Finding Text
Finding 2024-005 Pass-Through Entity: Federated States of Micronesia National Government Federal Agency: U.S. Department of the Interior Assistance Listing: 15.875 Federal Award No.: Various Area: Equipment and Real Property Management Questioned Costs: $0 Criteria: Article VI, section 1(f)(iv) of the FSM-U.S. Fiscal Procedures Agreement and 2 CFR 200.313(d)(1) require property records to include specified identifying, funding, ownership, acquisition, location, use, condition, and disposition information. 2 CFR §200.313(d)(1) requires property records to include a description, serial number or ID number, source of funding (including FAIN), title holder, acquisition date, cost, federal participation percentage, location, use and condition, and disposition data including disposal date and sale price. Condition: During compliance testing one government vehicle (GE-0807) identified on supporting fuel control forms, could not be traced to the State’s fixed asset lapsing schedule or other departmental tracking schedules. As a result, we are unable to determine whether the asset was capitalized, included in the State’s fixed asset inventory records, and traced as required by the above criteria. Cause: Property data were not maintained uniformly, and departments did not consistently report acquired assets to the central procurement and supply office. Effect: The State did not comply with property-record requirements, increasing the risk that federally funded property may not be safeguarded or properly reported. No specific award expenditure was identified as unallowable or unsupported solely because of the recordkeeping deficiency; therefore, no questioned costs are reported. Recommendation: The State should standardize and reconcile central and departmental property records ensuring that the data elements are uniform; investigate and record the vehicle; and require departments to report acquisitions, transfers, physical-inventory results, and dispositions to the central property custodian. Identification as a Repeat Finding: Not applicable View of Responsible Officials: The State’s response and corrective action plan addressing this finding is included in the accompanying corrective action plan.