FAC Explorer

Audit 19410

FY End
2022-06-30
Total Expended
$294.65M
Findings
10
Programs
98
Organization: Medical University of South Carolina (SC)
Year: 2022 Accepted: 2023-04-28
Auditor: Kpmg LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
23569 2022-002 Significant Deficiency - C
23570 2022-002 Significant Deficiency - C
23571 2022-003 Significant Deficiency - C
23572 2022-003 Significant Deficiency - C
23573 2022-003 Significant Deficiency - C
600011 2022-002 Significant Deficiency - C
600012 2022-002 Significant Deficiency - C
600013 2022-003 Significant Deficiency - C
600014 2022-003 Significant Deficiency - C
600015 2022-003 Significant Deficiency - C

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $101.66M - 0
93.498 Provider Relief Fund $5.99M Yes 0
93.342 Health Professions Student Loans, Including Primary Care Loans/loans for Disadvantaged Students $5.96M - 0
93.364 Nursing Student Loans $3.03M - 0
93.211 Telehealth Programs $2.81M Yes 0
93.351 Research Infrastructure Programs $2.52M Yes 0
84.038 Federal Perkins Loan Program $2.20M - 0
93.264 Nurse Faculty Loan Program (nflp) $1.58M - 0
93.398 Cancer Research Manpower $1.51M Yes 0
93.917 Hiv Care Formula Grants $1.51M - 0
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $978,702 - 0
84.425 Education Stabilization Fund $971,682 Yes 1
93.884 Grants for Primary Care Training and Enhancement $821,034 Yes 0
93.107 Area Health Education Centers Point of Service Maintenance and Enhancement Awards $810,747 - 0
16.575 Crime Victim Assistance $788,925 - 0
93.279 Drug Abuse and Addiction Research Programs $651,678 - 0
93.925 Scholarships for Health Professions Students From Disadvantaged Backgrounds $629,843 - 0
93.247 Advanced Nursing Education Grant Program $590,106 - 0
93.353 21st Century Cures Act - Beau Biden Cancer Moonshot $589,707 Yes 0
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $562,673 - 0
81.136 Long-Term Surveillance and Maintenance $462,911 - 0
47.083 Integrative Activities $437,878 Yes 0
16.582 Crime Victim Assistance/discretionary Grants $418,256 - 0
93.236 Grants to States to Support Oral Health Workforce Activities $357,081 Yes 0
93.396 Cancer Biology Research $290,929 Yes 0
97.044 Assistance to Firefighters Grant $289,410 Yes 0
93.839 Blood Diseases and Resources Research $286,761 Yes 0
93.191 Graduate Psychology Education Program and Patient Navigator and Chronic Disease Prevention Program $219,659 Yes 0
84.063 Federal Pell Grant Program $215,903 - 0
93.788 Opioid Str $206,626 - 0
93.847 Diabetes, Digestive, and Kidney Diseases Extramural Research $204,144 Yes 0
93.859 Biomedical Research and Research Training $199,698 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $199,619 - 0
84.033 Federal Work-Study Program $172,315 - 0
93.844 Acl Centers for Independent Living, Recovery Act $146,662 Yes 0
93.939 Hiv Prevention Activities_non-Governmental Organization Based $145,477 Yes 0
93.732 Mental and Behavioral Health Education and Training Grants $125,836 - 0
93.877 Autism Collaboration, Accountability, Research, Education, and Support $120,293 Yes 0
10.555 National School Lunch Program $114,340 - 0
16.123 Community-Based Violence Prevention Program $103,776 Yes 0
93.855 Allergy, Immunology and Transplantation Research $102,465 Yes 0
93.286 Discovery and Applied Research for Technological Innovations to Improve Human Health $99,973 Yes 0
93.394 Cancer Detection and Diagnosis Research $92,376 Yes 0
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nations Health $91,694 Yes 0
93.395 Cancer Treatment Research $91,617 Yes 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $83,379 Yes 0
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $80,146 - 0
93.393 Cancer Cause and Prevention Research $78,999 Yes 0
93.867 Vision Research $78,587 Yes 0
93.840 Translation and Implementation Science Research for Heart, Lung, Blood Diseases, and Sleep Disorders $64,594 Yes 0
43.008 Education $62,984 Yes 0
43.003 Exploration $48,838 Yes 0
93.350 National Center for Advancing Translational Sciences $47,753 - 0
93.853 Extramural Research Programs in the Neurosciences and Neurological Disorders $47,502 Yes 0
93.866 Aging Research $41,567 Yes 0
93.433 Acl National Institute on Disability, Independent Living, and Rehabilitation Research $40,325 Yes 0
97.030 Community Disaster Loans $37,159 - 0
93.361 Nursing Research $36,556 Yes 0
93.124 Nurse Anesthetist Traineeships $35,584 - 0
93.113 Environmental Health $26,880 Yes 0
84.324 Research in Special Education $26,632 - 0
93.360 Biomedical Advanced Research and Development Authority (barda), Biodefense Medical Countermeasure Development $25,949 Yes 0
93.103 Food and Drug Administration_research $23,451 Yes 0
93.GSA_MIGRATION Other Federal Assistance $21,253 Yes 0
93.399 Cancer Control $20,356 Yes 0
93.516 Affordable Care Act (aca) Public Health Training Centers Program $20,048 Yes 0
93.837 Cardiovascular Diseases Research $19,254 Yes 0
47.041 Engineering $18,404 Yes 0
93.110 Maternal and Child Health Federal Consolidated Programs $17,151 - 0
12.420 Military Medical Research and Development $14,962 Yes 0
93.242 Mental Health Research Grants $14,837 Yes 0
93.213 Research and Training in Complementary and Integrative Health $14,622 Yes 0
93.846 Arthritis, Musculoskeletal and Skin Diseases Research $12,265 Yes 0
93.130 Cooperative Agreements to States/territories for the Coordination and Development of Primary Care Offices $10,597 - 0
93.121 Oral Diseases and Disorders Research $10,227 Yes 0
93.397 Cancer Centers Support Grants $9,346 Yes 0
12.999 Engineering Acoustics $8,968 Yes 0
93.061 Innovations in Applied Public Health Research $8,303 Yes 0
93.310 Trans-Nih Research Support $6,571 Yes 0
93.059 Training in General, Pediatric, and Public Health Dentistry $4,704 Yes 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $3,942 Yes 0
93.273 Alcohol Research Programs $3,851 Yes 0
93.307 Minority Health and Health Disparities Research $3,078 Yes 0
45.024 Promotion of the Arts_grants to Organizations and Individuals $2,253 Yes 0
93.077 Family Smoking Prevention and Tobacco Control Act Regulatory Research $2,046 Yes 0
93.879 Medical Library Assistance $1,840 - 0
93.838 Lung Diseases Research $1,372 Yes 0
93.389 National Center for Research Resources $1,104 Yes 0
93.068 Chronic Diseases: Research, Control, and Prevention $973 Yes 0
93.865 Child Health and Human Development Extramural Research $610 Yes 0
93.989 International Research and Research Training $230 Yes 0
93.945 Assistance Programs for Chronic Disease Prevention and Control $-61 Yes 0
47.GSA_MIGRATION Sc Epscor/idea Clemson University $-185 Yes 0
93.173 Research Related to Deafness and Communication Disorders $-258 Yes 0
93.226 Research on Healthcare Costs, Quality and Outcomes $-454 Yes 0
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $-4,007 Yes 0
64.GSA_MIGRATION Other Federal Assistance $-5,374 - 0
47.081 Office of Experimental Program to Stimulate Competitive Research $-7,212 Yes 0

Contacts

Name Title Type
NHV3GTWSALA7 Patrick Wamsley Auditee
8437928908 Jennifer Hall Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Medical University of South Carolina (the University) and is presented on the accrual basis of accounting. The information in the Schedule is presented in accordance with the requirements of Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at Title 2 U.S. Code of Federal Regulation Part 200 (Uniform Guidance). Therefore, some amounts presented in the 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 University did not elect to use the 10% de minimis indirect cost rate, as discussed in Uniform Guidance Section 200.414. (Note 5) FEDERAL PERKINS LOAN PROGRAM (84.038) - Balances outstanding at the end of the audit period were 1507446. FEDERAL DIRECT STUDENT LOANS (84.268) - Balances outstanding at the end of the audit period were 101661081. NURSE FACULTY LOAN PROGRAM (NFLP) (93.264) - Balances outstanding at the end of the audit period were 1402771. NURSING STUDENT LOANS (93.364) - Balances outstanding at the end of the audit period were 2713515. HEALTH PROFESSIONS STUDENT LOANS, INCLUDING PRIMARY CARE LOANS/LOANS FOR DISADVANTAGED STUDENTS (93.342) - Balances outstanding at the end of the audit period were 5545142.
