Finding 393469 (2022-016)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2024-04-16
Audit: 303680
Organization: Kentucky State University (KY)
Auditor: Blue & CO

AI Summary

  • Core Issue: Federal funds totaling $138,700 were not properly identified in the University’s financial system.
  • Impacted Requirements: This violates 2 CFR 200.302 (b) (1), which mandates clear identification of all federal awards and programs.
  • Recommended Follow-Up: The University should review and strengthen its internal controls to ensure accurate identification of federal funds.

Finding Text

Unidentifiable Federal Funds Information on the Federal Program: Coronavirus State and Local Fiscal Recovery Funds (AL Number 21.027) – U.S. Department of the Treasury Criteria: 2 CFR 200.302 (b) (1) -The financial management system of each non-federal entity must provide for the identification, in its accounts, of all federal awards received and expended and the federal programs under which they were received. federal program and federal award identification must include, as applicable, the Assistance Listings title and number, federal award identification number and year, name of the federal agency, and name of the pass-through entity, if any. Condition: Federal funds totaling $138,700 were not identified within the accounts of the University’s financial management system. These funds were posted in a payment holding account and were not identifiable as federal funds. Questioned Cost: $-0- Cause: The internal controls in place to ensure the identification of all federal payments received and expended failed to identify the above funds as federal funds. Effect: Without further investigation into the holding account, these funds would not have been identifiable within the University’s financial management system and would have been excluded from the Schedule of Expenditures of federal Awards. Recommendation: We recommend the University review the controls in place to identify federal funds and enhance if warranted.

Corrective Action Plan

The University concurs with the finding. As a result of this finding, the University created a new fund code within their general ledger chart of accounts for the purpose of classifying these funds as federal funds. The University performed the appropriate reclassifying journal entries within their general ledger utilizing the newly created fund code to recognize the $138,700 as federal revenue and expenditures.

Categories

Subrecipient Monitoring Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 393459 2022-006
    Significant Deficiency Repeat
  • 393460 2022-007
    Significant Deficiency
  • 393461 2022-008
    Significant Deficiency Repeat
  • 393462 2022-009
    Significant Deficiency Repeat
  • 393463 2022-010
    Significant Deficiency Repeat
  • 393464 2022-011
    Significant Deficiency Repeat
  • 393465 2022-012
    Significant Deficiency Repeat
  • 393466 2022-013
    Significant Deficiency Repeat
  • 393467 2022-014
    Significant Deficiency
  • 393468 2022-015
    Significant Deficiency
  • 393470 2022-017
    Material Weakness
  • 393471 2022-018
    Significant Deficiency
  • 393472 2022-006
    Significant Deficiency Repeat
  • 393473 2022-006
    Significant Deficiency Repeat
  • 393474 2022-006
    Significant Deficiency Repeat
  • 393475 2022-006
    Significant Deficiency Repeat
  • 393476 2022-006
    Significant Deficiency Repeat
  • 393477 2022-007
    Significant Deficiency
  • 393478 2022-007
    Significant Deficiency
  • 393479 2022-007
    Significant Deficiency
  • 393480 2022-007
    Significant Deficiency
  • 393481 2022-007
    Significant Deficiency
  • 393482 2022-014
    Significant Deficiency
  • 393483 2022-014
    Significant Deficiency
  • 393484 2022-017
    Material Weakness
  • 393485 2022-018
    Significant Deficiency
  • 969901 2022-006
    Significant Deficiency Repeat
  • 969902 2022-007
    Significant Deficiency
  • 969903 2022-008
    Significant Deficiency Repeat
  • 969904 2022-009
    Significant Deficiency Repeat
  • 969905 2022-010
    Significant Deficiency Repeat
  • 969906 2022-011
    Significant Deficiency Repeat
  • 969907 2022-012
    Significant Deficiency Repeat
  • 969908 2022-013
    Significant Deficiency Repeat
  • 969909 2022-014
    Significant Deficiency
  • 969910 2022-015
    Significant Deficiency
  • 969911 2022-016
    Significant Deficiency
  • 969912 2022-017
    Material Weakness
  • 969913 2022-018
    Significant Deficiency
  • 969914 2022-006
    Significant Deficiency Repeat
  • 969915 2022-006
    Significant Deficiency Repeat
  • 969916 2022-006
    Significant Deficiency Repeat
  • 969917 2022-006
    Significant Deficiency Repeat
  • 969918 2022-006
    Significant Deficiency Repeat
  • 969919 2022-007
    Significant Deficiency
  • 969920 2022-007
    Significant Deficiency
  • 969921 2022-007
    Significant Deficiency
  • 969922 2022-007
    Significant Deficiency
  • 969923 2022-007
    Significant Deficiency
  • 969924 2022-014
    Significant Deficiency
  • 969925 2022-014
    Significant Deficiency
  • 969926 2022-017
    Material Weakness
  • 969927 2022-018
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $9.51M
84.063 Federal Pell Grant Program $5.45M
10.205 Payments to 1890 Land-Grant Colleges and Tuskegee University $3.02M
10.512 Agriculture Extension at 1890 Land-Grant Institutions $2.63M
10.524 Scholarships for Students at 1890 Institutions (b) $657,179
84.031 Higher Education_institutional Aid $503,470
84.382 Strengthening Minority-Serving Institutions $436,065
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $419,414
84.038 Federal Perkins Loan Program $382,419
84.425 Education Stabilization Fund $285,463
84.007 Federal Supplemental Educational Opportunity Grants $261,355
84.042 Trio_student Support Services $258,781
84.047 Trio_upward Bound $223,951
84.033 Federal Work-Study Program $168,085
21.027 Coronavirus State and Local Fiscal Recovery Funds $138,700
10.311 Beginning Farmer and Rancher Development Program $118,472
47.076 Education and Human Resources $108,537
10.443 Outreach and Assistance for Socially Disadvantaged and Veteran Farmers and Ranchers $90,269
10.310 Agriculture and Food Research Initiative (afri) $87,086
93.910 Family and Community Violence Prevention Program $58,414
10.514 Expanded Food and Nutrition Education Program $49,799
10.025 Plant and Animal Disease, Pest Control, and Animal Care $49,494
10.202 Cooperative Forestry Research $44,350
10.216 1890 Institution Capacity Building Grants $39,481
16.726 Juvenile Mentoring Program $36,085
10.001 Agricultural Research_basic and Applied Research $34,182
10.500 Cooperative Extension Service $15,688
10.515 Renewable Resources Extension Act and National Focus Fund Projects $15,235
10.215 Sustainable Agriculture Research and Education $13,708
43.008 Education $12,317
10.229 Extension Collaborative on Immunization Teaching & Engagement $11,699
10.523 Centers of Excellence at 1890 Institutions (b) $10,000
93.658 Foster Care_title IV-E $8,892
10.175 Farmers Market and Local Food Promotion Program (b) $1,532
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $943
10.902 Soil and Water Conservation $-3,517