FAC Explorer

Finding 10563 (2022-018)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2024-01-29
Audit: 14277
Organization: Langston University (OK)
Auditor: Cliftonlarsonallen

AI Summary

  • Core Issue: The University lacks a process to review the internal controls of its third-party servicer for Title IV eligibility verification.
  • Impacted Requirements: This violates Uniform Guidance 2 CFR 200.303, which mandates that entities maintain controls to ensure compliance with federal regulations.
  • Recommended Follow-Up: The University should implement a review process for internal control reports from third-party servicers to ensure compliance and accuracy.

Finding Text

Federal Agency: US Department of Education Federal Program Title: Student Financial Assistance Cluster Assistance Listing Number: 84.007, 84.033, 84.063, 84.268 Federal Award Identification Number: P007A213424 - 2022, P033A123424 - 2022, P063P210352 - 2022, P268K220352 - 2022 Award Period: July 1, 2021 to June 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance; Compliance, Material Noncompliance Criteria or specific requirement: Per Uniform Guidance 2 CFR 200.303, nonfederal entities receiving federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Condition: The University does not review the work or internal control reports of their third-party servicer who performs eligibility verification procedures. Context: The University uses a third party to perform their verification procedures to assess Title IV student eligibility. The University does not review internal control reports, such as SOC1 reports, or perform other documented reviews of the third-party servicer's work. Questioned costs: N/A Cause: The University did not have a control in place to review the controls and accuracy of the third-party servicer's work. Effect: The third-party servicer could experience control deficiencies which may impact compliance and the University would be unaware and unable to make timely reviews of the work provided by the servicer Repeat finding: No Recommendation: We recommend the University review internal control reports and implement review controls for work performed by third party servicers. Views of responsible officials: Management agrees with the finding and has developed a plan to correct the finding.

Corrective Action Plan

Student Financial Aid Cluster: Federal Supplemental Educational Opportunity Grant – Assistance Listing No. 84.007 Federal Work Study Program – Assistance Listing No. 84.033 Federal Pell Grant Program – Assistance Listing No. 84.063 Federal Direct Student Loans – Assistance Listing No. 84.268 Recommendation: We recommend the University review internal control reports and implement review controls for work performed by third party servicers. Action taken in response to finding: The University agrees with the finding and has developed the following corrective action plan. The University is already utilizing Visual Compliance to assess all vendors for suspension and debarment but will obtain and document the review of the SOC 2 report for Visual Compliance annually. Name(s) of the contact person(s) responsible for corrective action: Scott Schlotthauer, Chief Procurement Officer at Oklahoma State University. Planned completion date for corrective action plan: December 2023

