Finding Text
Criteria or specific requirement: Uniform Grant Guidance (2 CFR 200.303) requires nonfederal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements.
Condition: The College did not have observable controls to test for the R2T4 process.
Questioned costs: None
Context: During the testing of R2T4, we tested 23 students. We were unable to test a specific control in place to ensure that any error in the R2T4 process would be prevented and detected in a timely manner as there is only one person involved in the process from start to finish.
Cause: There are no procedures to review R2T4 calculations by someone other than the person performing the calculation.
Effect: It is possible that errors could occur and not be caught in a timely manner.
Repeat Finding: No
Recommendation: We recommend the College implement a formal documented review process for the R2T4 process.
Views of responsible officials: There is no disagreement with the audit finding.