FAC Explorer

Finding 1226233 (2023-023)

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

AI Summary

  • Core Issue: The University incorrectly recorded expenses for services that extended beyond the fiscal year, leading to overstated grant expenses.
  • Impacted Requirements: Expenses must relate to the current fiscal year, and endowment contributions should be transferred promptly.
  • Recommended Follow-up: Review and adjust expenses for proper recording periods and ensure timely transfers of endowment contributions.

Finding Text

FINDING 2023-023 – ALLOWABLE COSTS FOR TITLE III Federal Program Information: Title III, ALN #84.031B Criteria: Costs charged to the grant need to relate to activities occurring within the applicable fiscal year and endowment transfers should occur timely. Condition: The University recorded and claimed certain expenses in the current fiscal year even though the related service period extended beyond year-end. In addition, contributions to endowments did not occur when recorded as an expense. Context: Of 60 expenses tested, 4 related to periods subsequent to the fiscal year-end; however, the full invoice amounts were recorded and claimed in the current year rather than allocating the prepaid portion to the subsequent fiscal year. Additionally, there was 1 of 60 expense invoices for an endowment contribution that was recorded as an expense but not transferred to the endowment. Questioned Cost: $159,367 related to prepaid expenses and $100,000 related to endowments. Effect: Current-year grant expenses were overstated, and the lack of timely transferring of endowment contributions increases the risk that unallowable or unsupported costs could be charged to the program. Cause: The University did not adjust grant expenses for an adjustment to prepaid amounts and did not timely transfer endowment contributions. Repeat Finding: Yes Recommendation: We recommend that expenses be reviewed for recording in the proper period when the invoice is received and all endowment contributions be deposited upon expense. Response: The University acknowledges this finding and recognizes the importance of adjusting grant expenses and timely transferring endowment contributions. To address the matter, the University will implement procedures to ensure grant expenses are properly adjusted and endowment contributions are transferred in a timely manner.

Corrective Action Plan

Corrective Action: The University will implement procedures to ensure grant expenses are properly adjusted, and endowment contributions are transferred in a timely manner. Responsible Person: Vice President of Finance & Administration (Adrian Petway) Completion Date: December 31, 2026

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 1226224 2023-018
    Material Weakness Repeat
  • 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
  • 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