Finding Text
Finding Type: Material Weakness in Internal Control over Major Programs
CFDA#: 84.031B
Title III Part B, Strengthening Historically Black Colleges and Universities
Award Year: 2023
Criteria: The terms of the program and Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), requires a “physical inventory of the property must be taken and the results reconciled with the property records at least once every two years” and “property records must be maintained that include a description of the property, a serial number, the source of funding for the property (including the FAIN), who holds the 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, ...”
Condition: The College has a list of capital assets, but it does not include all the requirements as noted above. Furthermore, the College has not completed an inventory of capital assets since 2019.
Effect of Condition: The College’s system of internal control did not identify the issues noted above and as a result the College did not comply with the requirements.
Cause: A lack of oversight by personnel over the federal program led to noncompliance with the requirement of the Uniform Guidance pertaining to the inventory of the fixed assets and the requirements of the asset listing.
Questioned Costs: None
Recommendation: Finance and management should be familiar with all aspects of the Equipment and Real Property Management guidelines and ensure that the College follows policies in place that meet the requirements of the Uniform Guidance.
View of Responsible Officials and Planned Corrective Action: The College agrees with the finding and management will take necessary steps to perform a capital asset inventory and update the capital asset listing that meets all the requirements.