FAC Explorer

Finding 1226224 (2023-018)

Material Weakness Repeat Finding
Requirement
G
Questioned Costs
-
Year
2023
Accepted
2026-08-11
Audit: 408872
Organization: Central State University (OH)
Auditor: CROWE LLP

AI Summary

  • Core Issue: The University failed to provide the required $200,000 match for endowment funding from the Title III grant over three fiscal years.
  • Impacted Requirements: Non-compliance with the grant agreement due to lack of matching funds and inappropriate transfers totaling $1,107,619 from the endowment account.
  • Recommended Follow-up: Ensure grant matches are made simultaneously with expenditures and avoid transferring funds from endowment accounts unless compliant with agreement terms.

Finding Text

FINDING 2023-018 – MATCHING FOR ENDOWMENTS FROM GRANTS Federal Program Information: Title III, ALN #84.031B Criteria: The Title III grant requires a match for endowment funding. Condition: The required match did not occur during the fiscal year. Context: During the fiscal year 2021 a contribution was recorded to the endowment for $200,000. This was an allowable expenditure under the grant agreement. However, a match of $200,000 was required, and the match was not made during fiscal year 2021, 2022 or 2023. During the current year, there was no match made to the endowment. In addition, there were transfers made from the endowment investment account in the amount of $1,107,619 that was not for purposes outlined within the endowment agreement. The $1,107,619 was repaid to the account in April 2024. Questioned Cost: $1,307,619 Effect: The University was not in compliance with the grant agreement. Cause: The University did not follow up and make the transfer from local funds and inappropriately transferred funds from the investment endowment account. Repeat Finding: Yes, modified from the prior year. Recommendation: We recommend that when the original grant expenditure is recorded, that the grant match occurs at the same time. Additionally, we recommend that the University not transfer any funds from the investment endowment accounts unless the conditions meet the endowment agreement requirements. Response: The University acknowledges this finding and the importance of maintaining the accuracy and integrity of grant funds. The University will review the status of the matching funds and coordinate with the U.S. Department of Education if any adjustments are required. The questioned cost was resolved after June 30, 2023.

Corrective Action Plan

Corrective Action: The University will review the status of the matching funds and coordinate with the U.S. Department of Education if any adjustments are required. The questioned cost was resolved after June 30, 2023. Responsible Person: Vice President of Finance & Administration (Adrian Petway) Completion Date: December 31, 2026

Categories

Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1226225 2023-019
    Material Weakness Repeat
  • 1226226 2023-019
    Material Weakness Repeat
  • 1226227 2023-019
    Material Weakness Repeat
  • 1226228 2023-020
    Material Weakness Repeat
  • 1226229 2023-021
    Material Weakness Repeat
  • 1226230 2023-021
    Material Weakness Repeat
  • 1226231 2023-021
    Material Weakness Repeat
  • 1226232 2023-022
    Material Weakness Repeat
  • 1226233 2023-023
    Material Weakness Repeat
  • 1226234 2023-024
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $10.86M
84.268 FEDERAL DIRECT STUDENT LOANS $10.28M
84.031 HIGHER EDUCATION INSTITUTIONAL AID $5.81M
10.205 PAYMENTS TO 1890 LAND-GRANT COLLEGES AND TUSKEGEE UNIVERSITY $2.89M
10.512 EXTENSION SERVICES AT 1890 COLLEGES AND TUSKEGEE UNIVERSITY, WEST VIRGINIA STATE COLLEGE, AND CENTRAL STATE UNIVERSITY $2.35M
10.310 AGRICULTURE AND FOOD RESEARCH INITIATIVE (AFRI) $1.10M
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $750,713
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $608,038
10.524 SCHOLARSHIPS FOR STUDENTS AT 1890 INSTITUTIONS $595,113
84.042 TRIO STUDENT SUPPORT SERVICES $445,263
10.500 COOPERATIVE EXTENSION SERVICE $412,075
10.216 1890 INSTITUTION CAPACITY BUILDING GRANTS $403,825
84.120 MINORITY SCIENCE AND ENGINEERING IMPROVEMENT $345,462
84.047 TRIO UPWARD BOUND $309,891
84.033 FEDERAL WORK-STUDY PROGRAM $292,386
12.560 DOD, NDEP, DOTC-STEM EDUCATION OUTREACH IMPLEMENTATION $269,704
93.U02 Characterization of Chemical Constituents $205,692
11.028 CONNECTING MINORITY COMMUNITIES PILOT PROGRAM $184,858
10.311 BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM $106,627
10.514 EXPANDED FOOD AND NUTRITION EDUCATION PROGRAM $89,691
10.202 COOPERATIVE FORESTRY RESEARCH $88,389
93.658 FOSTER CARE TITLE IV-E $76,504
12.800 AIR FORCE DEFENSE RESEARCH SCIENCES PROGRAM $74,028
47.049 MATHEMATICAL AND PHYSICAL SCIENCES $67,201
10.443 OUTREACH AND ASSISTANCE FOR SOCIALLY DISADVANTAGED AND VETERAN FARMERS AND RANCHERS $67,180
47.041 ENGINEERING $63,466
10.001 AGRICULTURAL RESEARCH BASIC AND APPLIED RESEARCH $56,875
20.701 UNIVERSITY TRANSPORTATION CENTERS PROGRAM $55,768
12.U01 Retrogressive Approach to Determine Fungal Biodegredation. $50,500
10.170 SPECIALTY CROP BLOCK GRANT PROGRAM - FARM BILL $46,661
10.902 SOIL AND WATER CONSERVATION $43,778
84.425 EDUCATION STABILIZATION FUND $39,975
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $39,135
10.515 RENEWABLE RESOURCES EXTENSION ACT $35,750
15.954 NATIONAL PARK SERVICE CONSERVATION, PROTECTION, OUTREACH, AND EDUCATION $35,588
84.027 SPECIAL EDUCATION GRANTS TO STATES $33,333
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $32,438
10.229 EXTENSION COLLABORATIVE ON IMMUNIZATION TEACHING & ENGAGEMENT $32,260
10.523 CENTERS OF EXCELLENCE AT 1890 INSTITUTIONS $27,890
10.960 TECHNICAL AGRICULTURAL ASSISTANCE $25,998
43.001 SCIENCE $18,300
10.912 ENVIRONMENTAL QUALITY INCENTIVES PROGRAM $14,747
12.360 RESEARCH ON CHEMICAL AND BIOLOGICAL DEFENSE $13,423
10.217 HIGHER EDUCATION - INSTITUTION CHALLENGE GRANTS PROGRAM $13,340
47.050 GEOSCIENCES $8,569
19.009 ACADEMIC EXCHANGE PROGRAMS - UNDERGRADUATE PROGRAMS $7,960
10.215 SUSTAINABLE AGRICULTURE RESEARCH AND EDUCATION $7,842
00.U03 Digitial Divide Grant $7,458
45.129 PROMOTION OF THE HUMANITIES FEDERAL/STATE PARTNERSHIP $2,000
93.323 EPIDEMIOLOGY AND LABORATORY CAPACITY FOR INFECTIOUS DISEASES (ELC) $-2,352