Finding Text
Finding 2024-001 – Equipment and Real Property
Federal Program:
Coal Miners Respiratory Impairment Treatment Clinics and Services
ALN:
93.965
Federal Agency:
U.S. Department of Health and Human Services
Federal Award Years:
July 1, 2023 through June 30, 2024
Criteria:
2 CFR section 200.313(d)(2) requires a physical inventory of federal property to be taken and the results to
be reconciled with the property records at least once every two years.
Condition Found, Including Perspective:
The System did not conduct a physical inventory of the property purchased with federal funds and reconcile
the inventory with the property records in 2024 nor in 2023. Therefore, the System was not in compliance
with the applicable federal requirements.
Possible Cause and Effect:
The System lacks a formalized process to verify the condition and existence of federally funded purchased
equipment and the System lacks a formalized process to reconcile these amounts back to the property
records.
Questioned Costs:
None.
Statistical Validity:
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding in the Prior Year:
This is not a repeat finding.
Recommendation
We recommend that management strengthen procedures around performing a physical inventory of the
property and reconciling the results at least once every two years.
Views of Responsible Officials:
Owensboro Health, Inc. concurs with this finding and is working to put procedures in place to perform a
formalized physical inventory and a reconciliation of the results on at least a biannual basis.