FAC Explorer

Finding 1170299 (2024-010)

Material Weakness Repeat Finding
Requirement
F
Questioned Costs
-
Year
2024
Accepted
2026-01-22
Audit: 383421
Organization: Kentucky State University (KY)
Auditor: CLIFTONLARSONALLEN LLP

AI Summary

  • Core Issue: The University failed to conduct required physical inventory and safeguard documentation for federally funded equipment.
  • Impacted Requirements: Noncompliance with federal regulations (2 CFR 200.313) regarding inventory management and asset protection.
  • Recommended Follow-Up: Implement procedures for biennial inventory checks and maintain evidence of asset possession, such as photographs.

Finding Text

2024 – 010 – Capital Asset Inventory Documentation Federal Agency: US Department of Agriculture Federal Program Name: Extension Services at 1890 Colleges Assistance Listing Number: 10.512 Federal Award Identification Number and Year: NI201444XXXXG008-0005 Award Period: July 1, 2023 – June 30, 2024 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: Regardless of whether equipment is acquired in part or its entirety under the federal award, the recipient or subrecipient must manage equipment. A physical inventory of the property must be conducted, and the results must be reconciled with the property records at least once every two years and a control system must be in place to ensure safeguards for preventing property loss, damage, or theft. Any loss, damage, or theft of equipment must be investigated. The recipient or subrecipient must notify the Federal agency or pass-through entity of any loss, damage, or theft of equipment that will have an impact on the program. Additionally, reconciliation to property records and safeguarding of equipment are requirements under (2 CFR 200.313 (d)(2) and (3)). Condition: The University did not have documentation of inventory of federal funding being completed every two years as well as documentation supporting the safeguard of assets, nor was the auditor able to reconcile to property records or physically inspect the equipment. Questioned costs: None Context: During testing of property and equipment it was noted that none of the eight sample selections tested had been inventoried and no physical documentation supporting the property is appropriately safeguarded and maintained. Cause: The University did not have controls in place that comply with the federal regulations around inventory taking and safeguard keeping. Effect: The University is not in compliance with federal regulations around inventory taking and safeguard keeping. Failure to perform these procedures increases the risk of inaccurate property records, misstatement of federal award expenditures, and potential loss or misuse of federally funded equipment. Repeat Finding: No Recommendation: We recommend management implement procedures for physical inventory to be taken within a two-year timeframe as well as maintain evidence of assets possession such as photos of the property and equipment. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Federal Agency: US Department of Agriculture Federal Program Name: Extension Services at 1890 Colleges Assistance Listing No.: 10.512 Recommendation: We recommend management implement procedures for physical inventory to be taken within a two-year timeframe as well as maintain evidence of assets possession such as photos of the property and equipment. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: In October 2025, the University purchased software to facilitate managing inventory within the Facilities Department. Staff have been trained on the software in preparation for implementation. Beginning in January 2026, all purchases will be inventoried on a daily basis and input into the software. Inventory will be maintained and updated daily. Monthly reports will be submitted to the CFO. Name(s) of the contact person(s) responsible for corrective action: Dr. Heather Bigard, Chief Financial Officer and Director of Facilities. Planned completion date for corrective action plan: June 30, 2026

