FAC Explorer

Audit 299291

FY End
2023-06-30
Total Expended
$31.78M
Findings
18
Programs
29
Organization: Chicago State University (IL)
Year: 2023 Accepted: 2024-03-28
Auditor: Roth & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
386946 2023-004 Significant Deficiency - N
386947 2023-004 Significant Deficiency - N
386948 2023-004 Significant Deficiency - N
386949 2023-004 Significant Deficiency - N
386950 2023-004 Significant Deficiency - N
386951 2023-005 Significant Deficiency Yes N
386952 2023-005 Significant Deficiency Yes N
386953 2023-006 Significant Deficiency - I
386954 2023-006 Significant Deficiency - I
963388 2023-004 Significant Deficiency - N
963389 2023-004 Significant Deficiency - N
963390 2023-004 Significant Deficiency - N
963391 2023-004 Significant Deficiency - N
963392 2023-004 Significant Deficiency - N
963393 2023-005 Significant Deficiency Yes N
963394 2023-005 Significant Deficiency Yes N
963395 2023-006 Significant Deficiency - I
963396 2023-006 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $20.22M Yes 2
84.063 Federal Pell Grant Program $4.33M Yes 1
84.038 Federal Perkins Loan Program $1.20M Yes 0
93.925 Scholarships for Health Professions Students From Disadvantaged Backgrounds $600,001 Yes 0
84.033 Federal Work-Study Program $505,494 Yes 1
84.066 Trio_educational Opportunity Centers $347,592 - 0
93.575 Child Care and Development Block Grant $317,077 - 0
84.382 Strengthening Minority-Serving Institutions $310,162 Yes 0
84.031 Higher Education_institutional Aid $306,876 - 0
84.007 Federal Supplemental Educational Opportunity Grants $289,515 Yes 1
47.049 Mathematical and Physical Sciences $281,922 Yes 0
93.600 Head Start $139,750 - 0
84.425 Education Stabilization Fund $89,758 - 0
47.076 Education and Human Resources $76,077 Yes 0
84.047 Trio_upward Bound $56,048 - 0
43.008 Education $49,803 Yes 0
81.049 Office of Science Financial Assistance Program $38,496 - 0
43.002 Aeronautics $27,034 Yes 0
45.310 Grants to States $26,247 - 0
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $25,460 Yes 2
45.312 National Leadership Grants $24,188 - 0
93.846 Arthritis, Musculoskeletal and Skin Diseases Research $22,884 Yes 0
84.325 Special Education - Personnel Development to Improve Services and Results for Children with Disabilities $18,161 - 0
47.074 Biological Sciences $7,625 Yes 0
11.028 Connecting Minority Communities Pilot Program $6,463 - 0
47.070 Computer and Information Science and Engineering $4,585 Yes 0
93.859 Biomedical Research and Research Training $3,006 Yes 0
93.093 Affordable Care Act (aca) Health Profession Opportunity Grants $1,412 - 0
84.335 Child Care Access Means Parents in School $88 - 0

Contacts

Name Title Type
PJ66MZ7MFZ16 Evelyn Romero Auditee
7739952044 Marites Sy Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 - BASIS OF PRESENTATION Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity for the year ended June 30, 2023, and is presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. The University has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards includes the federal grant activity for the year ended June 30, 2023, and is presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. The University has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: NOTE 2 - LOANS OUTSTANDING AT FISCAL YEAR END Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity for the year ended June 30, 2023, and is presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. The University has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The University Perkins Loan Program’s outstanding loan balance as of June 30, 2023 totaled $888,511, for programs that are administered directly. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the schedule. There were no administrative costs charged to the Perkins Loan Program.
Title: NOTE 3 - TOTAL NEW FEDERAL STUDENTS LOANS Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity for the year ended June 30, 2023, and is presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. The University has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. During the year ended June 30, 2023, the University awarded the following amounts of new loans under the Federal Direct Student Loans Program: Direct Unsubsidized Loans $ 12,123,956 Direct Subsidized Loans 2,237,277 Direct Parent PLUS Loans 546,639 Direct Graduate PLUS Loans 5,316,621 Total $ 20,224,493 There were no administrative costs charged to the loan program.
Title: NOTE 4 - NONMONETARY ASSISTANCE Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity for the year ended June 30, 2023, and is presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. The University has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. During the period, the University did not receive any nonmonetary assistance.
Title: NOTE 5 - INSURANCE DISCLOSURE Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity for the year ended June 30, 2023, and is presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. The University has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. During the period, there was no federally-funded insurance in effect.
Title: NOTE 6 - DONATED PERSONAL PROTECTIVE EQUIPMENT Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity for the year ended June 30, 2023, and is presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. The University has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. During Fiscal Year 2023, the University did not receive any donated personal protective equipment.

