Finding 975521 (2023-002)

Health Center Infrastructure Support Equipment Physical Inventory Federal Agency: Department of Health and Human Services Program: Health Center Infrastructure Support Assistance Listing #: 93.526 Criteria OMB Uniform Guidance 2 CFR 200.313(d) requires that the auditee establish procedures for managing equipment, whether acquired in whole or in part under a Federal award. Property records must be maintained and a physical inventory of equipment must be taken and the results reconciled with the property records at least once every two years. Condition Sunset Park began purchasing equipment under the Health Center Infrastructure Support program in 2022. Property records were established and maintained, however, Sunset Park did not retain evidence that a physical inventory of the equipment purchased was taken and reconciled with the property records at least once in the past two years. Cause Sunset Park did not have a process in place to ensure that a physical inventory of all federally funded equipment was performed at least once every two years and that evidence supporting the reconciliation to the property records was retained. Effect The requirement to conduct a physical inventory of equipment and the results reconciled with the property records at least once every two years was not met. However, we tested a sample of 30 items purchased under the Health Center Infrastructure Support program in 2023, including physically inspecting the equipment and reconciling the location and condition of our sampled items to the property records maintained by Sunset Park. We had no exceptions in this testing. Questioned Costs There are no questioned costs associated with this finding. Recommendation Sunset Park should establish a process to ensure that a physical inventory of equipment is performed at least once every two years and reconciliation of the results of the inventory is retained.