Audit 10446

FY End
2023-06-30
Total Expended
$104.80M
Findings
6
Programs
46
Organization: Northern Kentucky University (KY)
Year: 2023 Accepted: 2024-01-09

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
7988 2023-001 - - L
7989 2023-002 Material Weakness - AB
7990 2023-002 Material Weakness - AB
584430 2023-001 - - L
584431 2023-002 Material Weakness - AB
584432 2023-002 Material Weakness - AB

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $82.54M Yes 0
84.063 Federal Pell Grant Program $12.51M Yes 0
84.038 Federal Perkins Student Loan Fund $634,648 Yes 0
93.264 Nurse Faculty Loan Program (nflp) $462,138 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $413,956 Yes 0
84.033 Federal Work-Study Program $399,118 Yes 0
84.042 Trio_student Support Services $384,786 - 0
11.307 Economic Adjustment Assistance $372,677 - 0
84.047 Trio_upward Bound $360,385 - 0
93.732 Mental and Behavioral Health Education and Training Grants $323,998 Yes 1
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $275,362 - 0
93.778 Medical Assistance Program $180,007 - 0
47.075 Social, Behavioral, and Economic Sciences $130,566 - 0
93.516 Affordable Care Act (aca) Public Health Training Centers Program $122,114 - 0
84.335 Child Care Access Means Parents in School $121,330 - 0
93.558 Temporary Assistance for Needy Families $114,493 - 0
11.303 Economic Development_technical Assistance $109,005 - 0
93.273 Alcohol Research Programs $103,403 - 0
16.525 Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus $85,159 - 0
93.242 Mental Health Research Grants $83,747 - 0
10.855 Distance Learning and Telemedicine Loans and Grants $78,939 - 0
93.776 Quality Strategy $71,335 - 0
94.013 Volunteers in Service to America $64,159 - 0
93.113 Environmental Health $59,730 - 0
16.838 Comprehensive Opioid Abuse Site-Based Program $52,530 - 0
10.351 Rural Business Development Grant $51,436 - 0
84.U01 Americorps National Service Trust $41,335 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $39,174 - 0
12.903 Gencyber Grants Program $38,961 - 0
93.859 Biomedical Research and Research Training $34,838 - 0
94.006 Americorps $27,463 - 0
47.083 Integrative Activities $26,121 - 0
93.124 Nurse Anesthetist Traineeships $22,707 - 0
43.008 Education $21,068 - 0
93.879 Medical Library Assistance $19,783 - 0
43.001 Science $17,240 - 0
94.021 Volunteer Generation Fund $14,768 - 0
43.012 Space Technology $10,073 - 0
45.162 Promotion of the Humanities_teaching and Learning Resources and Curriculum Development $10,000 - 0
84.425 Education Stabilization Fund $8,953 Yes 0
47.076 Education and Human Resources $8,651 - 0
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $7,633 Yes 0
84.323 Special Education - State Personnel Development $6,647 - 0
93.658 Foster Care_title IV-E $6,103 - 0
93.279 Drug Abuse and Addiction Research Programs $5,840 - 0
10.680 Forest Health Protection $3,589 - 0

Contacts

Name Title Type
LN53C9E23GH6 Barbara Smith Auditee
8595726456 Megan Crane Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the University and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee uses a predetermined fixed facilities and administrative costs rates that have been approved for the period 7/1/21 until amended of 37.0% for on-campus and 14.9% for off campus expenses. These rates are applied to direct salaries and wages, excluding all fringe benefits costs. The University does not utilize the 10% de Minimis indirect cost rate. The accompanying schedule of expenditures of federal awards includes the federal grant activity of the University and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
Title: Federal Student Loan Programs Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the University and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee uses a predetermined fixed facilities and administrative costs rates that have been approved for the period 7/1/21 until amended of 37.0% for on-campus and 14.9% for off campus expenses. These rates are applied to direct salaries and wages, excluding all fringe benefits costs. The University does not utilize the 10% de Minimis indirect cost rate. The University is responsible for the performance of certain administrative duties with respect to the Federal Direct Loan Program; accordingly, it is not practical to determine the balance of loans outstanding to students and former students of the University under this program at June 30, 2023. The following schedule represents loans outstanding and advanced by the University as of and for the year ended June 30, 2023: See the Notes to the SEFA for chart/table
Title: Facilities and Administrative Costs Rates Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the University and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee uses a predetermined fixed facilities and administrative costs rates that have been approved for the period 7/1/21 until amended of 37.0% for on-campus and 14.9% for off campus expenses. These rates are applied to direct salaries and wages, excluding all fringe benefits costs. The University does not utilize the 10% de Minimis indirect cost rate. See the Notes to the SEFA for chart/table

