FAC Explorer

Finding 1131785 (2024-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-04-18
Audit: 353990
Organization: California State University (CA)
Auditor: Kpmg LLP

AI Summary

  • Core Issue: The University lacked adequate controls for reporting expenditures on the SEFA, leading to a significant error in SNAP program expenditures.
  • Impacted Requirements: Non-compliance with 2 CFR 200.510(b) and 2 CFR 200.303 due to insufficient internal controls and failure to accurately report federal expenditures.
  • Recommended Follow-Up: Implement stronger review procedures and final reconciliations for SNAP expenditures to ensure accurate SEFA reporting and compliance with federal guidelines.

Finding Text

Criteria: According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Additionally, 2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and maintain internal controls designated to reasonably ensure compliance with Federal laws and regulations. Effective internal controls should include procedures to ensure federal expenditures are accurately and completely reported on the SEFA. Condition and Context: The University did not have adequate controls relating to the reporting of expenditures on the SEFA for the Supplemental Nutrition Assistance Program Cluster (SNAP). The Sacramento campus confirmed with the Chancellor’s office that the final federal expenditures for the SNAP program in the current fiscal year were $6,206,313. It was determined subsequent to this notification that the actual federal expenditures for the SNAP program were $3,806,804. The University’s overall SEFA is compiled by the Chancellor’s office and relies on each campus to have internal controls that ensure completeness and accuracy of the SEFA. Cause and Effect: In discussing these conditions with the University, they stated the error was primarily due to not completing a final reconciliation and review of the SNAP federal expenditures before being provided to the Chancellor’s office. Additionally, management review controls at the campus over the completeness and accuracy of SEFA were not designed to detect the error. The inadequate review procedures over the SNAP federal expenditures resulted in an error on the SEFA for SNAP program expenditures in the amount of $2,399,509. Failure to establish effective internal controls regarding financial reporting for the preparation of the SEFA may prevent the University from completing an audit in accordance with the timelines of Uniform Guidance.