Finding Details

Finding 2023-004
2023-004. FINDING Failure to Provide Uniform Resource Locator to the Department of Education Federal Agency: U.S. Department of Education Assistance Listing Numbers: 84.063; 84.268; 84.379; 84.007; 84.033 Program Names: Student Financial Assistance Cluster - Federal Pell Grant Program Federal Direct Student Loans Teacher Education Assistance for College and Higher Education Grants Federal Supplemental Educational Opportunity Grants Federal Work Study Program Expenditures: $4,329,746; $20,224,493; $25,460; $289,515; $505,494 Award Numbers: P063P211351; P268K221351; P379T221351; P007A221121; P033A221121 Questioned Costs: None The Chicago State University (University) entered into an arrangement with a servicer to make direct payments of financial aid credit balances to its students. During testing, we noted the arrangement with the servicer and related costs were disclosed on the University’s website. However, the University did not provide the Department of Education with the uniform resource locator (URL) of its website where the disclosure of its contract with the servicer and related contract information is posted. The Code of Federal Regulations (Code) (34 CFR § 668.164(e)(2)(viii)) requires the University to provide the Department of Education with an up-to-date URL for the contract and contract data with the servicer for publication on the Department of Education’s Cash Management Contract Database accessible to the public. University management indicated the failure to provide the Department of Education with an up-to-date URL for its contract with the servicer and related contract data was due to oversight. Failure to provide the Department of Education with an up-to-date URL for the University’s contract with the servicer and related contract information is a noncompliance with the Code. (Finding Code No. 2023-004) RECOMMENDATION We recommend the University provide the Department of Education with the URL of the contract with the servicer and related contract information in accordance with the Code. UNIVERSITY RESPONSE The University agrees with the finding and has submitted proper documentation to the Department of Education for proper posting of the URL.
Finding 2023-004
2023-004. FINDING Failure to Provide Uniform Resource Locator to the Department of Education Federal Agency: U.S. Department of Education Assistance Listing Numbers: 84.063; 84.268; 84.379; 84.007; 84.033 Program Names: Student Financial Assistance Cluster - Federal Pell Grant Program Federal Direct Student Loans Teacher Education Assistance for College and Higher Education Grants Federal Supplemental Educational Opportunity Grants Federal Work Study Program Expenditures: $4,329,746; $20,224,493; $25,460; $289,515; $505,494 Award Numbers: P063P211351; P268K221351; P379T221351; P007A221121; P033A221121 Questioned Costs: None The Chicago State University (University) entered into an arrangement with a servicer to make direct payments of financial aid credit balances to its students. During testing, we noted the arrangement with the servicer and related costs were disclosed on the University’s website. However, the University did not provide the Department of Education with the uniform resource locator (URL) of its website where the disclosure of its contract with the servicer and related contract information is posted. The Code of Federal Regulations (Code) (34 CFR § 668.164(e)(2)(viii)) requires the University to provide the Department of Education with an up-to-date URL for the contract and contract data with the servicer for publication on the Department of Education’s Cash Management Contract Database accessible to the public. University management indicated the failure to provide the Department of Education with an up-to-date URL for its contract with the servicer and related contract data was due to oversight. Failure to provide the Department of Education with an up-to-date URL for the University’s contract with the servicer and related contract information is a noncompliance with the Code. (Finding Code No. 2023-004) RECOMMENDATION We recommend the University provide the Department of Education with the URL of the contract with the servicer and related contract information in accordance with the Code. UNIVERSITY RESPONSE The University agrees with the finding and has submitted proper documentation to the Department of Education for proper posting of the URL.
Finding 2023-004
2023-004. FINDING Failure to Provide Uniform Resource Locator to the Department of Education Federal Agency: U.S. Department of Education Assistance Listing Numbers: 84.063; 84.268; 84.379; 84.007; 84.033 Program Names: Student Financial Assistance Cluster - Federal Pell Grant Program Federal Direct Student Loans Teacher Education Assistance for College and Higher Education Grants Federal Supplemental Educational Opportunity Grants Federal Work Study Program Expenditures: $4,329,746; $20,224,493; $25,460; $289,515; $505,494 Award Numbers: P063P211351; P268K221351; P379T221351; P007A221121; P033A221121 Questioned Costs: None The Chicago State University (University) entered into an arrangement with a servicer to make direct payments of financial aid credit balances to its students. During testing, we noted the arrangement with the servicer and related costs were disclosed on the University’s website. However, the University did not provide the Department of Education with the uniform resource locator (URL) of its website where the disclosure of its contract with the servicer and related contract information is posted. The Code of Federal Regulations (Code) (34 CFR § 668.164(e)(2)(viii)) requires the University to provide the Department of Education with an up-to-date URL for the contract and contract data with the servicer for publication on the Department of Education’s Cash Management Contract Database accessible to the public. University management indicated the failure to provide the Department of Education with an up-to-date URL for its contract with the servicer and related contract data was due to oversight. Failure to provide the Department of Education with an up-to-date URL for the University’s contract with the servicer and related contract information is a noncompliance with the Code. (Finding Code No. 2023-004) RECOMMENDATION We recommend the University provide the Department of Education with the URL of the contract with the servicer and related contract information in accordance with the Code. UNIVERSITY RESPONSE The University agrees with the finding and has submitted proper documentation to the Department of Education for proper posting of the URL.
