Finding 563618 (2024-002)

Information on the federal program: United States Airforce, Assistance listing # 12.840 Civil Air Patrol Program Criteria: 2 CFR 200.312(a) establishes that the recipient must submit an inventory listing of federally owned property in its custody to the federal agency on an annual basis. Condition: The Tangible Personal Property Report (SF-428) requires the recipient to submit an inventory listing of federally owned property in its custody to the federal agency annually. CAP provides the required listing from its ORMS database. Two of the items tested within the report were owned by CAP and not federally owned. Ownership was properly reflected in Navision and incorrectly reflected in ORMS. Cause: An incorrect source funding code was assigned in ORMS. This assignment was not subject to an effective review. Effect: CAP was not in compliance with all applicable reporting requirements. Questioned Costs: None reported. Recommendation: We recommend CAP strengthen its policies and procedures surrounding grant reporting to include a review of each component of CAP’s equipment management system for accuracy with respect to title holder and funding source code. All updates to a component of the system should be reviewed for accuracy by someone other than the preparer. Comparative reports between the components of the system for title holder and funding source code should be included in the annual reconciliation process. These reports should be generated before and after the reconciliation process to ensure the identified activity was posted correctly. All reports should be reviewed and approved by someone other than the preparer. Views of Responsible Officials: Management agrees with the finding. See Corrective Action Plan included at the end of the report.