Audit 33281

FY End
2022-06-30
Total Expended
$26.15M
Findings
12
Programs
9
Organization: Felician University (NJ)
Year: 2022 Accepted: 2023-03-08

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
32849 2022-005 Significant Deficiency Yes L
32850 2022-005 Significant Deficiency Yes L
32851 2022-004 Significant Deficiency - C
32852 2022-003 Significant Deficiency - I
32853 2022-004 Significant Deficiency - C
32854 2022-004 Significant Deficiency - C
609291 2022-005 Significant Deficiency Yes L
609292 2022-005 Significant Deficiency Yes L
609293 2022-004 Significant Deficiency - C
609294 2022-003 Significant Deficiency - I
609295 2022-004 Significant Deficiency - C
609296 2022-004 Significant Deficiency - C

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $13.11M - 1
84.063 Federal Pell Grant Program $5.35M - 1
84.007 Federal Supplemental Educational Opportunity Grants $391,617 - 0
84.425 Education Stabilization Fund $190,011 Yes 1
47.076 Education and Human Resources $125,745 - 0
84.033 Federal Work-Study Program $90,772 - 0
45.129 Promotion of the Humanities_federal/state Partnership $84,742 - 0
84.031 Higher Education_institutional Aid $63,259 - 0
16.017 Sexual Assault Services Formula Program $20,771 - 0

Contacts

Name Title Type
C1EKLPFHLRL9 Tom Truchan Auditee
2015596094 Andrew Lee Auditor
No contacts on file

Notes to SEFA

Title: LOANS OUTSTANDING Accounting Policies: BASIS OF PRESENTATION The accompanying schedules of expenditures of federal awards and state awards (the Schedules) include the federal and state grant activity of Felician University (the University) under programs of the federal and state governments for the year ended June 30, 2022. The information in these schedules 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) and State of New Jersey, Department of the Treasury, Office of Management and Budget Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. Because the Schedules present only a selected portion of the operations of the University, they are not intended to and do not present the financial position, changes in net assets, or cash flows of the University. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedules are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The University is responsible only for the performance of certain administrative duties with respect to the Federal Direct Student Loans and the New Jersey College Loans to Assist State Students Program and, accordingly, these loans are not included in the Universitys basic financial statements. It is not practical to determine the balance of loans outstanding to students of the University under these programs as of June 30, 2022.
Title: PRIOR YEAR SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Accounting Policies: BASIS OF PRESENTATION The accompanying schedules of expenditures of federal awards and state awards (the Schedules) include the federal and state grant activity of Felician University (the University) under programs of the federal and state governments for the year ended June 30, 2022. The information in these schedules 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) and State of New Jersey, Department of the Treasury, Office of Management and Budget Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. Because the Schedules present only a selected portion of the operations of the University, they are not intended to and do not present the financial position, changes in net assets, or cash flows of the University. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedules are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. On the schedule of expenditures of federal wards for the year ended June 30, 2021, the amounts for the Education Stabilization Fund: Higher Education Emergency Relief Funds programs should have been the following: FederalAssistanceTotalFederal Grantor/ListingFederalPass-Through Grantor/Program or Cluster Title NumberExpendituresEducation Stabilization Fund:Higher Education Emergency Relief Fund -COVID-19, Student Aid Portion84.425E $1,519,600 Higher Education Emergency Relief Fund -COVID-19, Institutional Portion84.425F 2,589,730 Higher Education Emergency Relief Fund -COVID-19, Minority Serving Institutions84.425L 220,070

Finding Details

