Finding 22242 (2022-003)

Identification of the Federal Program: United States Agency for International Development Assistance Listing Number: 98.001 Assistance Listing Name: USAID Foreign Assistance for Programs Overseas Direct Award Number(s) Award Period 72062122C00001 November 9, 2021 through November, 8, 2026s 5U62PS123541 February 23, 2004 through February 22, 2012 AID-621-A-16-00004 October 1, 2016 through December 31, 2021 AID-617-A-15-00010 November 15, 2015 through September 30, 2023 Criteria or Specific Requirement: In accordance with ?200.313(d), Equipment, a non-federal entity must establish and adhere to procedures for managing equipment, whether acquired in whole or in part under a Federal award, until disposition takes place. The non-federal entity must meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal Award Identification Number), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award number 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. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: Management is required to ensure property records are maintained to ensure adequate recordkeeping for equipment acquired with U.S. government funding including both additions to, and disposals of, equipment. During our testing to ensure management provided an accurate listing of equipment held to perform our equipment completeness testing for which a sample would be selected, BDO identified the following matters in related to the equipment population provided by management: We examined the 2022 inventory records designated to the major federal program; however, matters were noted as listed below: Direct Award Number Errors on Year-end Inventory Listing 72062122C00001 One asset was not included in the December 31, 2022 equipment listing that should have been included. 5U62PS123541 One asset selected for testing was unable to be located. AID-621-A-16-00004 One asset selected for testing was unable to be located. Direct Award Number Assets Correctly Disposed or Transferred As Per U.S. Government Regulations - Not Included on the Equipment Disposals Listing 5U62PS123541 One asset AID-621-A-16-00004 Two assets AID617A1500010 Three assets Cause: The Foundation?s country offices did not fully comply with established internal procedures related to equipment tracking requirements for equipment procured with U.S. Government funds. This resulted in both incorrect year-end inventory listings, but also incomplete transfer and disposal listing. Effect: Failure to properly track and maintain equipment purchased with U.S. Government funds could ultimately lead to loss of equipment procured with U.S. funds, reduced funding, or cancellation of a federal award. Questioned Costs: None. Context: This is a condition identified per examination of the Foundation?s compliance with the equipment provisions within the Uniform Guidance. The prevalence of these findings is detailed in the condition section above. The sample was selected using a non-statistical method. Recommendation: We recommend management perform trainings to address the deficiencies identified above given the equipment inventory process did not ensure a complete and accurate disposal population or equipment listing as of December 31, 2022. We also recommend management establish a periodic review of the documentation that is maintained to comply with ?200.313, Equipment, to ensure that the documentation encompasses all the required elements of the regulation, including sale or transfer requirements. Views of Responsible Officials: The Foundation?s management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.