 CFR 200.313 item (d): Property Standards. Property records must include a description of the property, a serial number or another identification number, the source of funding for the property (including the FAIN), the title holder, the acquisition date, the cost of the property, the percentage of the Federal agency contribution towards the original purchase, the location, use and condition of the property, and any disposition data including the date of disposal and sale price of the property. The recipient and subrecipient are responsible for maintaining and updating property records when there is a change in the status of the property. Condition: For real property and equipment purchased with federal funding by Native Sun, adequate records and agreements were not kept. This included a lack of a listing as referenced above and a lack of agreement with beneficiaries of real property and equipment to ensure they remained in compliance with federal standards. Causes: The Organization was not retaining adequate records of equipment transferred to beneficiaries. Effect or Potential Effect: There could be equipment or real property purchased with federal funding that is not adequately accounted for or used outside of the bounds of the designated project use. There could also be equipment or real property unaccounted for or disposed of in a way that is not in compliance with federal standards. Large purchases of equipment including an electric bus and a bus garage lacked agreements that ensured that these items were accounted for in compliance with federal standards. Questioned Costs: None Context: The Organization did not have adequate controls in place to ensure that two of eight equipment and real property purchases tested were in compliance with federal guidelines. In addition, the organization was not able to provide an equipment list which included all required information at the beginning of the single audit process. Repeat Finding: No Recommendation: We recommend the Organization maintain a detailed listing of all real property and equipment purchased with federal funding that adheres to the criteria noted in 2 CFR Part 200. We also recommend the Organization have signed agreements dictating the treatment of real property and equipment with beneficiaries of all items that ownership is transferred from the Organization to ensure compliance. Views of Responsible Officials: Agree.