Finding Text
Federal Assistance Number – Research and Development Cluster, Multiple Federal Grantors, Multiple Award Periods
Criteria or Specific Requirement – Equipment and Real Property Management
In accordance with 2 CFR Section 200.313, a non-federal entity must manage equipment that was procured through the use of federal funds by: maintaining property records, performing a physical inventory once every two years, controls must be implemented to safeguard against loss, and adequate maintenance procedures developed. Condition – During testing of equipment, a complete listing of all property and equipment purchased with federal funds with required information per 2 CFR 200.313(d)(1) was not maintained. A physical inventory of property and equipment was not completed in the past two years.
Questioned Costs – None noted.
Context – The Institute purchased two pieces of equipment totaling $142,986 during 2023. Both pieces of equipment were included in a detail listing of all equipment the Institute maintains. However, during further discussions with the Institute, they were unable to provide a complete listing of equipment purchased through the use of federal funds with all required information.
Effect – Equipment purchased through the use of federal funds is not maintained or disposed of in accordance with the Uniform Guidance.
Cause – The Institute's misunderstanding of the requirements.
Identification as a Repeat Finding, if applicable – Not a repeat finding.
Recommendation – Policies and procedures should be modified to ensure that management understands the equipment policies and procedures outlined by the Uniform Guidance and that the Institute is in compliance.
Views of Responsible Official and Planned Corrective Actions – Management agrees with the stated finding and has implemented a corrective action plan.