Finding 1205827 (2025-009)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2025

Accepted

2026-04-02

Audit: 397569

Organization: Dillard University (LA)

Auditor: SEAN M BRUNO CPAS

AI Summary

Core Issue: Payroll charges to federal awards were inconsistent with approved personnel action forms, risking inaccuracies.
Impacted Requirements: Compliance with Uniform Guidance § 200.430, which mandates accurate records and internal controls for salary and wage charges.
Recommended Follow-Up: Implement stronger payroll controls, conduct periodic reconciliations, and provide training to ensure alignment with personnel documentation.

Finding Text

Payroll Federal Program and Specific Federal Award Identification CFDA Title and Number 84.031 Higher Education Institution Aid Federal Award Year June 30, 2025 Federal Agencies U. S. Department of Education Pass-Through Entity Not applicable Criteria In accordance with Uniform Guidance § 200.430, charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed and must be supported by a system of internal controls, including alignment with personnel documentation. Conditions and Contexts Out of twenty-five (25) payroll transactions tested: • Five (5) salary amounts, as calculated per labor distribution reports, did not agree to the approved personnel action forms; and • Two (2) time and effort report percentages did not agree to the percentages reflected on the personnel action forms. Cause The University lacked adequate controls to ensure that payroll charges were consistent with approved personnel action forms and supporting time and effort documentation. Questioned Costs For the purposes of this condition, I have not questioned any costs. Effect Payroll costs charged to the federal program may be inaccurate or unsupported, increasing the risk of unallowable costs. Repeat Finding No. Recommendation The University should strengthen controls over payroll processing and review to ensure that salary charges and time and effort reporting agree with approved personnel action forms. Management should also perform periodic reconciliations and supervisory reviews. Management’s Response The University acknowledges the finding related to discrepancies between payroll charges, personnel action forms, and time and effort reporting. We understand the requirement that all salary and wage charges to federal awards must be supported by accurate records and internal controls in accordance with Uniform Guidance §200.430. Corrective Actions 1. Alignment of Personnel Actions and Payroll Distribution: The University will implement additional review steps to ensure that labor distribution reports match the approved personnel action forms before payroll is charged to the grant. Any discrepancies must now be corrected before processing. 2. Strengthened Time and Effort Verification: Time and effort reports must now be reviewed and reconciled against the percentages authorized on personnel action forms. Reports that do not match will be returned to departments for correction before certification. 3. Enhanced Internal Controls and Documentation: A standardized monthly reconciliation process will be established to ensure consistency between personnel records, effort reporting, and payroll charges. 4. Staff Training: Training will be provided to fiscal managers, the Office of Research and Sponsored Programs, human resources, and payroll personnel on Uniform Guidance requirements, proper effort reporting, and documentation standards. 5. Periodic Monitoring: Supervisory reviews will be conducted to ensure continued compliance and to identify discrepancies proactively. The University believes these corrective measures will strengthen internal controls and ensure that payroll charges to federal programs are accurate, allowable, and properly documented.

Corrective Action Plan

Payroll The University acknowledges the finding related to discrepancies between payroll charges, personnel action forms, and time and effort reporting. We understand the requirement that all salary and wage charges to federal awards must be supported by accurate records and internal controls in accordance with Uniform Guidance §200.430. Corrective Actions 1. Alignment of Personnel Actions and Payroll Distribution: The University will implement additional review steps to ensure that labor distribution reports match the approved personnel action forms before payroll is charged to the grant. Any discrepancies must now be corrected before processing. 2. Strengthened Time and Effort Verification: Time and effort reports must now be reviewed and reconciled against the percentages authorized on personnel action forms. Reports that do not match will be returned to departments for correction before certification. 3. Enhanced Internal Controls and Documentation: A standardized monthly reconciliation process will be established to ensure consistency between personnel records, effort reporting, and payroll charges. 4. Staff Training: Training will be provided to fiscal managers, the Office of Research and Sponsored Programs, human resources, and payroll personnel on Uniform Guidance requirements, proper effort reporting, and documentation standards. 5. Periodic Monitoring: Supervisory reviews will be conducted to ensure continued compliance and to identify discrepancies proactively. The University believes these corrective measures will strengthen internal controls and ensure that payroll charges to federal programs are accurate, allowable, and properly documented.

