Finding 395181 (2023-007)

Significant Deficiency
Requirement
F
Questioned Costs
-
Year
2023
Accepted
2024-04-30
Audit: 305066
Organization: The Shaw University, Inc. (NC)
Auditor: Bdo USA PC

AI Summary

  • Core Issue: The University failed to provide documentation for a physical inventory of federally funded equipment over the past two years.
  • Impacted Requirements: This non-compliance violates federal regulations on equipment and real property management.
  • Recommended Follow-Up: Enhance internal controls and establish a documented process for tracking physical inventories of equipment and real property.

Finding Text

Program Information: Title III Strengthening Historically Black Colleges and Universities Program (“Title III”) (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 requires that equipment owned by the Federal Government shall be identified (tagged) to indicate Federal ownership. Condition: During our testing of Title III equipment, we noted the following exceptions: • The University was unable to provide documentation supporting the completion of a physical inventory of all equipment and real property purchased with federal funds during the most recent two fiscal years. Cause: Insufficient administrative oversight and internal controls 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 was unable to provide documentation supporting the completion of a physical inventory of all equipment and real property purchased with federal funds during the most recent two fiscal years. Repeat Finding: No similar findings noted in the prior year.   Recommendation: We recommend that the University enhance its internal controls and procedures over the equipment and real property management compliance requirements. Views of Responsible Officials and Planned Corrective Actions: The University concurs with the finding. The University has internal controls to ensure all federally funded equipment is tagged and tracked in compliance with the most up to date Federal Regulation. Additionally, this equipment is physically inventoried regularly but there is not a documented process to track when and how that happens. Moving forward, the Office of Sponsored Programs will work with Finance and Administration to establish an internal process to document the completion of the required physical inventory for all equipment and real property purchased with federal funds.

Corrective Action Plan

Name of Responsible Individual: Special Assistant to the President for Sponsored Programs (Tori Miller) and Vice President Finance and Administration (David Byrd) Corrective Action: The University concurs with the finding. The University has internal controls to ensure all federally funded equipment is tagged and tracked in compliance with the most up to date Federal Regulation. Additionally, this equipment is physically inventoried regularly but there is not a documented process to track when and how that happens. Moving forward, the Office of Sponsored Programs will work with Finance and Administration to establish an internal process to document the completion of the required physical inventory for all equipment and real property purchased with federal funds. Anticipated Completion Date: May 31, 2024

Categories

Equipment & Real Property Management

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Loan Program $5.77M
84.063 Federal Pell Grant Program $3.38M
84.031B Title III Strengthening Historically Black Colleges and Universities Program $2.82M
84.007 Federal Supplemental Educational Opportunity Grants $879,598
11.802 Mbda - Creating the Business Innovation Gateway (big) $503,224
15.904 Historic Preservation Fund - Rehabilitation of Tupper Memorial and Estey Halls $309,385
84.033 Federal Work-Study Program $307,943
84.425J Education Stabilization Fund - Higher Education Emergency Relief Fund Historically Black Colleges and Universities $261,240
11.028 Ntia - Building Bridges C.o.d.e. $165,206
93.323 Emergency Response $162,941
93.575 North Carolina Early Childhood Stabilization Grant $100,808
16.525 Doj-Rise Grant - Be the Change $100,693
47.076 Catalyst: Increasing Access and Inclusiveness in Cybersecurity $51,635
93.391 Live Well Wake $49,137
93.391 Hbcu Health Data $38,422
47.076 Ria - Antimicrobial Resistance $34,465
15.932 Preservation of Historic Structures on the Campuses of Historically Black Colleges and Universities $25,973
45.309 Museum Grants for African American History and Culture $25,727
84.349 Early Childhood Educator Professional Development Program - Cda Grant $5,243