FAC Explorer

Finding 30095 (2022-008)

Material Weakness
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2023-05-01
Audit: 25447
Organization: Navajo Technical University (NM)
Auditor: Sjt Group LLC

AI Summary

  • Core Issue: NTU had multiple errors in federal expenditure charges, including duplicate charges and misallocated employee wages.
  • Impacted Requirements: Compliance with federal cost principles was not met, as expenditures were not consistently documented or accurately allocated.
  • Recommended Follow-Up: Enhance internal controls by implementing monthly reviews of grant expenditures and ensuring accurate payroll documentation to prevent future errors.

Finding Text

2022-008 ?Activities Allowed/Unallowed and Allowable Costs/Cost Principles Federal Program Information: Funding Agency: U.S. Department of Defense, National Science Foundation, U.S. Department of Energy, and U.S. Department of Education Title: Research and Development Cluster, Tribally Controlled Postsecondary Career and Technical Institutions. Higher Education Emergency Relief Fund (HEERF) Assistance Listing Number: 12.431, 47.076, 81.123, 84.245, 84.425 Award Period: June 1, 2021 ? May 31, 2022 Criteria: To be allowable under Federal awards, costs must be necessary and reasonable for the performance and administration of the federal award. Costs must meet the following criteria: 1) necessary and reasonable; 2) consistent with policies and procedures; 3) accorded consistent treatment; and 4) are adequately documented. Condition: We found the following in our review of federal expenditures: Research and Development Cluster ? ? One expenditure for the purchase of a gold spectrometer, microscope mainframe and accessories in the amount of $145,596 was incorrectly charged twice to the Expanding STEM Education to Meet Navajo Nation Needs project with the National Science Foundation. NTU subsequently corrected this by removing one of the duplicate charges from federal expenditures. ? One employee?s wages in the amount of $260 was incorrectly charged to Department of Defense Performance Enhancement Through HIS Assessment and Analysis Campaign Project. The employee?s wages should have been charged to another federal program. ? Two payroll transactions totaling $3,580 did not have accurate source documentation to support the allocation of salaries and wages charged to the program. Tribally Controlled Postsecondary Career and Technical Institutions ? ? One employee?s wages in the amount of $1,640.55 was incorrectly allocated and charged to the program. The employee?s salary should have been charged to the NTU general fund. Higher Education Emergency Relief Fund ? ? NTU incorrectly charged the HEERF Student Aid Portion (ALN 84.425E) for lost revenue in the amount of $870,725. NTU subsequently corrected this and charged the lost revenue to the HEERF Tribally Controlled Colleges and Universities portion (ALN 84.425K). Questioned Costs: None exceeding $25,000 as NTU made correcting adjustments to federal expenditures. Context: Four of fifty payroll and non-payroll transactions tested for the Research and Development Cluster. One of twenty-five payroll transactions tested for the Tribally Controlled Postsecondary Career and Technical Institutions program. One of twenty-nine non-payroll transactions tested for the Higher Education Emergency Relief Fund program. Cause and Effect: NTU did not have effective internal controls to ensure federal expenditures are accurately charged in accordance with federal activities allowed/unallowed and allowable costs/cost principles requirements. As a result, NTU was not in compliance with these federal requirements for the Research and Development Cluster, Tribally Controlled Post Secondary Career and Technical Institutions and HEERF programs. Auditor?s Recommendation: Improve internal controls to ensure expenditures are allowable