Finding Text
Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Equipment and Real Property Management). Program. Childcare Access Means Parents in School (CCAMPIS); U.S. Department of Education; Assistance Listing Number 84.335A; Award Number P335A230060. Criteria. Per 2 CFR §200.313 (Uniform Guidance), non-federal entities must maintain property records that include a description, serial number, source of funding, title, acquisition date, cost, location, use, condition, and disposition data for property and equipment purchased with federal funds. Entities must also conduct regular inventories and reconcile them with property records. Condition. The College does not have a formal process or system in place to track fixed assets acquired with federal award funds. As a result, there is no centralized or consistent documentation of asset details, location, or usage for assets purchased with federal funds. Cause. The absence of a fixed asset tracking process appears to be due to a lack of awareness of federal requirements and insufficient internal controls over asset management related to federal awards. Effect. Without proper tracking, the College is at risk of noncompliance with federal regulations, potential loss or misuse of federally funded assets, and challenges in conducting accurate inventories or audits. This could lead to questioned costs or disallowed expenditures during federal reviews. Questioned Costs. No costs were questioned related to this finding. Recommendation. The College should implement a formal fixed asset tracking system that complies with 2 CFR §200.313. This system should include procedures for recording asset details, conducting periodic inventories, and reconciling records. Staff responsible for asset management should be trained on federal requirements to ensure ongoing compliance. View of Responsible Officials. Management agrees with finding and has prepared a corrective action plan.