Categories

Student Financial Aid Eligibility Material Weakness Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 10557 2022-012
    Material Weakness
  • 10558 2022-013
    Material Weakness
  • 10559 2022-014
    Significant Deficiency
  • 10560 2022-015
    Material Weakness
  • 10561 2022-016
    Material Weakness
  • 10562 2022-017
    Significant Deficiency
  • 10564 2022-012
    Material Weakness
  • 10565 2022-013
    Material Weakness
  • 10566 2022-014
    Significant Deficiency
  • 10567 2022-015
    Material Weakness
  • 10568 2022-016
    Material Weakness
  • 10569 2022-017
    Significant Deficiency
  • 10570 2022-018
    Material Weakness
  • 10571 2022-012
    Material Weakness
  • 10572 2022-013
    Material Weakness
  • 10573 2022-014
    Significant Deficiency
  • 10574 2022-015
    Material Weakness
  • 10575 2022-016
    Material Weakness
  • 10576 2022-017
    Significant Deficiency
  • 10577 2022-018
    Material Weakness
  • 10578 2022-012
    Material Weakness
  • 10579 2022-013
    Material Weakness
  • 10580 2022-014
    Significant Deficiency
  • 10581 2022-015
    Material Weakness
  • 10582 2022-016
    Material Weakness
  • 10583 2022-017
    Significant Deficiency
  • 10584 2022-018
    Material Weakness
  • 10585 2022-012
    Material Weakness
  • 10586 2022-013
    Material Weakness
  • 10587 2022-014
    Significant Deficiency
  • 10588 2022-015
    Material Weakness
  • 10589 2022-016
    Material Weakness
  • 10590 2022-017
    Significant Deficiency
  • 10591 2022-018
    Material Weakness
  • 10592 2022-012
    Material Weakness
  • 10593 2022-013
    Material Weakness
  • 10594 2022-014
    Significant Deficiency
  • 10595 2022-015
    Material Weakness
  • 10596 2022-016
    Material Weakness
  • 10597 2022-017
    Significant Deficiency
  • 10598 2022-018
    Material Weakness
  • 10599 2022-011
    Significant Deficiency
  • 10600 2022-019
    Material Weakness
  • 10601 2022-011
    Significant Deficiency
  • 10602 2022-019
    Material Weakness
  • 10603 2022-011
    Significant Deficiency
  • 10604 2022-019
    Material Weakness
  • 10605 2022-011
    Significant Deficiency
  • 10606 2022-019
    Material Weakness
  • 10607 2022-011
    Significant Deficiency
  • 10608 2022-019
    Material Weakness
  • 10609 2022-011
    Significant Deficiency
  • 10610 2022-019
    Material Weakness
  • 10611 2022-011
    Significant Deficiency
  • 10612 2022-019
    Material Weakness
  • 10613 2022-011
    Significant Deficiency
  • 10614 2022-019
    Material Weakness
  • 10615 2022-011
    Significant Deficiency
  • 10616 2022-019
    Material Weakness
  • 586999 2022-012
    Material Weakness
  • 587000 2022-013
    Material Weakness
  • 587001 2022-014
    Significant Deficiency
  • 587002 2022-015
    Material Weakness
  • 587003 2022-016
    Material Weakness
  • 587004 2022-017
    Significant Deficiency
  • 587005 2022-018
    Material Weakness
  • 587006 2022-012
    Material Weakness
  • 587007 2022-013
    Material Weakness
  • 587008 2022-014
    Significant Deficiency
  • 587009 2022-015
    Material Weakness
  • 587010 2022-016
    Material Weakness
  • 587011 2022-017
    Significant Deficiency
  • 587012 2022-018
    Material Weakness
  • 587013 2022-012
    Material Weakness
  • 587014 2022-013
    Material Weakness
  • 587015 2022-014
    Significant Deficiency
  • 587016 2022-015
    Material Weakness
  • 587017 2022-016
    Material Weakness
  • 587018 2022-017
    Significant Deficiency
  • 587019 2022-018
    Material Weakness
  • 587020 2022-012
    Material Weakness
  • 587021 2022-013
    Material Weakness
  • 587022 2022-014
    Significant Deficiency
  • 587023 2022-015
    Material Weakness
  • 587024 2022-016
    Material Weakness
  • 587025 2022-017
    Significant Deficiency
  • 587026 2022-018
    Material Weakness
  • 587027 2022-012
    Material Weakness
  • 587028 2022-013
    Material Weakness
  • 587029 2022-014
    Significant Deficiency
  • 587030 2022-015
    Material Weakness
  • 587031 2022-016
    Material Weakness
  • 587032 2022-017
    Significant Deficiency
  • 587033 2022-018
    Material Weakness
  • 587034 2022-012
    Material Weakness
  • 587035 2022-013
    Material Weakness
  • 587036 2022-014
    Significant Deficiency
  • 587037 2022-015
    Material Weakness
  • 587038 2022-016
    Material Weakness
  • 587039 2022-017
    Significant Deficiency
  • 587040 2022-018
    Material Weakness
  • 587041 2022-011
    Significant Deficiency
  • 587042 2022-019
    Material Weakness
  • 587043 2022-011
    Significant Deficiency
  • 587044 2022-019
    Material Weakness
  • 587045 2022-011
    Significant Deficiency
  • 587046 2022-019
    Material Weakness
  • 587047 2022-011
    Significant Deficiency
  • 587048 2022-019
    Material Weakness
  • 587049 2022-011
    Significant Deficiency
  • 587050 2022-019
    Material Weakness
  • 587051 2022-011
    Significant Deficiency
  • 587052 2022-019
    Material Weakness
  • 587053 2022-011
    Significant Deficiency
  • 587054 2022-019
    Material Weakness
  • 587055 2022-011
    Significant Deficiency
  • 587056 2022-019
    Material Weakness
  • 587057 2022-011
    Significant Deficiency
  • 587058 2022-019
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $11.00M
12.630 Basic, Applied, and Advanced Research in Science and Engineering $599,822
84.031 Higher Education_institutional Aid $331,830
84.042 Trio_student Support Services $289,065
84.033 Federal Work-Study Program $261,018
93.397 Cancer Centers Support Grants $137,518
10.524 Scholarships for Students at 1890 Institutions (b) $111,996
93.137 Community Programs to Improve Minority Health Grant Program $109,659
84.063 Federal Pell Grant Program $93,279
10.514 Expanded Food and Nutrition Education Program $65,475
10.443 Outreach and Assistance for Socially Disadvantaged and Veteran Farmers and Ranchers $49,887
84.007 Federal Supplemental Educational Opportunity Grants $44,546
10.310 Agriculture and Food Research Initiative (afri) $43,102
84.335 Community Programs to Improve Minority Health Grant Program $37,988
15.904 Historic Preservation Fund Grants-in-Aid $37,822
10.216 1890 Institution Capacity Building Grants $26,373
93.433 Acl National Institute on Disability, Independent Living, and Rehabilitation Research $23,876
84.425 Education Stabilization Fund $23,204
10.215 Sustainable Agriculture Research and Education $21,601
10.961 Scientific Cooperation and Research $18,847
10.215 Payments to 1890 Land-Grant Colleges and Tuskegee University $15,923
47.083 Integrative Activities $14,368
10.216 1891 Institution Capacity Building Grants $14,172
10.523 Centers of Excellence at 1890 Institutions (b) $8,955
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $6,740
10.515 Renewable Resources Extension Act and National Focus Fund Projects $6,233
10.226 Secondary and Two-Year Postsecondary Agriculture Education Challenge Grants $3,608
47.076 Education and Human Resources $1,918
93.859 Biomedical Research and Research Training $1,823
10.777 Norman E. Borlaug International Agricultural Science and Technology Fellowship $1,343
12.598 Centers for Academic Excellence $-437
43.008 Education $-569
10.216 Sustainable Agriculture Research and Education $-648
10.205 Payments to 1890 Land-Grant Colleges and Tuskegee University $-2,348
10.512 Agriculture Extension at 1890 Land-Grant Institutions $-3,260
10.500 Cooperative Extension Service $-51,858