Finding Text
2023-009 – Equipment and Real Property Management (Significant Deficiency in Internal Controls
over Compliance)
Federal Program Information
Federal Award Title and ALN: Research & Development Cluster, 84.031
Federal Awarding Agency: U.S. Department of Education
Federal Award ID Number: P031S210288, P031C200002
Federal Award Year: 2023
Condition: The College had asset additions in the fiscal year not included in the federal award
listings maintained for equipment and were unaware if the items were included in listings
maintained by another University the College was a fund in, in prior years.
Criteria: Per 2 CFR 200.303(a), the non-federal entity must establish and maintain effective internal
control over the Federal award that provides reasonable assurance that the non-Federal entity is
managing the Federal award in compliance with Federal statutes, regulations, and the terms and
conditions of the Federal award. These internal controls should be in compliance with guidance in
“Standards for Internal Control in the Federal Government” issued by the Comptroller General of
the United States or the “Internal Control Integrated Framework”, issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO).
Per 2 CFR 200.313(d)(1) Property records must be maintained that include a description of the
property, a serial number or other identification number, the source of funding for the property
(including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of
Federal participation in the project costs for the Federal award under which the property was
acquired, the location, use and condition of the property, and any ultimate disposition data
including the date of disposal and sale price of the property.
Cause: The College does not have policies and procedures to ensure that equipment purchased with
federal funds is maintained and tracked.
Effect: The College could dispose of or lose federally funded equipment without following federal
guidelines.
Questioned Costs: None
Auditor recommendation: We recommend the College enhance the design of its control activities
and create a tool to assist in tracking and maintaining equipment purchased with federal funds.
Additionally, the employees responsible for the inventory should be trained to ensure
understanding of the Uniform Guidance requirements relevant to equipment and real property
management.