Finding 2023-004
2023-004. FINDING Failure to Provide Uniform Resource Locator to the Department of Education Federal Agency: U.S. Department of Education Assistance Listing Numbers: 84.063; 84.268; 84.379; 84.007; 84.033 Program Names: Student Financial Assistance Cluster - Federal Pell Grant Program Federal Direct Student Loans Teacher Education Assistance for College and Higher Education Grants Federal Supplemental Educational Opportunity Grants Federal Work Study Program Expenditures: $4,329,746; $20,224,493; $25,460; $289,515; $505,494 Award Numbers: P063P211351; P268K221351; P379T221351; P007A221121; P033A221121 Questioned Costs: None The Chicago State University (University) entered into an arrangement with a servicer to make direct payments of financial aid credit balances to its students. During testing, we noted the arrangement with the servicer and related costs were disclosed on the University’s website. However, the University did not provide the Department of Education with the uniform resource locator (URL) of its website where the disclosure of its contract with the servicer and related contract information is posted. The Code of Federal Regulations (Code) (34 CFR § 668.164(e)(2)(viii)) requires the University to provide the Department of Education with an up-to-date URL for the contract and contract data with the servicer for publication on the Department of Education’s Cash Management Contract Database accessible to the public. University management indicated the failure to provide the Department of Education with an up-to-date URL for its contract with the servicer and related contract data was due to oversight. Failure to provide the Department of Education with an up-to-date URL for the University’s contract with the servicer and related contract information is a noncompliance with the Code. (Finding Code No. 2023-004) RECOMMENDATION We recommend the University provide the Department of Education with the URL of the contract with the servicer and related contract information in accordance with the Code. UNIVERSITY RESPONSE The University agrees with the finding and has submitted proper documentation to the Department of Education for proper posting of the URL.
Finding 2023-004
2023-004. FINDING Failure to Provide Uniform Resource Locator to the Department of Education Federal Agency: U.S. Department of Education Assistance Listing Numbers: 84.063; 84.268; 84.379; 84.007; 84.033 Program Names: Student Financial Assistance Cluster - Federal Pell Grant Program Federal Direct Student Loans Teacher Education Assistance for College and Higher Education Grants Federal Supplemental Educational Opportunity Grants Federal Work Study Program Expenditures: $4,329,746; $20,224,493; $25,460; $289,515; $505,494 Award Numbers: P063P211351; P268K221351; P379T221351; P007A221121; P033A221121 Questioned Costs: None The Chicago State University (University) entered into an arrangement with a servicer to make direct payments of financial aid credit balances to its students. During testing, we noted the arrangement with the servicer and related costs were disclosed on the University’s website. However, the University did not provide the Department of Education with the uniform resource locator (URL) of its website where the disclosure of its contract with the servicer and related contract information is posted. The Code of Federal Regulations (Code) (34 CFR § 668.164(e)(2)(viii)) requires the University to provide the Department of Education with an up-to-date URL for the contract and contract data with the servicer for publication on the Department of Education’s Cash Management Contract Database accessible to the public. University management indicated the failure to provide the Department of Education with an up-to-date URL for its contract with the servicer and related contract data was due to oversight. Failure to provide the Department of Education with an up-to-date URL for the University’s contract with the servicer and related contract information is a noncompliance with the Code. (Finding Code No. 2023-004) RECOMMENDATION We recommend the University provide the Department of Education with the URL of the contract with the servicer and related contract information in accordance with the Code. UNIVERSITY RESPONSE The University agrees with the finding and has submitted proper documentation to the Department of Education for proper posting of the URL.