Title: (3) Noncash Assistance Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Medical University of South Carolina (the University) and is presented on the accrual basis of accounting. The information in the Schedule is presented in accordance with the requirements of Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at Title 2 U.S. Code of Federal Regulation Part 200 (Uniform Guidance). Therefore, some amounts presented in the 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 University did not elect to use the 10% de minimis indirect cost rate, as discussed in Uniform Guidance Section 200.414. (Note 5) Most federal financial assistance is in the form of cash awards. However, there are a number of federal programs that do not involve cash transactions with the University. These noncash transactions in which the University obtains other assistance are the Federal Direct Student Loan Program, which includes the Federal Direct Stafford Student Loan program (subsidized and unsubsidized) and the Federal Direct Parent Loans for Undergraduate Students (PLUS).The loans advanced and related expenditures are as follows for the various student loan programs:Federal Direct Student Loan Program Student loans advanced: ALN 84.268 Direct Stafford Loan Program $936,374 Direct Unsubsidized Stafford Loan Program 58,885,506 Federal Direct PLUS Loan Program 336,894 Federal Direct Graduate PLUS Loan Program 41,502,307 Total Federal Direct Student Loan Program $ 101,661,081 The Federal Perkins Loan, the Health Professions Student Loan (HPSL), the Nurse Faculty Loan Program (NFLP), and the Nursing Student Loan (NSL) programs are administered directly by the University, and balances and transactions relating to these programs are included in the Universitys basic financial statements. The balance of loans outstanding under the Federal Perkins, HPSL, NFLP, and NSL programs was $1,507,446, $5,545,142, $1,402,771, and $2,713,515, respectively, as of June 30, 2022. The University is responsible only for the performance of certain administrative duties with respect to the guaranteed student loan programs, and accordingly, these loans are not included in its financial statements. It is not practicable to determine the balance of loans outstanding to students and former students of the University under these programs as of June 30, 2022.
Title: (4) Matching Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Medical University of South Carolina (the University) and is presented on the accrual basis of accounting. The information in the Schedule is presented in accordance with the requirements of Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at Title 2 U.S. Code of Federal Regulation Part 200 (Uniform Guidance). Therefore, some amounts presented in the 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 University did not elect to use the 10% de minimis indirect cost rate, as discussed in Uniform Guidance Section 200.414. (Note 5) Under the FWS program, the University matched $43,079 in total compensation for the year endedJune 30, 2022 in addition to the federal share of expenditures in the accompanying schedule of expenditures of federal awards.Under the FSEOG program, the University matched $49,005 in funds awarded to students for the year ended June 30, 2022 in addition to the federal expenditures in the accompanying schedule of expenditures of federal awards.
Title: (6) Provider Relief Funding Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Medical University of South Carolina (the University) and is presented on the accrual basis of accounting. The information in the Schedule is presented in accordance with the requirements of Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at Title 2 U.S. Code of Federal Regulation Part 200 (Uniform Guidance). Therefore, some amounts presented in the 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 University did not elect to use the 10% de minimis indirect cost rate, as discussed in Uniform Guidance Section 200.414. (Note 5) COVID-19 CARES Provider Relief (ALN 93.498) represents total expenditures and/or lost revenues from the Period 2 and 3 report submissions to the PRF Reporting Portal Period 2 is based on payments received from July 1, 2020 to December 31, 2020, with a period of availability of expenses and/or lost revenue from January 1, 2020 to December 31, 2021. Period 3 is based on payments received from January 1, 2021 to June 30, 2021, with a period of availability of expenses and/or lost revenue from January 1, 2020 toJune 30, 2022.