under federal program requirements. This includes maintaining source documentation to support the allocation of payroll costs and ensuring expenses are not double recorded in the accounting system. Management?s Response: NTU will implement a monthly review of all grant expenditures to ensure amounts charged to federal awards are accurately posted and reflected in the accounting system. All journal entries will be reviewed for accuracy by the Accounting Manager and Senior Accountant. Payroll allocations provided by the Human Resources office will be included in the monthly review to ensure accuracy of the payroll expenditures. Principal Investigators and program managers will also be given read-only access to the accounting system to review expenditure postings for accuracy.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 30024 2022-007
    Material Weakness
  • 30025 2022-014
    Significant Deficiency
  • 30026 2022-007
    Material Weakness
  • 30027 2022-014
    Significant Deficiency
  • 30028 2022-007
    Material Weakness
  • 30029 2022-014
    Significant Deficiency
  • 30030 2022-007
    Material Weakness
  • 30031 2022-014
    Significant Deficiency
  • 30032 2022-007
    Material Weakness
  • 30033 2022-014
    Significant Deficiency
  • 30034 2022-007
    Material Weakness
  • 30035 2022-014
    Significant Deficiency
  • 30036 2022-007
    Material Weakness
  • 30037 2022-014
    Significant Deficiency
  • 30038 2022-007
    Material Weakness
  • 30039 2022-014
    Significant Deficiency
  • 30040 2022-007
    Material Weakness
  • 30041 2022-014
    Significant Deficiency
  • 30042 2022-007
    Material Weakness
  • 30043 2022-014
    Significant Deficiency
  • 30044 2022-007
    Material Weakness
  • 30045 2022-014
    Significant Deficiency
  • 30046 2022-007
    Material Weakness
  • 30047 2022-014
    Significant Deficiency
  • 30048 2022-007
    Material Weakness
  • 30049 2022-014
    Significant Deficiency
  • 30050 2022-008
    Material Weakness
  • 30051 2022-007
    Material Weakness
  • 30052 2022-014
    Significant Deficiency
  • 30053 2022-008
    Material Weakness
  • 30054 2022-007
    Material Weakness
  • 30055 2022-014
    Significant Deficiency
  • 30056 2022-008
    Material Weakness
  • 30057 2022-007
    Material Weakness
  • 30058 2022-014
    Significant Deficiency
  • 30059 2022-008
    Material Weakness
  • 30060 2022-007
    Material Weakness
  • 30061 2022-014
    Significant Deficiency
  • 30062 2022-010
    Material Weakness Repeat
  • 30063 2022-011
    Significant Deficiency Repeat
  • 30064 2022-012
    Significant Deficiency Repeat
  • 30065 2022-007
    Material Weakness
  • 30066 2022-014
    Significant Deficiency
  • 30067 2022-010
    Material Weakness Repeat
  • 30068 2022-011
    Significant Deficiency Repeat
  • 30069 2022-012
    Significant Deficiency Repeat
  • 30070 2022-007
    Material Weakness
  • 30071 2022-014
    Significant Deficiency
  • 30072 2022-010
    Material Weakness Repeat
  • 30073 2022-011
    Significant Deficiency Repeat
  • 30074 2022-012
    Significant Deficiency Repeat
  • 30075 2022-007
    Material Weakness
  • 30076 2022-014
    Significant Deficiency
  • 30077 2022-008
    Material Weakness
  • 30078 2022-009
    Significant Deficiency Repeat
  • 30079 2022-007
    Material Weakness
  • 30080 2022-014
    Significant Deficiency
  • 30081 2022-008
    Material Weakness
  • 30082 2022-013
    Significant Deficiency Repeat
  • 30083 2022-007
    Material Weakness
  • 30084 2022-014
    Significant Deficiency
  • 30085 2022-008
    Material Weakness
  • 30086 2022-013
    Significant Deficiency Repeat
  • 30087 2022-007
    Material Weakness
  • 30088 2022-014
    Significant Deficiency
  • 30089 2022-008
    Material Weakness
  • 30090 2022-007
    Material Weakness
  • 30091 2022-014
    Significant Deficiency
  • 30092 2022-008
    Material Weakness
