Finding 369253 (2021-027)

Material Weakness Repeat Finding
Requirement
F
Questioned Costs
-
Year
2021
Accepted
2024-02-15
Audit: 290538
Organization: Saint Augustine's University (NC)
Auditor: Bdo USA PC

AI Summary

  • Core Issue: The University failed to meet equipment and real property management requirements, including maintaining accurate records and conducting physical inventories.
  • Impacted Requirements: Compliance with federal guidelines for equipment management, including tagging and documentation of federally funded assets.
  • Recommended Follow-Up: Enhance internal controls and procedures; implement new ERP system and provide training to improve tracking and compliance.

Finding Text

Program Information: Title III Strengthening Historically Black Colleges and Universities Program (ALN: 84.031B) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): F. Equipment and Real Property Management - Equipment records shall be maintained, a physical inventory of equipment shall be taken at least once every 2 years and reconciled to the equipment records, an appropriate control system shall be used to safeguard equipment, and equipment shall be adequately maintained. Equipment property records should contain the following information about the equipment: description (including serial number or other identification number), source, who holds title, acquisition date and cost, percentage of Federal participation in the cost, location, condition, and any ultimate disposition data including, the date of disposal and sales price or method used to determine current fair market value. The Uniform Guidance further states that equipment owned by the Federal Government shall be identified (tagged) to indicate Federal ownership. Condition: The University did not comply with the requirements of equipment and real property management. Cause: Lack of internal controls and administrative oversight with respect to equipment and real property management. Effect or Potential Effect: The University did not comply with the requirements of equipment and real property management. Questioned Costs: None. Context: The University noted that a physical inventory of equipment and real property purchased with federal funds was not performed during the current fiscal year. Additionally, the University was unable to provide equipment records and/or an equipment listing of all federally funded equipment. The University was also unable to provide documentation supporting the required tagging of federally funded equipment. Repeat Finding: This is a repeat finding from prior year. This was reported as Finding 2020-018 in the prior year schedule of findings and questioned costs. Recommendation: We recommend that the University enhance its internal controls and procedures over the applicable compliance requirements of the equipment and real property management. Views of Responsible Officials and Planned Corrective Actions: Significant steps have been taken to remediate this finding. Staff transitions coupled with the transition from on-site to remote work environment were the primary reasons for this finding. With the implementation of the new ERP system along with extensive training on utilizing the fixed asset module to assist with more accurate tracking of the inventory will reduce the risk of this finding.

Corrective Action Plan

Name of Responsible Individual: Dr. Lynda Batiste, Senior Vice President of Finance & Chief Operating Officer Corrective Action: Significant steps have been taken to remediate this finding. Staff transitions coupled with the transition from on-site to remote work environment were the primary reasons for this finding. With the implementation of the new ERP system along with extensive training on utilizing the fixed asset module to assist with more accurate tracking of the inventory will reduce the risk of this finding. Anticipated Completion Date: June 30, 2024

