Finding 5: Controls over Equipment Purchases for Federal Programs (2022-05) 5.1 Ac3on Plan To address the identified issues regarding the controls over equipment purchases for federal programs, the organization will take the following steps: ? Development of Policy: Develop a flexible yet comprehensive policy that outlines the procedures and controls over equipment purchases for federal programs. This policy will provide guidelines on the allowable conditions for equipment purchases and usage, keeping in mind the diverse geographical locations of operations. The policy will be designed to accommodate long-distance equipment purchasing and monitoring, ensuring feasibility and compliance without compromising operational efficiency. ? Inventory Management: Incorporate procedures for periodic physical inventory of the equipment to ensure accurate tracking and compliance with federal requirements. ? Monitoring and Compliance: Establish mechanisms for regular monitoring of equipment purchases to prevent the charging of potentially unallowable costs to federal programs. Page 46 5.2 Responsible Personnel The newly appointed Grants Manager, who is also overseeing the corrective actions for the other findings, will be responsible for implementing and monitoring the new policy. Their extensive experience of over 20 years in grant management equips them with the necessary skills and knowledge to effectively manage this task. 5.3 Resources and Tools The organization will leverage its existing resources, including the custom-built grant management solution and QuickBooks Online, to facilitate the monitoring of equipment purchases and the management of the periodic physical inventory. 5.4 Implementa3on Timeline The organization plans to initiate the implementation of the corrective actions immediately, with the aim to have the new policy fully operational by the end of Q4 2023. 5.5 Training and Support Training programs will be developed to assist the Grants Manager and other relevant personnel in adapting to the new policy protocols. This will include training on the procedures for equipment purchases and inventory management. 5.6 Monitoring and Evalua3on A monitoring and evaluation system will be established to assess the effectiveness of the new policy. This system will involve regular reviews to ensure compliance with the policy and federal requirements, thereby safeguarding the organization from potential discrepancies and unallowable costs.