Finding Text
Federal Agency: U.S. Department of Education Federal Program Name: Education Stabilization Fund ? Higher Education Emergency Relief Fund ? Institutional Portion, Student Portion, and Minority Serving Institutions Assistance Listing Number: 84.425F, 84.425E, 84.425L Federal Award Identification Number and Year: Various Award Period: July 01, 2021 - June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: An essential part of internal control is that procedures are properly segregated, and the results of their performance be adequately reviewed. This is normally accomplished by assigning duties to that 1) no one person handles a transaction from beginning to end, and 2) incompatible duties between functions are not handled by the same person. In addition, a review of these completed duties should be performed by an individual independent of those functions. Condition: While testing controls over cash management and reporting, we noted there is no process of review of the funds being drawn for cash management and the reports being submitted for reporting requirements. One individual performs the process of creating and submitting reports and reimbursement. Questioned costs: None. Context: While testing controls over cash management and reporting, we noted there is no formal process of review of the funds being drawn for cash management and the reports being submitted for reporting requirements. One individual performs the process of creating and submitting reports and reimbursement. It was noted a transposition error on the one Higher Education Emergency Relief Fund - Student Portion reporting which could have been caught and fixed if review processes were in place. Cause: The University does not have formal procedures in place for reviewing reports prior to submission. Effect: When separation of duties is inadequate, there is a resulting danger that intentional fraud or unintentional errors could occur and not be detected. Repeat Finding: No. Recommendation: We recommend that the University review the current assignment of duties for individuals and incorporate review processes for individuals where appropriate. Views of responsible officials: See corrective action plan.