Categories

Equipment & Real Property Management

Other Findings in this Audit

  • 369244 2021-015
    Material Weakness
  • 369245 2021-016
    Material Weakness
  • 369246 2021-017
    Material Weakness Repeat
  • 369247 2021-021
    Material Weakness Repeat
  • 369248 2021-025
    Material Weakness Repeat
  • 369249 2021-015
    Material Weakness
  • 369250 2021-016
    Material Weakness
  • 369251 2021-017
    Material Weakness Repeat
  • 369252 2021-026
    Material Weakness Repeat
  • 369254 2021-015
    Material Weakness
  • 369255 2021-016
    Material Weakness
  • 369256 2021-017
    Material Weakness Repeat
  • 369257 2021-018
    Material Weakness Repeat
  • 369258 2021-021
    Material Weakness Repeat
  • 369259 2021-025
    Material Weakness Repeat
  • 369260 2021-015
    Material Weakness
  • 369261 2021-016
    Material Weakness
  • 369262 2021-017
    Material Weakness Repeat
  • 369263 2021-026
    Material Weakness Repeat
  • 369264 2021-015
    Material Weakness
  • 369265 2021-016
    Material Weakness
  • 369266 2021-017
    Material Weakness Repeat
  • 369267 2021-026
    Material Weakness Repeat
  • 369268 2021-015
    Material Weakness
  • 369269 2021-016
    Material Weakness
  • 369270 2021-017
    Material Weakness Repeat
  • 369271 2021-026
    Material Weakness Repeat
  • 369272 2021-015
    Material Weakness
  • 369273 2021-016
    Material Weakness
  • 369274 2021-017
    Material Weakness Repeat
  • 369275 2021-018
    Material Weakness Repeat
  • 369276 2021-019
    Material Weakness Repeat
  • 369277 2021-021
    Material Weakness Repeat
  • 369278 2021-024
    Material Weakness Repeat
  • 369279 2021-025
    Material Weakness Repeat
  • 369280 2021-015
    Material Weakness
  • 369281 2021-016
    Material Weakness
  • 369282 2021-017
    Material Weakness Repeat
  • 369283 2021-018
    Material Weakness Repeat
  • 369284 2021-019
    Material Weakness Repeat
  • 369285 2021-020
    - Repeat
  • 369286 2021-021
    Material Weakness Repeat
  • 369287 2021-022
    Material Weakness Repeat
  • 369288 2021-023
    Material Weakness Repeat
  • 369289 2021-024
    Material Weakness Repeat
  • 369290 2021-025
    - Repeat
  • 369291 2021-015
    Material Weakness
  • 369292 2021-016
    Material Weakness
  • 369293 2021-017
    Material Weakness Repeat
  • 369294 2021-026
    Material Weakness Repeat
  • 369295 2021-015
    Material Weakness
  • 369296 2021-016
    Material Weakness
  • 369297 2021-017
    Material Weakness Repeat
  • 369298 2021-026
    Material Weakness Repeat
  • 369299 2021-015
    Material Weakness
  • 369300 2021-016
    Material Weakness
  • 369301 2021-017
    Material Weakness Repeat
  • 369302 2021-026
    Material Weakness Repeat
  • 369303 2021-015
    Material Weakness
  • 369304 2021-016
    Material Weakness
  • 369305 2021-017
    Material Weakness Repeat
  • 369306 2021-026
    Material Weakness Repeat
  • 945686 2021-015
    Material Weakness
  • 945687 2021-016
    Material Weakness
  • 945688 2021-017
    Material Weakness Repeat
  • 945689 2021-021
    Material Weakness Repeat
  • 945690 2021-025
    Material Weakness Repeat
  • 945691 2021-015
    Material Weakness
  • 945692 2021-016
    Material Weakness
  • 945693 2021-017
    Material Weakness Repeat
  • 945694 2021-026
    Material Weakness Repeat
  • 945695 2021-027
    Material Weakness Repeat
  • 945696 2021-015
    Material Weakness
  • 945697 2021-016
    Material Weakness
  • 945698 2021-017
    Material Weakness Repeat
  • 945699 2021-018
    Material Weakness Repeat
  • 945700 2021-021
    Material Weakness Repeat
  • 945701 2021-025
    Material Weakness Repeat
  • 945702 2021-015
    Material Weakness
  • 945703 2021-016
    Material Weakness
  • 945704 2021-017
    Material Weakness Repeat
  • 945705 2021-026
    Material Weakness Repeat
  • 945706 2021-015
    Material Weakness
  • 945707 2021-016
    Material Weakness
  • 945708 2021-017
    Material Weakness Repeat
  • 945709 2021-026
    Material Weakness Repeat
  • 945710 2021-015
    Material Weakness
  • 945711 2021-016
    Material Weakness
  • 945712 2021-017
    Material Weakness Repeat
  • 945713 2021-026
    Material Weakness Repeat
  • 945714 2021-015
    Material Weakness
  • 945715 2021-016
    Material Weakness
  • 945716 2021-017
    Material Weakness Repeat
  • 945717 2021-018
    Material Weakness Repeat
  • 945718 2021-019
    Material Weakness Repeat
  • 945719 2021-021
    Material Weakness Repeat
  • 945720 2021-024
    Material Weakness Repeat
  • 945721 2021-025
    Material Weakness Repeat
  • 945722 2021-015
    Material Weakness
  • 945723 2021-016
    Material Weakness
  • 945724 2021-017
    Material Weakness Repeat
  • 945725 2021-018
    Material Weakness Repeat
  • 945726 2021-019
    Material Weakness Repeat
  • 945727 2021-020
    - Repeat
  • 945728 2021-021
    Material Weakness Repeat
  • 945729 2021-022
    Material Weakness Repeat
  • 945730 2021-023
    Material Weakness Repeat
  • 945731 2021-024
    Material Weakness Repeat
  • 945732 2021-025
    - Repeat
  • 945733 2021-015
    Material Weakness
  • 945734 2021-016
    Material Weakness
  • 945735 2021-017
    Material Weakness Repeat
  • 945736 2021-026
    Material Weakness Repeat
  • 945737 2021-015
    Material Weakness
  • 945738 2021-016
    Material Weakness
  • 945739 2021-017
    Material Weakness Repeat
  • 945740 2021-026
    Material Weakness Repeat
  • 945741 2021-015
    Material Weakness
  • 945742 2021-016
    Material Weakness
  • 945743 2021-017
    Material Weakness Repeat
  • 945744 2021-026
    Material Weakness Repeat
  • 945745 2021-015
    Material Weakness
  • 945746 2021-016
    Material Weakness
  • 945747 2021-017
    Material Weakness Repeat
  • 945748 2021-026
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $6.63M
84.063 Federal Pell Grant Program $3.76M
84.031 Higher Education_institutional Aid $2.17M
84.425 Education Stabilization Fund $1.78M
84.007 Federal Supplemental Educational Opportunity Grants $1.12M
84.047 Trio_upward Bound $771,898
84.044 Trio_talent Search $552,558
84.033 Federal Work-Study Program $536,970
84.938 Disaster Recovery Assistance for Education $295,188
84.042 Trio_student Support Services $280,096
47.076 Education and Human Resources $51,642
15.904 Historic Preservation Fund Grants-in-Aid $1,450