Categories

Reporting

Other Findings in this Audit

  • 555342 2024-001
    Material Weakness Repeat
  • 555343 2024-002
    Material Weakness Repeat
  • 555344 2024-003
    Material Weakness Repeat
  • 1131784 2024-001
    Material Weakness Repeat
  • 1131786 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans (direct Loan) $1.14B
84.063 Federal Pell Grant Program (pell) $1.11B
84.033 Federal Work-Study Program (fws) $23.83M
84.007 Federal Supplemental Educational Opportunity Grants (fseog) $23.81M
84.038 Federal Perkins Loan Program (perkins Loan Advanced and Aca) $15.96M
93.310 Trans-Nih Research Support $3.26M
84.425 Education Stabilization Fund $3.24M
11.028 Connecting Minority Communities Pilot Program $2.13M
84.042 Trio Student Support Services $1.97M
93.364 Nursing Student Loans (nursing Loan) $1.95M
84.047 Trio Upward Bound $1.94M
93.658 Foster Care Title IV-E $1.28M
84.365 English Language Acquisition State Grants $1.07M
84.379 Teacher Education Assistance for College and Higher Education Grants (teach) $1.03M
11.420 Coastal Zone Management Estuarine Research Reserves $803,641
84.184 School Safely National Activities $784,665
84.411 Education Innovation and Research (formerly Investing in Innovation (i3) Fund) $772,777
47.070 Computer and Information Science and Engineering $636,830
84.325 Special Education - Personnel Development to Improve Services and Results for Children with Disabilities $593,123
93.967 Centers for Disease Control and Prevention Collaboration with Academia to Strengthen Public Health $579,191
84.103 Trio Staff Training Program $572,292
84.217 Trio McNair Post-Baccalaureate Achievement $540,077
84.129 Rehabilitation Long-Term Training $537,918
84.326 Special Education Technical Assistance and Dissemination to Improve Services and Results for Children with Disabilities $533,014
84.044 Trio Talent Search $506,030
81.117 Energy Efficiency and Renewable Energy Information Dissemination, Outreach, Training and Technical Analysis/assistance $432,996
20.806 State Maritime Schools $399,570
20.600 State and Community Highway Safety $383,609
93.307 Minority Health and Health Disparities Research $343,906
93.575 Child Care and Development Block Grant $321,313
97.036 Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus $312,896
12.U01 U.s. Department of Defense $300,826
20.616 National Priority Safety Programs $247,316
93.558 Temporary Assistance for Needy Families $237,125
93.991 Preventive Health and Health Services Block Grant $229,451
15.564 Central Valley Project Conservation $226,527
84.235 Rehabilitation Services Demonstration and Training Programs $219,381
43.001 Science $217,269
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $212,673
93.855 Allergy and Infectious Diseases Research $211,452
84.116 Fund for the Improvement of Postsecondary Education $205,221
84.335 Child Care Access Means Parents in School $195,369
93.994 Maternal and Child Health Services Block Grant to the States $183,935
11.463 Habitat Conservation $174,302
10.664 Cooperative Forestry Assistance $148,959
11.417 Sea Grant Support $146,462
12.900 Language Grant Program $145,469
16.525 Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus $145,028
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $143,863
93.360 Head Start $135,007
84.126 Rehabilitation Services Vocational Rehabilitation Grants to States $124,454
47.050 Geosciences $121,403
66.461 Regional Wetland Program Development Grants $115,962
93.084 Prevention of Disease, Disability, and Death by Infectious Diseases $109,018
93.732 Mental and Behavioral Health Education and Training Grants $103,086
12.RD U.s. Department of Defense $102,422
45.169 Promotion of the Humanities Office of Digital Humanities $100,215
93.747 Elder Abuse Prevention Interventions Program $100,000
93.959 Block Grants for Prevention and Treatment of Substance Abuse $100,000
97.036 Hazard Mitigation Grant $99,618
10.516 Rural Health and Safety Education Competitive Grants Program $84,523
59.075 Shuttered Venue Operators Grant Program $84,350
15.648 Central Valley Project Improvement Act (cvpia) $81,743
10.223 Hispanic Serving Institutions Education Grants $81,664
16.575 Crime Victim Assistance $80,011
64.204 Veterans Legacy Grants Program $75,791
93.069 Public Health Emergency Preparedness $74,604
93.889 National Bioterrorism Hospital Preparedness Program $74,604
11.012 Integrated Ocean Observing System (ioos) $73,131
11.419 Coastal Zone Management Administration Awards $72,047
45.024 Promotion of the Arts Grants to Organizations and Individuals $71,421
15.808 U.s. Geological Survey Research and Data Collection $70,503
43.002 Aeronautics $63,904
45.161 Promotion of the Humanities Research $62,517
45.160 Promotion of the Humanities Fellowships and Stipends $60,000
93.242 Mental Health Research Grants $57,135
94.006 Americorps State and National 94.006 $56,927
16.922 Equitable Sharing Program $55,093
12.006 National Defense Education Program $54,999
93.847 Diabetes, Digestive, and Kidney Diseases Extramural Research $53,923
93.859 Biomedical Research and Research Training $52,834
81.000 Lbnl Lawrence Berkeley National Laboratory $51,545
47.079 Office of International Science and Engineering $49,008
47.084 Nsf Technology, Innovation, and Partnerships $47,250
94.013 Americorps Volunteers in Service to America 94.013 $46,872
11.469 Congressionally Identified Awards and Projects $43,492
15.945 Cooperative Research and Training Programs – Resources of the National Park System $43,437
10.001 Agricultural Research Basic and Applied Research $43,258
47.041 Engineering $43,209
12.550 The Language Flagship Grants to Institutions of Higher Education $43,000
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $39,225
93.121 Oral Diseases and Disorders Research $35,552
81.RD Sensei $32,847
98.RD Marine Mammal Bycatch Risk Assessment in Indonesia $32,047
11.999 Marine Debris Program $31,612
47.076 Stem Education (formerly Education and Human Resources) $31,441
93.394 Cancer Detection and Diagnosis Research $29,525
10.558 Child and Adult Care Food Program $27,037
84.382 Strengthening Minority-Serving Institutions $26,657
81.RD Elucidating Interfacial Chemistry and Transport Properties of Cathode-Electrolyte Interphase Through Integrated Multiscale Modeling and Multimodal Characterization $25,820
98.RD Positioning Shade-Grown Cocoa to Improve Conservation and Rural Livelihoods $20,956
93.866 Aging Research $19,783
47.075 Social, Behavioral, and Economic Sciences $18,474
21.017 Social Impact Partnerships to Pay for Results Act (sippra) $18,180
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $18,048
81.049 Office of Science Financial Assistance Program $17,399
93.865 Child Health and Human Development Extramural Research $16,809
84.031 Higher Education Institutional Aid $16,785
93.433 Acl National Institute on Disability, Independent Living, and Rehabilitation Research $13,728
16.835 Body Worn Camera Policy and Implementation $13,231
93.837 Cardiovascular Diseases Research $13,092
93.273 Alcohol Research Programs $12,996
45.164 Promotion of the Humanities Public Programs $12,831
15.512 Central Valley Improvement Act, Title Xxxiv $10,917
93.879 Medical Library Assistance $9,116
66.126 Geographic Programs - San Francisco Bay Water Quality Improvement Fund $8,815
81.RD MacHine Learning Based Model $8,608
11.478 Center for Sponsored Coastal Ocean Research Coastal Ocean Program $8,564
93.977 Sexually Transmitted Diseases (std) Prevention and Control Grants $7,858
45.162 Promotion of the Humanities Teaching and Learning Resources and Curriculum Development $6,973
47.074 Biological Sciences $6,297
47.049 Mathematical and Physical Sciences $5,477
93.RD Nih Infant and Toddler Toolbox $5,405
95.RD Diversity of Herbivorous and Pollinating Insects $5,349
45.025 Promotion of the Arts Partnership Agreements $4,500
11.473 Office for Coastal Management $3,828
12.230 Basic and Applied Scientific Research $3,234
10.699 Partnership Agreements $1,969
45.129 Promotion of the Humanities Federal/state Partnership $1,650
15.810 National Cooperative Geologic Mapping $1,339
15.805 Assistance to State Water Resources Research Institutes $1,234
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $1,148
97.039 Hazard Mitigation Grant $1,093
45.163 Promotion of the Humanities Professional Development $1,011
15.904 Historic Preservation Fund Grants-in-Aid $1,000
93.U01 Communities Talk Mini Grant $745
43.008 Office of Stem Engagement (ostem) $677
12.630 Basic, Applied, and Advanced Research in Science and Engineering $93
84.408 Postsecondary Education Scholarships for Veteran's Dependents (veterans) $0
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $0