FAC Explorer

Finding 1176960 (2025-001)

Material Weakness Repeat Finding
Requirement
F
Questioned Costs
-
Year
2025
Accepted
2026-03-09
Audit: 390792
Organization: Montclair State University (NJ)
Auditor: GRANT THORNTON LLP

AI Summary

  • Core Issue: Montclair State University failed to conduct the required physical inventory of equipment purchased with federal grant funds within the last two years.
  • Impacted Requirements: This finding violates 2 CFR section 200.313(d)(2), which mandates a physical inventory and reconciliation with property records every two years.
  • Recommended Follow-Up: The University should enhance its controls to ensure that physical inventory counts are performed and documented as required.

Finding Text

Finding #: 2025-001 Research and Development Cluster (Various Assistance Listing Numbers, refer to SEFA) Type of Finding: Equipment and Real Property Management - Compliance and Internal Control (Significant Deficiency) Criteria: In accordance with 2 CFR section 200.313(d)(2), a physical inventory of property purchased with federal grant funds must be conducted, and the results must be reconciled with the property records at least once every two years. Condition/Context: Montclair State University (the “University”) records and assigns an asset identification number to each equipment purchase made using Research and Development grant funds through its financial reporting system as assets are acquired for use. However, the University is also required to physically inspect and document inventory observations at least once every two years, in accordance with 2 CFR section 200.313(d)(2). As part of the audit procedures performed, we determined that the University did not perform and document the required physical observation within the prior two years. Cause/Effect: While the University has procedures in place to properly track equipment purchases made through the use of Research and Development funds, the controls in place did not include ensuring that a physical inventory count was performed at least once every two years, as required. Questioned Costs: None identified. Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the University strengthen controls over the physical inventory review process to ensure inventory observations are performed and documented at least once every two years.

Corrective Action Plan

Finding 2025-001: Equipment and Real Property Management – Compliance and Internal Control (Significant Deficiency) Research and Development Cluster View of Responsible Officials and Planned Corrective Action: The University concurs with the auditor’s finding. Management is conducting a comprehensive review of the matter to confirm full compliance with the requirements of 2 CFR 200.313(d)(2). As part of this process, the University is strengthening its internal controls and procedures related to federally funded equipment. Going forward, the University will ensure that all equipment acquired with federal grant funds is tagged, recorded, and supported by complete and applicable documentation. Additionally, procedures will be reinforced to ensure ongoing inventory verification and monitoring to maintain continued compliance with federal regulations. Name of Contact Person(s) Responsible for the Plan: Benjamin Durant, SVP/COO Finance & Administration durantb@montclair.edu Anticipated Completion Date: June 30, 2026

