Finding 1182476 (2025-003)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-03-24
Audit: 393884
Organization: Eastern Oregon University (OR)

AI Summary

  • Core Issue: The University failed to document the review of a professional judgment decision during eligibility testing for federal student aid.
  • Impacted Requirements: This finding violates the Uniform Grant Guidance (2 CFR 200.303), which mandates proper internal controls for compliance with federal regulations.
  • Recommended Follow-Up: The University should improve its procedures to ensure that all professional judgment decisions are reviewed and documented appropriately.

Finding Text

Federal Agency: Department of Education Federal Program Title: Student Financial Assistance Cluster Assistance Listing Number: 84.268, 84.063, 84.007, 84.033, 84.379 Federal Award Identification Number and Year: P268K252058-2025, P063P242058-2025, P007A253479-2025, P033A253479-2025, P379T262058-2025 Award Period: July 1, 2024 to June 30, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Uniform Grant Guidance (2 CFR 200.303) requires nonfederal entities receiving federal awards to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Condition: During eligibility testing, we noted that the University did not provide documentation evidencing that a review of a professional judgment decision had been performed. Questioned costs: None reported. Context: Of the 40 student files selected for eligibility testing, one student had a professional judgment determination. While supporting documentation for the professional judgement decision was available, the University was unable to provide evidence that the decision had been reviewed. Cause: The University does not maintain documentation to demonstrate that professional judgment decisions are subject to an independent review in accordance with established procedures. Effect: The lack of documentation of review of professional judgment decisions increases the risk that such determinations may not be appropriately evaluated, which could result in student financial need not being accurately assessed and students being improperly awarded or underserved. Repeat Finding: Yes, 2024-003. Recommendation: We recommend the University enhance its procedures for reviewing professional judgement decisions to ensure that evidence of review is documented and retained. View of Responsible Official: There is no disagreement with the audit finding.

Corrective Action Plan

Recommendation: We recommend the University enhance its procedures for reviewing professional judgement decisions to ensure that evidence of review is documented and retained Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The University will review its procedures and document retention practices to ensure that key controls related to professional judgment determinations are documented and evidenced for audit purposes. The University will evaluate existing processes and supporting records and will implement any needed improvements to strengthen documentation and audit support. Name(s) of the contact person(s) responsible for corrective action: Jason Hibbert, Director of Financial Aid Planned completion date for corrective action plan: Completed

Categories

Allowable Costs / Cost Principles Eligibility Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1182465 2025-001
    Material Weakness Repeat
  • 1182466 2025-001
    Material Weakness Repeat
  • 1182467 2025-001
    Material Weakness Repeat
  • 1182468 2025-001
    Material Weakness Repeat
  • 1182469 2025-001
    Material Weakness Repeat
  • 1182470 2025-002
    Material Weakness Repeat
  • 1182471 2025-002
    Material Weakness Repeat
  • 1182472 2025-003
    Material Weakness Repeat
  • 1182473 2025-003
    Material Weakness Repeat
  • 1182474 2025-003
    Material Weakness Repeat
  • 1182475 2025-003
    Material Weakness Repeat
  • 1182477 2025-004
    Material Weakness Repeat
  • 1182478 2025-004
    Material Weakness Repeat
  • 1182479 2025-004
    Material Weakness Repeat
  • 1182480 2025-004
    Material Weakness Repeat
  • 1182481 2025-004
    Material Weakness Repeat
  • 1182482 2025-005
    Material Weakness Repeat
  • 1182483 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $12.24M
84.063 FEDERAL PELL GRANT PROGRAM $5.55M
93.600 HEAD START $2.53M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $910,871
84.116 FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION $474,604
84.031 HIGHER EDUCATION INSTITUTIONAL AID $364,773
84.033 FEDERAL WORK-STUDY PROGRAM $242,639
17.600 MINE HEALTH AND SAFETY GRANTS $166,581
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $124,185
10.558 CHILD AND ADULT CARE FOOD PROGRAM $113,142
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $88,104
59.037 SMALL BUSINESS DEVELOPMENT CENTERS $33,200
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $21,531
47.074 BIOLOGICAL SCIENCES $8,667
84.425 EDUCATION STABILIZATION FUND $3,000