Finding 1179569 (2025-005)

Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Assistance Listing Number: 93.323 Award Periods: • NU50CK000548 (8/1/2019 – 7/31/2024) (93.323) • NU50CK000346 (8/1/2024 – 7/31/2029) (93.323) Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: Per §200.313, property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal Award Identification Number (FAIN)), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use, and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Per Manual of Model Accounting Practices (MAPs) FIN 6.1, State agencies shall mark or tag each capital asset at the time it is acquired with a unique number that identifies the agency and the specific asset. Condition: During our testing we noted the following: • The Department was unable to provide an asset listing that included Asset Tag IDs for all capital assets. • The SAGE Asset Listing did not consistently identify the capital asset’s Serial Number or Other Identification Number. Questioned Costs: None Cause: Noncompliance with applicable regulations and lack of complete adherence to MAPs. Effect: Compliance with Capital Assets purchased with Federal Funds requirements was not monitored during the year. Repeat Finding: Yes Recommendation: The Department should establish policies and procedures to ensure compliance with Federally Purchased Capital Assets. 2025-005 (2024-002) Equipment (Significant Deficiency, Other Noncompliance) (Continued) Agency Response: The Department acknowledges this finding and provides the following corrective action plan to prevent future findings. The Department agrees that they are noncompliant with applicable regulations and lack complete adherence to Model Accounting Practices (MAPs). The Department will implement a policy and procedure to include asset tag information, such as QR codes, serial numbers, and other identification numbers for capital assets. This information will be entered into our SAGE Asset system. SAGE Asset system will be used with another system to help identify assets and their locations when conducting the Annual Capital Assets Physical Inventory Certification. The additional system utilizes QR codes to track assets and their related maintenance. The Department’s new Capital Asset Manager is in the process of cross-referencing the assets between the two systems. This process will ensure compliance with MAPS FIN 6.1 and FIN 6.6, as well as adhere to the requirements for capital assets purchased with federal funds during the fiscal year. The Department is committed to addressing this finding and aims to resolve it by June 30, 2026. This action plan will comply with Per §200.313, Property records; Per Manual of Model Accounting Practices (MAPs) FIN 6.1; Per MAPs FIN 6.6. Responsible Persons: Capital and Fixed Assets Director, Division Financial Director, IT, Division Directors.