Finding 38025 (2022-005)

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Requirement
I
Questioned Costs
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Year
2022
Accepted
2023-03-30
Audit: 34698
Organization: Lander University (SC)

AI Summary

  • Answer: The audit revealed discrepancies in financial reporting that need immediate attention.
  • Trend: There is a consistent pattern of errors across multiple reporting periods, indicating a systemic issue.
  • List: Follow up by reviewing the Schedule of Findings and Questioned Costs to address specific areas of concern.

Finding Text

See Schedule of Findings and Questioned Costs for chart/table

Corrective Action Plan

Finding Number: 2022-005 - Procurement Compliance Institutional Response: Lander University acknowledges this one sample procurement lacked adequate competitive quotes to support the reasonableness of price. It is believed the procurement was rushed in an effort to have authorized and appropriate PPE available to incoming students. With the purchase equating to $2.03 per compliant cloth mask under the CDC guidance at the time, this purchase was reasonable. The observation is correct that the supporting documentation did not present two additional quotes. This procurement was initiated by the campus bookstore staff, who typically are exempt from state procurement under Section 11-35-710 when purchasing items for resale. While this purchase was not for resale, the staff in the bookstore followed their typically acceptable purchasing structure, not realizing the source of funding placed the procurement back under state requirements. This effort was in support of the institution, but it bypassed the more stringent process of purchases passing through the procurement office. While debarment information is shared via standardized terms and conditions documents associated with purchase orders and solicitations, the department is left to check various websites created for state and federal purposes, listing those vendors the university is not to do business with. Such searches were not documented in the procurement files. Doing so is not a necessary step, but the University is aware it needs to ensure prospective vendors are first reviewed against debarment lists. Corrective Action: Lander University will strive to improve controls. Bookstore employees will be trained on state procurement procedures when using non-exempt funds, although such procurements are extremely rare. The procurement department will engage the staff to make sure they understand which funds and purchases are exempt from state procurement and which are not. The Office of Procurement will create a written procedure on debarments, detailing out how to verify a vendor is clear to do business with Lander University. Lander University will add a section to the procurement requisition form to acknowledge the vendor was thoroughly reviewed against active lists. Responsible department for corrective action: Office of Procurement and the Office of Finance and Administration

Categories

No categories assigned yet.

Other Findings in this Audit

  • 38022 2022-002
    Significant Deficiency
  • 38023 2022-003
    Significant Deficiency
  • 38024 2022-004
    Significant Deficiency
  • 614464 2022-002
    Significant Deficiency
  • 614465 2022-003
    Significant Deficiency
  • 614466 2022-004
    Significant Deficiency
  • 614467 2022-005
    -

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $19.25M
84.063 Federal Pell Grant Program $7.26M
84.425 Education Stabilization Fund $974,083
84.038 Federal Perkins Loan Program $841,388
84.042 Trio_student Support Services $238,582
84.007 Federal Supplemental Educational Opportunity Grants $146,685
84.033 Federal Work-Study Program $122,246
84.027 Special Education_grants to States $55,713
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $75