Finding 1182483 (2025-005)

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

AI Summary

  • Core Issue: The University failed to document a key control for verifying payment accuracy and timeliness to program participants.
  • Impacted Requirements: This finding relates to the need for internal controls as outlined in Uniform Grant Guidance (2 CFR 200.303).
  • Recommended Follow-Up: The University should establish procedures to ensure that evidence of the review process for payments is documented and retained.

Finding Text

Federal Agency: U.S. Department of the Treasury Federal Program Title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: 181701 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 establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Condition: During our testing, we noted that the University was unable to provide evidence that a key control to verify the accuracy and timeliness of payments to program participants had been performed. Questioned costs: None reported. Context: The University was unable to provide documentation evidencing that the key control was performed for any of the 40 disbursements selected for testing. Cause: The University’s procedures for reviewing payments to program participants did not include documentation to provide evidence that the review had occurred. Effect: The lack of documented review increases the risk that errors in payments to program participants may not be identified or corrected in a timely manner. Repeat Finding: No. Recommendation: We recommend the University implement procedures to ensure evidence of the key control review over payments to program participants is documented and retained. View of Responsible Official: There is no disagreement with the audit finding.

Corrective Action Plan

Recommendation: We recommend the University implement procedures to ensure evidence of the key control review over payments to program participants is documented and retained. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Eastern Oregon University implemented a standardized internal review and documentation process for new scholarship and other program participant payment requests. The process now requires documentation showing that award criteria were reviewed and met, a secondary review was completed, the payment or disbursement amount was verified for accuracy before release, and post-disbursement reconciliation was performed. To support this process, the University created a form to document each step of the review and retain evidence of completion. The responsible department has also been instructed on the documentation expectations and records retention requirements so that evidence of these control activities is maintained and available for future audit review. This corrective action has been implemented for all new requests going forward. Name(s) of the contact person(s) responsible for corrective action: Jason Hibbert, Financial Aid Director Planned completion date for corrective action plan: Completed.

Categories

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
  • 1182476 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

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