Finding Details

Finding 2022-002
Finding No. 2022-002 Cash Management Federal Program COVID-19 Education Stabilization Fund ? ALN 84.425 Federal Agency U.S. Department of Education Federal Award Years July 1, 2021 to June 30, 2022 Criteria or Requirement For CRRSAA HEERF II and ARP HEERF III, the Certification and Agreements and/or Supplemental Agreements requires that Student Aid Portion (ALN 84.425E) should be disbursed within 15 calendar days of the drawdown from ED?s G5 grants system and Institutional Aid Portion, (a)(2), and (a)(3) funds (all other ALNs) should be disbursed within 3 calendar days of the drawdown from G5. Condition and Context During our procedures performed over the cash management requirement for the COVID-19 Education Stabilization Fund, we selected a sample of 40 expenditures. Within our sample, we noted 27 instances in which the Student Aid Portion was not disbursed within 15 calendar days of the drawdown from ED?s G5 grants system and 4 instances in which the Institutional Aid portion was not disbursed within 3 calendar days of the drawdown from G5. Cause and Potential Effect The control to ensure that disbursements for the Student Aid Portion and the Institutional Aid Portion were occurring on a timely basis was not operating effectively to ensure timely disbursement. Questioned Cost There were no questioned costs associated with the finding. Statistically Valid Sample The sample was not intended to be, and was not, a statistically valid sample. Identification of Whether the Audit Finding is a Repeat of a Finding in the Immediately Prior Audit No. Recommendation We recommend that the University strengthen its processes and controls regarding the timing of disbursements to ensure that the student and institutional portion is disbursed within 15 calendar days and 3 calendar days, respectively, of the drawdown from ED?s G5 grants system. View of Responsible Officials
Finding 2022-002
Finding No. 2022-002 Cash Management Federal Program COVID-19 Education Stabilization Fund ? ALN 84.425 Federal Agency U.S. Department of Education Federal Award Years July 1, 2021 to June 30, 2022 Criteria or Requirement For CRRSAA HEERF II and ARP HEERF III, the Certification and Agreements and/or Supplemental Agreements requires that Student Aid Portion (ALN 84.425E) should be disbursed within 15 calendar days of the drawdown from ED?s G5 grants system and Institutional Aid Portion, (a)(2), and (a)(3) funds (all other ALNs) should be disbursed within 3 calendar days of the drawdown from G5. Condition and Context During our procedures performed over the cash management requirement for the COVID-19 Education Stabilization Fund, we selected a sample of 40 expenditures. Within our sample, we noted 27 instances in which the Student Aid Portion was not disbursed within 15 calendar days of the drawdown from ED?s G5 grants system and 4 instances in which the Institutional Aid portion was not disbursed within 3 calendar days of the drawdown from G5. Cause and Potential Effect The control to ensure that disbursements for the Student Aid Portion and the Institutional Aid Portion were occurring on a timely basis was not operating effectively to ensure timely disbursement. Questioned Cost There were no questioned costs associated with the finding. Statistically Valid Sample The sample was not intended to be, and was not, a statistically valid sample. Identification of Whether the Audit Finding is a Repeat of a Finding in the Immediately Prior Audit No. Recommendation We recommend that the University strengthen its processes and controls regarding the timing of disbursements to ensure that the student and institutional portion is disbursed within 15 calendar days and 3 calendar days, respectively, of the drawdown from ED?s G5 grants system. View of Responsible Officials
Finding 2022-003
Finding No. 2022-003 Cash Management Federal Program Research and Development Cluster ALNs ALN 93.396, 93.279, 93.846 Federal Agencies Department of Health and Human Services Federal Award Years July 1, 2021 to June 30, 2022 Criteria or Requirement Per 2 CFR section 200.305(b)(3), non-federal entities that are funded under the reimbursement method are required to pay for the costs for which reimbursement was requested prior to the date of the reimbursement request. Condition and Context For 3 of the 40 samples tested, taxes were properly accrued as allowable costs but were drawn prior to payment by the University. While these costs are deemed allowable, they were not paid for prior to seeking reimbursement from the federal agency. The taxes drawn prior to payment totaled $4,035 out of a total of $784,941 tested in the sample of 40. Cause and Potential Effect The control to ensure that all costs were paid for prior to seeking reimbursement was not operating effectively to identify instances of noncompliance related to the applicable taxes. Questioned Cost The known unallowable costs identified in our sample items totaled $4,035. Management?s analysis identified a total of $51,803. Statistically Valid Sample The sample was not intended to be, and was not, a statistically valid sample. Identification of Whether the Audit Finding is a Repeat of a Finding in the Immediately Prior Audit This is not a repeat finding. Recommendation We recommend that the University strengthen its processes and controls within the procurement office to ensure that all costs are paid prior to seeking reimbursement. View of Responsible Officials Management of the University takes no exception to this reported finding and has subsequently paid the applicable taxes and related interest. We have implemented the remedial actions as outlined in our Corrective Action Plan.