  • 30093 2022-007
    Material Weakness
  • 30094 2022-014
    Significant Deficiency
  • 30096 2022-007
    Material Weakness
  • 30097 2022-014
    Significant Deficiency
  • 30098 2022-008
    Material Weakness
  • 30099 2022-007
    Material Weakness
  • 30100 2022-014
    Significant Deficiency
  • 30101 2022-008
    Material Weakness
  • 30102 2022-007
    Material Weakness
  • 30103 2022-014
    Significant Deficiency
  • 30104 2022-008
    Material Weakness
  • 30105 2022-007
    Material Weakness
  • 30106 2022-014
    Significant Deficiency
  • 30107 2022-008
    Material Weakness
  • 606466 2022-007
    Material Weakness
  • 606467 2022-014
    Significant Deficiency
  • 606468 2022-007
    Material Weakness
  • 606469 2022-014
    Significant Deficiency
  • 606470 2022-007
    Material Weakness
  • 606471 2022-014
    Significant Deficiency
  • 606472 2022-007
    Material Weakness
  • 606473 2022-014
    Significant Deficiency
  • 606474 2022-007
    Material Weakness
  • 606475 2022-014
    Significant Deficiency
  • 606476 2022-007
    Material Weakness
  • 606477 2022-014
    Significant Deficiency
  • 606478 2022-007
    Material Weakness
  • 606479 2022-014
    Significant Deficiency
  • 606480 2022-007
    Material Weakness
  • 606481 2022-014
    Significant Deficiency
  • 606482 2022-007
    Material Weakness
  • 606483 2022-014
    Significant Deficiency
  • 606484 2022-007
    Material Weakness
  • 606485 2022-014
    Significant Deficiency
  • 606486 2022-007
    Material Weakness
  • 606487 2022-014
    Significant Deficiency
  • 606488 2022-007
    Material Weakness
  • 606489 2022-014
    Significant Deficiency
  • 606490 2022-007
    Material Weakness
  • 606491 2022-014
    Significant Deficiency
  • 606492 2022-008
    Material Weakness
  • 606493 2022-007
    Material Weakness
  • 606494 2022-014
    Significant Deficiency
  • 606495 2022-008
    Material Weakness
  • 606496 2022-007
    Material Weakness
  • 606497 2022-014
    Significant Deficiency
  • 606498 2022-008
    Material Weakness
  • 606499 2022-007
    Material Weakness
  • 606500 2022-014
    Significant Deficiency
  • 606501 2022-008
    Material Weakness
  • 606502 2022-007
    Material Weakness
  • 606503 2022-014
    Significant Deficiency
  • 606504 2022-010
    Material Weakness Repeat
  • 606505 2022-011
    Significant Deficiency Repeat
  • 606506 2022-012
    Significant Deficiency Repeat
  • 606507 2022-007
    Material Weakness
  • 606508 2022-014
    Significant Deficiency
  • 606509 2022-010
    Material Weakness Repeat
  • 606510 2022-011
    Significant Deficiency Repeat
  • 606511 2022-012
    Significant Deficiency Repeat
  • 606512 2022-007
    Material Weakness
  • 606513 2022-014
    Significant Deficiency
  • 606514 2022-010
    Material Weakness Repeat
  • 606515 2022-011
    Significant Deficiency Repeat
  • 606516 2022-012
    Significant Deficiency Repeat
  • 606517 2022-007
    Material Weakness
  • 606518 2022-014
    Significant Deficiency
  • 606519 2022-008
    Material Weakness
  • 606520 2022-009
    Significant Deficiency Repeat
  • 606521 2022-007
    Material Weakness
  • 606522 2022-014
    Significant Deficiency
  • 606523 2022-008
    Material Weakness
  • 606524 2022-013
    Significant Deficiency Repeat
  • 606525 2022-007
    Material Weakness
  • 606526 2022-014
    Significant Deficiency
  • 606527 2022-008
    Material Weakness
  • 606528 2022-013
    Significant Deficiency Repeat
  • 606529 2022-007
    Material Weakness
  • 606530 2022-014
    Significant Deficiency
  • 606531 2022-008
    Material Weakness
  • 606532 2022-007
    Material Weakness
  • 606533 2022-014
    Significant Deficiency
  • 606534 2022-008
    Material Weakness
  • 606535 2022-007
    Material Weakness
  • 606536 2022-014
    Significant Deficiency
  • 606537 2022-008
    Material Weakness
  • 606538 2022-007
