Finding Text
Equipment/Real Property Management
Federal Award Identification
Assistance Listing Program Title: Formula Grants for Rural Areas
Assistance Listing Program Number: 20.509
Federal Award ID Number and Year: Various
Federal Agency: U.S. Department of Transportation
Pass-Through Entity: Nebraska Department of Transportation
Criteria
Property records must be maintained that include a description of the property, a serial
number or other identification number, the source of funding for the property (including
the FAIN), who holds title, the acquisition date, and cost of the property, percentage of
Federal participation in the project costs for the Federal award under which the 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)(1)).
A physical inventory of the property must be taken and the results reconciled with the
property records at least once every two years (2 CFR 200.313(d)(2)).
Condition
The Organization lacked certain required elements on its vehicle listing.
The Organization failed to adequately document the performance of the required physical
inventory.
Repeat Finding
No.
Cause
Procedures within the Organization were inadequate to ensure that required elements are
regularly updated on its vehicle listing, and that the physical inventory count and
reconciliation is documented.
Effect or Potential Effect
Federal interests in property are lost or inadequately tracked.
Questioned Costs
No.
Statistical Sample
No.
Context
Nebraska Department of Transportation provides its subrecipients with an online portal
through which, among other things, a vehicle listing is kept. The auditor obtained this
vehicle listing, noting that most of the elements required by 2 CFR 200.313(d)(1) were
present, however, out of the seven federally-funded vehicles on the listing:
- Two were missing the FAIN (VINs *8494 and *2891).
- One had a total purchase price of $63,670, whereas source documentation
suggested a total purchase price of $103,475 (VIN *2891).
- One was missing a purchase price. Source documentation suggested a total
purchase price of $36,231 (VIN *2472).
- One had an acquisition date of 9/30/2019, whereas source documentation
suggested an acquisition date of 2/25/2020 (VIN *2891).
Management indicates that a physical inventory is performed nightly with all vehicles,
however, no documentation exists to prove that this was performed during the audit
period.
Recommendation
We recommend the Organization establish a system of internal control consisting of
policies and procedures whereby the individual maintaining vehicle listings is different
from the individual updating the Nebraska Department of Transportation online portal.
Additionally, we recommend the Organization track all Federally-required elements along
with its own internal data points (such as bus number and depreciation system number) in
one consolidated listing. Further, we recommend that a policy be instituted whereby a
physical inventory and related reconciliation is performed annually on June 30, with the
results being documented, reviewed, and approved by appropriate personnel.
Views of Responsible Officials
See Corrective Action Plan, below.