Finding 2023-005
2023-005. FINDING Failure to Notify Students and Parents Upon Disbursement of Funds Federal Agency: U.S. Department of Education Assistance Listing Numbers: 84.379; 84.268 Program Names: Student Financial Assistance Cluster - Teacher Education Assistance for College and Higher Education Grants Federal Direct Student Loans Program Expenditures: $25,460; $20,224,493 Award Number: P379T221351; P268K221351 Questioned Costs: None The Chicago State University (University) did not notify the students and parents upon disbursement of grant funds and loans. During testing of five students, who received Teacher Education Assistance for College and Higher Education Grants (TEACH) totaling $14,145, we noted five (100%) students were not notified by the University indicating the funds were credited to the students’ accounts. The sample methods used in performing this testing were not statistically valid. In addition, during testing of 40 students, who received Federal Direct Loans totaling $700,656, we noted 38 (95%) students with grant disbursements totaling $695,212 were not notified by the University indicating the funds were credited to the students’ accounts. The sample methods used in performing this testing were not statistically valid. The Code of Federal Regulations (Code) (34 CFR § 668.165 (a)(3)(i)) requires the University to notify students or parents in writing no earlier than 30 days before, and no later than 30 days after, crediting the student’s ledger account at the University with TEACH Grant funds and Federal Direct Loans. Further, the Code (2 CFR § 200.303) requires the nonfederal entity receiving federal awards to establish and maintain effective internal control over the federal award to provide reasonable assurance the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Effective internal controls include procedures to ensure timely notification of disbursements to students receiving TEACH Grants and Federal Direct Loans. University management indicated the failure to timely notify students and parents upon disbursements of TEACH Grants and Direct Loans was due to resource constraints. Failure to timely notify students and parents regarding grant and loan disbursements is a noncompliance with the Code. (Finding Code No. 2023-005, 2022-005) RECOMMENDATION We recommend the University strengthen controls to ensure timely notification is sent to students and parents upon disbursement of grant funds and loans. UNIVERSITY RESPONSE The University agrees with the recommendation. Upon discovery, the corrective action was immediately implemented so that by the end of Fisal Year 2023, the University was in compliance with the requirements.
Finding 2023-005
2023-005. FINDING Failure to Notify Students and Parents Upon Disbursement of Funds Federal Agency: U.S. Department of Education Assistance Listing Numbers: 84.379; 84.268 Program Names: Student Financial Assistance Cluster - Teacher Education Assistance for College and Higher Education Grants Federal Direct Student Loans Program Expenditures: $25,460; $20,224,493 Award Number: P379T221351; P268K221351 Questioned Costs: None The Chicago State University (University) did not notify the students and parents upon disbursement of grant funds and loans. During testing of five students, who received Teacher Education Assistance for College and Higher Education Grants (TEACH) totaling $14,145, we noted five (100%) students were not notified by the University indicating the funds were credited to the students’ accounts. The sample methods used in performing this testing were not statistically valid. In addition, during testing of 40 students, who received Federal Direct Loans totaling $700,656, we noted 38 (95%) students with grant disbursements totaling $695,212 were not notified by the University indicating the funds were credited to the students’ accounts. The sample methods used in performing this testing were not statistically valid. The Code of Federal Regulations (Code) (34 CFR § 668.165 (a)(3)(i)) requires the University to notify students or parents in writing no earlier than 30 days before, and no later than 30 days after, crediting the student’s ledger account at the University with TEACH Grant funds and Federal Direct Loans. Further, the Code (2 CFR § 200.303) requires the nonfederal entity receiving federal awards to establish and maintain effective internal control over the federal award to provide reasonable assurance the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Effective internal controls include procedures to ensure timely notification of disbursements to students receiving TEACH Grants and Federal Direct Loans. University management indicated the failure to timely notify students and parents upon disbursements of TEACH Grants and Direct Loans was due to resource constraints. Failure to timely notify students and parents regarding grant and loan disbursements is a noncompliance with the Code. (Finding Code No. 2023-005, 2022-005) RECOMMENDATION We recommend the University strengthen controls to ensure timely notification is sent to students and parents upon disbursement of grant funds and loans. UNIVERSITY RESPONSE The University agrees with the recommendation. Upon discovery, the corrective action was immediately implemented so that by the end of Fisal Year 2023, the University was in compliance with the requirements.
Finding 2023-006
2023-006. FINDING Failure to Comply with Established Procurement Procedures Federal Agency: National Science Foundation Assistance Listing Number: 47.076 Program Names: Research and Development Cluster - Conference: 2023 NSF Louis Stokes Alliances for Minority Participation Principal Investigators/ Project Directors Meeting Collaborative Research: Louis Stokes Regional Center of Excellence: Louis Stokes Midwest Regional Center of Excellence for Broadening Participation in STEM Program Expenditures: $478,648; $256,713 Award Numbers: 2312141; 1826719 Questioned Costs: None The Chicago State University (University) did not ensure procurements exempt from solicitation and competitive bidding were published in the Illinois Procurement Bulletin. During testing, two of 13 (15%) exempt contracts, each exceeding $100,000, were not published in the Illinois Procurement Bulletin. The sample methods used in performing this testing were not statistically valid. The Code of Federal Regulations (Code) (2 CFR § 200.318(a)) requires the University to use documented procurement procedures consistent with State, local, and tribal laws and regulations and the standards of the Code, for the acquisition of property or services required under a Federal award or subaward. The Illinois Procurement Code (30 ILCS 500/1-13(b)) requires the University to publish notices of each contract with an annual value of more than $100,000 in the Procurement Bulletin within 14 calendar days after contract execution. University management indicated the failure to publish the notices in the Procurement Bulletin was due to oversight. Failure to publish notices of exempt contracts is a noncompliance with the Code and the Illinois Procurement Code. (Finding Code No. 2023-006) RECOMMENDATION We recommend that the University publish notices of exempt contracts in the Procurement Bulletin in accordance with the Code and the Illinois Procurement Code. UNIVERSITY RESPONSE The University agrees with the finding. Adjustments have been made to internal processes to ensure exemptions are always posted to the Illinois Procurement Bulletin for Public Institutions of Higher Education in a timely manner when necessary.
