Audit 30178

FY End

2022-07-31

Total Expended

$1.46M

Findings

2

Programs

1

Organization: The Institute of World Politics (DC)

Year: 2022 Accepted: 2023-01-03

Auditor: Rsm US LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
35121	2022-001	Significant Deficiency	-	CNP
611563	2022-001	Significant Deficiency	-	CNP

ALN	Program	Spent	Major	Findings
84.268	Federal Direct Student Loans	$1.46M	Yes	1

Contacts

Name	Title	Type
HSLRE3E8BEP5	Christopher Glass	Auditee
2024622101	Thomas J. Sneeringer	Auditor
No contacts on file

Notes to SEFA

Title: Note 1. Basis of Presentation Accounting Policies: Note 2.Summary of Significant Accounting Policies for Federal Award Expenditures Expenditures reported on the schedule of expenditures of federal awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for student financial aid programs are recognized when incurred and include the federal share of direct loan disbursements and administrative cost allowances, where applicable. De Minimis Rate Used: N Rate Explanation: The Institute does not charge indirect costs to its federal awards. As such, the Institute has not elected to use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of The Institute of World Politics (the Institute) under programs of the federal government for the year ended July 31, 2022. 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). Because the Schedule presents only a selected portion of the operations of the Institute, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Institute. There were no amounts paid to subrecipients for the year ended July 31, 2022.

Finding Details

Finding 2022-001

Finding No. 2022-001 ? Enrollment Reporting and Documentation of Controls Significant Deficiency Federal Program: Student Financial Aid Cluster - Federal Direct Student Loans (ALN 84.268), U.S. Department of Education Criteria: Per 2 CFR 200.303, recipients of federal awards must establish and maintain effective internal control over federal awards to provide reasonable assurance that federal awards are managed in a way that is compliant with federal statutes, regulations, and the terms and conditions of the federal award. Condition: We noted a lack of controls in the enrollment reporting compliance requirement and lack of documentation that demonstrates application of controls in cash management and direct loan reconciliation compliance requirements. Cause: High turnover and limited resources. Effect: Ineffective control procedures or lack thereof over material compliance requirements could result in compliance findings and questioned costs. Reportable questioned costs: None. Context: RSM tested enrollment reporting under the special test compliance requirement. In reviewing controls over reporting student status changes to the National Student Loan Data System, RSM identified that there is no independent review over the submission to ensure its accuracy and timely submission. RSM also identified that there was a lack of documentation to demonstrate the application of controls the Institute has in place over both the cash management compliance requirement and direct loan reconciliation compliance requirement that is part of the special tests. Repeat Finding: No Recommendation: We recommend the Institute establish control procedures around enrollment reporting compliance requirement that includes an independent review over the student status submission. We also recommend that the Institute ensure that all controls in place include documentation that demonstrates application of controls. Views of Responsible Officials: Management agrees with the finding. See corrective action plan.

Finding 2022-001

Finding No. 2022-001 ? Enrollment Reporting and Documentation of Controls Significant Deficiency Federal Program: Student Financial Aid Cluster - Federal Direct Student Loans (ALN 84.268), U.S. Department of Education Criteria: Per 2 CFR 200.303, recipients of federal awards must establish and maintain effective internal control over federal awards to provide reasonable assurance that federal awards are managed in a way that is compliant with federal statutes, regulations, and the terms and conditions of the federal award. Condition: We noted a lack of controls in the enrollment reporting compliance requirement and lack of documentation that demonstrates application of controls in cash management and direct loan reconciliation compliance requirements. Cause: High turnover and limited resources. Effect: Ineffective control procedures or lack thereof over material compliance requirements could result in compliance findings and questioned costs. Reportable questioned costs: None. Context: RSM tested enrollment reporting under the special test compliance requirement. In reviewing controls over reporting student status changes to the National Student Loan Data System, RSM identified that there is no independent review over the submission to ensure its accuracy and timely submission. RSM also identified that there was a lack of documentation to demonstrate the application of controls the Institute has in place over both the cash management compliance requirement and direct loan reconciliation compliance requirement that is part of the special tests. Repeat Finding: No Recommendation: We recommend the Institute establish control procedures around enrollment reporting compliance requirement that includes an independent review over the student status submission. We also recommend that the Institute ensure that all controls in place include documentation that demonstrates application of controls. Views of Responsible Officials: Management agrees with the finding. See corrective action plan.