Finding Text
Compliance Requirement F. Equipment and Real Property Finding Type Significant Deficiency in Internal Control Over Compliance and Compliance Finding Federal Agency U.S. Department of Health and Human Services Federal Program Title Administration for Children & Families - Head Start Assistance Listing Number 93.600 Criteria: 2 CFR 200.313(d)requires that property records must be maintained for equipment acquired under a federal award that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two (2) years. Condition: During testing it was noted that a physical inventory of all assets with federal interest under the Head Start program was taken. However, the physical inventory taken was not compared to the detailed inventory listing. Cause: The Agency did not properly delete all additions in the current year to the tangible property schedule, which resulted in a lack of accurate and proper property records. Effect: Failure to compare the physical inventory observation to the detailed listing could result in an inaccurate listing of tangible property and noncompliance with the grant agreement by not including items acquired, or including items disposed of, during the year. Questioned Costs: None Identification as a Repeat Finding: N/A - this was not reported as a finding in the prior audit report. Recommendation: We recommend the Organization follow its capital asset management policy to ensure all tangible property is adequately accounted for and properly safeguarded. We also recommend that the Organization include all of the information required by the Uniform Guidance in one central tracking spreadsheet or database to ensure all assets additions are added and assets disposed of are removed. View of Responsible Officials: The Organization agrees with this audit finding.