Finding 529840 (2024-001)

Federal Award Findings and Questioned Costs Finding No. 2024-001 – Communication of Property Disposals Award Information Cluster: Research and Development Grantors: National Institutes of Health National Science Foundation Award Numbers: NIH 5R00CA158066-04, NIH 1R21-AI48561-01, NSF CHE-1362211 Award Years: 2013-2014, 2000-2001, 2014-2015 Assistance Listing Numbers: 93.396, 93.856, 47.049 Assistance Listing Titles: Cancer Biology Research, Microbiology and Infectious Diseases Research, Mathematical and Physical Sciences Criteria For equipment acquired under Federal awards, 2 CFR 200.313(d)(1) states that property records must be maintained by the recipient, including the location, use and condition of the property, and any disposition data including the date of disposal and sale price of the property. Recipients are additionally responsible for maintaining and updating property records when there is a change in the status of the property. Condition In performing a physical observation of 25 pieces of equipment purchased with federal R&D Cluster awards (with a net book value (NBV) totaling $1,954,317), we noted three items (with a NBV totaling $1,585) selected for physical observation were not able to be located for our testing, but were inventoried within the last two years as part of the University’s biennial count procedures during fiscal years 2023 and 2024. The three unobserved pieces of equipment were below the reportable disposition threshold under 2 CFR 200.313(e)(1), and the University therefore could retain, sell, or dispose of the equipment with no further responsibility to report to the Federal agency or pass-through entity. Cause University management believes these items were disposed of but not appropriately removed from the federal equipment listing. The University conducts research at multiple locations where equipment purchased with federal awards is utilized and maintained. Individual research locations and departments are to report changes in the status of property such that property records are maintained and updated timely. The decentralized nature of this process can result in delayed or missed reporting of asset disposals. Effect Inaccurate property records may prohibit the University from properly safeguarding and maintaining equipment, and may result in federal programs not receiving the appropriate entitled share of proceeds from the disposals of equipment purchased with federal awards. Questioned Costs None noted. Recommendation We recommend the University continue to train the individuals involved with handling assets purchased with federal awards on updating property records and reporting disposals timely to ensure they accurately reflect equipment information. Management’s Views and Corrective Action Plan Management concurs with the finding and has begun to address these concerns. Management’s views and corrective action plan are included at the end of this report after the summary schedule of prior year audit findings and status.