Finding 613552 (2022-004)

Material Weakness
Requirement
F
Questioned Costs
-
Year
2022
Accepted
2023-04-09
Audit: 34010
Organization: Hawaii Pacific University (HI)
Auditor: Kmh LLP

AI Summary

  • Core Issue: The University did not conduct the required physical inventory of property as mandated by 2 CFR 200.313(d)(2).
  • Impacted Requirements: Noncompliance with federal equipment and real property management regulations due to incomplete inventory documentation across departments.
  • Recommended Follow-Up: Ensure all departments complete the physical inventory on time and adhere to established procedures for future compliance.

Finding Text

Criteria: 2 CFR 200.313(d)(2) requires the non-Federal entity take a physical inventory of property and reconcile the results with the property records at least once every two years. Condition: The physical inventory was not conducted as required. Context: In October 2021, the University conducted a physical inventory of all of its fixed assets which includes property acquired with federal funds. To facilitate the inventory, the University distributed a memo to all department heads detailing the procedures needed to conduct a physical inventory and instructed them to perform a physical inventory in their respective departments by December 1, 2021. During our audit, it was noted that the physical inventory was not completed by all departments. Based on the information provided by management there were 16 property items that were subject to inventory; however, because the inventory documentation provided did not cover all departments, only 1 property item was identified through the physical inventory. Cause: Although the University has procedures in place over the physical inventory of property, there was a lack of diligence in complying with the procedures. Effect: Failure to perform physical inventory of property and reconcile the results with the property records at least once every two years results in noncompliance with the equipment and real property management requirement. Questioned Costs: None Identification of a repeat finding: N/A Recommendations: We recommend the University follow their procedures for the physical inventory of equipment and ensure all departments timely complete the physical inventory. Views of responsible officials: The HPU Fixed Asset Accountant, Federal Grant Project Investigator and Office of Sponsored Projects will work collaboratively to ensure that the physical inventory of all fixed assets which were acquired using federal funds are conducted and completed periodically. This physical inventory monitoring will be done at least, every two years. The team will work on getting all departments covered in the periodic inventory to confirm that the fixed asset listing is complete, updated and maintained.