Finding 2023-006
2023-006. FINDING Failure to Comply with Established Procurement Procedures Federal Agency: National Science Foundation Assistance Listing Number: 47.076 Program Names: Research and Development Cluster - Conference: 2023 NSF Louis Stokes Alliances for Minority Participation Principal Investigators/ Project Directors Meeting Collaborative Research: Louis Stokes Regional Center of Excellence: Louis Stokes Midwest Regional Center of Excellence for Broadening Participation in STEM Program Expenditures: $478,648; $256,713 Award Numbers: 2312141; 1826719 Questioned Costs: None The Chicago State University (University) did not ensure procurements exempt from solicitation and competitive bidding were published in the Illinois Procurement Bulletin. During testing, two of 13 (15%) exempt contracts, each exceeding $100,000, were not published in the Illinois Procurement Bulletin. The sample methods used in performing this testing were not statistically valid. The Code of Federal Regulations (Code) (2 CFR § 200.318(a)) requires the University to use documented procurement procedures consistent with State, local, and tribal laws and regulations and the standards of the Code, for the acquisition of property or services required under a Federal award or subaward. The Illinois Procurement Code (30 ILCS 500/1-13(b)) requires the University to publish notices of each contract with an annual value of more than $100,000 in the Procurement Bulletin within 14 calendar days after contract execution. University management indicated the failure to publish the notices in the Procurement Bulletin was due to oversight. Failure to publish notices of exempt contracts is a noncompliance with the Code and the Illinois Procurement Code. (Finding Code No. 2023-006) RECOMMENDATION We recommend that the University publish notices of exempt contracts in the Procurement Bulletin in accordance with the Code and the Illinois Procurement Code. UNIVERSITY RESPONSE The University agrees with the finding. Adjustments have been made to internal processes to ensure exemptions are always posted to the Illinois Procurement Bulletin for Public Institutions of Higher Education in a timely manner when necessary.
Finding 2023-004
2023-004. FINDING Failure to Provide Uniform Resource Locator to the Department of Education Federal Agency: U.S. Department of Education Assistance Listing Numbers: 84.063; 84.268; 84.379; 84.007; 84.033 Program Names: Student Financial Assistance Cluster - Federal Pell Grant Program Federal Direct Student Loans Teacher Education Assistance for College and Higher Education Grants Federal Supplemental Educational Opportunity Grants Federal Work Study Program Expenditures: $4,329,746; $20,224,493; $25,460; $289,515; $505,494 Award Numbers: P063P211351; P268K221351; P379T221351; P007A221121; P033A221121 Questioned Costs: None The Chicago State University (University) entered into an arrangement with a servicer to make direct payments of financial aid credit balances to its students. During testing, we noted the arrangement with the servicer and related costs were disclosed on the University’s website. However, the University did not provide the Department of Education with the uniform resource locator (URL) of its website where the disclosure of its contract with the servicer and related contract information is posted. The Code of Federal Regulations (Code) (34 CFR § 668.164(e)(2)(viii)) requires the University to provide the Department of Education with an up-to-date URL for the contract and contract data with the servicer for publication on the Department of Education’s Cash Management Contract Database accessible to the public. University management indicated the failure to provide the Department of Education with an up-to-date URL for its contract with the servicer and related contract data was due to oversight. Failure to provide the Department of Education with an up-to-date URL for the University’s contract with the servicer and related contract information is a noncompliance with the Code. (Finding Code No. 2023-004) RECOMMENDATION We recommend the University provide the Department of Education with the URL of the contract with the servicer and related contract information in accordance with the Code. UNIVERSITY RESPONSE The University agrees with the finding and has submitted proper documentation to the Department of Education for proper posting of the URL.
