Finding Text
Finding – Internal control deficiencies over tracking equipment
Identification of the Federal Program:
Assistance Listing Number and Title: 14.231, Emergency Solutions Grant Coronavirus Program
Federal Grantor Name: U.S. Department of Housing and Urban Development
Federal Award/Contract Number: NA
Pass-through Entity Name: California Department of Housing and Community Development
Pass-through Award/Contract Number: 20-ESGCV-3-00002
Compliance Requirement – Equipment and Real Property Management
Condition:
The City was unable to produce a list of equipment purchased with federal funds. A physical inventory
has not been performed for federally purchased equipment.
Criteria:
Equipment Use, Management, and Disposition Requirements at 2 CFR 200.313(c), 2 CFR 200.313(d),
and 2 CFR 200.313(e); A list of equipment and real property purchased with federal funds should be
maintained for tracking purposes as there are specific federal guidelines and requirements regarding
these purchases and dispositions.
Cause:
The City is not maintaining adequate records regarding the use, management, and disposition of
equipment purchased with ESG-CV funds.
Effect:
The City may not be in compliance with the Uniform Guidance if federally acquired equipment has
been sold and the proceeds were either not reimbursed to the Federal awarding agency or set aside to be
used towards the purchase of similar equipment.
Questioned Costs:
$199,274
Context:
The program requires that for dispositions of equipment acquired under grants with a current per-unit
fair market value of $5,000 or more, the Federal awarding agency is to be reimbursed for the Federal
portion of the current market value or sales proceeds.
Identification of a repeat finding:
Not a repeat finding.
Recommendation:
We recommend that the City prepare policies and procedures to ensure adequate equipment records are
being maintained.
Views of responsible officials:
Management concurs with the finding.