Finding Text
Federal Program Information:
Higher Education Institutional Aid: Strengthening Historically Black Colleges and Universities Program (ALN: 84.031B and 84.031E)
Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation):
F. Equipment and Real Property Management - Equipment records shall be maintained, a physical inventory of equipment shall be taken at least once every 2 years and reconciled to the equipment records, an appropriate control system shall be used to safeguard equipment, and equipment shall be adequately maintained. Equipment property records should contain the following information about the equipment: description (including serial number or other identification number), source, who holds title, acquisition date and cost, percentage of Federal participation in the cost, location, condition, and any ultimate disposition data including, the date of disposal and sales price or method used to determine current fair market value. The Uniform Guidance further requires that equipment owned by the Federal Government shall be identified (tagged) to indicate Federal ownership.
Condition:
The University did not comply with the requirements of equipment and real property management.
Cause:
Insufficient administrative oversight and internal controls with respect to equipment and real property management.
Effect or Potential Effect:
The University did not comply with the requirements of equipment and real property management.
Questioned Costs:
None.
Context:
The University was unable to provide documentation supporting the completion of a physical inventory of equipment and real property purchased with federal funds during the most recent two fiscal years. Additionally, for 1 of 2 sampled items, the University was unable to provide documentation supporting the required tagging and appropriate maintenance of property records for federally funded equipment.
Identification as a Repeat Finding:
No similar findings noted in the prior year.
Recommendation:
We recommend that the University enhance its internal controls and procedures over the equipment and real property management compliance requirements.
Views of Responsible Officials:
The University eliminated the position of Procurement Manager several years back, which decentralized the responsibility for procurement. The change led to a loss of institutional knowledge, and interrupted policy and process enforcement campus wide. While Government Sponsored Programs and Research (“GSPAR”) has a process for recording and inventorying federal purchases, the information was not updated timely and did not provide required information.
GSPAR will enhance update its inventory tracking process to capture required information. In addition, the grant onboarding process will be revised to emphasize key federal regulations and emphasize the importance of compliance. Reminders will also be provided during GSPAR’s semi-annual grant compliance workshops.