    Material Weakness
  • 606539 2022-014
    Significant Deficiency
  • 606540 2022-008
    Material Weakness
  • 606541 2022-007
    Material Weakness
  • 606542 2022-014
    Significant Deficiency
  • 606543 2022-008
    Material Weakness
  • 606544 2022-007
    Material Weakness
  • 606545 2022-014
    Significant Deficiency
  • 606546 2022-008
    Material Weakness
  • 606547 2022-007
    Material Weakness
  • 606548 2022-014
    Significant Deficiency
  • 606549 2022-008
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425K Covid-19 Heerf Tribally Controlled Colleges and Universities $8.58M
84.245A Tribally Controlled Postsecondary Career and Technical Institutions $5.43M
15.058 Bia Education Stabilization Fund $3.61M
84.063 Pell Grant $2.94M
84.425E Covid-19 Heerf Student Aid Portion $2.48M
15.058 Bia Direct $2.31M
15.058 Covid-19 Bie American Rescue Plan $1.19M
84.031T Title III - Project A $624,590
47.076 Nsf Stem Ed. Meet Nn Needs $576,837
47.076 Nsf - Stem Careers Project $475,998
47.076 Nsf Tcup Advanced Manufacturing Center $396,502
43.008 NASA Inst Capacity Additive Manufacturing Materials $335,283
84.031D Title III - Project B $299,571
93.600 Dhhs-Ntu and Nn Head Start $279,255
11.307 Doc Eda Meterology & Materials Testing Center $266,266
47.049 Nsf Prem Ventures Mrsec Stem Project $235,301
81.123 National Nuclear Security Administration (nnsa) Minority Serving Institutions (msi) Programqcam Additional Manufacturing $206,330
81.123 National Nuclear Security Administration (nnsa) Minority Serving Institutions (msi) Programaihec Tcu Advanced Manufacturing Network $171,958
10.227 Nifa Highthroughput Electrochemical $163,304
20.701 Dot-Sjs Univ Rsrch Fnd $163,073
81.123 Nnsa Doe Uofa Pact $154,915
10.500 Nifa Extension Capacity $146,984
12.431 Dod Armyrsrchlab Hmn Systm Intrfce $144,603
10.221 Nifa Equity Projct 2018-38421-28471 $143,681
10.227 Uranium Tailing $136,842
47.070 Nsf Let's Talk Code $123,917
15.255 Usdoi - Green Technology $110,111
10.227 Nifa Lidar $107,580
15.058 Bia Indirect $103,651
47.070 Nsf Cc Regional Tcrn $93,934
84.007 Seog - Supplemental Ed. Opportunity Grant $91,668
10.766 Usda Rdhs Grant Class Equipment $89,644
10.025 Vet Tech Program Development $81,715
10.025 Aphis Adodr Tcu Internship Program $78,971
43.008 NASA Murep Robotics Academy $69,507
84.033 Federal Workstudy $68,963
47.049 Nsf Prem Stem Ventures Solar Oven $68,297
81.123 Scholarly Partnership-Spin $67,602
47.075 Nsf (navajo Scientist) $65,304
10.227 Computed Axial Lithography $57,502
81.123 Nnsa Sustainable Pathways Advanced Manufacturing $52,752
47.050 Nsf-Eager $52,568
10.227 Climate Change Fuel Wood Harv $46,836
93.243 Ntu Campus Suicide Prevention $36,441
81.123 Step2nls with Stem Core $35,541
43.008 NASA Engin Robotics Comp Science $35,096
10.025 Natural Heritage Yth Program $35,050
15.058 Covid-19 Bie Cares Act $29,001
10.025 Aphis Vet Tech Std Intern $27,904
47.076 Nsf Strategic Plan Dev As Degree $27,202
93.243 Native Tribal Connections: Youth Substance Abuse & Prevention (samhsa) $26,563
10.222 Tribal College Endowment $24,592
10.025 Aphis Vet Tech Program Development $22,855
10.500 Nifa Horticulture Ext Project $21,706
47.070 Nsf-Collaborative Research $21,379
93.243 Tbh C19 Smhsa Dhhs $20,123
12.598 Dia Unm Ic-Cae Ctsp $19,862
10.227 Nifa Nano Electrochem Sensor Project $15,931
47.070 Nsf Campus Cyberinfrstrtre Cc-Nie $14,094
10.025 Safeguarding Natural Heritage Youth Program $13,479
47.041 Nsf Grid Power $12,875
10.517 Ntu Sheep & Wool Project $11,200
12.006 Stem Professionals $6,000
15.156 Bia Trng Ws *tccc $4,721
10.443 Aihec Oasdvr $3,294
20.701 Dot-La Univ A&m College $1,831
10.025 Aphis Tcu Internship Program $1,725
93.632 Dhhs Nau Ihd-Axucd Mou Msi Partnership $716
10.227 Nifa-Nau $683
10.500 Dine' Youth Horse Safety $434
10.527 Experiential Learning $256
43.008 NASA Intergation of Earth Science Engineering $106