Finding Text
Federal Agency: Various
Federal Program Title: Research and Development Cluster
Assistance Listing Number: 10.205, 10.216, 12.630, 93.859
Federal Award Identification Number: NI211445XXXXG001, NI221445XXXXG019, 2020-38821-31093,
5P20GM103418-21, W911NF-22-1-0200, 5P20GM103447-23, P20CA233391, NNX15AP43A
Award Period: 7/1/22-6/30/23
Type of Finding: Material Weakness in Internal Control over Compliance; Compliance, Material
Noncompliance
Condition: The University did not have documentation of physical inventory of the equipment purchased
with Federal funds.
Criteria or specific requirement: Uniform Grant Guidance, 2 CFR 200.313(d)(2), procedures for managing
equipment (including replacement equipment), whether acquired in whole or in part under a Federal award,
until disposition takes place will, as a minimum, meet the following requirements, a physical inventory of the
property must be taken and the results reconciled with the property records at least once every two years.
Per Uniform Guidance 2 CFR 200.303, nonfederal entities receiving federal awards are required to establish
and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and
program compliance requirements.
Context: During our testing of 30 equipment totaling $1,066,219, we observed 29 instances totaling
$1,058,721 did not have documentation of a physical inventory completed.
Questioned costs: N/A
Cause: The University did not have an effective control in place to ensure physical inventory over equipment
was completed every two years.
Effect: Failure to maintain accurate inventory records inhibits the University from properly safeguarding and
maintaining equipment.
Repeat finding: No
Recommendation: We recommend the University ensure that a physical inventory over equipment is
completed at least every two years.
Views of responsible officials: Management agrees with the finding and has developed a plan to correct
the finding.