National Jewish Health

2025-001 Finding: Equipment Federal Program: Research and Development Cluster, Various Assistance Listing Numbers, Various Agencies, Award Year 2025 Criteria or Specific Requirement: Uniform Guidance (2 CFR 200.313(d)) requires non-federal entities to maintain effective control and accountability for all federally funded equipment, including procedures to ensure assets exist, are used for authorized purposes, and are properly disposed of when no longer needed. Uniform Guidance further contemplates periodic physical inventories of equipment and reconciliation to property records at least once every two years. Policies and procedures should address all federal awards, regardless of awarding agency. Condition: Out of a sample of 25 assets, five assets with acquisition dates between 1990 and 2016, had been disposed but not removed from the asset subledger. In addition, a full inventory of federally funded assets was not completed within a two year timeframe and key data was not reconciled. Our sampling methodology was not, and was not intended to be, statistically valid. Questioned Costs: $52,511.60 - Costs relate to multiple awards within the Research and Development Cluster. Cause: The Organization's fixed asset monitoring policy is primarily designed to comply with National Institute of Health requirements and has not been expanded to fully incorporate Uniform Guidance requirements applicable to all federal awards. Controls were not operating as designed to identify and remove assets from the subledger when disposed. Effect: As a result, the Organization’s fixed asset records were not fully accurate or complete for certain federally funded assets, increasing the risk that assets disposed of in prior years remain recorded in the subledger and that federally funded equipment is not consistently tracked in accordance with Uniform Guidance. Identification as a repeat finding: Not a repeat finding Recommendation: We recommend that the Organization expands and formalizes its fixed asset monitoring policy to fully align with Uniform Guidance requirements, including (1) Performing and documenting a physical inventory of federally funded equipment at least once every two years, with reconciliation to the fixed asset subledger. (2) Ensuring timely communication and documentation of asset disposals to Finance for record updates. Views of Responsible Officials: The Organization agrees with the finding. See separate auditee document for planned corrective action.