Finding Text
Criteria or Specific Requirement:
Internal Control – Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Compliance – The Code of Federal Regulations, 34 CFR 668.22(g)(ii)(2) institutional charges are tuition, fees, room and board (if the student contracts with the institution for the room and board) and other educationally-related expenses assessed by the institution.
Condition:
Incorrect institutional charges were utilized as inputs in the calculation of R2T4 for these students.
Questioned costs: None
Context: This condition occurred in 2 out of 5 students tested.
Cause: The University does not have policies and procedures in place to ensure calculations are properly performed.
Effect: The University is not completing accurate R2T4 calculations as defined by the regulations.
Repeat Finding: Yes
Recommendation: We recommend the University review the R2T4 requirements and implement procedures to ensure the R2T4 calculations are using the correct institutional charges and are accurately completed.
Views of responsible officials: There is no disagreement with the audit finding.