Finding Text
Federal Program: TRIO Cluster Federal Assistance Listing Number: 84.047 Federal Agency: Department of Education Award Year: 2024 Criteria: According to the Uniform Guidance (2 CFR Part 200) and TRIO program regulations, the University is required to maintain internal controls to ensure the University minimizes the time between the drawdown of federal funds and their disbursement for federal program purposes. The University is required to maintain internal controls to ensure this objective is met and supported. Condition: The University did not maintain proper internal controls over the drawdown of federal funds. Specifically, it was observed that documentation supporting the drawdowns and approval of the drawdowns themselves were not maintained. Management was subsequently able to provide support for the drawdown. Cause: The lack of documentation of support and approval for federal drawdowns appears to stem from inadequate oversight of the federal drawdown process. In some cases, personnel responsible for financial management may not have received sufficient training or turnover resulted in a lack of documentation retention noting formal approval. Context: In our testing, 2 of 2 drawdowns the University initiated did not include support of or evidence supporting the approval of the amounts requested. Management was able to subsequently provide support for the drawdown by providing evidence from the general ledger that supported the amounts requested. Effect: The University did not have proper internal controls to ensure federal drawdowns were supported and approved prior to requesting funds. Questioned Costs: None Repeat Finding: No Recommendations: The University should modify its internal controls to ensure proper support and approval of federal fund drawdowns. Management's Response: Management agrees with the finding. See corrective action plan.