Finding 2023-004
2023-004. FINDING Failure to Provide Uniform Resource Locator to the Department of Education Federal Agency: U.S. Department of Education Assistance Listing Numbers: 84.063; 84.268; 84.379; 84.007; 84.033 Program Names: Student Financial Assistance Cluster - Federal Pell Grant Program Federal Direct Student Loans Teacher Education Assistance for College and Higher Education Grants Federal Supplemental Educational Opportunity Grants Federal Work Study Program Expenditures: $4,329,746; $20,224,493; $25,460; $289,515; $505,494 Award Numbers: P063P211351; P268K221351; P379T221351; P007A221121; P033A221121 Questioned Costs: None The Chicago State University (University) entered into an arrangement with a servicer to make direct payments of financial aid credit balances to its students. During testing, we noted the arrangement with the servicer and related costs were disclosed on the University’s website. However, the University did not provide the Department of Education with the uniform resource locator (URL) of its website where the disclosure of its contract with the servicer and related contract information is posted. The Code of Federal Regulations (Code) (34 CFR § 668.164(e)(2)(viii)) requires the University to provide the Department of Education with an up-to-date URL for the contract and contract data with the servicer for publication on the Department of Education’s Cash Management Contract Database accessible to the public. University management indicated the failure to provide the Department of Education with an up-to-date URL for its contract with the servicer and related contract data was due to oversight. Failure to provide the Department of Education with an up-to-date URL for the University’s contract with the servicer and related contract information is a noncompliance with the Code. (Finding Code No. 2023-004) RECOMMENDATION We recommend the University provide the Department of Education with the URL of the contract with the servicer and related contract information in accordance with the Code. UNIVERSITY RESPONSE The University agrees with the finding and has submitted proper documentation to the Department of Education for proper posting of the URL.
Finding 2023-004
2023-004. FINDING Failure to Provide Uniform Resource Locator to the Department of Education Federal Agency: U.S. Department of Education Assistance Listing Numbers: 84.063; 84.268; 84.379; 84.007; 84.033 Program Names: Student Financial Assistance Cluster - Federal Pell Grant Program Federal Direct Student Loans Teacher Education Assistance for College and Higher Education Grants Federal Supplemental Educational Opportunity Grants Federal Work Study Program Expenditures: $4,329,746; $20,224,493; $25,460; $289,515; $505,494 Award Numbers: P063P211351; P268K221351; P379T221351; P007A221121; P033A221121 Questioned Costs: None The Chicago State University (University) entered into an arrangement with a servicer to make direct payments of financial aid credit balances to its students. During testing, we noted the arrangement with the servicer and related costs were disclosed on the University’s website. However, the University did not provide the Department of Education with the uniform resource locator (URL) of its website where the disclosure of its contract with the servicer and related contract information is posted. The Code of Federal Regulations (Code) (34 CFR § 668.164(e)(2)(viii)) requires the University to provide the Department of Education with an up-to-date URL for the contract and contract data with the servicer for publication on the Department of Education’s Cash Management Contract Database accessible to the public. University management indicated the failure to provide the Department of Education with an up-to-date URL for its contract with the servicer and related contract data was due to oversight. Failure to provide the Department of Education with an up-to-date URL for the University’s contract with the servicer and related contract information is a noncompliance with the Code. (Finding Code No. 2023-004) RECOMMENDATION We recommend the University provide the Department of Education with the URL of the contract with the servicer and related contract information in accordance with the Code. UNIVERSITY RESPONSE The University agrees with the finding and has submitted proper documentation to the Department of Education for proper posting of the URL.
Finding 2023-004
2023-004. FINDING Failure to Provide Uniform Resource Locator to the Department of Education Federal Agency: U.S. Department of Education Assistance Listing Numbers: 84.063; 84.268; 84.379; 84.007; 84.033 Program Names: Student Financial Assistance Cluster - Federal Pell Grant Program Federal Direct Student Loans Teacher Education Assistance for College and Higher Education Grants Federal Supplemental Educational Opportunity Grants Federal Work Study Program Expenditures: $4,329,746; $20,224,493; $25,460; $289,515; $505,494 Award Numbers: P063P211351; P268K221351; P379T221351; P007A221121; P033A221121 Questioned Costs: None The Chicago State University (University) entered into an arrangement with a servicer to make direct payments of financial aid credit balances to its students. During testing, we noted the arrangement with the servicer and related costs were disclosed on the University’s website. However, the University did not provide the Department of Education with the uniform resource locator (URL) of its website where the disclosure of its contract with the servicer and related contract information is posted. The Code of Federal Regulations (Code) (34 CFR § 668.164(e)(2)(viii)) requires the University to provide the Department of Education with an up-to-date URL for the contract and contract data with the servicer for publication on the Department of Education’s Cash Management Contract Database accessible to the public. University management indicated the failure to provide the Department of Education with an up-to-date URL for its contract with the servicer and related contract data was due to oversight. Failure to provide the Department of Education with an up-to-date URL for the University’s contract with the servicer and related contract information is a noncompliance with the Code. (Finding Code No. 2023-004) RECOMMENDATION We recommend the University provide the Department of Education with the URL of the contract with the servicer and related contract information in accordance with the Code. UNIVERSITY RESPONSE The University agrees with the finding and has submitted proper documentation to the Department of Education for proper posting of the URL.
