Finding Text
2022-001 – Equipment and Real Property Management – Material Weakness in Internal Controls over Compliance
Federal Program Information:
Funding Agency: U. S. Department of Health and Human Services
Title: Headstart Cluster
CFDA Number: 93.600
Federal Award Identification number: N/A
Pass Through Entity: N/A
Award Year: 2022
Condition: The Entity did not conduct a physical inventory in current year or prior year.
Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, 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)(2), a physical inventory of program property must be taken and the results reconciled with the property records at least once every 2 years.
Questioned costs: None
Effect: The Entity could dispose of or lose federally funded equipment without following federal guidelines.
Cause: The Entity does not have policies and procedures to ensure that the Entity is performing a physical inventory at a minimum of every two years.