Finding Details

Finding 2023-001: Federal Program: U.S. Department of Education Education Stabilization Fund COVID-19 Higher Education Emergency Relief Fund (HEERF) Institutional Aid, Assistance Listing No. 84.425F Criteria: Per the U.S. Department of Education reporting requirements, HEERF Institutional funds are subject to quarterly public reporting within 10 days of the quarter end. Each quarterly report must be separately available on the University's HEERF reporting webpage. Condition: During our testing of the four quarterly reports, we noted that the report as of September 30, 2022 was not available on the University's website. An incorrectly labeled report was posted indicating it was for the quarter ended September 30, 2022, but actually contained a different quarter's information. Cause: The University did not have controls in place to ensure the accuracy of the reports posted to the University website. Recommendation: We recommend that the University implement oversight procedures to ensure the accuracy of the publicly available reports. Views of responsible officials and planned corrective actions: The University intended to adhere to U.S. Department of Education regulations for the HEERF federal funds. A different report was inadvertently posted on the website. The issue has been corrected and the September 30, 2022 quarterly report has been properly posted to our website.
Finding 2023-002: Federal Program: U.S. Department of Health and Human Services Administration Mental and Behavioral Health Education and Training Grants HRSA Opioid-Impacted Family Support Program (OIFSP) Assistance Listing No. 93.732 Criteria: Per the U.S. Department of Health and Human Services notice of award, stipends made to Level I and Level II trainees are capped at $5,000 and $7,500 per trainee, respectively. Condition: Our testing of 40 payroll selections included testing of eight trainee stipends. Of these eight trainee stipends selected, three were found to exceed the maximum allowable amount per the notice of award, resulting in known questioned costs totaling $7,889. Additional analysis performed by the University on the remaining population identified an additional $39,517 known questioned costs. Cause: The University did not have controls in place to monitor the total amounts paid to student trainees on the grant. Questioned Costs: Known questioned costs totaled $47,406 and were identified by examining all payments made to student trainees in comparison with maximum allowable amounts. Recommendation: We recommend that the University implement procedures to monitor total payments by student trainee and a process be established for discontinuing charges to the grant once the maximum amount has been spent. Views of responsible officials and planned corrective actions: The University concurs with this finding. To ensure that we have proper controls in place to monitor the total amounts paid to student trainees on the grant, we are adjusting the process associated with funds disbursement to student trainees. Going forward, an analysis will be prepared for each proposed position to determine whether, consistent with applicable laws, the position may be paid as a stipend or via other payment rather than as an hourly employee, alleviating the need for reporting hours and easing the transition after the student graduates. In addition, staff in the Provost's office and in Finance will provide additional monitoring of grant costs as needed to ensure compliance.
Finding 2023-002: Federal Program: U.S. Department of Health and Human Services Administration Mental and Behavioral Health Education and Training Grants HRSA Opioid-Impacted Family Support Program (OIFSP) Assistance Listing No. 93.732 Criteria: Per the U.S. Department of Health and Human Services notice of award, stipends made to Level I and Level II trainees are capped at $5,000 and $7,500 per trainee, respectively. Condition: Our testing of 40 payroll selections included testing of eight trainee stipends. Of these eight trainee stipends selected, three were found to exceed the maximum allowable amount per the notice of award, resulting in known questioned costs totaling $7,889. Additional analysis performed by the University on the remaining population identified an additional $39,517 known questioned costs. Cause: The University did not have controls in place to monitor the total amounts paid to student trainees on the grant. Questioned Costs: Known questioned costs totaled $47,406 and were identified by examining all payments made to student trainees in comparison with maximum allowable amounts. Recommendation: We recommend that the University implement procedures to monitor total payments by student trainee and a process be established for discontinuing charges to the grant once the maximum amount has been spent. Views of responsible officials and planned corrective actions: The University concurs with this finding. To ensure that we have proper controls in place to monitor the total amounts paid to student trainees on the grant, we are adjusting the process associated with funds disbursement to student trainees. Going forward, an analysis will be prepared for each proposed position to determine whether, consistent with applicable laws, the position may be paid as a stipend or via other payment rather than as an hourly employee, alleviating the need for reporting hours and easing the transition after the student graduates. In addition, staff in the Provost's office and in Finance will provide additional monitoring of grant costs as needed to ensure compliance.