Other Findings in this Audit

1205818 2025-002

Material Weakness Repeat
1205819 2025-003

Material Weakness Repeat
1205820 2025-004

Material Weakness Repeat
1205821 2025-005

Material Weakness Repeat
1205822 2025-006

Material Weakness Repeat
1205823 2025-011

Material Weakness Repeat
1205824 2025-007

Material Weakness Repeat
1205825 2025-011

Material Weakness Repeat
1205826 2025-008

Material Weakness Repeat
1205828 2025-010

Material Weakness Repeat
1205829 2025-011

Material Weakness Repeat
1205830 2025-011

Material Weakness Repeat
1205831 2025-011

Material Weakness Repeat
1205832 2025-011

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
84.268	FEDERAL DIRECT STUDENT LOANS	$9.87M
84.063	FEDERAL PELL GRANT PROGRAM	$4.97M
84.031	HIGHER EDUCATION INSTITUTIONAL AID	$4.05M
12.630	BASIC, APPLIED, AND ADVANCED RESEARCH IN SCIENCE AND ENGINEERING	$522,396
84.044	TRIO TALENT SEARCH	$429,672
84.033	FEDERAL WORK-STUDY PROGRAM	$286,248
84.007	FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS	$280,908
84.042	TRIO STUDENT SUPPORT SERVICES	$257,304
12.800	AIR FORCE DEFENSE RESEARCH SCIENCES PROGRAM	$251,032
84.217	TRIO MCNAIR POST-BACCALAUREATE ACHIEVEMENT	$238,039
93.859	BIOMEDICAL RESEARCH AND RESEARCH TRAINING	$197,089
84.120	MINORITY SCIECE AND ENGINEERING INPROVEMENT	$191,930
81.049	OFFICE OF SCIENCE FINANCIAL ASSISTANCE PROGRAM	$189,415
93.364	NURSING STUDENT LOANS	$118,577
47.075	SOCIAL, BEHAVIORAL, AND ECONOMIC SCIENCES	$108,941
84.184	SCHOOL SAFELY NATIONAL ACTIVITIES	$104,784
94.066	AMERICORPS STATE AND NATIONAL	$98,128
47.050	GEOSCIENCES	$79,010
15.941	MISSISSIPPI NATIONAL RIVER AND RECREATION AREA STATE AND LOCAL ASSISTANCE	$73,366
93.865	CHILD HEALTH AND HUMAN DEVELOPMENT EXTRAMURAL RESEARCH	$60,063
47.076	STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES)	$53,142
66.616	ENVIRONMENTAL AND CLIMATE JUSTICE COMMUNITY CHANGE GRANTS PROGRAM	$50,000
47.083	INTEGRATIVE ACTIVITIES	$46,106
15.932	PRESERVATION OF HISTORIC STRUCTURES ON THE CAMPUSES OF HISTORICALLY BLACK COLLEGES AND UNIVERSITIES (HBCUS).	$36,611
93.307	MINORITY HEALTH AND HEALTH DISPARITIES RESEARCH	$27,632
16.525	GRANTS TO REDUCE DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, AND STALKING ON CAMPUS	$22,569
84.425	EDUCATION STABILIZATION FUND	$18,875
10.217	HIGHER EDUCATION - INSTITUTION CHALLENGE GRANTS PROGRAM	$16,576
47.070	COMPUTER AND INFORMATION SCIENCE AND ENGINEERING	$12,459
45.162	PROMOTION OF THE HUMANITIES TEACHING AND LEARNING RESOURCES AND CURRICULUM DEVELOPMENT	$12,223
93.145	HIV-RELATED TRAINING AND TECHNICAL ASSISTANCE	$6,900
93.421	STRENGTHENING PUBLIC HEALTH SYSTEMS AND SERVICES THROUGH NATIONAL PARTNERSHIPS TO IMPROVE AND PROTECT THE NATIONÂS HEALTH	$6,767
11.307	ECONOMIC ADJUSTMENT ASSISTANCE	$4,626
97.132	FINANCIAL ASSISTANCE FOR TARGETED VIOLENCE AND TERRORISM PREVENTION	$4,229
12.902	INFORMATION SECURITY GRANTS	$93
93.391	ACTIVITIES TO SUPPORT STATE, TRIBAL, LOCAL AND TERRITORIAL (STLT) HEALTH DEPARTMENT RESPONSE TO PUBLIC HEALTH OR HEALTHCARE CRISES	$-714
93.368	21ST CENTURY CURES ACT - PRECISION MEDICINE INITIATIVE	$-717