FAC Explorer

Finding 390428 (2023-004)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-03-30
Audit: 301226
Organization: Delaware State University (DE)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The Schedule of Expenditures of Federal Awards (SEFA) was inaccurate, missing over $5.6 million in federal expenditures and incorrectly including nearly $3.9 million in non-federal expenses.
  • Impacted Requirements: The University failed to comply with Uniform Guidance, specifically in maintaining effective internal controls and accurately preparing the SEFA as required by 2 CFR 200.502 and 200.510.
  • Recommended Follow-Up: The University should reassess its policies and controls for SEFA preparation to ensure future accuracy and compliance.

Finding Text

2023-004 – Schedule of Expenditures of Federal Awards Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing Number: 21.027 Award Period: 7/1/2022 – 6/30/2023 Type of Finding: Other Noncompliance and Material Weakness in Internal Control Over Compliance Criteria or Specific Requirement: Uniform guidance requires the auditee to prepare a schedule of expenditures of federal awards (SEFA) which must include the total federal awards expended as determined in accordance with sub-section 200.502. 2 CFR 200.510. A non-federal entity must maintain effective internal control over the federal award (2 CFR 200.303). Condition: During our testing of the SEFA it was identified that there were missing federal expenditures, expenditures included in error that were not related to a federal grant, and amounts reported as subrecipient pass through expenses in error. Questioned Costs: N/A. Context: Federal expenses were omitted from the schedule totaling $5,648,252 of federal passthrough funds. In addition, $3,848,887 were erroneously included in the SEFA that did not meet the definition of federal funds and management included approximately $2,487,864 in pass-through funds to subrecipients in error. The SEFA was revised to correct these errors. Cause: The University’s policies and procedures were not followed or not adequate to ensure a complete and accurate SEFA. Effect: The SEFA did not include correct amounts for the fiscal year ended June 30, 2023. Repeat Finding: No. Recommendation: We recommend that the University reevaluate its policies and controls related to the preparation of the SEFA to ensure its complete and accurate. Views of Responsible Officials: There is no disagreement with the audit finding and the University is in the process of implementing corrective procedures.

Corrective Action Plan

2023-004 Student Financial Aid Cluster – Schedule of Expenditure of Federal Awards (SEFA) Recommendation: We recommend that the University reevaluate its policies and controls related to the preparation of the SEFA to ensure its complete and accurate. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Director will reevaluate the controls and set in place policies and procedures for SEFA completion. Name(s) of the contact person(s) responsible for corrective action: Director of Restricted Funds Accounting, Symone Merritt Planned completion date for corrective action plan: October 2024