Finding 2023-004
2023-004. FINDING Failure to Provide Uniform Resource Locator to the Department of Education Federal Agency: U.S. Department of Education Assistance Listing Numbers: 84.063; 84.268; 84.379; 84.007; 84.033 Program Names: Student Financial Assistance Cluster - Federal Pell Grant Program Federal Direct Student Loans Teacher Education Assistance for College and Higher Education Grants Federal Supplemental Educational Opportunity Grants Federal Work Study Program Expenditures: $4,329,746; $20,224,493; $25,460; $289,515; $505,494 Award Numbers: P063P211351; P268K221351; P379T221351; P007A221121; P033A221121 Questioned Costs: None The Chicago State University (University) entered into an arrangement with a servicer to make direct payments of financial aid credit balances to its students. During testing, we noted the arrangement with the servicer and related costs were disclosed on the University’s website. However, the University did not provide the Department of Education with the uniform resource locator (URL) of its website where the disclosure of its contract with the servicer and related contract information is posted. The Code of Federal Regulations (Code) (34 CFR § 668.164(e)(2)(viii)) requires the University to provide the Department of Education with an up-to-date URL for the contract and contract data with the servicer for publication on the Department of Education’s Cash Management Contract Database accessible to the public. University management indicated the failure to provide the Department of Education with an up-to-date URL for its contract with the servicer and related contract data was due to oversight. Failure to provide the Department of Education with an up-to-date URL for the University’s contract with the servicer and related contract information is a noncompliance with the Code. (Finding Code No. 2023-004) RECOMMENDATION We recommend the University provide the Department of Education with the URL of the contract with the servicer and related contract information in accordance with the Code. UNIVERSITY RESPONSE The University agrees with the finding and has submitted proper documentation to the Department of Education for proper posting of the URL.
Finding 2023-005
2023-005. FINDING Failure to Notify Students and Parents Upon Disbursement of Funds Federal Agency: U.S. Department of Education Assistance Listing Numbers: 84.379; 84.268 Program Names: Student Financial Assistance Cluster - Teacher Education Assistance for College and Higher Education Grants Federal Direct Student Loans Program Expenditures: $25,460; $20,224,493 Award Number: P379T221351; P268K221351 Questioned Costs: None The Chicago State University (University) did not notify the students and parents upon disbursement of grant funds and loans. During testing of five students, who received Teacher Education Assistance for College and Higher Education Grants (TEACH) totaling $14,145, we noted five (100%) students were not notified by the University indicating the funds were credited to the students’ accounts. The sample methods used in performing this testing were not statistically valid. In addition, during testing of 40 students, who received Federal Direct Loans totaling $700,656, we noted 38 (95%) students with grant disbursements totaling $695,212 were not notified by the University indicating the funds were credited to the students’ accounts. The sample methods used in performing this testing were not statistically valid. The Code of Federal Regulations (Code) (34 CFR § 668.165 (a)(3)(i)) requires the University to notify students or parents in writing no earlier than 30 days before, and no later than 30 days after, crediting the student’s ledger account at the University with TEACH Grant funds and Federal Direct Loans. Further, the Code (2 CFR § 200.303) requires the nonfederal entity receiving federal awards to establish and maintain effective internal control over the federal award to provide reasonable assurance the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Effective internal controls include procedures to ensure timely notification of disbursements to students receiving TEACH Grants and Federal Direct Loans. University management indicated the failure to timely notify students and parents upon disbursements of TEACH Grants and Direct Loans was due to resource constraints. Failure to timely notify students and parents regarding grant and loan disbursements is a noncompliance with the Code. (Finding Code No. 2023-005, 2022-005) RECOMMENDATION We recommend the University strengthen controls to ensure timely notification is sent to students and parents upon disbursement of grant funds and loans. UNIVERSITY RESPONSE The University agrees with the recommendation. Upon discovery, the corrective action was immediately implemented so that by the end of Fisal Year 2023, the University was in compliance with the requirements.
Finding 2023-005
2023-005. FINDING Failure to Notify Students and Parents Upon Disbursement of Funds Federal Agency: U.S. Department of Education Assistance Listing Numbers: 84.379; 84.268 Program Names: Student Financial Assistance Cluster - Teacher Education Assistance for College and Higher Education Grants Federal Direct Student Loans Program Expenditures: $25,460; $20,224,493 Award Number: P379T221351; P268K221351 Questioned Costs: None The Chicago State University (University) did not notify the students and parents upon disbursement of grant funds and loans. During testing of five students, who received Teacher Education Assistance for College and Higher Education Grants (TEACH) totaling $14,145, we noted five (100%) students were not notified by the University indicating the funds were credited to the students’ accounts. The sample methods used in performing this testing were not statistically valid. In addition, during testing of 40 students, who received Federal Direct Loans totaling $700,656, we noted 38 (95%) students with grant disbursements totaling $695,212 were not notified by the University indicating the funds were credited to the students’ accounts. The sample methods used in performing this testing were not statistically valid. The Code of Federal Regulations (Code) (34 CFR § 668.165 (a)(3)(i)) requires the University to notify students or parents in writing no earlier than 30 days before, and no later than 30 days after, crediting the student’s ledger account at the University with TEACH Grant funds and Federal Direct Loans. Further, the Code (2 CFR § 200.303) requires the nonfederal entity receiving federal awards to establish and maintain effective internal control over the federal award to provide reasonable assurance the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Effective internal controls include procedures to ensure timely notification of disbursements to students receiving TEACH Grants and Federal Direct Loans. University management indicated the failure to timely notify students and parents upon disbursements of TEACH Grants and Direct Loans was due to resource constraints. Failure to timely notify students and parents regarding grant and loan disbursements is a noncompliance with the Code. (Finding Code No. 2023-005, 2022-005) RECOMMENDATION We recommend the University strengthen controls to ensure timely notification is sent to students and parents upon disbursement of grant funds and loans. UNIVERSITY RESPONSE The University agrees with the recommendation. Upon discovery, the corrective action was immediately implemented so that by the end of Fisal Year 2023, the University was in compliance with the requirements.
