Finding Text
Federal Agency: Department of Agriculture
Federal Program Title: Research and Development Cluster
Assistance Listing Number: 10.205, 10.512, 10.443, 10.215
Federal Award Identification Number: NI211445XXXXG001, NI221445XXXXG019,
NI191444XXXXG019, NI201444XXXXG009, A0192501X443G023, SUB00002488 PASS THRU 2019-
38640-29878
Award Period: 7/1/22-6/30/23
Type of Finding: Significant Deficiency in Internal Control over Compliance; Compliance, Other Matters
Condition: The University does not have adequate procedures in place to ensure that USDA federal funds
were not spent on disallowed costs.
Criteria or specific requirement: Per Uniform Guidance 2 CFR 200.303, nonfederal entities receiving
federal awards are required to establish and maintain internal controls designed to reasonably ensure
compliance with federal laws, regulations, and program compliance requirements. As required by 2 CFR
200.403 expenditures of federal awards should be necessary and reasonable for the performance of the
Federal award and be allocable thereto under these principles.
Context: During testing, we were made aware of thirteen individuals whose salaries were improperly coded
to a teaching code in USDA federal and state match funds. A total of $256,940 in federal funds and $160,791
in state match funds were coded to a teaching account salary code. Additionally, during our testing of 40
payroll we identified 1 transaction that was improperly coded to the incorrect account code.
Questioned costs: $256,940
Cause: The University does not have an effective control in place to ensure payroll transactions are properly
coded between federal and nonfederal funds.
Effect: Failure to properly record federal and nonfederal funds may result in inaccurate reporting of
disallowed costs on the Schedule of Expenditures of Federal Awards.
Repeat finding: No
Recommendation: We recommend the University review its current procedures to ensure non-federal
costs are not being allocated to federal fund codes. Also, the University should process retro-active cost
transfers or payroll adjustments to ensure that no teaching salaries are coded to USDA grant funds.
Views of responsible officials: Management agrees with the finding and has developed a plan to correct
the finding.