Finding 38475 (2022-003)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-28
Audit: 30596
Organization: McKendree University (IL)

AI Summary

  • Core Issue: The University lacks formal documentation for reviewing student disbursements and reporting for the Education Stabilization Fund.
  • Impacted Requirements: Compliance with 2 CFR Section 200.303 and cash management provisions is not adequately ensured due to insufficient internal controls.
  • Recommended Follow-Up: Implement and document a robust review and approval process to strengthen internal controls and prevent future compliance issues.

Finding Text

2022 ? 003: Reporting Federal agency: U.S. Department of Education Federal program title: Education Stabilization Fund: Higher Education Emergency Relief Fund Student Portion and Institutional Portion ALN Number: 84.425E, 84.425F Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: July 1, 2021 through June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The 2 CFR Section 200.303 require that nonfederal entities receiving federal awards establish and maintain internal control designed to reasonably ensure compliance with Federal Statutes, regulations, and the terms and conditions of the Federal awards. 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of cash management. The University should have internal controls designed to ensure compliance with those provisions. Condition: During our testing of reporting for the Educational Stabilization Fund, it was noted that there was no formal documentation of review. Questioned costs: None Context: The University did not have documentation of review of student disbursements or reporting for the Education Stabilization Fund. Cause: Due to staffing turnover, the process and documented review was not completed for these areas. Effect: While performing audit procedures, no instances of noncompliance with the provisions of reporting were noted; however, the lack of internal controls and document review items in these compliance requirements provides an opportunity for noncompliance. Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2021-004. Recommendation: We recommend the University design controls to ensure an adequate review and approval process is in place and documented.

Corrective Action Plan

2022-003 Education Stabilization Fund: Higher Education Emergency Relief Fund Student Portion and Institutional Portion? Assistance Listing No. 84.425E, 84.425F Recommendation: We recommend the University design controls to ensure an adequate review and approval process is in place and documented. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The University will design and implement internal procedures with staff (accountant, interim VP, and president) to ensure adequate review and controls are in place. Name(s) of the contact person(s) responsible for corrective action: John Nisbet, Interim Vice President of Administration & Finance Planned completion date for corrective action plan: April 2023

Categories

Allowable Costs / Cost Principles Cash Management Reporting Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 38473 2022-001
    Significant Deficiency Repeat
  • 38474 2022-002
    Significant Deficiency Repeat
  • 38476 2022-001
    Significant Deficiency Repeat
  • 38477 2022-002
    Significant Deficiency Repeat
  • 38478 2022-003
    Significant Deficiency Repeat
  • 614915 2022-001
    Significant Deficiency Repeat
  • 614916 2022-002
    Significant Deficiency Repeat
  • 614917 2022-003
    Significant Deficiency Repeat
  • 614918 2022-001
    Significant Deficiency Repeat
  • 614919 2022-002
    Significant Deficiency Repeat
  • 614920 2022-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $10.32M
84.063 Federal Pell Grant Program $2.16M
84.425 Education Stabilization Fund $2.02M
84.033 Federal Work-Study Program $139,000
84.038 Federal Perkins Loan Program $83,522
84.007 Federal Supplemental Educational Opportunity Grants $64,250
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $11,316