Finding Text
Finding No.: 2025-002 Federal Agency: U.S. Department of Interior AL Program: Economic, Social, and Political Development of the Territories Award No.: D22AP00317 Area: Equipment and Real Property Management Questioned Cost: $303,960 Criteria: 2 CFR § 200.313(d) requires non-federal entities to maintain accurate property records for equipment acquired with federal funds. Such records must include, at a minimum, a description of the property, serial number or other identification number, source of funding, acquisition date, cost, location, use and condition, and ultimate disposition data. Condition: We identified that 8 electric vehicles, with a total cost of $303,960, acquired during the fiscal year ended September 30, 2025, were not included in the federally funded fixed asset register. Cause: GWA did not consistently follow established procedures to ensure that all federally funded equipment acquisitions were recorded in the federally funded fixed asset register in a timely and complete manner. Effect or Potential Effect: Failure to maintain complete and accurate records for federally funded equipment increases the risk of noncompliance with federal regulations. It may also result in improper tracking, safeguarding, and reporting of assets, potentially leading to questioned costs and audit findings. Recommendation: We recommend that GWA strengthen its controls over equipment and real property management by implementing procedures to ensure that all federally funded asset acquisitions are promptly and accurately recorded in the Federally Funded Fixed Asset Register. Management should also perform periodic reconciliations between procurement records and the asset register and provide training to responsible personnel to ensure compliance with federal requirements. Identification as a Repeat Finding: Not applicable. Views of Responsible Officials: GWA concurs with the finding. The eight electric vehicles identified in the finding were properly procured, capitalized and recorded in the Authority’s main fixed asset register; however, due to an administrative oversight, the assets were not included in the federally funded fixed asset register during FY2025. Following discussions with personnel involved in the transaction processing and asset recording, GWA determined that established internal procedures were generally followed; however, due to staffing constraints at the time, the assets were not properly coded with the applicable federally funded identifier when added to the Authority’s main fixed asset register. As a result, the assets were inadvertently omitted from the federally funded fixed asset register. Management notes that the omission was limited to the federally funded fixed asset register and did not affect the existence, safeguarding or operational use of the assets. The vehicles were physically accounted for, supported by procurement and payment documentation and properly reflected in the Authority’s general accounting records.