Finding 1205828 (2025-010)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2025

Accepted

2026-04-02

Audit: 397569

Organization: Dillard University (LA)

Auditor: SEAN M BRUNO CPAS

AI Summary

Core Issue: The University failed to conduct required physical inventories of federally funded equipment every two years, as mandated by Uniform Guidance § 200.313.
Impacted Requirements: Lack of adequate procedures led to non-compliance, risking loss, theft, or misuse of federally funded equipment.
Recommended Follow-Up: Implement a biennial inventory schedule, establish a centralized tracking system, reconcile inventory results, and provide staff training to ensure compliance and safeguard federal property.

Finding Text

Equipment and Real Property Management Federal Program and Specific Federal Award Identification CFDA Title and Number 84.031 Higher Education Institution Aid Federal Award Year June 30, 2025 Federal Agencies U. S. Department of Education Pass-Through Entity Not applicable Criteria Per Uniform Guidance § 200.313, institutions are required to conduct a physical inventory of equipment acquired with federal funds at least once every two years and reconcile the results with property records. Conditions and Contexts The University did not provide evidence that a physical inventory of federally funded equipment was performed at least once every two years. Cause The University did not have adequate procedures in place to ensure that required physical inventories were performed and documented. Questioned Costs For the purposes of this condition, I have not questioned any costs. Effect The University may not be adequately safeguarding federally funded equipment, increasing the risk of loss, theft, or misuse. Repeat Finding No. Recommendation The University should implement procedures to ensure that physical inventories of equipment are conducted at least biennially and properly documented. Inventory results should be reconciled to equipment records, and discrepancies should be investigated and resolved. Management’s Response The University acknowledges the finding regarding the absence of documented evidence that a physical inventory of federally funded equipment was performed within the required two year period. We recognize that maintaining proper inventory controls is essential to safeguarding federal property in accordance with Uniform Guidance §200.313. Corrective Actions 1. Implementation of a Biennial Inventory Schedule: The University has established a formal schedule to ensure that physical inventories of federally funded equipment are conducted at least once every two years and are documented consistently. 2. Centralized Inventory Documentation: A computerized inventory tracking system has been implemented to store all inventory records, reconciliation reports, and supporting documentation to ensure availability for audit. 3. Reconciliation Procedures: Equipment inventory results will be reconciled to the University’s fixed asset and property records, with any discrepancies documented, investigated, and resolved. 4. Staff Training and Oversight: Staff responsible for property management will receive updated training on federal inventory requirements, documentation standards, and reconciliation procedures. Supervisory review has been added to ensure ongoing compliance. The University believes these actions will strengthen internal controls over equipment management and ensure compliance with federal regulations moving forward.

Corrective Action Plan

Equipment and Real Property Management The University acknowledges the finding regarding the absence of documented evidence that a physical inventory of federally funded equipment was performed within the required two year period. We recognize that maintaining proper inventory controls is essential to safeguarding federal property in accordance with Uniform Guidance §200.313. Corrective Actions 1. Implementation of a Biennial Inventory Schedule: The University has established a formal schedule to ensure that physical inventories of federally funded equipment are conducted at least once every two years and are documented consistently. 2. Centralized Inventory Documentation: A computerized inventory tracking system has been implemented to store all inventory records, reconciliation reports, and supporting documentation to ensure availability for audit. 3. Reconciliation Procedures: Equipment inventory results will be reconciled to the University’s fixed asset and property records, with any discrepancies documented, investigated, and resolved. 4. Staff Training and Oversight: Staff responsible for property management will received updated training on federal inventory requirements, documentation standards, and reconciliation procedures. Supervisory review has been added to ensure ongoing compliance. The University believes these actions will strengthen internal controls over equipment management and ensure compliance with federal regulations moving forward.