Finding 2022-003
Finding No. 2022-003 Cash Management Federal Program Research and Development Cluster ALNs ALN 93.396, 93.279, 93.846 Federal Agencies Department of Health and Human Services Federal Award Years July 1, 2021 to June 30, 2022 Criteria or Requirement Per 2 CFR section 200.305(b)(3), non-federal entities that are funded under the reimbursement method are required to pay for the costs for which reimbursement was requested prior to the date of the reimbursement request. Condition and Context For 3 of the 40 samples tested, taxes were properly accrued as allowable costs but were drawn prior to payment by the University. While these costs are deemed allowable, they were not paid for prior to seeking reimbursement from the federal agency. The taxes drawn prior to payment totaled $4,035 out of a total of $784,941 tested in the sample of 40. Cause and Potential Effect The control to ensure that all costs were paid for prior to seeking reimbursement was not operating effectively to identify instances of noncompliance related to the applicable taxes. Questioned Cost The known unallowable costs identified in our sample items totaled $4,035. Management?s analysis identified a total of $51,803. Statistically Valid Sample The sample was not intended to be, and was not, a statistically valid sample. Identification of Whether the Audit Finding is a Repeat of a Finding in the Immediately Prior Audit This is not a repeat finding. Recommendation We recommend that the University strengthen its processes and controls within the procurement office to ensure that all costs are paid prior to seeking reimbursement. View of Responsible Officials Management of the University takes no exception to this reported finding and has subsequently paid the applicable taxes and related interest. We have implemented the remedial actions as outlined in our Corrective Action Plan.
Finding 2022-003
Finding No. 2022-003 Cash Management Federal Program Research and Development Cluster ALNs ALN 93.396, 93.279, 93.846 Federal Agencies Department of Health and Human Services Federal Award Years July 1, 2021 to June 30, 2022 Criteria or Requirement Per 2 CFR section 200.305(b)(3), non-federal entities that are funded under the reimbursement method are required to pay for the costs for which reimbursement was requested prior to the date of the reimbursement request. Condition and Context For 3 of the 40 samples tested, taxes were properly accrued as allowable costs but were drawn prior to payment by the University. While these costs are deemed allowable, they were not paid for prior to seeking reimbursement from the federal agency. The taxes drawn prior to payment totaled $4,035 out of a total of $784,941 tested in the sample of 40. Cause and Potential Effect The control to ensure that all costs were paid for prior to seeking reimbursement was not operating effectively to identify instances of noncompliance related to the applicable taxes. Questioned Cost The known unallowable costs identified in our sample items totaled $4,035. Management?s analysis identified a total of $51,803. Statistically Valid Sample The sample was not intended to be, and was not, a statistically valid sample. Identification of Whether the Audit Finding is a Repeat of a Finding in the Immediately Prior Audit This is not a repeat finding. Recommendation We recommend that the University strengthen its processes and controls within the procurement office to ensure that all costs are paid prior to seeking reimbursement. View of Responsible Officials Management of the University takes no exception to this reported finding and has subsequently paid the applicable taxes and related interest. We have implemented the remedial actions as outlined in our Corrective Action Plan.