Federal Agency: U.S. Department of Education Federal Program Name: Federal Pell Grant Program; Federal Direct Student Loans Assistance Listing Number: 84.063; 84.268 Federal Award Identification Number and Year: Various Award Period: July 01, 2021 - June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: Per U.S. Department of Education (ED) regulations, all schools participating (or approved to participate) in the Federal Student Aid programs must have an arrangement to report student enrollment data to the NSLDS through a roster file. The school is required to report enrollment status at both the school and program level. The school is required to report changes in the student?s enrollment status, the effective date of the status and an anticipated completion date. An academic program is defined as the combination of the school?s Office of Postsecondary Education Identification (OPEID) number and the program?s Classification of Instructional Program (CIP) code, credential level, and published program length. ED requires the University to report changes in enrollment status and indicate the date that the changes occurred (34 CFR 685.309). Changes in enrollment status must be reported within 30 days. However, if a roster file is expected within 60 days, you may provide the date on that roster file. In addition, regulations require that an institution make necessary corrections and return the records within 10 days for any roster files that don?t pass the NSLDS enrollment reporting edits. ED requires the University to report changes in enrollment status within 30 or 60 days that the University determined the changes occurred (34 CFR 682.610). Condition: Certain students? enrollment information was not reported accurately or timely to the NSLDS. Questioned costs: None. Context: ? 1 student out of sample of 5 students tested was reported to NSLDS with the incorrect enrollment status on both the campus-level and program-level records in the NSLDS. ? 2 students out of sample of 5 students tested were not reported to the campus-level record in the NSLDS within a timely manner. Cause: The University uses a third-party servicer to submit their enrollment reports to the NSLDS. Occasionally, the third-party servicer incorrectly or not timely communicates information to the NSLDS, which results in discrepancies between the University?s system and the NSLDS. The University has the ultimate responsibility to ensure that reporting is correct. Effect: Inaccurate reporting to the NSLDS can result in incorrect determination of when the students? grace period should begin. Repeat Finding: Yes, 2021-001.
Federal Agency: U.S. Department of Education Federal Program Name: Federal Pell Grant Program; Federal Direct Student Loans Assistance Listing Number: 84.063; 84.268 Federal Award Identification Number and Year: Various Award Period: July 01, 2021 - June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: Per U.S. Department of Education (ED) regulations, all schools participating (or approved to participate) in the Federal Student Aid programs must have an arrangement to report student enrollment data to the NSLDS through a roster file. The school is required to report enrollment status at both the school and program level. The school is required to report changes in the student?s enrollment status, the effective date of the status and an anticipated completion date. An academic program is defined as the combination of the school?s Office of Postsecondary Education Identification (OPEID) number and the program?s Classification of Instructional Program (CIP) code, credential level, and published program length. ED requires the University to report changes in enrollment status and indicate the date that the changes occurred (34 CFR 685.309). Changes in enrollment status must be reported within 30 days. However, if a roster file is expected within 60 days, you may provide the date on that roster file. In addition, regulations require that an institution make necessary corrections and return the records within 10 days for any roster files that don?t pass the NSLDS enrollment reporting edits. ED requires the University to report changes in enrollment status within 30 or 60 days that the University determined the changes occurred (34 CFR 682.610). Condition: Certain students? enrollment information was not reported accurately or timely to the NSLDS. Questioned costs: None. Context: ? 1 student out of sample of 5 students tested was reported to NSLDS with the incorrect enrollment status on both the campus-level and program-level records in the NSLDS. ? 2 students out of sample of 5 students tested were not reported to the campus-level record in the NSLDS within a timely manner. Cause: The University uses a third-party servicer to submit their enrollment reports to the NSLDS. Occasionally, the third-party servicer incorrectly or not timely communicates information to the NSLDS, which results in discrepancies between the University?s system and the NSLDS. The University has the ultimate responsibility to ensure that reporting is correct. Effect: Inaccurate reporting to the NSLDS can result in incorrect determination of when the students? grace period should begin. Repeat Finding: Yes, 2021-001.
Federal Agency: U.S. Department of Education Federal Program Name: Education Stabilization Fund ? Higher Education Emergency Relief Fund ? Institutional Portion, Student Portion, and Minority Serving Institutions Assistance Listing Number: 84.425F, 84.425E, 84.425L Federal Award Identification Number and Year: Various Award Period: July 01, 2021 - June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: An essential part of internal control is that procedures are properly segregated, and the results of their performance be adequately reviewed. This is normally accomplished by assigning duties to that 1) no one person handles a transaction from beginning to end, and 2) incompatible duties between functions are not handled by the same person. In addition, a review of these completed duties should be performed by an individual independent of those functions. Condition: While testing controls over cash management and reporting, we noted there is no process of review of the funds being drawn for cash management and the reports being submitted for reporting requirements. One individual performs the process of creating and submitting reports and reimbursement. Questioned costs: None. Context: While testing controls over cash management and reporting, we noted there is no formal process of review of the funds being drawn for cash management and the reports being submitted for reporting requirements. One individual performs the process of creating and submitting reports and reimbursement. It was noted a transposition error on the one Higher Education Emergency Relief Fund - Student Portion reporting which could have been caught and fixed if review processes were in place. Cause: The University does not have formal procedures in place for reviewing reports prior to submission. Effect: When separation of duties is inadequate, there is a resulting danger that intentional fraud or unintentional errors could occur and not be detected. Repeat Finding: No. Recommendation: We recommend that the University review the current assignment of duties for individuals and incorporate review processes for individuals where appropriate. Views of responsible officials: See corrective action plan.
Federal Agency: U.S. Department of Education Federal Program Name: Education Stabilization Fund ? Higher Education Emergency Relief Fund ? Institutional Portion Assistance Listing Number: 84.425F Federal Award Identification Number and Year: P425F200150 - 2022 Award Period: July 01, 2021 - June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Uniform Administrative Guidance, Cost Principals, and Requirements for Federal Awards (Uniform Guidance) became effective for grants or incremental funding made on or after December 26, 2014. Entities are now required to have written policies and procedures in place over certain compliance requirements. Compliance requirements that have been significantly affected due to the changes in Uniform Guidance include allowable costs, procurement, and subrecipient monitoring. Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition: It was noted that the University has not implemented formal, written policies and procedures to align with the Uniform Grant Guidance requirements for procurement and suspension and debarment. Questioned costs: None. Context: It was noted that the University has not implemented formal, written policies and procedures to align with the Uniform Grant Guidance requirements for procurement and suspension and debarment. Cause: The University does not have a formal written policy and procedures to align with the Uniform Grant Guidance requirements for procurement and suspension and debarment which could cause the University to be in noncompliance with certain federal awards they receive. Effect: The University could potentially be in noncompliance with certain regulations. Repeat Finding: No. Recommendation: We recommend the University document and implement policies and procedures that are aligned with Uniform Grant Guidance for procurement and suspension and debarment to limit the risk for noncompliance. Views of responsible officials: See corrective action plan.
Federal Agency: U.S. Department of Education Federal Program Name: Education Stabilization Fund ? Higher Education Emergency Relief Fund ? Institutional Portion, Student Portion, and Minority Serving Institutions Assistance Listing Number: 84.425F, 84.425E, 84.425L Federal Award Identification Number and Year: Various Award Period: July 01, 2021 - June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: An essential part of internal control is that procedures are properly segregated, and the results of their performance be adequately reviewed. This is normally accomplished by assigning duties to that 1) no one person handles a transaction from beginning to end, and 2) incompatible duties between functions are not handled by the same person. In addition, a review of these completed duties should be performed by an individual independent of those functions. Condition: While testing controls over cash management and reporting, we noted there is no process of review of the funds being drawn for cash management and the reports being submitted for reporting requirements. One individual performs the process of creating and submitting reports and reimbursement. Questioned costs: None. Context: While testing controls over cash management and reporting, we noted there is no formal process of review of the funds being drawn for cash management and the reports being submitted for reporting requirements. One individual performs the process of creating and submitting reports and reimbursement. It was noted a transposition error on the one Higher Education Emergency Relief Fund - Student Portion reporting which could have been caught and fixed if review processes were in place. Cause: The University does not have formal procedures in place for reviewing reports prior to submission. Effect: When separation of duties is inadequate, there is a resulting danger that intentional fraud or unintentional errors could occur and not be detected. Repeat Finding: No. Recommendation: We recommend that the University review the current assignment of duties for individuals and incorporate review processes for individuals where appropriate. Views of responsible officials: See corrective action plan.
