Finding 389325 (2023-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-03-29
Audit: 300314
Organization: Chatham University (PA)

AI Summary

  • Core Issue: The University failed to comply with the Gramm-Leach-Bliley Act regarding oversight of information system service providers.
  • Impacted Requirements: The lack of a vendor management review process violates 16 CFR 314.4(f), which mandates oversight policies.
  • Recommended Follow-Up: Implement policies for regular vendor management reviews to enhance oversight of information system service providers.

Finding Text

Federal Program Information: Student Financial Assistance Cluster (ALN: Various), U.S. Department of Education. 2022-2023 Federal Award Year. Criteria or Specific Requirement: The Gramm-Leach-Bliley Act (Public Law 106-102) requires financial institutions to explain their information-sharing practices to their customers and to safeguard sensitive data. (16 CFR 314). The audit finding was based on 16 CFR 314.4(f), which requires that the University have a policy that addresses how the institution will oversee its information system service providers. Condition: The University does was not able to demonstrate its compliance with 16 CFR 314.4(f). Cause: The University does not currently have a vendor management review process in place. Effect or potential effect: Without consideration for oversight of its information system service providers, the University’s information system security program may not adequately address the risks that these service providers, and their systems, have on the University’s environment. Questioned Costs: None noted. Context: We were unable to verify that the University has a vendor management review process in place. Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend that policies and procedures be put in place to ensure that regular vendor management reviews on information system service providers are conducted in an appropriate manner. Views of Responsible Officials: Management concurs with this finding. See management’s corrective action plan document.

Corrective Action Plan

Chatham University’s Response to Schneider Downs’ Finding 2023 - 002 - Student Financial Assistance - Cluster, Department of Education Programs, in connection with their audit of the University’s financial statements for the year ended June 30, 2023. The Gramm-Leach-Bliley Act (Public Law 106-102) requires financial institutions to explain their information-sharing practices to their customers and to safeguard sensitive data. (16 CFR 314). The audit finding was based on 16 CFR 314.4(f), which requires the University to have a policy addressing how the institution will oversee its information system service providers. Issue and Cause: The University does not have a vendor management review process for information system service providers. Action Plan: The University acknowledges the specific requirements outlined in the finding and presents the following action plan to address the requirements of 16 CFR 314. • The University has a draft Vendor Access to Internal Systems Policy developed in 2021 that needs to be finalized and formally adopted. • The Chief Information Officer will review, update, and finalize this policy to ensure compliance with 16 CFR 314, 4(f). • The policy will be added to the University’s Cyber & Regulatory Compliance Policy document on the Intranet and any public-facing web pages as necessary. • The policy will be distributed to applicable information system service providers. • A process for the mandatory annual review and acknowledgment of the policy with applicable vendors will be implemented. • The University will consider the costs and benefits of using external resources or firms to advise and help implement this action plan. Chatham University’s Chief Information Officer, Paul Steinhaus, is responsible for implementing this corrective action by May 1, 2024.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 389326 2023-002
    Significant Deficiency
  • 389327 2023-002
    Significant Deficiency
  • 389328 2023-002
    Significant Deficiency
  • 965767 2023-002
    Significant Deficiency
  • 965768 2023-002
    Significant Deficiency
  • 965769 2023-002
    Significant Deficiency
  • 965770 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $29.11M
84.063 Federal Pell Grant Program $1.54M
93.732 Mental and Behavioral Health Education and Training Grants $575,210
10.175 Farmers Market and Local Food Promotion Program (b) $256,283
59.043 Women's Business Ownership Assistance $197,024
93.778 Medical Assistance Program $169,991
84.033 Federal Work-Study Program $156,943
47.074 Biological Sciences $152,802
84.007 Federal Supplemental Educational Opportunity Grants $48,000
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $38,411
47.075 Social, Behavioral, and Economic Sciences $21,527