Finding 1186725 (2025-004)

Physical Inventory on Property and Equipment Federal Agency: Various and U.S. Department of Education Federal Program Title: Cooperative Extension Service Federal Assistance Listing Numbers: 10.500 Federal Award Identification Number and Year: Various Award Period: 7/1/2024 – 6/30/2025 Type of Finding: Other Matters and Significant Deficiency in Internal Control Over Compliance Criteria or Specific Requirement: A physical inventory of the property must be taken and the results reconciled with the property records at least one every two years (2 CFR section 200.313(d)(2)). Condition: No evidence of a physical inventory count performed by the University. Questioned Costs: N/A Context: During the testing property and equipment, there was no evidence provided by the University of a physical inventory count performed in the previous two years. Cause: Internal controls surrounding physical inventory of equipment purchased with federal funds is not designed or operating effectively. Effect: No supporting documentation can be provided showing that physical inventory is taking place. Repeat Finding: Yes, 2024-008. Recommendation: We recommend that the University review and revise their current procedures and policies related to capitalized equipment purchased with federal funds to ensure a physical inventory count is being performed once every two years. Views of Responsible Officials: There is no disagreement with the audit finding and the University is in the process of implementing corrective procedures.