Finding 1200754 (2025-007)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-03-30
Audit: 395745
Organization: Central College (IA)

AI Summary

  • Core Issue: The College lacks proper internal controls for managing updates and changes to its student and general ledger systems.
  • Impacted Requirements: There is insufficient documentation and segregation of duties, leading to potential risks in system integrity.
  • Recommended Follow-Up: Implement controls for documenting system changes and ensure segregation of duties during upgrades and modifications.

Finding Text

Assistance Listing, Federal Agency, and Program Name - 84.268 Federal Direct Student Loans, 84.007 Federal Supplemental Educational Opportunity Grants, 84.033 Federal Work Study Program, 84.038, Federal Perkins Loan Program, 84.379 Teacher Education Assistance for College and Higher Education Grants (TEACH Grants), 84.063 Federal Pell Grant Program, U.S. Department of Education (ED), Student Financial Assistance Cluster Federal Award Identification Number and Year - Various Pass through Entity - N/A Finding Type - Material weakness Repeat Finding - No Criteria - The College should have appropriate internal controls in place related to the version updates, patches, and modifications in the student and general ledger systems. Condition - The College did not have appropriate internal controls in place related to the version updates, patches, and modifications to the student and general ledger systems. Questioned Costs- None If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported - N/A Identification of How Questioned Costs Were Computed - N/A Context - The College lacks a documented review of the testing of version updates, patches, and modifications to the student and general ledger systems by users outside of the information and systems personnel. In addition, the College lacks documented segregation of duties controls over the implementation of these changes as the same individual has the ability to implement changes in the test and production environments. Cause and Effect - The College had staff departures and generally a small information technology office that caused resource and process restrictions. As a result, the College was unable to implement controls to ensure appropriate documentation of the testing of system changes were maintained or ensure appropriate segregation of duties over the process. Recommendation - The College should implement controls to ensure appropriate documentation of all system changes is maintained while maintaining appropriate segregation of duties of the users with the ability to make system changes. Views of Responsible Officials and Planned Corrective Actions - The College agrees with the finding. The CFO and Controller will work with the CIO to ensure that appropriate internal controls, including segregation of duties, around system upgrades, patches and modifications are completed. The internal control processes will cover the following key areas: • Planning and Authorization of the upgrade, patch or change • Implementation and Testing of the upgrade, patch or change, including user acceptance testing • Change Management and Documentation of the change, including logs or appropriate audit trails • Post Implementation Monitoring and Review

Corrective Action Plan

Finding Number: 2025-007 Condition: The College did not have appropriate internal controls in place related to the version updates, patches, and modifications in the student and general ledger systems. Planned Corrective Action: The College agrees with the finding. The CFO and Controller will work with the CIO to ensure that appropriate internal controls, including segregation of duties, around system upgrades, patches and modifications are completed. The internal control processes will cover the following key areas: • Planning and Authorization of the upgrade, patch or change • Implementation and Testing of the upgrade, patch or change, including user acceptance testing • Change Management and Documentation of the change, including logs or appropriate audit trails • Post Implementation Monitoring and Review Contact person responsible for corrective action: Kayla Flanders Anticipated Completion Date: 6/30/2026

Categories

No categories assigned yet.

Other Findings in this Audit

  • 1200740 2025-006
    Material Weakness Repeat
  • 1200741 2025-007
    Material Weakness Repeat
  • 1200742 2025-008
    Material Weakness Repeat
  • 1200743 2025-009
    Material Weakness Repeat
  • 1200744 2025-007
    Material Weakness Repeat
  • 1200745 2025-009
    Material Weakness Repeat
  • 1200746 2025-007
    Material Weakness Repeat
  • 1200747 2025-009
    Material Weakness Repeat
  • 1200748 2025-007
    Material Weakness Repeat
  • 1200749 2025-008
    Material Weakness Repeat
  • 1200750 2025-009
    Material Weakness Repeat
  • 1200751 2025-006
    Material Weakness Repeat
  • 1200752 2025-007
    Material Weakness Repeat
  • 1200753 2025-009
    Material Weakness Repeat
  • 1200755 2025-008
    Material Weakness Repeat
  • 1200756 2025-009
    Material Weakness Repeat
  • 1200757 2025-009
    Material Weakness Repeat
  • 1200758 2025-009
    Material Weakness Repeat
  • 1200759 2025-009
    Material Weakness Repeat
  • 1200760 2025-009
    Material Weakness Repeat
  • 1200761 2025-005
    Material Weakness Repeat
  • 1200762 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.766 COMMUNITY FACILITIES LOANS AND GRANTS $5.84M
84.268 FEDERAL DIRECT STUDENT LOANS $5.73M
84.063 FEDERAL PELL GRANT PROGRAM $1.57M
84.044 TRIO TALENT SEARCH $556,827
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $516,848
84.042 TRIO STUDENT SUPPORT SERVICES $362,076
84.047 TRIO UPWARD BOUND $353,980
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $217,833
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $205,172
84.033 FEDERAL WORK-STUDY PROGRAM $127,046
47.049 MATHEMATICAL AND PHYSICAL SCIENCES $38,962
47.083 INTEGRATIVE ACTIVITIES $25,406
47.075 SOCIAL, BEHAVIORAL, AND ECONOMIC SCIENCES $13,977