Finding 386176 (2023-005)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-03-27

AI Summary

  • Core Issue: The University failed to verify debarment checks for two out of six vendors, which is a significant deficiency in internal controls.
  • Impacted Requirements: Compliance with 2 CFR section 180.300, which mandates verification that vendors are not suspended or debarred.
  • Recommended Follow-Up: The University should improve procedures for maintaining records of suspension and debarment checks to prevent unallowable expenditures.

Finding Text

2023 – 005 Federal Agency: Department of Education Federal Program Name: Higher Education Aid – Title III Assistance Listing Numbers: 84.031 Federal Award Identification Number and Year: P031E200019, P031B170023 and P031B220048, grants were awarded within the 2022-23 award year. Award Period: July 1, 2022, through June 30, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). Condition: During our testing of suspension and debarment, we noted the University did not have support for debarment checks two of the six vendors tested. Questioned Costs: N/A Context: During our testing of suspension and debarment, we noted the University did not have support for debarment checks two of the six vendors tested. Cause: The University did not have support to verify debarment checks were completed before entering into agreements or occurring expenditures for two of the six vendors selected. Effect: Suspended or debarred vendors could have been charged to the grant, resulting in unallowable expenditures occurring. Repeat Finding: No. Recommendation: The University should evaluate their procedures surrounding the maintenance of suspension and debarment checks.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 386175 2023-005
    Significant Deficiency
  • 386177 2023-003
    Significant Deficiency
  • 386178 2023-004
    Significant Deficiency
  • 962617 2023-005
    Significant Deficiency
  • 962618 2023-005
    Significant Deficiency
  • 962619 2023-003
    Significant Deficiency
  • 962620 2023-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $17.28M
84.063 Federal Pell Grant Program $6.39M
84.038 Federal Perkins Loan Program $1.29M
11.028 Connecting Minority Communities Pilot Program $765,317
21.027 Coronavirus State and Local Fiscal Recovery Funds $758,000
84.031 Higher Education_institutional Aid $546,132
84.007 Federal Supplemental Educational Opportunity Grants $457,395
84.033 Federal Work-Study Program $209,403
84.047 Trio_upward Bound $137,643
47.070 Computer and Information Science and Engineering $96,428
47.076 Education and Human Resources $53,184
15.904 Historic Preservation Fund Grants-in-Aid $50,800
43.008 Education $21,132
43.009 Cross Agency Support $5,665