FAC Explorer

Finding 1171822 (2025-001)

Material Weakness Repeat Finding
Requirement
F
Questioned Costs
-
Year
2025
Accepted
2026-01-30
Audit: 384772
Organization: The Catholic University of America (DC)
Auditor: GRANT THORNTON LLP

AI Summary

  • Core Issue: Inadequate controls over federally funded equipment due to turnover and offsite deployment, leading to improper safeguarding and maintenance.
  • Impacted Requirements: Failure to comply with federal and University policies on asset tagging and physical inventory, resulting in untracked and untagged assets.
  • Recommended Follow-Up: Reinforce training on asset management and ensure consistent tagging and inventory procedures across all departments.

Finding Text

SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Finding 2025-001 Research and Development Cluster - Equipment and Real Property Management - Compliance and Internal Control (Significant Deficiency) Criteria: Entities are required to safeguard and maintain all equipment purchased with federal funds. Condition: Inadequate implementation of controls over compliance activities – mostly due to turnover within University departments and offsite deployment of equipment – such that certain equipment and real property purchased with federal funds was not appropriately safeguarded and maintained according to University procedures. Cause: The University granted an exemption allowing laptops to be deployed off campus to support remote program staff, which delayed the verification and tagging of some federally funded assets. Although the University completed a full physical inventory in May 2024, in accordance with University policy and federal requirements to complete every two years (see: Property Administration Policy), inconsistent application of the policy caused certain equipment and real property assigned off-campus to not be appropriately safeguarded and maintained. Effect: From a non-statistical sample of 21 federally funded assets, we identified two exceptions: (1) one asset that was not assigned an asset tag at the purchase date; and (2) one asset that could not be located. Both assets were laptops, which are part of the off-campus program where direct shipping and remote asset tagging are used. Questioned Costs: The net asset value of the two assets identified as exception is $3,883. Repeat Finding: No. Recommendation: We recommend the reiteration of importance of physical asset tagging and consistent and thorough physical inventory procedures across all University departments to ensure safeguarding and maintenance of the asset. We recommend implementation of employee training to understand compliance with federal regulations regarding safeguarding of assets. Views of Responsible Officials: The University agrees with the finding related to the previously allowed exemption that allowed laptops purchased with federal funds to be shipped directly to off‑campus employees. The University has discontinued this exemption and implemented corrective actions to ensure consistent safeguarding, tagging, and inventory control of federally funded equipment.

Corrective Action Plan

Views of Responsible Officials and Corrective Action Plan: Responsible Officials: ● Michael Zeleny, Senior Vice President and Chief Financial Officer Corrective Action: Laptop Receipt and Custody Controls - As of the date of this letter, the University has already discontinued the exemption for receipt of laptops at the off-campus sponsor location and implemented immediate routing of all laptops through on‑campus Technology Services for standardized asset tagging and custody assignment. All laptops will be shipped to the University’s on‑campus Technology Services department, where they will be asset‑tagged upon receipt, assigned to a responsible custodian, and entered into the asset management system before distribution. Upon employee separation or reassignment, assets must be returned to the home department, which will notify Asset Management of all returns and transfers to maintain accurate records. Inventory and Monitoring - All laptops will continue to be included in the University’s bi‑annual inventory process in accordance with University policy. Training and Communication - Departments and employees will receive updated guidance on equipment distribution and return requirements by the Research Administration and Asset Management by March 31, 2026. Training will reinforce responsibilities related to safeguarding and managing federally funded equipment. Individual(s) Responsible for Corrective Action: ● Matthew McNally, Senior Associate Vice President and Chief Information Officer mcnally@cua.edu 202-319-4374 Anticipated Completion Date for Corrective Action: March 31, 2026