Other Findings in this Audit

1205818 2025-002

Material Weakness Repeat
1205819 2025-003

Material Weakness Repeat
1205820 2025-004

Material Weakness Repeat
1205821 2025-005

Material Weakness Repeat
1205822 2025-006

Material Weakness Repeat
1205823 2025-011

Material Weakness Repeat
1205824 2025-007

Material Weakness Repeat
1205825 2025-011

Material Weakness Repeat
1205826 2025-008

Material Weakness Repeat
1205827 2025-009

Material Weakness Repeat
1205829 2025-011

Material Weakness Repeat
1205830 2025-011

Material Weakness Repeat
1205831 2025-011

Material Weakness Repeat
1205832 2025-011

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
84.268	FEDERAL DIRECT STUDENT LOANS	$9.87M
84.063	FEDERAL PELL GRANT PROGRAM	$4.97M
84.031	HIGHER EDUCATION INSTITUTIONAL AID	$4.05M
12.630	BASIC, APPLIED, AND ADVANCED RESEARCH IN SCIENCE AND ENGINEERING	$522,396
84.044	TRIO TALENT SEARCH	$429,672
84.033	FEDERAL WORK-STUDY PROGRAM	$286,248
84.007	FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS	$280,908
84.042	TRIO STUDENT SUPPORT SERVICES	$257,304
12.800	AIR FORCE DEFENSE RESEARCH SCIENCES PROGRAM	$251,032
84.217	TRIO MCNAIR POST-BACCALAUREATE ACHIEVEMENT	$238,039
93.859	BIOMEDICAL RESEARCH AND RESEARCH TRAINING	$197,089
84.120	MINORITY SCIECE AND ENGINEERING INPROVEMENT	$191,930
81.049	OFFICE OF SCIENCE FINANCIAL ASSISTANCE PROGRAM	$189,415
93.364	NURSING STUDENT LOANS	$118,577
47.075	SOCIAL, BEHAVIORAL, AND ECONOMIC SCIENCES	$108,941
84.184	SCHOOL SAFELY NATIONAL ACTIVITIES	$104,784
94.066	AMERICORPS STATE AND NATIONAL	$98,128
47.050	GEOSCIENCES	$79,010
15.941	MISSISSIPPI NATIONAL RIVER AND RECREATION AREA STATE AND LOCAL ASSISTANCE	$73,366
93.865	CHILD HEALTH AND HUMAN DEVELOPMENT EXTRAMURAL RESEARCH	$60,063
47.076	STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES)	$53,142
66.616	ENVIRONMENTAL AND CLIMATE JUSTICE COMMUNITY CHANGE GRANTS PROGRAM	$50,000
47.083	INTEGRATIVE ACTIVITIES	$46,106
15.932	PRESERVATION OF HISTORIC STRUCTURES ON THE CAMPUSES OF HISTORICALLY BLACK COLLEGES AND UNIVERSITIES (HBCUS).	$36,611
93.307	MINORITY HEALTH AND HEALTH DISPARITIES RESEARCH	$27,632
16.525	GRANTS TO REDUCE DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, AND STALKING ON CAMPUS	$22,569
84.425	EDUCATION STABILIZATION FUND	$18,875
10.217	HIGHER EDUCATION - INSTITUTION CHALLENGE GRANTS PROGRAM	$16,576
47.070	COMPUTER AND INFORMATION SCIENCE AND ENGINEERING	$12,459
45.162	PROMOTION OF THE HUMANITIES TEACHING AND LEARNING RESOURCES AND CURRICULUM DEVELOPMENT	$12,223
93.145	HIV-RELATED TRAINING AND TECHNICAL ASSISTANCE	$6,900
93.421	STRENGTHENING PUBLIC HEALTH SYSTEMS AND SERVICES THROUGH NATIONAL PARTNERSHIPS TO IMPROVE AND PROTECT THE NATIONÂS HEALTH	$6,767
11.307	ECONOMIC ADJUSTMENT ASSISTANCE	$4,626
97.132	FINANCIAL ASSISTANCE FOR TARGETED VIOLENCE AND TERRORISM PREVENTION	$4,229
12.902	INFORMATION SECURITY GRANTS	$93
93.391	ACTIVITIES TO SUPPORT STATE, TRIBAL, LOCAL AND TERRITORIAL (STLT) HEALTH DEPARTMENT RESPONSE TO PUBLIC HEALTH OR HEALTHCARE CRISES	$-714
93.368	21ST CENTURY CURES ACT - PRECISION MEDICINE INITIATIVE	$-717