Categories

Equipment & Real Property Management Subrecipient Monitoring

Other Findings in this Audit

  • 1170284 2024-006
    Material Weakness Repeat
  • 1170285 2024-006
    Material Weakness Repeat
  • 1170286 2024-006
    Material Weakness Repeat
  • 1170287 2024-006
    Material Weakness Repeat
  • 1170288 2024-006
    Material Weakness Repeat
  • 1170289 2024-006
    Material Weakness Repeat
  • 1170290 2024-007
    Material Weakness Repeat
  • 1170291 2024-007
    Material Weakness Repeat
  • 1170292 2024-007
    Material Weakness Repeat
  • 1170293 2024-007
    Material Weakness Repeat
  • 1170294 2024-008
    Material Weakness Repeat
  • 1170295 2024-009
    Material Weakness Repeat
  • 1170296 2024-010
    Material Weakness Repeat
  • 1170297 2024-010
    Material Weakness Repeat
  • 1170298 2024-010
    Material Weakness Repeat
  • 1170300 2024-011
    Material Weakness Repeat
  • 1170301 2024-011
    Material Weakness Repeat
  • 1170302 2024-011
    Material Weakness Repeat
  • 1170303 2024-011
    Material Weakness Repeat
  • 1170304 2024-011
    Material Weakness Repeat
  • 1170305 2024-011
    Material Weakness Repeat
  • 1170306 2024-012
    Material Weakness Repeat
  • 1170307 2024-012
    Material Weakness Repeat
  • 1170308 2024-012
    Material Weakness Repeat
  • 1170309 2024-012
    Material Weakness Repeat
  • 1170310 2024-013
    Material Weakness Repeat
  • 1170311 2024-013
    Material Weakness Repeat
  • 1170312 2024-014
    Material Weakness Repeat
  • 1170313 2024-015
    Material Weakness Repeat
  • 1170314 2024-016
    Material Weakness Repeat
  • 1170315 2024-017
    Material Weakness Repeat
  • 1170316 2024-017
    Material Weakness Repeat
  • 1170317 2024-018
    Material Weakness Repeat
  • 1170318 2024-018
    Material Weakness Repeat
  • 1170319 2024-019
    Material Weakness Repeat
  • 1170320 2024-019
    Material Weakness Repeat
  • 1170321 2024-019
    Material Weakness Repeat
  • 1170322 2024-019
    Material Weakness Repeat
  • 1170323 2024-019
    Material Weakness Repeat
  • 1170324 2024-019
    Material Weakness Repeat
  • 1170325 2024-019
    Material Weakness Repeat
  • 1170326 2024-019
    Material Weakness Repeat
  • 1170327 2024-019
    Material Weakness Repeat
  • 1170328 2024-019
    Material Weakness Repeat
  • 1170329 2024-019
    Material Weakness Repeat
  • 1170330 2024-019
    Material Weakness Repeat
  • 1170331 2024-020
    Material Weakness Repeat
  • 1170332 2024-020
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $10.18M
84.063 FEDERAL PELL GRANT PROGRAM $5.38M
10.205 PAYMENTS TO 1890 LAND-GRANT COLLEGES AND TUSKEGEE UNIVERSITY $4.79M
84.425 EDUCATION STABILIZATION FUND $2.70M
10.524 SCHOLARSHIPS FOR STUDENTS AT 1890 INSTITUTIONS $1.51M
10.512 EXTENSION SERVICES AT 1890 COLLEGES AND TUSKEGEE UNIVERSITY, WEST VIRGINIA STATE COLLEGE, AND CENTRAL STATE UNIVERSITY $823,316
84.382 STRENGTHENING MINORITY-SERVING INSTITUTIONS $388,732
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $342,661
84.031 HIGHER EDUCATION INSTITUTIONAL AID $248,774
16.726 JUVENILE MENTORING PROGRAM $219,372
10.216 1890 INSTITUTION CAPACITY BUILDING GRANTS $171,463
10.229 EXTENSION COLLABORATIVE ON IMMUNIZATION TEACHING & ENGAGEMENT $154,867
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $144,896
10.443 OUTREACH AND ASSISTANCE FOR SOCIALLY DISADVANTAGED AND VETERAN FARMERS AND RANCHERS $139,844
84.033 FEDERAL WORK-STUDY PROGRAM $130,545
10.937 PARTNERSHIPS FOR CLIMATE-SMART COMMODITIES $118,066
10.237 FROM LEARNING TO LEADING: CULTIVATING THE NEXT GENERATION OF DIVERSE FOOD AND AGRICULTURE PROFESSIONALS $105,772
10.175 FARMERS MARKET AND LOCAL FOOD PROMOTION PROGRAM $82,888
84.042 TRIO STUDENT SUPPORT SERVICES $60,354
10.025 PLANT AND ANIMAL DISEASE, PEST CONTROL, AND ANIMAL CARE $54,210
10.523 CENTERS OF EXCELLENCE AT 1890 INSTITUTIONS $42,989
10.147 OUTREACH EDUCATION AND TECHNICAL ASSISTANCE $42,846
81.089 FOSSIL ENERGY RESEARCH AND DEVELOPMENT $41,056
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $40,044
10.310 AGRICULTURE AND FOOD RESEARCH INITIATIVE (AFRI) $29,109
10.500 COOPERATIVE EXTENSION SERVICE $29,066
12.905 CYBERSECURITY CORE CURRICULUM $28,257
93.859 BIOMEDICAL RESEARCH AND RESEARCH TRAINING $21,929
10.215 SUSTAINABLE AGRICULTURE RESEARCH AND EDUCATION $19,354
10.311 BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM $16,617
10.561 STATE ADMINISTRATIVE MATCHING GRANTS FOR THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM $14,668
10.001 AGRICULTURAL RESEARCH BASIC AND APPLIED RESEARCH $10,949
10.514 EXPANDED FOOD AND NUTRITION EDUCATION PROGRAM $6,295
10.515 RENEWABLE RESOURCES EXTENSION ACT $5,335
84.047 TRIO UPWARD BOUND $3,232
93.969 PPHF GERIATRIC EDUCATION CENTERS $2,198
10.226 SECONDARY EDUCATION, TWO-YEAR POSTSECONDARY EDUCATION, AND AGRICULTURE IN THE K-12 CLASSROOM $1,251
47.083 INTEGRATIVE ACTIVITIES $-1,218
10.202 COOPERATIVE FORESTRY RESEARCH $-3,540