Categories

Equipment & Real Property Management Reporting

Other Findings in this Audit

  • 1176910 2025-001
    Material Weakness Repeat
  • 1176911 2025-001
    Material Weakness Repeat
  • 1176912 2025-001
    Material Weakness Repeat
  • 1176913 2025-001
    Material Weakness Repeat
  • 1176914 2025-001
    Material Weakness Repeat
  • 1176915 2025-001
    Material Weakness Repeat
  • 1176916 2025-001
    Material Weakness Repeat
  • 1176917 2025-001
    Material Weakness Repeat
  • 1176918 2025-001
    Material Weakness Repeat
  • 1176919 2025-001
    Material Weakness Repeat
  • 1176920 2025-001
    Material Weakness Repeat
  • 1176921 2025-001
    Material Weakness Repeat
  • 1176922 2025-001
    Material Weakness Repeat
  • 1176923 2025-001
    Material Weakness Repeat
  • 1176924 2025-001
    Material Weakness Repeat
  • 1176925 2025-001
    Material Weakness Repeat
  • 1176926 2025-001
    Material Weakness Repeat
  • 1176927 2025-001
    Material Weakness Repeat
  • 1176928 2025-001
    Material Weakness Repeat
  • 1176929 2025-001
    Material Weakness Repeat
  • 1176930 2025-001
    Material Weakness Repeat
  • 1176931 2025-001
    Material Weakness Repeat
  • 1176932 2025-001
    Material Weakness Repeat
  • 1176933 2025-001
    Material Weakness Repeat
  • 1176934 2025-001
    Material Weakness Repeat
  • 1176935 2025-001
    Material Weakness Repeat
  • 1176936 2025-001
    Material Weakness Repeat
  • 1176937 2025-001
    Material Weakness Repeat
  • 1176938 2025-001
    Material Weakness Repeat
  • 1176939 2025-001
    Material Weakness Repeat
  • 1176940 2025-001
    Material Weakness Repeat
  • 1176941 2025-001
    Material Weakness Repeat
  • 1176942 2025-001
    Material Weakness Repeat
  • 1176943 2025-001
    Material Weakness Repeat
  • 1176944 2025-001
    Material Weakness Repeat
  • 1176945 2025-001
    Material Weakness Repeat
  • 1176946 2025-001
    Material Weakness Repeat
  • 1176947 2025-001
    Material Weakness Repeat
  • 1176948 2025-001
    Material Weakness Repeat
  • 1176949 2025-001
    Material Weakness Repeat
  • 1176950 2025-001
    Material Weakness Repeat
  • 1176951 2025-001
    Material Weakness Repeat
  • 1176952 2025-001
    Material Weakness Repeat
  • 1176953 2025-001
    Material Weakness Repeat
  • 1176954 2025-001
    Material Weakness Repeat
  • 1176955 2025-001
    Material Weakness Repeat
  • 1176956 2025-001
    Material Weakness Repeat
  • 1176957 2025-001
    Material Weakness Repeat
  • 1176958 2025-001
    Material Weakness Repeat
  • 1176959 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $106.97M
84.063 FEDERAL PELL GRANT PROGRAM $69.37M
93.434 EVERY STUDENT SUCCEEDS ACT/PRESCHOOL DEVELOPMENT GRANTS $3.10M
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $1.65M
93.596 CHILD CARE MANDATORY AND MATCHING FUNDS OF THE CHILD CARE AND DEVELOPMENT FUND $1.46M
84.033 FEDERAL WORK-STUDY PROGRAM $1.15M
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $912,737
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $788,136
84.027 SPECIAL EDUCATION GRANTS TO STATES $763,324
93.866 AGING RESEARCH $751,058
84.336 TEACHER QUALITY PARTNERSHIP GRANTS $717,803
94.006 AMERICORPS STATE AND NATIONAL 94.006 $632,756
84.382 STRENGTHENING MINORITY-SERVING INSTITUTIONS $611,234
84.031 HIGHER EDUCATION INSTITUTIONAL AID $586,098
