Finding Text
Criteria: 2 CFR §200.313 requires that equipment be used in the program for which it was acquired or, when appropriate, other Federal programs. Equipment records shall be maintained, a physical inventory of equipment shall be taken at least once every two years and reconciled to the equipment records, an appropriate control system shall be used to safeguard equipment, and such equipment shall be adequately maintained. Condition: The Organization has not maintained adequate documentary evidence with respect to maintenance of equipment records and does not perform periodic inventories of equipment purchased with Federal funds. Cause: The Organization has not established entity-wide policies and procedures that require various hubs to uniformly follow the equipment management requirements. Effect: The Organization was not in compliance with the Uniform Guidance requirements equipment and real property management requirements. Questioned Costs: None Context: Each hub, or location, of the Organization maintains some form of records for equipment purchased with Federal funds. However, the inconsistency of the records between the locations has resulted in certain documentation of the required elements being incomplete. In addition, not every hub that has purchased equipment with Federal funds performs physical inventory counts for equipment, as required by the Uniform Guidance. Recommendation: The Organization should establish written policies and procedures that require equipment records to be maintained in accordance with Uniform Guidance. The policies and procedures should also require a physical inventory count for equipment purchased with Federal funds to be conducted, at least biannually. The Organization should also consider hiring additional personnel at the organizational level to facilitate implementation of these procedures and ensure compliance by the various hubs. Views of Responsible Officials: See management’s view and corrective action plan at the end of this report.