Categories

Equipment & Real Property Management

Other Findings in this Audit

  • 1171721 2025-001
    Material Weakness Repeat
  • 1171722 2025-001
    Material Weakness Repeat
  • 1171723 2025-001
    Material Weakness Repeat
  • 1171724 2025-001
    Material Weakness Repeat
  • 1171725 2025-001
    Material Weakness Repeat
  • 1171726 2025-001
    Material Weakness Repeat
  • 1171727 2025-001
    Material Weakness Repeat
  • 1171728 2025-001
    Material Weakness Repeat
  • 1171729 2025-001
    Material Weakness Repeat
  • 1171730 2025-001
    Material Weakness Repeat
  • 1171731 2025-001
    Material Weakness Repeat
  • 1171732 2025-001
    Material Weakness Repeat
  • 1171733 2025-001
    Material Weakness Repeat
  • 1171734 2025-001
    Material Weakness Repeat
  • 1171735 2025-001
    Material Weakness Repeat
  • 1171736 2025-001
    Material Weakness Repeat
  • 1171737 2025-001
    Material Weakness Repeat
  • 1171738 2025-001
    Material Weakness Repeat
  • 1171739 2025-001
    Material Weakness Repeat
  • 1171740 2025-001
    Material Weakness Repeat
  • 1171741 2025-001
    Material Weakness Repeat
  • 1171742 2025-001
    Material Weakness Repeat
  • 1171743 2025-001
    Material Weakness Repeat
  • 1171744 2025-001
    Material Weakness Repeat
  • 1171745 2025-001
    Material Weakness Repeat
  • 1171746 2025-001
    Material Weakness Repeat
  • 1171747 2025-001
    Material Weakness Repeat
  • 1171748 2025-001
    Material Weakness Repeat
  • 1171749 2025-001
    Material Weakness Repeat
  • 1171750 2025-001
    Material Weakness Repeat
  • 1171751 2025-001
    Material Weakness Repeat
  • 1171752 2025-001
    Material Weakness Repeat
  • 1171753 2025-001
    Material Weakness Repeat
  • 1171754 2025-001
    Material Weakness Repeat
  • 1171755 2025-001
    Material Weakness Repeat
  • 1171756 2025-001
    Material Weakness Repeat
  • 1171757 2025-001
    Material Weakness Repeat
  • 1171758 2025-001
    Material Weakness Repeat
  • 1171759 2025-001
    Material Weakness Repeat
  • 1171760 2025-001
    Material Weakness Repeat
  • 1171761 2025-001
    Material Weakness Repeat
  • 1171762 2025-001
    Material Weakness Repeat
  • 1171763 2025-001
    Material Weakness Repeat
  • 1171764 2025-001
    Material Weakness Repeat
  • 1171765 2025-001
    Material Weakness Repeat
  • 1171766 2025-001
    Material Weakness Repeat
  • 1171767 2025-001
    Material Weakness Repeat
  • 1171768 2025-001
    Material Weakness Repeat
  • 1171769 2025-001
    Material Weakness Repeat
  • 1171770 2025-001
    Material Weakness Repeat
  • 1171771 2025-001
    Material Weakness Repeat
  • 1171772 2025-001
    Material Weakness Repeat
  • 1171773 2025-001
    Material Weakness Repeat
  • 1171774 2025-001
    Material Weakness Repeat
  • 1171775 2025-001
    Material Weakness Repeat
  • 1171776 2025-001
    Material Weakness Repeat
  • 1171777 2025-001
    Material Weakness Repeat
  • 1171778 2025-001
    Material Weakness Repeat
  • 1171779 2025-001
    Material Weakness Repeat
  • 1171780 2025-001
    Material Weakness Repeat
  • 1171781 2025-001
    Material Weakness Repeat
  • 1171782 2025-001
    Material Weakness Repeat
  • 1171783 2025-001
    Material Weakness Repeat
  • 1171784 2025-001
    Material Weakness Repeat
  • 1171785 2025-001
    Material Weakness Repeat
  • 1171786 2025-001
    Material Weakness Repeat
  • 1171787 2025-001
    Material Weakness Repeat
  • 1171788 2025-001
    Material Weakness Repeat
  • 1171789 2025-001
    Material Weakness Repeat
  • 1171790 2025-001
    Material Weakness Repeat
  • 1171791 2025-001
    Material Weakness Repeat
  • 1171792 2025-001
    Material Weakness Repeat
  • 1171793 2025-001
    Material Weakness Repeat
  • 1171794 2025-001
    Material Weakness Repeat
  • 1171795 2025-001
    Material Weakness Repeat
  • 1171796 2025-001
