Finding 554905 (2024-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-04-12
Audit: 353484
Organization: Western Suffolk Boces (NY)
Auditor: Bonadio & CO LLP

AI Summary

  • Core Issue: BOCES is not fully compliant with the Gramm-Leach-Bliley Act (GLBA) requirements for safeguarding student information.
  • Impacted Requirements: Lack of a comprehensive risk assessment, annual vulnerability testing, and a complete information security program.
  • Recommended Follow-Up: Implement necessary controls and conduct regular risk assessments, with a focus on completing a data inventory and security program by March 2026.

Finding Text

Finding Reference: 2024-001 U.S. Department of Education Student Financial Assistance Cluster: Federal Pell Grant Program (Assistance Listing #84.063) Federal Direct Student Loans (Assistance Listing #84.268) Compliance Requirement: Special Tests and Provisions Criteria: The Gramm-Leach-Bliley Act (Public Law 106-102) (GLBA) requires the BOCES, on an annual basis, to identify reasonably foreseeable internal and external risks to the security, confidentiality, and integrity of customer (student) information that could result in the unauthorized disclosure, misuse, alteration, destruction, or other compromise of such information, and assess the sufficiency of any safeguards in place to control these risks. At a minimum, the GLBA risk assessment should include consideration of risk in each relevant area of operations, including: 􀀄 Employee training and management. 􀀄 Information systems, including network and software design, as well as information processing, storage, transmission, and disposal. 􀀄 Detecting, preventing, and responding to attacks, intrusions, or other system failures. Condition: During our testing, we noted the following: 􀀄 A periodic inventory of data, noting where it is collected, stored, and transmitted was not performed. 􀀄 Vulnerability scanning and penetration testing is not completed annually. 􀀄 A written information security program is not fully in place. Policies surrounding risk management have not been implemented. 􀀄 Unsupported operating systems in use. Cause: The expected documentation supporting the required controls to adequately confirm compliance with GLBA safeguards was not complete. Effect: Without demonstrable, documented controls supporting compliance with the GLBA standards for safeguarding the protected data, compliance with the law and the requirements in the federal PPA may not be assured. Context: Inquiry and observation of the information received from the BOCES related to compliance with GLBA. Auditor’s Recommendation: The BOCES should review the GLBA safeguarding rules and as soon as practical implement and document the controls necessary for compliance with the rule, focusing on the completion of a documented, thorough, and standardized risk assessment and management reporting framework. The BOCES should perform comprehensive risk assessments on a regular basis, which is suggested to be at least annually, and at any significant change in infrastructure or business process. View of Responsible Officials: The BOCES is actively engaged in a formal Request for Proposals (RFP) process to procure a qualified vendor for the design and implementation of a comprehensive Information Security Program aligned with GLBA requirements. The selected vendor will conduct a full assessment of existing controls, help develop required policies and procedures, and assist in ensuring full compliance with GLBA mandates, including employee training, information systems safeguards, and incident response protocols. This process will be completed by December 2025. As part of the upcoming vendor engagement, a complete data inventory and structured risk assessment will be conducted. This will identify where sensitive data is collected, stored, transmitted, and processed, and will form the basis for implementing technical and administrative safeguards. This process will be completed by March 2026. In the past several years the BOCES has reviewed several student systems and was unable to identify a system that met all of their needs due to the differences between requirements applicable to school districts and those appropriate to the unique needs of a BOCES. The organization is on track to discontinue the use of all unsupported operating systems by June 30, 2026.

Corrective Action Plan

U.S. Department of Education Year ended June 30, 2024 Student Financial Assistance Cluster: Federal Pell Grant Program (Assistance Listing #84.063) Federal Direct Student Loans (Assistance Listing #84.268) Compliance Requirement: Special Tests and Provisions Criteria: The Gramm-Leach-Bliley Act (Public Law 106-102) (GLBA) requires the BOCES, on an annual basis, to identify reasonably foreseeable internal and external risks to the security, confidentiality, and integrity of customer (student) information that could result in the unauthorized disclosure, misuse, alteration, destruction, or other compromise of such information, and assess the sufficiency of any safeguards in place to control these risks. At a minimum, the GLBA risk assessment should include consideration of risk in each relevant area of operations, including: 􀀄 Employee training and management. 􀀄 Information systems, including network and software design, as well as information processing, storage, transmission, and disposal. 􀀄 Detecting, preventing, and responding to attacks, intrusions, or other system failures. Condition: During our testing, we noted the following: 􀀄 A periodic inventory of data, noting where it is collected, stored, and transmitted was not performed. 􀀄 Vulnerability scanning and penetration testing is not completed annually. 􀀄 A written information security program is not fully in place. Policies surrounding risk management have not been implemented. 􀀄 Unsupported operating systems in use. Cause: The expected documentation supporting the required controls to adequately confirm compliance with GLBA safeguards was not complete. Effect: Without demonstrable, documented controls supporting compliance with the GLBA standards for safeguarding the protected data, compliance with the law and the requirements in the federal PPA may not be assured. Context: Inquiry and observation of the information received from the BOCES related to compliance with GLBA. Auditor’s Recommendation: The BOCES should review the GLBA safeguarding rules and as soon as practical implement and document the controls necessary for compliance with the rule, focusing on the completion of a documented, thorough, and standardized risk assessment and management reporting framework. The BOCES should perform comprehensive risk assessments on a regular basis, which is suggested to be at least annually, and at any significant change in infrastructure or business process. Contact Period Responsible for Corrective Action Plan: Warren Taylor, Chief Financial Officer Corrective Action Plan and Timing of Planned Corrective Action Plan: The BOCES is actively engaged in a formal Request for Proposals (RFP) process to procure a qualified vendor for the design and implementation of a comprehensive Information Security Program aligned with GLBA requirements. The selected vendor will conduct a full assessment of existing controls, help develop required policies and procedures, and assist in ensuring full compliance with GLBA mandates, including employee training, information systems safeguards, and incident response protocols. This process will be completed by December 2025. As part of the upcoming vendor engagement, a complete data inventory and structured risk assessment will be conducted. This will identify where sensitive data is collected, stored, transmitted, and processed, and will form the basis for implementing technical and administrative safeguards. This process will be completed by March 2026. In the past several years the BOCES has reviewed several student systems and was unable to identify a system that met all of their needs due to the differences between requirements applicable to school districts and those appropriate to the unique needs of a BOCES. The organization is on track to discontinue the use of all unsupported operating systems by June 30, 2026.

Categories

Procurement, Suspension & Debarment Special Tests & Provisions Equipment & Real Property Management Matching / Level of Effort / Earmarking Student Financial Aid Subrecipient Monitoring Reporting

Other Findings in this Audit

  • 554906 2024-001
    Significant Deficiency
  • 1131347 2024-001
    Significant Deficiency
  • 1131348 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $1.19M
84.063 Federal Pell Grant Program $674,536
84.002 Adult Education - Basic Grants to States $421,299
10.555 National School Lunch Program $310,544
10.553 School Breakfast Program $170,137
84.048 Career and Technical Education -- Basic Grants to States $122,762