FAC Explorer

Finding 1175732 (2025-003)

Material Weakness Repeat Finding
Requirement
C
Questioned Costs
-
Year
2025
Accepted
2026-02-27
Audit: 389644
Organization: Saint Mary's University of Minnesota (MN)
Auditor: BAKER TILLY US LLP

AI Summary

  • Core Issue: Lack of documented review and approval for G5 drawdown requests, violating Title IV regulations.
  • Impacted Requirements: Internal controls over cash management are inadequate, increasing the risk of errors or fraud.
  • Recommended Follow-Up: Implement a formal review process with documentation for all G5 draw requests, ensuring separation of duties.

Finding Text

Finding 2025-003: Significant Deficiency – Cash management Program: Federal Pell Grant Program and Federal Supplemental Educational Opportunity Grants ALN Number: Various Federal Agency: U.S. Department of Education Federal Award Identification Number: Various Federal Award Year: May 31, 2025 Criteria: Title IV regulations (34 CFR 668.16) require recipients of federal awards to administer its federal programs with an adequate system of internal controls over Cash Management. Condition/Context: G5 Drawdown requests were not documented as reviewed and approved by a responsible party separate from the preparer. For 2 of the 7 G5 draws tested, there was no documentation of review or approval by someone other than the preparer. The sample was not a statistically valid sample. Cause: No documentation of review or approval of amounts drawn from G5 was maintained. Effect: Due to the lack of documented review and approval, the College could be at risk for erroneous or fraudulent drawdowns to be requested. Questioned Costs: Not applicable. Recommendation: The University should maintain documentation of the review and approval of G5 drawdown requests by a responsible party separate from the preparer. Management Response: The University agrees with this finding. A form will be created to support each G5 draw or refund. Requestor will fill out the form, providing details of the transaction. The form will be reviewed and signed off by the Controller or EVP of Finance. The person performing the transaction in G5 will sign, attached all the appropriate back-up and file in a designated area for future reference.

Corrective Action Plan

Saint Mary’s University of Minnesota Corrective Action Plan For the Year Ended May 31, 2025 Finding 2025-003 - Cash Management Condition G5 Drawdown requests were not documented as reviewed and approved by a responsible party separate from the preparer. For 2 of the 7 G5 draws tested, there was no documentation of review or approval by someone other than the preparer. The sample was not a statistically valid sample. Corrective Action Plan Corrective Action Planned: A form will be created to support each G5 draw or refund. Requestor will fill out the form, providing details of the transaction. The form will be reviewed and signed off by the Controller or EVP of Finance. The person performing the transaction in G5 will sign, attached all the appropriate back-up and file in a designated area for future reference. Name(s) of Contact Person(s) Responsible for Corrective Action: Karen Stellpflug, Controller and David Ansell, Assistant Vice President for Finance Anticipated Completion Date: March 31, 2026

Categories

Student Financial Aid Cash Management Significant Deficiency

Other Findings in this Audit

  • 1175720 2025-001
    Material Weakness Repeat
  • 1175721 2025-002
    Material Weakness Repeat
  • 1175722 2025-003
    Material Weakness Repeat
  • 1175723 2025-001
    Material Weakness Repeat
  • 1175724 2025-001
    Material Weakness Repeat
  • 1175725 2025-001
    Material Weakness Repeat
  • 1175726 2025-001
    Material Weakness Repeat
  • 1175727 2025-001
    Material Weakness Repeat
  • 1175728 2025-003
    Material Weakness Repeat
  • 1175729 2025-003
    Material Weakness Repeat
  • 1175730 2025-003
    Material Weakness Repeat
  • 1175731 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $34.41M
84.063 FEDERAL PELL GRANT PROGRAM $2.06M
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $518,360
15.665 NATIONAL WETLANDS INVENTORY $300,290
15.945 COOPERATIVE RESEARCH AND TRAINING PROGRAMS – RESOURCES OF THE NATIONAL PARK SYSTEM $159,328
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $152,681
84.033 FEDERAL WORK-STUDY PROGRAM $115,146
66.436 SURVEYS, STUDIES, INVESTIGATIONS, DEMONSTRATIONS, AND TRAINING GRANTS AND COOPERATIVE AGREEMENTS - SECTION 104(B)(3) OF THE CLEAN WATER ACT $22,253
15.686 NATIONAL FISH HABITAT PARTNERSHIP $6,706
15.808 U.S. GEOLOGICAL SURVEY RESEARCH AND DATA COLLECTION $5,225
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $3,772