Finding 2022-002
Finding No. 2022-002 Cash Management Federal Program COVID-19 Education Stabilization Fund ? ALN 84.425 Federal Agency U.S. Department of Education Federal Award Years July 1, 2021 to June 30, 2022 Criteria or Requirement For CRRSAA HEERF II and ARP HEERF III, the Certification and Agreements and/or Supplemental Agreements requires that Student Aid Portion (ALN 84.425E) should be disbursed within 15 calendar days of the drawdown from ED?s G5 grants system and Institutional Aid Portion, (a)(2), and (a)(3) funds (all other ALNs) should be disbursed within 3 calendar days of the drawdown from G5. Condition and Context During our procedures performed over the cash management requirement for the COVID-19 Education Stabilization Fund, we selected a sample of 40 expenditures. Within our sample, we noted 27 instances in which the Student Aid Portion was not disbursed within 15 calendar days of the drawdown from ED?s G5 grants system and 4 instances in which the Institutional Aid portion was not disbursed within 3 calendar days of the drawdown from G5. Cause and Potential Effect The control to ensure that disbursements for the Student Aid Portion and the Institutional Aid Portion were occurring on a timely basis was not operating effectively to ensure timely disbursement. Questioned Cost There were no questioned costs associated with the finding. Statistically Valid Sample The sample was not intended to be, and was not, a statistically valid sample. Identification of Whether the Audit Finding is a Repeat of a Finding in the Immediately Prior Audit No. Recommendation We recommend that the University strengthen its processes and controls regarding the timing of disbursements to ensure that the student and institutional portion is disbursed within 15 calendar days and 3 calendar days, respectively, of the drawdown from ED?s G5 grants system. View of Responsible Officials
Finding 2022-002
Finding No. 2022-002 Cash Management Federal Program COVID-19 Education Stabilization Fund ? ALN 84.425 Federal Agency U.S. Department of Education Federal Award Years July 1, 2021 to June 30, 2022 Criteria or Requirement For CRRSAA HEERF II and ARP HEERF III, the Certification and Agreements and/or Supplemental Agreements requires that Student Aid Portion (ALN 84.425E) should be disbursed within 15 calendar days of the drawdown from ED?s G5 grants system and Institutional Aid Portion, (a)(2), and (a)(3) funds (all other ALNs) should be disbursed within 3 calendar days of the drawdown from G5. Condition and Context During our procedures performed over the cash management requirement for the COVID-19 Education Stabilization Fund, we selected a sample of 40 expenditures. Within our sample, we noted 27 instances in which the Student Aid Portion was not disbursed within 15 calendar days of the drawdown from ED?s G5 grants system and 4 instances in which the Institutional Aid portion was not disbursed within 3 calendar days of the drawdown from G5. Cause and Potential Effect The control to ensure that disbursements for the Student Aid Portion and the Institutional Aid Portion were occurring on a timely basis was not operating effectively to ensure timely disbursement. Questioned Cost There were no questioned costs associated with the finding. Statistically Valid Sample The sample was not intended to be, and was not, a statistically valid sample. Identification of Whether the Audit Finding is a Repeat of a Finding in the Immediately Prior Audit No. Recommendation We recommend that the University strengthen its processes and controls regarding the timing of disbursements to ensure that the student and institutional portion is disbursed within 15 calendar days and 3 calendar days, respectively, of the drawdown from ED?s G5 grants system. View of Responsible Officials
Finding 2022-003
Finding No. 2022-003 Cash Management Federal Program Research and Development Cluster ALNs ALN 93.396, 93.279, 93.846 Federal Agencies Department of Health and Human Services Federal Award Years July 1, 2021 to June 30, 2022 Criteria or Requirement Per 2 CFR section 200.305(b)(3), non-federal entities that are funded under the reimbursement method are required to pay for the costs for which reimbursement was requested prior to the date of the reimbursement request. Condition and Context For 3 of the 40 samples tested, taxes were properly accrued as allowable costs but were drawn prior to payment by the University. While these costs are deemed allowable, they were not paid for prior to seeking reimbursement from the federal agency. The taxes drawn prior to payment totaled $4,035 out of a total of $784,941 tested in the sample of 40. Cause and Potential Effect The control to ensure that all costs were paid for prior to seeking reimbursement was not operating effectively to identify instances of noncompliance related to the applicable taxes. Questioned Cost The known unallowable costs identified in our sample items totaled $4,035. Management?s analysis identified a total of $51,803. Statistically Valid Sample The sample was not intended to be, and was not, a statistically valid sample. Identification of Whether the Audit Finding is a Repeat of a Finding in the Immediately Prior Audit This is not a repeat finding. Recommendation We recommend that the University strengthen its processes and controls within the procurement office to ensure that all costs are paid prior to seeking reimbursement. View of Responsible Officials Management of the University takes no exception to this reported finding and has subsequently paid the applicable taxes and related interest. We have implemented the remedial actions as outlined in our Corrective Action Plan.
