Finding Text
Instance of noncompliance and significant deficiency in internal controls related to equipment and real property management.
Federal Agency: U.S. Department of Health and Human Services, National Science Foundation, U.S. Department of Defense, U.S. Department of Energy
Program Title: Research and Development Cluster - All Awards
Assistance Listing Number: Various
Award Numbers: All awards within the Research and Development Cluster
Award Periods: Various
Criteria
Per equipment and real property management compliance requirements contained in the Uniform Guidance, Subpart D - Post-Federal Award Requirements and Contents of Federal Awards, Section 200.313, non-federal entities must perform a physical inventory of the property at least once every two years.
Condition/Context
The Institute’s internal control over equipment and real property management includes procedures to complete inventory counts every two years. However, the last count took place during 2022. As such, the Institute was not following their policies over equipment and real property management.
Questioned Costs
Not applicable.
Cause
The Institute’s internal controls related to the equipment and real property management compliance requirements were not sufficient to ensure compliance with the standards.
Effect/Potential Effect
The effect is the property records for the Institute may have discrepancies and changes in the status or condition of equipment on hand may not be captured in a timely manner.
Repeat Finding
Not applicable.
Recommendation
We recommend management implement procedures to ensure that documentation of a physical inventory and verification of condition for all equipment is received at least once every two years.
Views of Responsible Officials
Management agrees with the finding and has provided the accompanying corrective action plan.