47.049 MATHEMATICAL AND PHYSICAL SCIENCES $575,416
47.070 COMPUTER AND INFORMATION SCIENCE AND ENGINEERING $559,012
10.561 STATE ADMINISTRATIVE MATCHING GRANTS FOR THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM $555,030
47.041 ENGINEERING $418,895
47.083 INTEGRATIVE ACTIVITIES $398,995
84.042 TRIO STUDENT SUPPORT SERVICES $386,748
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $353,686
10.310 AGRICULTURE AND FOOD RESEARCH INITIATIVE (AFRI) $336,939
93.276 DRUG-FREE COMMUNITIES SUPPORT PROGRAM GRANTS $323,730
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $316,190
93.590 COMMUNITY-BASED CHILD ABUSE PREVENTION GRANTS $275,068
84.047 TRIO UPWARD BOUND $258,395
84.217 TRIO MCNAIR POST-BACCALAUREATE ACHIEVEMENT $258,320
93.173 RESEARCH RELATED TO DEAFNESS AND COMMUNICATION DISORDERS $248,257
47.075 SOCIAL, BEHAVIORAL, AND ECONOMIC SCIENCES $245,319
12.420 MILITARY MEDICAL RESEARCH AND DEVELOPMENT $228,871
16.560 NATIONAL INSTITUTE OF JUSTICE RESEARCH, EVALUATION, AND DEVELOPMENT PROJECT GRANTS $222,314
14.906 HEALTHY HOMES TECHNICAL STUDIES GRANTS $181,181
12.630 BASIC, APPLIED, AND ADVANCED RESEARCH IN SCIENCE AND ENGINEERING $168,326
47.078 POLAR PROGRAMS $151,549
93.859 BIOMEDICAL RESEARCH AND RESEARCH TRAINING $104,852
93.079 COOPERATIVE AGREEMENTS TO PROMOTE ADOLESCENT HEALTH THROUGH SCHOOL-BASED HIV/STD PREVENTION AND SCHOOL-BASED SURVEILLANCE $102,663
84.305 EDUCATION RESEARCH, DEVELOPMENT AND DISSEMINATION $101,828
43.008 OFFICE OF STEM ENGAGEMENT (OSTEM) $85,872
84.184 SCHOOL SAFELY NATIONAL ACTIVITIES $76,117
10.727 INFLATION REDUCTION ACT URBAN & COMMUNITY FORESTRY PROGRAM $61,761
45.149 PROMOTION OF THE HUMANITIES DIVISION OF PRESERVATION AND ACCESS $55,923
93.110 MATERNAL AND CHILD HEALTH FEDERAL CONSOLIDATED PROGRAMS $54,487
16.838 COMPREHENSIVE OPIOID, STIMULANT, AND OTHER SUBSTANCES USE PROGRAM $50,146
45.024 PROMOTION OF THE ARTS GRANTS TO ORGANIZATIONS AND INDIVIDUALS $50,000
15.506 WATER DESALINATION RESEARCH AND DEVELOPMENT $47,634
47.079 OFFICE OF INTERNATIONAL SCIENCE AND ENGINEERING $43,385
47.084 NSF TECHNOLOGY, INNOVATION, AND PARTNERSHIPS $41,338
45.162 PROMOTION OF THE HUMANITIES TEACHING AND LEARNING RESOURCES AND CURRICULUM DEVELOPMENT $38,390
45.163 PROMOTION OF THE HUMANITIES PROFESSIONAL DEVELOPMENT $27,407
81.RD Spallation Neutron Source $25,447
11.469 CONGRESSIONALLY IDENTIFIED AWARDS AND PROJECTS $24,856
93.279 DRUG USE AND ADDICTION RESEARCH PROGRAMS $24,302
47.074 BIOLOGICAL SCIENCES $23,295
93.865 CHILD HEALTH AND HUMAN DEVELOPMENT EXTRAMURAL RESEARCH $20,884
45.129 PROMOTION OF THE HUMANITIES FEDERAL/STATE PARTNERSHIP $19,331
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $18,860
93.262 OCCUPATIONAL SAFETY AND HEALTH PROGRAM $11,934
66.516 P3 AWARD: NATIONAL STUDENT DESIGN COMPETITION FOR SUSTAINABILITY $9,939
10.912 ENVIRONMENTAL QUALITY INCENTIVES PROGRAM $6,934
43.001 SCIENCE $6,500
93.853 EXTRAMURAL RESEARCH PROGRAMS IN THE NEUROSCIENCES AND NEUROLOGICAL DISORDERS $5,703
16.525 GRANTS TO REDUCE DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, AND STALKING ON CAMPUS $5,703
16.045 COMMUNITY-BASED VIOLENCE INTERVENTION AND PREVENTION INITIATIVE $3,706
45.169 PROMOTION OF THE HUMANITIES OFFICE OF DIGITAL HUMANITIES $1,267
47.050 GEOSCIENCES $1,013
15.805 ASSISTANCE TO STATE WATER RESOURCES RESEARCH INSTITUTES $698
11.417 SEA GRANT SUPPORT $412