Federal Agency: U.S. Department of Education Federal Program Name: Education Stabilization Fund ? Higher Education Emergency Relief Fund ? Institutional Portion, Student Portion, and Minority Serving Institutions Assistance Listing Number: 84.425F, 84.425E, 84.425L Federal Award Identification Number and Year: Various Award Period: July 01, 2021 - June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: An essential part of internal control is that procedures are properly segregated, and the results of their performance be adequately reviewed. This is normally accomplished by assigning duties to that 1) no one person handles a transaction from beginning to end, and 2) incompatible duties between functions are not handled by the same person. In addition, a review of these completed duties should be performed by an individual independent of those functions. Condition: While testing controls over cash management and reporting, we noted there is no process of review of the funds being drawn for cash management and the reports being submitted for reporting requirements. One individual performs the process of creating and submitting reports and reimbursement. Questioned costs: None. Context: While testing controls over cash management and reporting, we noted there is no formal process of review of the funds being drawn for cash management and the reports being submitted for reporting requirements. One individual performs the process of creating and submitting reports and reimbursement. It was noted a transposition error on the one Higher Education Emergency Relief Fund - Student Portion reporting which could have been caught and fixed if review processes were in place. Cause: The University does not have formal procedures in place for reviewing reports prior to submission. Effect: When separation of duties is inadequate, there is a resulting danger that intentional fraud or unintentional errors could occur and not be detected. Repeat Finding: No. Recommendation: We recommend that the University review the current assignment of duties for individuals and incorporate review processes for individuals where appropriate. Views of responsible officials: See corrective action plan.
Federal Agency: U.S. Department of Education Federal Program Name: Federal Pell Grant Program; Federal Direct Student Loans Assistance Listing Number: 84.063; 84.268 Federal Award Identification Number and Year: Various Award Period: July 01, 2021 - June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: Per U.S. Department of Education (ED) regulations, all schools participating (or approved to participate) in the Federal Student Aid programs must have an arrangement to report student enrollment data to the NSLDS through a roster file. The school is required to report enrollment status at both the school and program level. The school is required to report changes in the student?s enrollment status, the effective date of the status and an anticipated completion date. An academic program is defined as the combination of the school?s Office of Postsecondary Education Identification (OPEID) number and the program?s Classification of Instructional Program (CIP) code, credential level, and published program length. ED requires the University to report changes in enrollment status and indicate the date that the changes occurred (34 CFR 685.309). Changes in enrollment status must be reported within 30 days. However, if a roster file is expected within 60 days, you may provide the date on that roster file. In addition, regulations require that an institution make necessary corrections and return the records within 10 days for any roster files that don?t pass the NSLDS enrollment reporting edits. ED requires the University to report changes in enrollment status within 30 or 60 days that the University determined the changes occurred (34 CFR 682.610). Condition: Certain students? enrollment information was not reported accurately or timely to the NSLDS. Questioned costs: None. Context: ? 1 student out of sample of 5 students tested was reported to NSLDS with the incorrect enrollment status on both the campus-level and program-level records in the NSLDS. ? 2 students out of sample of 5 students tested were not reported to the campus-level record in the NSLDS within a timely manner. Cause: The University uses a third-party servicer to submit their enrollment reports to the NSLDS. Occasionally, the third-party servicer incorrectly or not timely communicates information to the NSLDS, which results in discrepancies between the University?s system and the NSLDS. The University has the ultimate responsibility to ensure that reporting is correct. Effect: Inaccurate reporting to the NSLDS can result in incorrect determination of when the students? grace period should begin. Repeat Finding: Yes, 2021-001.
