Finding Text
Finding 2024-010 Pass-Through Entity: Federated States of Micronesia National Government Federal Agency: U.S. Department of Education Assistance Listing: 84.027 Special Education – Grants to States (IDEA, Part B) Federal Award No.: H027A230005 Area: Equipment and Real Property Management Questioned Costs: $0 Criteria: 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: Six government vehicles identified on fuel-control forms (GE-1042, GE-1043, GE-1045, GE-1205, GE-1206, and GE-1288) could not be traced to the State fixed-asset schedule or departmental property records. Cause: Property data was 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 equipment-record requirements, increasing the risk that federally funded property may not be safeguarded or properly reported. No specific award expenditure was identified as unsupported or unallowable solely because of this 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 six vehicles; 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.