Finding 1175755 (2025-003)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2026-02-27
Audit: 389665
Organization: High Point University (NC)

AI Summary

  • Core Issue: The University failed to submit required compliance reports for the Medicaid grant due to lack of templates from the grantor.
  • Impacted Requirements: This oversight violates the reporting obligations outlined in the subaward agreement and 2 CFR 200.514.
  • Recommended Follow-Up: Strengthen internal controls and ensure adherence to grant compliance policies to prevent future reporting issues.

Finding Text

Information on Federal Program ‒ Grants to States for Medicaid (Assistance Listing Number 93.778) Criteria – Consistent with the requirements of 2 CFR 200.514, Subpart 3, L Reporting and consistent with the requirements of the subaward agreement, the University is required to submit compliance reporting to the grantor annually beginning in the year the funds were received. Condition – During our testing of this grant, we noted the following:  The University did not submit the compliance reporting required under the subaward agreement. The grantor never provided the appropriate report templates so the University was unable to submit the necessary documentation. Cause – Management oversight and insufficient internal controls over grant compliance and lack of support from the grantor. Effect – The University was not in reporting compliance with subaward agreement, however, the funds were appropriately utilized within parameters of the grant agreement. Questioned Costs – None Context – The University never received the templates required for reporting and the grantor never requested the University submit the reporting. The University used the funds in compliance with the agreement but did not follow the full length of reporting requirements. Indication of a Repeat Finding – This is a new finding in 2025. Recommendation – We recommend the University ensure its internal controls, policies, and procedures are followed on a consistent basis regarding post award grant compliance and reporting. Views of Responsible Officials – See corrective action plan.

Corrective Action Plan

Finding 2025-003 Program: Grants to States for Medicaid Assistance Listing No.: 93.778 Federal Agency: U.S. Department of Health and Human Services Award Year: FY 2024 – 2025 Compliance Requirement: Consistent with the requirements of the subaward agreement, the University is required to submit compliance reporting to the grantor annually beginning in the year the funds were received. University’s Response: The University was not provided with the required compliance reporting templates at the time the subaward was issued. As a result, the University was unable to submit the required reports during the applicable reporting period. The grantor did not request submission of the reports during this time. Upon becoming aware of the reporting requirement during the Single Audit process, the University requested the appropriate templates and reporting guidance from the grantor. The templates were subsequently provided, and the University is continuing to work with the grantor to ensure accurate completion and submission of the required compliance reporting. The University confirms that grant funds were used in accordance with the terms and allowable activities of the subaward agreement. Corrective Action Plan: The University will continue to seek clarification and guidance from the grantor regarding required compliance reporting and the appropriate format for submission. If sufficient guidance is not provided, the University will submit the required compliance reporting to the best of its ability based on available information, understanding that the submission may be subject to review or revision by the grantor. No additional corrective action is planned at this time. The University will continue to work with the grantor to address reporting requirements as information becomes available. Name of the responsible person: Brian Shollenberger, Vice President for Financial Affairs and University Development Anticipated completion date: May 31, 2026

Categories

Subrecipient Monitoring Internal Control / Segregation of Duties Reporting

Other Findings in this Audit

  • 1175753 2025-001
    Material Weakness Repeat
  • 1175754 2025-002
    Material Weakness Repeat
  • 1175756 2025-004
    Material Weakness Repeat
  • 1175757 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $80.75M
84.063 FEDERAL PELL GRANT PROGRAM $4.88M
84.423 SUPPORTING EFFECTIVE EDUCATOR DEVELOPMENT PROGRAM $3.18M
64.028 POST-9/11 VETERANS EDUCATIONAL ASSISTANCE $2.47M
84.336 TEACHER QUALITY PARTNERSHIP GRANTS $2.39M
93.778 MEDICAL ASSISTANCE PROGRAM $1.50M
93.279 DRUG USE AND ADDICTION RESEARCH PROGRAMS $455,625
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $312,701
84.033 FEDERAL WORK-STUDY PROGRAM $262,008
93.859 BIOMEDICAL RESEARCH AND RESEARCH TRAINING $126,794
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $105,406
93.847 DIABETES, DIGESTIVE, AND KIDNEY DISEASES EXTRAMURAL RESEARCH $85,386
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $64,124
84.425 SUPPORTING EFFECTIVE EDUCATOR DEVELOPMENT PROGRAM $52,348
47.075 SOCIAL, BEHAVIORAL, AND ECONOMIC SCIENCES $36,905
12.420 MILITARY MEDICAL RESEARCH AND DEVELOPMENT $36,532
94.013 AMERICORPS VOLUNTEERS IN SERVICE TO AMERICA 94.013 $34,949
47.070 COMPUTER AND INFORMATION SCIENCE AND ENGINEERING $10,357
43.008 OFFICE OF STEM ENGAGEMENT (OSTEM) $4,218
10.328 FOOD SAFETY OUTREACH PROGRAM $661
84.032 FEDERAL FAMILY EDUCATION LOANS $0