Finding Text
Program Information:
Title III Strengthening Historically Black Colleges and Universities Program (“Title III”) (ALN: 84.031B)
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: During our testing of Title III equipment, we noted the following exceptions:
• The University was unable to provide documentation supporting the completion of a physical inventory of all equipment and real property purchased with federal funds during the most recent two fiscal years.
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 all equipment and real property purchased with federal funds during the most recent two fiscal years.
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 and Planned Corrective Actions:
The University concurs with the finding. The University has internal controls to ensure all federally funded equipment is tagged and tracked in compliance with the most up to date Federal Regulation. Additionally, this equipment is physically inventoried regularly but there is not a documented process to track when and how that happens. Moving forward, the Office of Sponsored Programs will work with Finance and Administration to establish an internal process to document the completion of the required physical inventory for all equipment and real property purchased with federal funds.