Finding Text
Program Information: Student Financial Assistance Cluster (ALN: Various), Title III Strengthening Historically Black Colleges and Universities Program (ALN: 84.031B), TRIO Cluster (ALN: Various) and Education Stabilization Fund - Higher Education Emergency Relief Fund (ALN: Various)
Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): L. Reporting - The Office of Management and Budget (“OMB”) requires recipients and subrecipients with fiscal year ends of June 30, 2021 to submit Single Audit reports to the Federal Audit Clearinghouse within the required time frame.
Condition: The University did not submit the June 30, 2021 Single Audit to the Federal Audit Clearinghouse by the required deadline.
Cause: Insufficient internal controls and lack of administrative oversight with respect to maintaining adequate documentation needed to complete the University’s financial statement audit and Single Audit.
Effect or Potential Effect: The University is not in compliance with Single Audit reporting deadlines.
Questioned Costs: None.
Context: The University did not submit the Single Audit report as of June 30, 2021 within the required timeframe.
Repeat Finding: This is a repeat finding from prior year. This was reported as Finding 2020-015 in the prior year schedule of findings and questioned costs.
Recommendation: We recommend the University enhance its internal controls and procedures to ensure that adequate and accurate documentation is maintained in order to complete financial and compliance audits by the required deadline.
Views of Responsible Officials and Planned Corrective Actions: Given the challenges that current management faced in regard to the lack of proper accounting, document retention and internal controls over financial reporting that took place during fiscal year 2021, there were significant delays in the audit. With the implementation of the new ERP system and new internal policies being put in place this should keep future delays at a minimum. New policies and procedures are being developed to ensure the timeliness of documentation to meet required deadlines.