Finding Text
Criteria: Uniform Guidance section 200.303(a), Internal controlsCondition: Management?s control to review and approve invoices related to the research anddevelopment program was not operating effectively during fiscal year 2022. Specifically, we identifiedan invoice that exceeded $300,001 but for which management did not obtain approval from thePresident and Board of Trustees as required prior to payment. This exception was identified during oursample testing of 40 expense transactions.Cause: Management did not have sufficient monitoring controls in place to ensure that internal controlsover compliance were operating effectively.Result: Without effective internal controls in place, there is an increased risk that materialnoncompliance may not be prevented or detected and corrected in a timely manner.Questioned costs: None.Sampling approach: The sample was not intended to be, and was not, a statistically valid sample.Repeat finding: This finding is not a repeat of a finding in the immediately prior audit.Recommendation: We recommend that management develop and implement periodic monitoringcontrols to ensure controls are operating effectively throughout the year. Management should alsoreinforce the review and approval requirements for the various dollar thresholds with the applicablestaff.Views of responsible officials: The University acknowledges the recommendations and will workdiligently to improve our procedures to ensure controls are operating effectively throughout the year. Inaddition, management has instructed the staff and supervisors to strengthen the review and approvalrequirements for the various dollar thresholds.