Finding Text
Federal Agency: Department of Education
Federal Program Title: Student Financial Assistance Cluster
Federal Assistance Listing Number: Various
Federal Award Identification Number and Year: N/A
Pass-Through Agency: N/A
Pass-Through Number: N/A
Award Period: July 1, 2022 – June 30, 2023
Type of Finding:
Material Weakness in Internal Control Over Compliance
Other Matters
Criteria or specific requirement: Per the Uniform Guidance regulations, entities that expend more than $750,000 of federal funds must submit an audit within nine months of the entity’s year end.
Condition: Due to turnover in the business office, the audit was submitted late.
Questioned costs: None
Context: Approximately halfway through the fiscal year, the University hired a new controller. Unfortunately, that controller did have the skills needed to be able to accurately assemble a complete set of financial statements. Two weeks before the deadline, the controller terminated employment with the University. At that time, it was determined that additional work needed to be completed to accurately present the financial statements and additional time was needed to ensure that the financial statements were accurate.
Cause: Due to the limited resources of the business office and the lack of qualified candidates in the marketplace, the University was forced to accept a lessor qualified candidate whose employment was ultimately terminated.
Effect: The Uniform Guidance reports were submitted late.
Repeat finding: No
Auditor’s recommendation: We recommend that the University immediately start the search process for a replacement controller and potentially look into outsourcing that position if necessary.
Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.