Finding Text
Item 2023‐002 Property and Equipment Management
Assistance Listing Number 93.600
Head Start Cluster
U.S. Department of Health and Hum an Services
Pass‐through Grant No. 09CH011437-03-04; 09CH011437-03-C3; 09HP000160-04-04
09HP000160-05-02; 09HE000035-01-C5; 09HE000035-01-C6
Condition – The Inventory tracking sheet did not contain all required asset information.
Criteria – 2 CFR Part 200.313(d)(1) of the Uniform Guidance requires that property records must be maintained for equipment acquired under a federal award 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. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years.
Cause – The Agency did not include all required property information in its property records due to staff turnover.
Questioned Costs – Not determinable.
Effect – Failure to comply with equipment management requirements could result in noncompliance with the grant agreements.
Recommendation – We recommend the Agency follow the requirements of 2 CFR Part 200.313 to ensure all assets are adequately accounted for. CRI also recommends that the Agency include all of the information required by the granting Agency and Uniform Guidance in one central tracking spreadsheet and include the following fields in addition to the items previously being tracked and that that spreadsheet is used to conduct a physical observation at least once every two years.
• the source of funding for the property (including the Federal award identification number),
• who holds title,
• the acquisition date,
• cost of the property,
• percentage of Federal participation in the project costs for the Federal award under which the property was acquired,
• use and
• condition of the property,
• and any ultimate disposition data including the date of disposal and sales price of the property (2 CFR section 200.313(d)(1)).
Management’s Response – Management has reviewed and accepted the finding. See “Corrective Action Plan”.