Finding 1169817 (2025-001)

2025-001 – Significant Deficiency – Property and Equipment Program: ALN# 32.004 Universal Service Fund – Schools and Libraries – U.S. Department of Energy, Federal Communication Commission; Federal Award Year: 2025 Criteria: Federal Code section 200.313 Equipment paragraph [d] Management requirements, indicates 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: Although most property and equipment acquired under this program were individually below the $5,000 federal threshold, some items were not. The County did not have a process in place to maintain the records in the detail described above. Cause: County personnel applied the County’s policy and not the federal policy when evaluating purchased equipment for further tracking. Effect: Equipment acquired with federal funds may not be properly tracked for continual compliance with federal regulations. Questioned Costs: None. Recommendation: The County should inspect all purchases of equipment and evaluate the purchases for minimum federal tracking requirements. Views of Responsible Officials and Planned Corrective Actions: Management concurs with the recommendation. The lack of appropriate asset documentation to adhere to federal guidelines under Federal Code section 200.313 regarding asset tracking of purchases over $5,000 federal guidelines, but under County $10,000 policy threshold, was not followed for one qualifying asset out of forty-one assets purchased per the audit finding. Technology administrative staff will coordinate with Technology management for future purchases that are above the $5,000 federal threshold but below the County $10,000 policy threshold to comply with the required information.