Finding 1200815 (2025-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-03-30
Audit: 395824
Organization: Avila University (MO)

AI Summary

  • Core Issue: The University submitted reimbursement requests using estimates instead of actual costs, which violates federal reporting requirements.
  • Impacted Requirements: SF-270 reporting mandates that reimbursement requests must be supported by actual accounting records.
  • Recommended Follow-Up: Implement new policies to ensure only actual incurred costs are reported in future reimbursement requests.

Finding Text

TRIO Cluster U.S. Department of Education ALNs 84.042 TRIO Student Support Services - Award Year 2025 Criteria or Specific Requirement – Reporting Requirements SF-270, Requests for Advance or Reimbursement are required to be submitted to request reimbursement payments under non-construction programs and should be supported by the underlying accounting records. Condition – The University submitted requests for reimbursement under the student support services program using estimates rather than actual expenditures in the drawdown requests. Estimated payroll and operating costs were used to expedite reimbursement under the program. Cause – Oversight by management. Effect – The estimated amounts were not fully supported by underlying accounting records at the time of submission requiring reconciliation between what was submitted for reimbursement and actual costs incurred. Questioned Costs – None noted. Context – Out of a population of 13 requests, 2 were tested to ensure the proper reporting requirements. Out of these 2 selected for testing, both had instances in which the requests for reimbursement included estimates. The sample was not, and was not intended to be, a statistically valid sample. Identification as a Repeat Finding – No. Recommendation – The University should implement policies and procedures to ensure that only actual incurred costs are included on any request for reimbursement to ensure compliance with federal reporting guidelines. Views of Responsible Officials and Planned Corrective Actions – Management will update practices and implement procedures to ensure that only actual incurred costs will be included on the request for reimbursement forms on a go-forward basis.

Corrective Action Plan

Management is responsible for submitting accurate information when requesting federal funds to maintain compliance with reporting requirements. Personnel Responsible for Corrective Action: Josh Dining, Controller Anticipated Completion Date: Corrective action plan will be implemented by June 30, 2026. Corrective Action Plan – Management will update practices and implement procedures to ensure that only actual incurred costs will be included on the request for reimbursement forms on a go-forward basis.

Categories

No categories assigned yet.

Other Findings in this Audit

  • 1200813 2025-002
    Material Weakness Repeat
  • 1200814 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $11.05M
84.063 FEDERAL PELL GRANT PROGRAM $5.44M
84.031 HIGHER EDUCATION INSTITUTIONAL AID $585,603
84.047 TRIO UPWARD BOUND $310,037
84.042 TRIO STUDENT SUPPORT SERVICES $255,936
84.033 FEDERAL WORK-STUDY PROGRAM $112,638
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $90,903
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $60,085
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $14,888