Finding 32690 (2022-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 32312
Organization: University of La Verne (CA)

AI Summary

  • Core Issue: Reports lacked proper review and approval, violating internal control standards.
  • Impacted Requirements: Non-compliance with 2 CFR sections 200.328 and 200.329 regarding HEERF reporting.
  • Recommended Follow-Up: Management should enhance internal controls to ensure thorough documentation of report approvals.

Finding Text

Finding #: 2022-003 Funding Year(s): 7/1/2021 ? 6/30/2022 Education Stabilization Fund (ESF) (FAL #84.425L, 84,425F, 84,825E) Award Numbers: P425L200075-20C; P425F201063-20B; P425E200786-20B Federal Agency: U.S. Department of Education Type of Finding: Reporting - Internal Control (Material Weakness) Criteria: In accordance with 2 CFR sections 200.328 and 200.329, there are three components to reporting for HEERF: 1) public reporting on the Student Aid Portion; 2) public reporting on the Institutional Portion and subprograms (Quarterly Reporting Form), as applicable; and 3) the annual report. A complete system of internal controls requires all expenditures be properly approved and supported by appropriate documentation. Condition/Context: From a non-statistical sample of two (2) reports subject to testing, we identified two (2) instances where the report tested lacked evidence of review in accordance with the University?s control policies. Cause/Effect: Based on discussions with Management, the above occurred due to efforts made to abide by the 10-day time period between quarter-end and the reporting deadline. Due to the short time period, the review and approval process is rushed, and the necessary review took place during tele-conference and the CFO provided approval over the phone to get the report posted accordingly. Questioned Costs: None noted. Identification as a Repeat Finding: Repeat finding. See prior year finding 2021-003. Recommendation: We recommend the University?s Management routinely review and consider modifications that would strengthen the internal controls surrounding reporting specifically as it relates to documenting approval of reports. Views of Responsible Official: Management agrees with finding.

Corrective Action Plan

Description of Finding: The quarterly reports for purposes of reporting use of HEERF funds for the public reporting of both the Student Aid Portion, and the Institutional Portions did not have documented evidence of review and approval of the Chief Financial Officer prior to the posting to the website, and sending to the Program Director of the HEERF funds. Corrective Action Plan: The quarterly information for both the Student Aid Portion and the Institutional Portion will continued to be reviewed by the Finance Office management team prior to reporting. In addition, it will be required that the information and the quarterly and annual reports will have documented evidence of review and approval by the Chief Financial Officer prior to posting of the reports to the website or submitting to the Program Director of the HEERF funds. The responsible parties are Lori Gordien Case at lgordien@laverne.edu , Xochitl Martinez-Eckel at xmartinez@laverne.edu, and Avo Kechichian at akechichian2@laverne.edu . This was corrected by October 2022.

Categories

Procurement, Suspension & Debarment Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 32688 2022-001
    Significant Deficiency
  • 32689 2022-002
    Material Weakness Repeat
  • 32691 2022-002
    Material Weakness Repeat
  • 32692 2022-003
    Material Weakness Repeat
  • 32693 2022-002
    Material Weakness Repeat
  • 32694 2022-003
    Material Weakness Repeat
  • 609130 2022-001
    Significant Deficiency
  • 609131 2022-002
    Material Weakness Repeat
  • 609132 2022-003
    Material Weakness Repeat
  • 609133 2022-002
    Material Weakness Repeat
  • 609134 2022-003
    Material Weakness Repeat
  • 609135 2022-002
    Material Weakness Repeat
  • 609136 2022-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loan $64.06M
84.063 Federal Pell Grant $8.41M
84.425 Higher Education Emergency Relief Fund (heerf) Institutional Portion $6.02M
84.425 Higher Education Emergency Relief Fund (heerf) Student Aid Portion $5.54M
84.038 Federal Perkins Loan $1.08M
84.031 Higher Education Institutional Aid - Title III $822,307
84.007 Federal Supplemental Educational Opportunity Grant (fseog) $816,284
84.033 Federal Work Study $780,962
84.031 Higher Education Institutional Aid - Title V $446,660
59.037 Small Business Development Centers $201,214
93.866 Aging Research $88,502
59.037 Small Business Development Centers - Cares Grant $50,205
84.425 Higher Education Emergency Relief Fund (heerf) Minority Serving Institutions $41,418
47.076 Stem Education $25,225
47.049 Mathmatical and Physical Sciences $15,244
45.149 Promotion of the Humanities Division of Preservation and Access $9,114