Finding 2023-001: Federal Program: U.S. Department of Education Education Stabilization Fund COVID-19 Higher Education Emergency Relief Fund (HEERF) Institutional Aid, Assistance Listing No. 84.425F Criteria: Per the U.S. Department of Education reporting requirements, HEERF Institutional funds are subject to quarterly public reporting within 10 days of the quarter end. Each quarterly report must be separately available on the University's HEERF reporting webpage. Condition: During our testing of the four quarterly reports, we noted that the report as of September 30, 2022 was not available on the University's website. An incorrectly labeled report was posted indicating it was for the quarter ended September 30, 2022, but actually contained a different quarter's information. Cause: The University did not have controls in place to ensure the accuracy of the reports posted to the University website. Recommendation: We recommend that the University implement oversight procedures to ensure the accuracy of the publicly available reports. Views of responsible officials and planned corrective actions: The University intended to adhere to U.S. Department of Education regulations for the HEERF federal funds. A different report was inadvertently posted on the website. The issue has been corrected and the September 30, 2022 quarterly report has been properly posted to our website.
Finding 2023-002: Federal Program: U.S. Department of Health and Human Services Administration Mental and Behavioral Health Education and Training Grants HRSA Opioid-Impacted Family Support Program (OIFSP) Assistance Listing No. 93.732 Criteria: Per the U.S. Department of Health and Human Services notice of award, stipends made to Level I and Level II trainees are capped at $5,000 and $7,500 per trainee, respectively. Condition: Our testing of 40 payroll selections included testing of eight trainee stipends. Of these eight trainee stipends selected, three were found to exceed the maximum allowable amount per the notice of award, resulting in known questioned costs totaling $7,889. Additional analysis performed by the University on the remaining population identified an additional $39,517 known questioned costs. Cause: The University did not have controls in place to monitor the total amounts paid to student trainees on the grant. Questioned Costs: Known questioned costs totaled $47,406 and were identified by examining all payments made to student trainees in comparison with maximum allowable amounts. Recommendation: We recommend that the University implement procedures to monitor total payments by student trainee and a process be established for discontinuing charges to the grant once the maximum amount has been spent. Views of responsible officials and planned corrective actions: The University concurs with this finding. To ensure that we have proper controls in place to monitor the total amounts paid to student trainees on the grant, we are adjusting the process associated with funds disbursement to student trainees. Going forward, an analysis will be prepared for each proposed position to determine whether, consistent with applicable laws, the position may be paid as a stipend or via other payment rather than as an hourly employee, alleviating the need for reporting hours and easing the transition after the student graduates. In addition, staff in the Provost's office and in Finance will provide additional monitoring of grant costs as needed to ensure compliance.
Finding 2023-002: Federal Program: U.S. Department of Health and Human Services Administration Mental and Behavioral Health Education and Training Grants HRSA Opioid-Impacted Family Support Program (OIFSP) Assistance Listing No. 93.732 Criteria: Per the U.S. Department of Health and Human Services notice of award, stipends made to Level I and Level II trainees are capped at $5,000 and $7,500 per trainee, respectively. Condition: Our testing of 40 payroll selections included testing of eight trainee stipends. Of these eight trainee stipends selected, three were found to exceed the maximum allowable amount per the notice of award, resulting in known questioned costs totaling $7,889. Additional analysis performed by the University on the remaining population identified an additional $39,517 known questioned costs. Cause: The University did not have controls in place to monitor the total amounts paid to student trainees on the grant. Questioned Costs: Known questioned costs totaled $47,406 and were identified by examining all payments made to student trainees in comparison with maximum allowable amounts. Recommendation: We recommend that the University implement procedures to monitor total payments by student trainee and a process be established for discontinuing charges to the grant once the maximum amount has been spent. Views of responsible officials and planned corrective actions: The University concurs with this finding. To ensure that we have proper controls in place to monitor the total amounts paid to student trainees on the grant, we are adjusting the process associated with funds disbursement to student trainees. Going forward, an analysis will be prepared for each proposed position to determine whether, consistent with applicable laws, the position may be paid as a stipend or via other payment rather than as an hourly employee, alleviating the need for reporting hours and easing the transition after the student graduates. In addition, staff in the Provost's office and in Finance will provide additional monitoring of grant costs as needed to ensure compliance.