Finding Text
Criteria OMB Circular A-110 requires that equipment be used in the program for which it was acquired or, when appropriate, other Federal programs. Equipment records shall be maintained, a physical inventory of equipment shall be taken at least once every two years and reconciled to the equipment records, an appropriate control system shall be used to safeguard equipment and equipment shall be adequately maintained. Condition The Organization does not have formal policies and procedures over the maintenance of equipment records and does not perform periodic inventories of equipment. Cause The Organization does not have entity-wide policies and procedures in place to require the different locations to uniformly follow the equipment management requirements. Effect The Organization is not in compliance with the equipment and real property management requirements. Questioned Costs None Context Each location of the Organization maintains some form of equipment records. However, not all of them contain the required elements: description, including serial number, source, who holds title, acquisition date and cost, percentage of Federal participation in the cost, location, condition and any disposition data. Also, not every location indicates when the last equipment inventory was conducted. Recommendation The Organization should create formal policies and procedures that require equipment records be maintained in accordance with Uniform Guidance. Those policies and procedures should also require an inventory of equipment be conducted, at least bi-annually. The Organization should also expand personnel at the Corporate level to allow for someone to follow up on these corrective actions and ensure compliance by the various locations. Views of Responsible Officials See the accompanying Corrective Action Plan.