FAC Explorer

Finding 1085857 (2022-001)

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Requirement
P
Questioned Costs
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Year
2022
Accepted
2024-11-20
Audit: 329168
Organization: Clarkson University (NY)
Auditor: Kpmg

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over financial reporting, with no substantial improvement noted since the last audit.
  • Impacted Requirements: Financial statement adjustments and errors in journal entries indicate a lack of proper review processes, risking material misstatements.
  • Recommended Follow-Up: Management should review and strengthen journal entry policies, enhance monitoring controls, and ensure timely reconciliation and review of financial statements.

Finding Text

Finding 2022-001, Financial Reporting During the fiscal 2021 audit we disclosed a significant deficiency in internal controls over financial reporting and during the fiscal 2022 audit we did not observe substantial improvement in financial reporting controls and oversight. We continued to see a number of financial statement adjustments that were identified as part of the audit process. In addition, in fiscal 2022 we noted a number of journal entries that required reversal and reposting due to the initial errors in the original journal entry. This occurred as the journal entries were not reviewed by someone other than the preparer prior to posting to the general ledger. This breakdown in internal control creates a risk that the consolidated financial statements are materially misstated. We recommend that management perform a review of the University’s policies and procedures for journal entry review, strengthen controls or add monitoring controls to ensure periodic reconciliation of all balance sheet accounts and the University’s process for timely compiling and reviewing the financial statements.

Categories

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting Significant Deficiency

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $27.58M
84.038 Federal Perkins Loan Program $3.59M
84.425 Education Stabilization Fund $3.20M
84.063 Federal Pell Grant Program $2.84M
66.469 Great Lakes Program $1.02M
84.033 Federal Work-Study Program $584,074
84.007 Federal Supplemental Educational Opportunity Grants $440,184
84.042 Trio_student Support Services $300,517
84.217 Trio_mcnair Post-Baccalaureate Achievement $276,721
12.114 Collaborative Research and Development $269,691
93.394 Cancer Detection and Diagnosis Research $235,375
84.365 English Language Acquisition State Grants $232,285
93.865 Child Health and Human Development Extramural Research $219,366
12.300 Basic and Applied Scientific Research $170,651
47.050 Geosciences $145,324
20.200 Highway Research and Development Program $135,549
81.049 Office of Science Financial Assistance Program $126,925
47.075 Social, Behavioral, and Economic Sciences $119,135
81.086 Conservation Research and Development $93,251
12.910 Research and Technology Development $88,674
47.076 Education and Human Resources $80,122
11.431 Climate and Atmospheric Research $78,920
10.310 Agriculture and Food Research Initiative (afri) $70,312
93.273 Alcohol Research Programs $67,320
12.420 Military Medical Research and Development $66,293
47.074 Biological Sciences $63,895
97.077 Homeland Security Research, Development, Testing, Evaluation, and Demonstration of Technologies Related to Nuclear Threat Detection $62,166
93.173 Research Related to Deafness and Communication Disorders $50,822
12.800 Air Force Defense Research Sciences Program $49,620
12.901 Mathematical Sciences Grants Program $47,280
11.609 Measurement and Engineering Research and Standards $43,130
43.002 Aeronautics $27,830
43.008 Education $26,182
66.511 Office of Research and Development Consolidated Research/training/fellowships $17,249
47.049 Mathematical and Physical Sciences $17,248
81.117 Energy Efficiency and Renewable Energy Information Dissemination, Outreach, Training and Technical Analysis/assistance $17,051
45.162 Promotion of the Humanities_teaching and Learning Resources and Curriculum Development $14,289
93.989 International Research and Research Training $8,935
43.012 Space Technology $8,641
47.041 Engineering $7,816
12.000 Unknown (battelle) $7,793
93.913 Grants to States for Operation of Offices of Rural Health $7,600
12.431 Basic Scientific Research $6,819
15.944 Natural Resource Stewardship $6,170
84.037 Federal Perkins Loan Cancellations $4,700
20.215 Highway Training and Education $3,798
47.070 Computer and Information Science and Engineering $3,719
93.859 Biomedical Research and Research Training $2,616
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $344