FAC Explorer

Finding 398725 (2023-001)

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Requirement
F
Questioned Costs
-
Year
2023
Accepted
2024-05-29
Audit: 307487
Organization: The Center for Health Affairs (OH)
Auditor: Maloney + Novotny LLC

AI Summary

  • Core Issue: The Center failed to conduct a physical inventory of equipment at member hospitals for the past two years.
  • Impacted Requirements: This violates 2 CFR 200.313, which mandates a physical inventory at least every two years.
  • Recommended Follow-Up: Develop a policy to ensure all member hospitals are inspected for equipment at least once every two years.

Finding Text

Finding 2023-001 Assistance Listing: 93.889 Regional Healthcare System Coordinate for Disaster Preparedness Condition: The Center did not perform a physical inventory of the equipment provided to any member hospitals within the past two years. Criteria: 2 CFR 200.313 addresses requirements and conditions regarding equipment acquired under a Federal award. 2 CFR 200.313(d)(2) states that a physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Cause: Due to organizational turnover in fiscal year 2022 and again in fiscal year 2023, no physical inventory was completed during these years. Effect: The Center did not perform adequate procedures to ensure proper equipment management was taking place at member hospitals. Repeat finding: This is not a repeat finding. Questioned costs: None Recommendation: We recommend that The Center develop a policy and procedure to ensure that all member hospitals are visited at least once every two years for a physical equipment inspection. Views of responsible officials: Management concurs with this recommendation. See also corrective action plan.

Corrective Action Plan

Finding Number: 2023-001 Planned Corrective Action: The Emergency Prepardness Program Manager position has been turned over twice in the two-year period in which the physical inventory was to be performed. This last vacancy was four months and filled near the end of the two-year inventory cycle. During the audit it was discovered the physical inventory was i nthe planning stages but due to transition, the inventory was not completed. The schedule for completion did not get transferred to the new program manager. When it was discovered that the physical inventory had not been completed, plans were made to complete the physical inventory. To ensure ongoing compliance, the program manager has created an inventory calendar and plans to perform half the physical inventories in year one and the second half in the second year. The calendar is published in the ASPR Grant Teams site. Anticipated Completion Date: June 30, 2024 Responsible Contact Person: Christina Fozio, Emergency Preparedness Program Manager

Categories

Equipment & Real Property Management

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.889 National Bioterrorism Hospital Preparedness Program $124,851
93.136 Injury Prevention and Control Research and State and Community Based Programs $11,494