Finding Text
Criteria:
• 2 CFR 200.313 (d) (1) establishes that property records must be maintained and should include a description of the property, a serial number or other identification number, the source of funding for the property, who holds the title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which 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 CFR 200.313 (d) (3) establishes that 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.
Condition:
While examined the property report for the year ended as of June 30, 2020, from a sample of 30 units, the following observations were identified:
• • One (1) unit was replaced, and the replacement was no recorded in the property report.
• • Description for one (1) unit does not match with information included in the property report.
• • The serial numbers for six (6) units do not match with serial numbers per property report.
• • Two (2) units do not have assets ID and/or tag number in the property report.
• • The tag number for two (2) units do not match with tag number per property report.
• • Two (2) units were damaged, and not in in use, however, property report was not updated to reflect it.
• • Two (2) units appear assigned to incorrect custody.
• • The property report does not include the percentage of federal participation on cost of units.
Cause:
Lack of supervision to keep the property report updated.
Effects:
Conditions may result in noncompliance with the requirements for equipment and real property management and with internal controls of COR3.
Questioned Costs:
None.
Recommendation:
We recommended management to increase supervision to maintain an updated property report.