Federal Agency: U.S. Department of Education Federal Program Name: Federal Pell Grant Program; Federal Direct Student Loans Assistance Listing Number: 84.063; 84.268 Federal Award Identification Number and Year: Various Award Period: July 01, 2021 - June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: Per U.S. Department of Education (ED) regulations, all schools participating (or approved to participate) in the Federal Student Aid programs must have an arrangement to report student enrollment data to the NSLDS through a roster file. The school is required to report enrollment status at both the school and program level. The school is required to report changes in the student?s enrollment status, the effective date of the status and an anticipated completion date. An academic program is defined as the combination of the school?s Office of Postsecondary Education Identification (OPEID) number and the program?s Classification of Instructional Program (CIP) code, credential level, and published program length. ED requires the University to report changes in enrollment status and indicate the date that the changes occurred (34 CFR 685.309). Changes in enrollment status must be reported within 30 days. However, if a roster file is expected within 60 days, you may provide the date on that roster file. In addition, regulations require that an institution make necessary corrections and return the records within 10 days for any roster files that don?t pass the NSLDS enrollment reporting edits. ED requires the University to report changes in enrollment status within 30 or 60 days that the University determined the changes occurred (34 CFR 682.610). Condition: Certain students? enrollment information was not reported accurately or timely to the NSLDS. Questioned costs: None. Context: ? 1 student out of sample of 5 students tested was reported to NSLDS with the incorrect enrollment status on both the campus-level and program-level records in the NSLDS. ? 2 students out of sample of 5 students tested were not reported to the campus-level record in the NSLDS within a timely manner. Cause: The University uses a third-party servicer to submit their enrollment reports to the NSLDS. Occasionally, the third-party servicer incorrectly or not timely communicates information to the NSLDS, which results in discrepancies between the University?s system and the NSLDS. The University has the ultimate responsibility to ensure that reporting is correct. Effect: Inaccurate reporting to the NSLDS can result in incorrect determination of when the students? grace period should begin. Repeat Finding: Yes, 2021-001.
Federal Agency: U.S. Department of Education Federal Program Name: Education Stabilization Fund ? Higher Education Emergency Relief Fund ? Institutional Portion, Student Portion, and Minority Serving Institutions Assistance Listing Number: 84.425F, 84.425E, 84.425L Federal Award Identification Number and Year: Various Award Period: July 01, 2021 - June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: An essential part of internal control is that procedures are properly segregated, and the results of their performance be adequately reviewed. This is normally accomplished by assigning duties to that 1) no one person handles a transaction from beginning to end, and 2) incompatible duties between functions are not handled by the same person. In addition, a review of these completed duties should be performed by an individual independent of those functions. Condition: While testing controls over cash management and reporting, we noted there is no process of review of the funds being drawn for cash management and the reports being submitted for reporting requirements. One individual performs the process of creating and submitting reports and reimbursement. Questioned costs: None. Context: While testing controls over cash management and reporting, we noted there is no formal process of review of the funds being drawn for cash management and the reports being submitted for reporting requirements. One individual performs the process of creating and submitting reports and reimbursement. It was noted a transposition error on the one Higher Education Emergency Relief Fund - Student Portion reporting which could have been caught and fixed if review processes were in place. Cause: The University does not have formal procedures in place for reviewing reports prior to submission. Effect: When separation of duties is inadequate, there is a resulting danger that intentional fraud or unintentional errors could occur and not be detected. Repeat Finding: No. Recommendation: We recommend that the University review the current assignment of duties for individuals and incorporate review processes for individuals where appropriate. Views of responsible officials: See corrective action plan.
