Finding Text
Criteria:
§2 CFR 200.439 Equipment and other capital expenditures establish that “(1) Capital expenditures for general purpose equipment, buildings, and land are unallowable as direct charges, except with the prior written approval of the Federal awarding agency or pass-through entity, (2) Capital expenditures for special purpose equipment are allowable as direct costs, provided that items with a unit cost of $5,000 or more have the prior written approval of the Federal awarding agency or pass-through entity.”
Condition:
From a sample of fifteen (15) equipment, COR3 was unable to provide supporting evidence for approval from the federal agency for one (1) purchase transaction that requires such prior approval.
Cause:
Lack of supervision to ascertain compliance with requirements and procedures established for purchase of specialized equipment with a cost of $5,000 or more.
Effects:
Lack of supervision may result in noncompliance with the allowable costs/cost principles requirements.
Questioned Costs:
$54,959.25
Recommendation:
We recommend management to increase the level of supervision to ascertain the established requirements for the purchase of specialized equipment are met.