Finding 2023-006
2023-006. FINDING Failure to Comply with Established Procurement Procedures Federal Agency: National Science Foundation Assistance Listing Number: 47.076 Program Names: Research and Development Cluster - Conference: 2023 NSF Louis Stokes Alliances for Minority Participation Principal Investigators/ Project Directors Meeting Collaborative Research: Louis Stokes Regional Center of Excellence: Louis Stokes Midwest Regional Center of Excellence for Broadening Participation in STEM Program Expenditures: $478,648; $256,713 Award Numbers: 2312141; 1826719 Questioned Costs: None The Chicago State University (University) did not ensure procurements exempt from solicitation and competitive bidding were published in the Illinois Procurement Bulletin. During testing, two of 13 (15%) exempt contracts, each exceeding $100,000, were not published in the Illinois Procurement Bulletin. The sample methods used in performing this testing were not statistically valid. The Code of Federal Regulations (Code) (2 CFR § 200.318(a)) requires the University to use documented procurement procedures consistent with State, local, and tribal laws and regulations and the standards of the Code, for the acquisition of property or services required under a Federal award or subaward. The Illinois Procurement Code (30 ILCS 500/1-13(b)) requires the University to publish notices of each contract with an annual value of more than $100,000 in the Procurement Bulletin within 14 calendar days after contract execution. University management indicated the failure to publish the notices in the Procurement Bulletin was due to oversight. Failure to publish notices of exempt contracts is a noncompliance with the Code and the Illinois Procurement Code. (Finding Code No. 2023-006) RECOMMENDATION We recommend that the University publish notices of exempt contracts in the Procurement Bulletin in accordance with the Code and the Illinois Procurement Code. UNIVERSITY RESPONSE The University agrees with the finding. Adjustments have been made to internal processes to ensure exemptions are always posted to the Illinois Procurement Bulletin for Public Institutions of Higher Education in a timely manner when necessary.
Finding 2023-006
2023-006. FINDING Failure to Comply with Established Procurement Procedures Federal Agency: National Science Foundation Assistance Listing Number: 47.076 Program Names: Research and Development Cluster - Conference: 2023 NSF Louis Stokes Alliances for Minority Participation Principal Investigators/ Project Directors Meeting Collaborative Research: Louis Stokes Regional Center of Excellence: Louis Stokes Midwest Regional Center of Excellence for Broadening Participation in STEM Program Expenditures: $478,648; $256,713 Award Numbers: 2312141; 1826719 Questioned Costs: None The Chicago State University (University) did not ensure procurements exempt from solicitation and competitive bidding were published in the Illinois Procurement Bulletin. During testing, two of 13 (15%) exempt contracts, each exceeding $100,000, were not published in the Illinois Procurement Bulletin. The sample methods used in performing this testing were not statistically valid. The Code of Federal Regulations (Code) (2 CFR § 200.318(a)) requires the University to use documented procurement procedures consistent with State, local, and tribal laws and regulations and the standards of the Code, for the acquisition of property or services required under a Federal award or subaward. The Illinois Procurement Code (30 ILCS 500/1-13(b)) requires the University to publish notices of each contract with an annual value of more than $100,000 in the Procurement Bulletin within 14 calendar days after contract execution. University management indicated the failure to publish the notices in the Procurement Bulletin was due to oversight. Failure to publish notices of exempt contracts is a noncompliance with the Code and the Illinois Procurement Code. (Finding Code No. 2023-006) RECOMMENDATION We recommend that the University publish notices of exempt contracts in the Procurement Bulletin in accordance with the Code and the Illinois Procurement Code. UNIVERSITY RESPONSE The University agrees with the finding. Adjustments have been made to internal processes to ensure exemptions are always posted to the Illinois Procurement Bulletin for Public Institutions of Higher Education in a timely manner when necessary.