Categories

Equipment & Real Property Management

Other Findings in this Audit

  • 35917 2022-004
    Material Weakness
  • 35918 2022-005
    Significant Deficiency
  • 36041 2022-006
    Significant Deficiency
  • 36042 2022-004
    Material Weakness
  • 36043 2022-005
    Significant Deficiency
  • 36044 2022-006
    Significant Deficiency
  • 36045 2022-004
    Material Weakness
  • 36046 2022-005
    Significant Deficiency
  • 36047 2022-006
    Significant Deficiency
  • 36048 2022-004
    Material Weakness
  • 36049 2022-005
    Significant Deficiency
  • 36050 2022-006
    Significant Deficiency
  • 36051 2022-004
    Material Weakness
  • 36052 2022-005
    Significant Deficiency
  • 36053 2022-006
    Significant Deficiency
  • 36054 2022-004
    Material Weakness
  • 36055 2022-005
    Significant Deficiency
  • 36056 2022-006
    Significant Deficiency
  • 36057 2022-004
    Material Weakness
  • 36058 2022-005
    Significant Deficiency
  • 36059 2022-006
    Significant Deficiency
  • 36060 2022-004
    Material Weakness
  • 36061 2022-005
    Significant Deficiency
  • 36062 2022-006
    Significant Deficiency
  • 36063 2022-001
    Material Weakness Repeat
  • 36064 2022-002
    Material Weakness Repeat
  • 36065 2022-001
    Material Weakness Repeat
  • 36066 2022-002
    Material Weakness Repeat
  • 36067 2022-001
    Material Weakness Repeat
  • 36068 2022-002
    Material Weakness Repeat
  • 37100 2022-003
    Material Weakness
  • 37101 2022-001
    Material Weakness Repeat
  • 37102 2022-002
    Material Weakness Repeat
  • 37103 2022-003
    Material Weakness
  • 37104 2022-004
    Material Weakness
  • 37105 2022-005
    Significant Deficiency
  • 37106 2022-006
    Significant Deficiency
  • 37107 2022-004
    Material Weakness
  • 37108 2022-005
    Significant Deficiency
  • 37109 2022-006
    Significant Deficiency
  • 37110 2022-004
    Material Weakness
  • 37111 2022-005
    Significant Deficiency
  • 37112 2022-006
    Significant Deficiency
  • 37113 2022-004
    Material Weakness
  • 37114 2022-005
    Significant Deficiency
  • 37115 2022-006
    Significant Deficiency
  • 612359 2022-004
    Material Weakness
  • 612360 2022-005
    Significant Deficiency
  • 612483 2022-006
    Significant Deficiency
  • 612484 2022-004
    Material Weakness
  • 612485 2022-005
    Significant Deficiency
  • 612486 2022-006
    Significant Deficiency
  • 612487 2022-004
    Material Weakness
  • 612488 2022-005
    Significant Deficiency
  • 612489 2022-006
    Significant Deficiency
  • 612490 2022-004
    Material Weakness
  • 612491 2022-005
    Significant Deficiency
  • 612492 2022-006
    Significant Deficiency
  • 612493 2022-004
    Material Weakness
  • 612494 2022-005
    Significant Deficiency
  • 612495 2022-006
    Significant Deficiency
  • 612496 2022-004
    Material Weakness
  • 612497 2022-005
    Significant Deficiency
  • 612498 2022-006
    Significant Deficiency
  • 612499 2022-004
    Material Weakness
  • 612500 2022-005
    Significant Deficiency
  • 612501 2022-006
    Significant Deficiency
  • 612502 2022-004
    Material Weakness
  • 612503 2022-005
    Significant Deficiency
  • 612504 2022-006
    Significant Deficiency
  • 612505 2022-001
    Material Weakness Repeat
  • 612506 2022-002
    Material Weakness Repeat
  • 612507 2022-001
    Material Weakness Repeat
  • 612508 2022-002
    Material Weakness Repeat
  • 612509 2022-001
    Material Weakness Repeat
  • 612510 2022-002
    Material Weakness Repeat
  • 613542 2022-003
    Material Weakness
  • 613543 2022-001
    Material Weakness Repeat
  • 613544 2022-002
    Material Weakness Repeat
  • 613545 2022-003
    Material Weakness
  • 613546 2022-004
    Material Weakness
  • 613547 2022-005
    Significant Deficiency
  • 613548 2022-006
    Significant Deficiency
  • 613549 2022-004
    Material Weakness
  • 613550 2022-005
    Significant Deficiency
  • 613551 2022-006
    Significant Deficiency
  • 613553 2022-005
    Significant Deficiency
  • 613554 2022-006
    Significant Deficiency
  • 613555 2022-004
    Material Weakness
  • 613556 2022-005
    Significant Deficiency
  • 613557 2022-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $17.38M
84.063 Federal Pell Grant Program $3.72M
84.425 Education Stabilization Fund $2.95M
84.038 Federal Perkins Loan (fpl) $790,904
93.859 Biomedical Research and Research Training $522,046
93.364 Nursing Student Loans $462,887
47.050 Geosciences $389,012
11.609 Measurement and Engineering Research and Standards $310,535
84.033 Federal Work-Study Program $294,625
93.310 Trans-Nih Research Support $291,327
84.031 Higher Education_institutional Aid $259,702
93.279 Drug Abuse and Addiction Research Programs $232,064
84.007 Federal Supplemental Educational Opportunity Grants $213,118
10.200 Grants for Agricultural Research, Special Research Grants $185,251
47.070 Computer and Information Science and Engineering $106,212
93.932 Native Hawaiian Health Care Systems $60,000
11.427 Fisheries Development and Utilization Research and Development Grants and Cooperative Agreements Program $50,236
10.855 Distance Learning and Telemedicine Loans and Grants $34,049
45.308 Native American/native Hawaiian Museum Services Program $28,628
15.608 Fish and Wildlife Management Assistance $17,654
47.076 Education and Human Resources $16,638
93.397 Cancer Centers Support Grants $9,267
11.452 Unallied Industry Projects $8,616
11.454 Unallied Management Projects $8,503
66.817 State and Tribal Response Program Grants $5,875
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $0
93.264 Nurse Faculty Loan Program (nflp) $0