    Material Weakness Repeat
  • 1171797 2025-001
    Material Weakness Repeat
  • 1171798 2025-001
    Material Weakness Repeat
  • 1171799 2025-001
    Material Weakness Repeat
  • 1171800 2025-001
    Material Weakness Repeat
  • 1171801 2025-001
    Material Weakness Repeat
  • 1171802 2025-001
    Material Weakness Repeat
  • 1171803 2025-001
    Material Weakness Repeat
  • 1171804 2025-001
    Material Weakness Repeat
  • 1171805 2025-001
    Material Weakness Repeat
  • 1171806 2025-001
    Material Weakness Repeat
  • 1171807 2025-001
    Material Weakness Repeat
  • 1171808 2025-001
    Material Weakness Repeat
  • 1171809 2025-001
    Material Weakness Repeat
  • 1171810 2025-001
    Material Weakness Repeat
  • 1171811 2025-001
    Material Weakness Repeat
  • 1171812 2025-001
    Material Weakness Repeat
  • 1171813 2025-001
    Material Weakness Repeat
  • 1171814 2025-001
    Material Weakness Repeat
  • 1171815 2025-001
    Material Weakness Repeat
  • 1171816 2025-001
    Material Weakness Repeat
  • 1171817 2025-001
    Material Weakness Repeat
  • 1171818 2025-001
    Material Weakness Repeat
  • 1171819 2025-001
    Material Weakness Repeat
  • 1171820 2025-001
    Material Weakness Repeat
  • 1171821 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $36.58M
84.063 FEDERAL PELL GRANT PROGRAM $5.13M
93.279 DRUG USE AND ADDICTION RESEARCH PROGRAMS $1.06M
93.264 NURSE FACULTY LOAN PROGRAM (NFLP) $824,216
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $749,650
93.925 SCHOLARSHIPS FOR HEALTH PROFESSIONS STUDENTS FROM DISADVANTAGED BACKGROUNDS $592,500
93.855 ALLERGY AND INFECTIOUS DISEASES RESEARCH $541,580
93.433 ACL NATIONAL INSTITUTE ON DISABILITY, INDEPENDENT LIVING, AND REHABILITATION RESEARCH $541,179
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $510,202
93.732 MENTAL AND BEHAVIORAL HEALTH EDUCATION AND TRAINING GRANTS $472,755
84.047 TRIO UPWARD BOUND $365,956
84.033 FEDERAL WORK-STUDY PROGRAM $320,894
81.049 OFFICE OF SCIENCE FINANCIAL ASSISTANCE PROGRAM $278,341
66.418 CONSTRUCTION GRANTS FOR WASTEWATER TREATMENT WORKS $242,695
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $224,645
93.273 ALCOHOL RESEARCH PROGRAMS $219,028
93.191 GRADUATE PSYCHOLOGY EDUCATION $200,245
47.070 COMPUTER AND INFORMATION SCIENCE AND ENGINEERING $178,736
47.049 MATHEMATICAL AND PHYSICAL SCIENCES $168,369
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $164,858
93.396 CANCER BIOLOGY RESEARCH $163,259
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $106,860
47.041 ENGINEERING $96,759
64.044 VHA HOME CARE $95,311
84.335 CHILD CARE ACCESS MEANS PARENTS IN SCHOOL $94,544
66.484 GEOGRAPHIC PROGRAMS - SOUTH FLORIDA GEOGRAPHIC INITIATIVES PROGRAM $93,871
45.162 PROMOTION OF THE HUMANITIES TEACHING AND LEARNING RESOURCES AND CURRICULUM DEVELOPMENT $87,528
43.002 AERONAUTICS $70,162
93.242 MENTAL HEALTH RESEARCH GRANTS $56,630
17.U01 National Highway Safety Administration - DDOT 2023-24 $39,119
47.050 GEOSCIENCES $35,662
12.300 BASIC AND APPLIED SCIENTIFIC RESEARCH $34,141
93.RD Korean Community Service Center $31,571
43.001 SCIENCE $30,101
47.074 BIOLOGICAL SCIENCES $22,840
12.630 BASIC, APPLIED, AND ADVANCED RESEARCH IN SCIENCE AND ENGINEERING $12,319
12.431 BASIC SCIENTIFIC RESEARCH $9,865
93.110 MATERNAL AND CHILD HEALTH FEDERAL CONSOLIDATED PROGRAMS $6,307
93.865 CHILD HEALTH AND HUMAN DEVELOPMENT EXTRAMURAL RESEARCH $3,099
93.408 ARRA - NURSE FACULTY LOAN PROGRAM $2,437
81.RD Brookhaven National Laboratory $2,144
12.750 UNIFORMED SERVICES UNIVERSITY MEDICAL RESEARCH PROJECTS $808
93.846 ARTHRITIS, MUSCULOSKELETAL AND SKIN DISEASES RESEARCH $621
94.006 AMERICORPS STATE AND NATIONAL 94.006 $318
81.104 ENVIRONMENTAL REMEDIATION AND WASTE PROCESSING AND DISPOSAL $233
15.805 ASSISTANCE TO STATE WATER RESOURCES RESEARCH INSTITUTES $-6,945