Categories

Reporting Subrecipient Monitoring Material Weakness Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 390415 2023-006
    Significant Deficiency Repeat
  • 390416 2023-009
    Material Weakness
  • 390417 2023-009
    Material Weakness
  • 390418 2023-006
    Significant Deficiency Repeat
  • 390419 2023-009
    Material Weakness
  • 390420 2023-005
    Material Weakness Repeat
  • 390421 2023-006
    Significant Deficiency Repeat
  • 390422 2023-009
    Material Weakness
  • 390423 2023-005
    Material Weakness Repeat
  • 390424 2023-007
    Significant Deficiency Repeat
  • 390425 2023-008
    Significant Deficiency Repeat
  • 390426 2023-007
    Significant Deficiency Repeat
  • 390427 2023-008
    Significant Deficiency Repeat
  • 966857 2023-006
    Significant Deficiency Repeat
  • 966858 2023-009
    Material Weakness
  • 966859 2023-009
    Material Weakness
  • 966860 2023-006
    Significant Deficiency Repeat
  • 966861 2023-009
    Material Weakness
  • 966862 2023-005
    Material Weakness Repeat
  • 966863 2023-006
    Significant Deficiency Repeat
  • 966864 2023-009
    Material Weakness
  • 966865 2023-005
    Material Weakness Repeat
  • 966866 2023-007
    Significant Deficiency Repeat
  • 966867 2023-008
    Significant Deficiency Repeat
  • 966868 2023-007
    Significant Deficiency Repeat
  • 966869 2023-008
    Significant Deficiency Repeat
  • 966870 2023-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $38.67M
84.063 Federal Pell Grant Program $11.57M
84.425 Education Stabilization Fund $10.78M
84.031 Higher Education_institutional Aid $5.98M
21.027 Coronavirus State and Local Fiscal Recovery Funds $5.65M
12.630 Basic, Applied, and Advanced Research in Science and Engineering $2.19M
47.083 Integrative Activities $1.66M
93.788 Opioid Str $1.26M
10.205 Payments to 1890 Land-Grant Colleges and Tuskegee University $1.05M
93.307 Minority Health and Health Disparities Research $1.04M
10.512 Agriculture Extension at 1890 Land-Grant Institutions $813,426
10.310 Agriculture and Food Research Initiative (afri) $587,808
12.330 Science, Technology, Engineering & Mathematics (stem) Education, Outreach and Workforce Program $476,077
15.904 Historic Preservation Fund Grants-in-Aid $408,435
93.732 Mental and Behavioral Health Education and Training Grants $387,018
47.074 Biological Sciences $358,868
47.049 Mathematical and Physical Sciences $329,036
93.853 Extramural Research Programs in the Neurosciences and Neurological Disorders $319,102
10.524 Scholarships for Students at 1890 Institutions (b) $315,852
17.268 H-1b Job Training Grants $277,747
84.007 Federal Supplemental Educational Opportunity Grants $238,600
47.075 Social, Behavioral, and Economic Sciences $237,061
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $226,182
11.481 Educational Partnership Program $213,181
81.123 National Nuclear Security Administration (nnsa) Minority Serving Institutions (msi) Program $211,519
84.033 Federal Work-Study Program $203,606
43.009 Cross Agency Support $199,451
12.800 Air Force Defense Research Sciences Program $142,189
59.077 Community Navigator Pilot Program $131,328
11.307 Economic Adjustment Assistance $128,785
47.050 Geosciences $125,568
10.202 Cooperative Forestry Research $104,945
47.041 Engineering $94,047
12.431 Basic Scientific Research $92,832
11.419 Coastal Zone Management Administration Awards $87,876
93.866 Aging Research $85,288
11.417 Sea Grant Support $75,302
93.310 Trans-Nih Research Support $73,383
47.070 Computer and Information Science and Engineering $65,604
10.514 Expanded Food and Nutrition Education Program $63,668
10.523 Centers of Excellence at 1890 Institutions (b) $60,094
10.001 Agricultural Research_basic and Applied Research $51,944
12.300 Basic and Applied Scientific Research $50,893
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $47,659
10.311 Beginning Farmer and Rancher Development Program $43,848
20.205 Highway Planning and Construction $40,614
84.016 Undergraduate International Studies and Foreign Language Programs $40,107
93.859 Biomedical Research and Research Training $38,347
10.558 Child and Adult Care Food Program $34,907
19.040 Public Diplomacy Programs $26,149
10.217 Higher Education - Institution Challenge Grants Program $23,783
84.116 Fund for the Improvement of Postsecondary Education $23,315
93.351 Research Infrastructure Programs $23,167
11.619 Arrangements for Interdisciplinary Research Infrastructure $21,212
10.229 Extension Collaborative on Immunization Teaching & Engagement $19,393
93.268 Immunization Cooperative Agreements $18,857
10.025 Plant and Animal Disease, Pest Control, and Animal Care $18,056
45.309 Museum Grants for African American History and Culture $17,692
98.001 Usaid Foreign Assistance for Programs Overseas $12,776
93.110 Maternal and Child Health Federal Consolidated Programs $11,500
93.286 Discovery and Applied Research for Technological Innovations to Improve Human Health $11,424
10.170 Specialty Crop Block Grant Program - Farm Bill $10,690
10.216 1890 Institution Capacity Building Grants $10,064
11.472 Unallied Science Program $8,536
15.670 Adaptive Science $4,881
10.329 Crop Protection and Pest Management Competitive Grants Program $4,011
43.008 Education $3,736
47.079 Office of International Science and Engineering $2,887
10.777 Norman E. Borlaug International Agricultural Science and Technology Fellowship $2,345
15.423 Bureau of Ocean Energy Management (boem) Environmental Studies Program (esp) $1,895
10.226 Secondary and Two-Year Postsecondary Agriculture Education Challenge Grants $1,723
16.609 Project Safe Neighborhoods $1,401
10.500 Cooperative Extension Service $1,370
10.215 Sustainable Agriculture Research and Education $1,367
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $1,000
47.076 Education and Human Resources $583
10.902 Soil and Water Conservation $11
43.001 Science $-9,598