Finding 395041 (2023-002)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-04-30
Audit: 304975
Organization: The Institute of World Politics (DC)
Auditor: Rsm US LLP

AI Summary

  • Core Issue: The Institute failed to comply with enrollment reporting and Gramm-Leach-Bliley Act requirements, leading to a qualified audit opinion.
  • Impacted Requirements: Noncompliance with 60-day enrollment reporting and lack of a formal information security program as mandated by federal regulations.
  • Recommended Follow-Up: Review the latest Compliance Supplement to ensure adherence to all requirements and establish a monitoring process for annual updates.

Finding Text

Finding No. 2023-002 Special Tests: Enrollment Reporting and Gramm-Leach-Bliley Act Compliance/Material Weakness Federal program: Student Financial Aid Cluster – Federal Direct Student Loans (ALN 84.268), U.S. Department of Education Criteria: Auditee requirements contained in Title 2 U.S. Code of Federal Regulations (2 CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, requires the auditee to comply with Federal statues, regulations, terms and conditions of Federal awards that may have a direct and material effect on each of its major programs. The enrollment reporting compliance requirement, which falls under special tests, requires the Institute to certify enrollment information under the Direct loan programs every 60 days. The Gramm-Leach-Bliley Act over student information security, which falls under special tests, requires the Institute to have a written information security program that addresses seven specific required elements. Condition: Instances of noncompliance have been identified around major compliance requirements Enrollment Reporting and Gramm-Leach-Bliley Act, which are both part of special tests identified in the 2023 Compliance Supplement. Cause: The cause is due to a lack of sufficient internal control procedures in place to ensure compliance with material compliance requirements in the 2023 Compliance Supplement for its federal award. Effect: The findings resulted in a qualified opinion on the auditor’s report issued on compliance for major programs. Questioned costs: None Context: All of the Institute’s May 2023 graduates enrollment information was not reported within the 60 day requirement. In addition, the Institute does not have a formalized written information security program in place that addresses the required elements in the 2023 Compliance Supplement. Repeat finding: No Recommendation: We recommend that the Institute review the most recent Compliance Supplement, which outlines all compliance requirements for Direct loans under the Student Financial Assistance federal program to ensure all compliance requirements are being met. We encourage the Institute to monitor for any updates to the Compliance Supplement annually. Views of responsible officials: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Identifying Number: Finding No. 2023-002: Special Tests – Enrollment Reporting and Gramm-Leach-Bliley Act Compliance/Material Weakness Finding: Instances of noncompliance have been identified around major compliance requirements Enrollment Reporting and Gramm-Bleach-Bliley Act, which are both part of special tests identified in the 2023 Compliance Supplement. ¬ Corrective Actions Taken or Planned: Responsible Official: Iman Riddick, Registrar, Dean Lane, Chief Information Officer (CIO) Anticipated Completion Date: 06/30/2024 View of Responsible Individuals: Management agrees with the assessment and finding. Dean Lane, CIO, will review the annual updates to the Student Financial Assistance Cluster within the OMB Compliance Supplement to ensure the Institute has policies, procedures, and controls in place for all required compliance requirements. For the noncompliance identified around the Gramm-Leach Bliley Act, the Institute will ensure compliance by establishing a formal written policy that will be created by Dean Lane, CIO, that addresses all required elements for a written information security program listed in the OMB Compliance Supplement. The CFO will review the policy once completed to ensure all required elements within the Compliance Supplement are included. For the noncompliance identified around the Enrollment Reporting special test, the Institute plans to have the Registrar attend comprehensive trainings around enrollment reporting offered by the National Student Clearinghouse (NSC) to further educate and enhance their understanding around the enrollment reporting compliance requirement. In addition, the Institute will have each month’s enrollment data submission by the Registrar to the National Student Clearinghouse reviewed by the Director of Financial Aid to verify completeness, accuracy, and timeliness of reporting. This will allow the Institute to correct any inaccurate reporting and verify timely submissions.

Categories

Student Financial Aid Allowable Costs / Cost Principles Material Weakness Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 395042 2023-003
    Material Weakness Repeat
  • 971483 2023-002
    Material Weakness
  • 971484 2023-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $1.30M