Federal Agency: U.S. Department of Education Federal Program Name: Education Stabilization Fund ? Higher Education Emergency Relief Fund ? Institutional Portion Assistance Listing Number: 84.425F Federal Award Identification Number and Year: P425F200150 - 2022 Award Period: July 01, 2021 - June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Uniform Administrative Guidance, Cost Principals, and Requirements for Federal Awards (Uniform Guidance) became effective for grants or incremental funding made on or after December 26, 2014. Entities are now required to have written policies and procedures in place over certain compliance requirements. Compliance requirements that have been significantly affected due to the changes in Uniform Guidance include allowable costs, procurement, and subrecipient monitoring. Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition: It was noted that the University has not implemented formal, written policies and procedures to align with the Uniform Grant Guidance requirements for procurement and suspension and debarment. Questioned costs: None. Context: It was noted that the University has not implemented formal, written policies and procedures to align with the Uniform Grant Guidance requirements for procurement and suspension and debarment. Cause: The University does not have a formal written policy and procedures to align with the Uniform Grant Guidance requirements for procurement and suspension and debarment which could cause the University to be in noncompliance with certain federal awards they receive. Effect: The University could potentially be in noncompliance with certain regulations. Repeat Finding: No. Recommendation: We recommend the University document and implement policies and procedures that are aligned with Uniform Grant Guidance for procurement and suspension and debarment to limit the risk for noncompliance. Views of responsible officials: See corrective action plan.
Federal Agency: U.S. Department of Education Federal Program Name: Education Stabilization Fund ? Higher Education Emergency Relief Fund ? Institutional Portion, Student Portion, and Minority Serving Institutions Assistance Listing Number: 84.425F, 84.425E, 84.425L Federal Award Identification Number and Year: Various Award Period: July 01, 2021 - June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: An essential part of internal control is that procedures are properly segregated, and the results of their performance be adequately reviewed. This is normally accomplished by assigning duties to that 1) no one person handles a transaction from beginning to end, and 2) incompatible duties between functions are not handled by the same person. In addition, a review of these completed duties should be performed by an individual independent of those functions. Condition: While testing controls over cash management and reporting, we noted there is no process of review of the funds being drawn for cash management and the reports being submitted for reporting requirements. One individual performs the process of creating and submitting reports and reimbursement. Questioned costs: None. Context: While testing controls over cash management and reporting, we noted there is no formal process of review of the funds being drawn for cash management and the reports being submitted for reporting requirements. One individual performs the process of creating and submitting reports and reimbursement. It was noted a transposition error on the one Higher Education Emergency Relief Fund - Student Portion reporting which could have been caught and fixed if review processes were in place. Cause: The University does not have formal procedures in place for reviewing reports prior to submission. Effect: When separation of duties is inadequate, there is a resulting danger that intentional fraud or unintentional errors could occur and not be detected. Repeat Finding: No. Recommendation: We recommend that the University review the current assignment of duties for individuals and incorporate review processes for individuals where appropriate. Views of responsible officials: See corrective action plan.
Federal Agency: U.S. Department of Education Federal Program Name: Education Stabilization Fund ? Higher Education Emergency Relief Fund ? Institutional Portion, Student Portion, and Minority Serving Institutions Assistance Listing Number: 84.425F, 84.425E, 84.425L Federal Award Identification Number and Year: Various Award Period: July 01, 2021 - June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: An essential part of internal control is that procedures are properly segregated, and the results of their performance be adequately reviewed. This is normally accomplished by assigning duties to that 1) no one person handles a transaction from beginning to end, and 2) incompatible duties between functions are not handled by the same person. In addition, a review of these completed duties should be performed by an individual independent of those functions. Condition: While testing controls over cash management and reporting, we noted there is no process of review of the funds being drawn for cash management and the reports being submitted for reporting requirements. One individual performs the process of creating and submitting reports and reimbursement. Questioned costs: None. Context: While testing controls over cash management and reporting, we noted there is no formal process of review of the funds being drawn for cash management and the reports being submitted for reporting requirements. One individual performs the process of creating and submitting reports and reimbursement. It was noted a transposition error on the one Higher Education Emergency Relief Fund - Student Portion reporting which could have been caught and fixed if review processes were in place. Cause: The University does not have formal procedures in place for reviewing reports prior to submission. Effect: When separation of duties is inadequate, there is a resulting danger that intentional fraud or unintentional errors could occur and not be detected. Repeat Finding: No. Recommendation: We recommend that the University review the current assignment of duties for individuals and incorporate review processes for individuals where appropriate. Views of responsible officials: See corrective action plan.