Finding Text
Federal Agency: U.S. Department of Homeland Security Federal Program Name: Assistance to Firefighters Grant Assistance Listing Number: 97.044 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: July 15, 2024 to July 14, 2026 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Uniform Guidance (2 CFR §200.313) requires nonfederal entities to maintain property records for equipment acquired with federal funds, including a description of the property, a serial number or other identification number, the source of funding, acquisition date, cost, location, use, condition, and disposition data, and to perform a physical inventory of the equipment at least once every two years. Condition: The Town did not maintain complete and accurate property records for equipment purchased with Assistance to Firefighters Grant (AFG) funds. Specifically, required information such as equipment description, serial number, acquisition date, acquisition cost, location, and disposition information was not consistently documented and retained for all federally funded equipment. Questioned costs: None. Context: The Town did not maintain complete and accurate property records for equipment purchased with Assistance to Firefighters Grant (AFG) funds. Cause: The Town did not have formalized procedures or controls in place to ensure that all federally funded equipment was recorded and tracked in accordance with federal property management requirements. Effect: The lack of complete property records increases the risk that federally funded equipment may not be adequately safeguarded, properly tracked, or accounted for in accordance with federal requirements. However, no instances of missing equipment or questioned costs were identified during the audit. Recommendation: We recommend that the Town establish and implement formal procedures to ensure that complete and accurate property records are maintained for all equipment purchased with federal funds, including periodic physical inventories, to ensure ongoing compliance with federal requirements. Views of responsible officials: There is no disagreement with the audit finding.