Finding Text
Finding 2023-002 – Equipment and Real Property Management (Compliance; Internal Controls Over Compliance)
Significant Deficiency
Criteria:
In accordance with FAR Contract Clause 52.245-1 "Government Property" the Contractor shall establish and maintain written procedures for the maintenance, repair, protection and preservation, control of, and accountability for Government property, consistent with the provisions of DHHS Publication (OS) 686, entitled "Contractor's Guide for Control of Government Property (1990)."
Condition:
During our review of the Coalition's internal controls over compliance related to the Title V major program, we noted that the Coalition does not have an adequate system of controls established to identify, mark, record, or maintain equipment that has been purchased with federal funds. In addition, no annual physical inventory of the Title V equipment is being performed.
Questioned Costs:
None
Cause:
The Coalition does not have sufficiently established control policies and procedures to identify, mark, record, or maintain equipment. The Coalition also does not have sufficiently established control policies for an annual inventory.
Effect:
The Coalition does not have the ability to discern "Government Property" from other property. The Coalition at any time is unaware if "Government Property" is misplaced or stolen.
Recommendation:
We recommend the Coalition becomes familiar with requirements of FAR Contact Clause 52.245-1 "Government Property" and establishes appropriate internal control policies and procedures and that all staff be trained on those policies and procedures, so they are familiar with the requirements. We further recommend the Coalition schedule and perform an annual inventory of property being purchased with federal funds.
Views of Responsible Officials:
See the corrective action plan that accompanies the schedule of findings and questioned costs.