Finding 2022-003
Finding No. 2022-003 Cash Management Federal Program Research and Development Cluster ALNs ALN 93.396, 93.279, 93.846 Federal Agencies Department of Health and Human Services Federal Award Years July 1, 2021 to June 30, 2022 Criteria or Requirement Per 2 CFR section 200.305(b)(3), non-federal entities that are funded under the reimbursement method are required to pay for the costs for which reimbursement was requested prior to the date of the reimbursement request. Condition and Context For 3 of the 40 samples tested, taxes were properly accrued as allowable costs but were drawn prior to payment by the University. While these costs are deemed allowable, they were not paid for prior to seeking reimbursement from the federal agency. The taxes drawn prior to payment totaled $4,035 out of a total of $784,941 tested in the sample of 40. Cause and Potential Effect The control to ensure that all costs were paid for prior to seeking reimbursement was not operating effectively to identify instances of noncompliance related to the applicable taxes. Questioned Cost The known unallowable costs identified in our sample items totaled $4,035. Management?s analysis identified a total of $51,803. Statistically Valid Sample The sample was not intended to be, and was not, a statistically valid sample. Identification of Whether the Audit Finding is a Repeat of a Finding in the Immediately Prior Audit This is not a repeat finding. Recommendation We recommend that the University strengthen its processes and controls within the procurement office to ensure that all costs are paid prior to seeking reimbursement. View of Responsible Officials Management of the University takes no exception to this reported finding and has subsequently paid the applicable taxes and related interest. We have implemented the remedial actions as outlined in our Corrective Action Plan.
Finding 2022-003
Finding No. 2022-003 Cash Management Federal Program Research and Development Cluster ALNs ALN 93.396, 93.279, 93.846 Federal Agencies Department of Health and Human Services Federal Award Years July 1, 2021 to June 30, 2022 Criteria or Requirement Per 2 CFR section 200.305(b)(3), non-federal entities that are funded under the reimbursement method are required to pay for the costs for which reimbursement was requested prior to the date of the reimbursement request. Condition and Context For 3 of the 40 samples tested, taxes were properly accrued as allowable costs but were drawn prior to payment by the University. While these costs are deemed allowable, they were not paid for prior to seeking reimbursement from the federal agency. The taxes drawn prior to payment totaled $4,035 out of a total of $784,941 tested in the sample of 40. Cause and Potential Effect The control to ensure that all costs were paid for prior to seeking reimbursement was not operating effectively to identify instances of noncompliance related to the applicable taxes. Questioned Cost The known unallowable costs identified in our sample items totaled $4,035. Management?s analysis identified a total of $51,803. Statistically Valid Sample The sample was not intended to be, and was not, a statistically valid sample. Identification of Whether the Audit Finding is a Repeat of a Finding in the Immediately Prior Audit This is not a repeat finding. Recommendation We recommend that the University strengthen its processes and controls within the procurement office to ensure that all costs are paid prior to seeking reimbursement. View of Responsible Officials Management of the University takes no exception to this reported finding and has subsequently paid the applicable taxes and related interest. We have implemented the remedial actions as outlined in our Corrective Action Plan.