Finding 1130865 (2023-003)

Material Weakness
Requirement
A
Questioned Costs
-
Year
2023
Accepted
2025-04-08
Audit: 353088
Organization: Leech Lake Tribal College (AZ)
Auditor: Redw

AI Summary

  • Core Issue: The College lacks essential IT controls, policies, and procedures, exposing it to risks of data compromise and integrity issues.
  • Impacted Requirements: Compliance with federal program standards from the U.S. Department of Interior and Education is at risk due to inadequate IT governance.
  • Recommended Follow-Up: Implement formal IT controls, establish data backup processes, and create a disaster recovery plan to safeguard against data loss and breaches.

Finding Text

2023-003 — IT – Material Weakness in Internal Control Over Compliance and Noncompliance Federal program information: Funding agencies: U.S. Department of Interior and U.S. Department of Education Titles: Assistance to Tribally Controlled Community Colleges; Higher Education Institutional Aid; and Education Stabilization Fund ALN Number: 15.027, 84.031, and 84.425 Award years: Various Criteria: Without strong information technology internal controls and established policies and procedures, there is the potential for integrity of financial records, the confidentiality, integrity and/or availability of data to be compromised. This compromise could be by an internal user of the system, by an external source (hacker) and could be intentional or unintentional. Condition: The College’s IT control environment is lacking certain key controls. There are currently no formalized IT policies and procedures, sufficient data backup processes, or a formalized disaster recovery plan. IT controls are not in place to ensure non-authorized individuals are restricted from adding new vendors, recording journal entries, and making/or changes to employee pay records. Questioned Costs: N/A Cause: The IT controls have not been properly designed and implemented. Effect: The College is exposed to many risks regarding the integrity of the financial records, confidentiality, integrity and/or availability of its data. It is possible that their data could be compromised. Compromise could be by an internal user of the system, by an external source (hacker) and could be intentional or unintentional. Additionally, during fiscal year 2024, the College experienced an outage which resulted in a loss of data. As no backup procedures were in place, amounts had to be restored in the system using other financial source data. Auditor’s Recommendations: Establishing IT controls, policies and procedures, off-site electronic data backups, and a disaster recovery plan would better prepare the College for technology related issues, system crashes, or data breaches. Management’s Response: Management concurs with this finding.

Categories

Internal Control / Segregation of Duties Material Weakness

Other Findings in this Audit

  • 554420 2023-003
    Material Weakness
  • 554421 2023-003
    Material Weakness
  • 554422 2023-003
    Material Weakness
  • 554423 2023-003
    Material Weakness
  • 554424 2023-003
    Material Weakness
  • 554425 2023-003
    Material Weakness
  • 554426 2023-004
    Material Weakness
  • 554427 2023-004
    Material Weakness
  • 554428 2023-004
    Material Weakness
  • 554429 2023-004
    Material Weakness
  • 554430 2023-004
    Material Weakness
  • 554431 2023-004
    Material Weakness
  • 554432 2023-005
    Material Weakness Repeat
  • 554433 2023-005
    Material Weakness Repeat
  • 554434 2023-005
    Material Weakness Repeat
  • 554435 2023-005
    Material Weakness Repeat
  • 554436 2023-005
    Material Weakness Repeat
  • 554437 2023-005
    Material Weakness Repeat
  • 554438 2023-006
    Material Weakness Repeat
  • 554439 2023-006
    Material Weakness Repeat
  • 554440 2023-006
    Material Weakness Repeat
  • 554441 2023-006
    Material Weakness Repeat
  • 554442 2023-006
    Material Weakness Repeat
  • 554443 2023-006
    Material Weakness Repeat
  • 554444 2023-007
    Significant Deficiency Repeat
  • 554445 2023-007
    Significant Deficiency Repeat
  • 554446 2023-007
    Significant Deficiency Repeat
  • 554447 2023-007
    Significant Deficiency Repeat
  • 554448 2023-007
    Significant Deficiency Repeat
  • 554449 2023-007
    Significant Deficiency Repeat
  • 554450 2023-008
    Significant Deficiency
  • 554451 2023-008
    Significant Deficiency
  • 1130862 2023-003
    Material Weakness
  • 1130863 2023-003
    Material Weakness
  • 1130864 2023-003
    Material Weakness
  • 1130866 2023-003
    Material Weakness
  • 1130867 2023-003
    Material Weakness
  • 1130868 2023-004
    Material Weakness
  • 1130869 2023-004
    Material Weakness
  • 1130870 2023-004
    Material Weakness
  • 1130871 2023-004
    Material Weakness
  • 1130872 2023-004
    Material Weakness
  • 1130873 2023-004
    Material Weakness
  • 1130874 2023-005
    Material Weakness Repeat
  • 1130875 2023-005
    Material Weakness Repeat
  • 1130876 2023-005
    Material Weakness Repeat
  • 1130877 2023-005
    Material Weakness Repeat
  • 1130878 2023-005
    Material Weakness Repeat
  • 1130879 2023-005
    Material Weakness Repeat
  • 1130880 2023-006
    Material Weakness Repeat
  • 1130881 2023-006
    Material Weakness Repeat
  • 1130882 2023-006
    Material Weakness Repeat
  • 1130883 2023-006
    Material Weakness Repeat
  • 1130884 2023-006
    Material Weakness Repeat
  • 1130885 2023-006
    Material Weakness Repeat
  • 1130886 2023-007
    Significant Deficiency Repeat
  • 1130887 2023-007
    Significant Deficiency Repeat
  • 1130888 2023-007
    Significant Deficiency Repeat
  • 1130889 2023-007
    Significant Deficiency Repeat
  • 1130890 2023-007
    Significant Deficiency Repeat
  • 1130891 2023-007
    Significant Deficiency Repeat
  • 1130892 2023-008
    Significant Deficiency
  • 1130893 2023-008
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
15.027 Assistance to Tribally Controlled Community Colleges and Universities $1.65M
84.063 Federal Pell Grant Program $697,258
84.425 Covid 19-Education Stabilization Fund $685,292
84.031 Higher Education Institutional Aid $544,523
15.027 Covid19-Assistance to Tribally Controlled Community Colleges and Universities $495,156
10.500 Cooperative Extension Service $297,781
10.766 Community Facilities Loans and Grants $226,852
10.222 Tribal Colleges Endowment Program $160,664
47.076 Stem Education (formerly Education and Human Resources) $141,011
10.221 Tribal Colleges Education Equity Grants $135,360
10.202 Cooperative Forestry Research $133,470
84.007 Federal Supplemental Educational Opportunity Grants $12,450
84.425 Education Stabilization Fund $8,460
43.008 Office of Stem Engagement (ostem) $7,607
84.033 Federal Work-Study Program $3,213