FAC Explorer

Finding 555205 (2023-003)

Material Weakness
Requirement
JL
Questioned Costs
-
Year
2023
Accepted
2025-04-16
Audit: 353823
Organization: California State University (CA)
Auditor: Kpmg LLP

AI Summary

  • Core Issue: The University failed to report SNAP expenditures on the SEFA due to inadequate internal controls and oversight.
  • Impacted Requirements: Non-compliance with 2 CFR 200.510(b) and 2 CFR 200.303 regarding accurate reporting and internal controls for federal awards.
  • Recommended Follow-Up: Strengthen internal controls and ensure all federal agreements are submitted to ORIED for proper tracking and reporting.

Finding Text

Criteria: According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Additionally, 2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and maintain internal controls designated to reasonably ensure compliance with Federal laws, regulations and program compliance requirements. Effective internal controls should include procedures to ensure federal expenditures are accurately and completely reported on the SEFA. Condition and Context: Confition and Context: The University did not have adequate controls relating to the reporting of expenditures on the SEFA for the Supplemental Nutrition Assistance Program Cluster (SNAP). Both the College of Continuing Education (CCE) and the Population Research Center (PRC) which is part of the Sacramento campus incurred SNAP expenditures that were not reported on the fiscal year 2023 SEFA. The SNAP agreement was entered into between the California Department of Social Services and California State University-Sacramento on behalf of CCE. PRC was listed as a sub awardee within the SNAP agreement. Written policies and procedures require each unit/department within the Sacramento campus to send all external grants and contracts to the Sacramento campus Office of Research, Innovation and Economic Development (ORIED). ORIED performs a review of each applicable agreement received to determine that separate general ledger accounts have been established and whether the funding source has been accurately identified in the general ledger (i.e. federal). The CCE did not send the SNAP contract to ORIED and as a result, the review control did not operate as designed. Separate accounts, to track federal funding, were not established in the general ledger and instead, SNAP activity was accounted for within the tuition and fees general ledger accounts which resulted in SNAP activity being managed via manual spreadsheets. While performing budget control reviews during the year ended June 30, 2024, the CCE determined that certain SNAP expenditures had not been reported on the fiscal year 2023 SEFA. The University’s overall SEFA is compiled by the Chancellor’s office and relies on each campus to have internal controls that ensure completeness and accuracy of the SEFA. Cause & Effect: In discussing these conditions with the University, they stated the error was primarily due to significant turnover during fiscal year 2023 in the CCE and as a result the required policies and procedures for identifying, tracking, and communicating federal expenditures were not adhered to. Additionally, management review controls at the campus over the completeness and accuracy of the SEFA were not designed to detect the error. Failure to establish effective internal controls regarding financial reporting for the preparation of the SEFA may prevent the University from completing an audit in accordance with the timelines of Uniform Guidance.

Corrective Action Plan

The University will review and enhance its procedures and internal controls to ensure the SEFA is complete and accurate.

Categories

Reporting

Other Findings in this Audit

  • 555197 2023-001
    Significant Deficiency
  • 555198 2023-001
    Significant Deficiency
  • 555199 2023-001
    Significant Deficiency
  • 555200 2023-001
    Significant Deficiency
  • 555201 2023-002
    Significant Deficiency Repeat
  • 555202 2023-002
    Significant Deficiency Repeat
  • 555203 2023-002
    Significant Deficiency Repeat
  • 555204 2023-002
    Significant Deficiency Repeat
  • 555206 2023-004
    Significant Deficiency
  • 1131639 2023-001
    Significant Deficiency
  • 1131640 2023-001
    Significant Deficiency
  • 1131641 2023-001
    Significant Deficiency
  • 1131642 2023-001
    Significant Deficiency
  • 1131643 2023-002
    Significant Deficiency Repeat
  • 1131644 2023-002
    Significant Deficiency Repeat
  • 1131645 2023-002
    Significant Deficiency Repeat
  • 1131646 2023-002
    Significant Deficiency Repeat
  • 1131647 2023-003
    Material Weakness
  • 1131648 2023-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $1.18B
84.063 Federal Pell Grant Program $1.03B
84.425 Higher Education Emergency Relief Fund-Institutional Portion $213.95M
84.425 Higher Education Emergency Relief Fund-Minority Serving Institutions $26.79M
84.038 Federal Perkins Loan Program_federal Capital Contributions $23.42M
84.007 Federal Supplemental Educational Opportunity Grants $22.86M
84.033 Federal Work-Study Program $21.07M
84.425 Higher Education Emergency Relief Fund-Student Aid Portion $12.56M
93.310 Trans-Nih Research Support $3.40M
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $3.38M
84.047 Trio Upward Bound $2.68M
93.364 Nursing Student Loans $2.30M
47.076 Stem Education (formerly Education and Human Resources) $2.08M
84.425 Higher Education Emergency Relief Fund-Supplemental Support Under American Rescue Plan (ssarp) $1.72M
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $1.60M
43.001 Science $1.52M
84.365 English Language Acquisition State Grants $1.07M
84.042 Trio Student Support Services $1.01M
84.044 Trio Talent Search $868,343
84.103 Trio Staff Training Program $722,228
84.335 Child Care Access Means Parents in School $593,389
84.326 Special Education Technical Assistance and Dissemination to Improve Services and Results for Children with Disabilities $592,993
47.074 Biological Sciences $540,300
11.420 Coastal Zone Management Estuarine Research Reserves $518,147
12.630 Basic, Applied, and Advanced Research in Science and Engineering $478,965
93.732 Mental and Behavioral Health Education and Training Grants $469,597
93.837 Cardiovascular Diseases Research $442,995
84.217 Trio McNair Post-Baccalaureate Achievement $438,338
84.325 Special Education - Personnel Development to Improve Services and Results for Children with Disabilities $431,626
64.204 Veterans Legacy Grants Program $408,877
97.039 Hazard Mitigation Grant $408,311
20.600 State and Community Highway Safety $365,048
47.049 Mathematical and Physical Sciences $326,008
81.117 Energy Efficiency and Renewable Energy Information Dissemination, Outreach, Training and Technical Analysis/assistance $320,082
16.575 Crime Victim Assistance $310,867
12.900 Language Grant Program $302,020
81.049 Office of Science Financial Assistance Program $295,276
20.616 National Priority Safety Programs $270,117
93.307 Minority Health and Health Disparities Research $261,448
15.564 Central Valley Project Conservation $256,108
11.028 Connecting Minority Communities Pilot Program $246,902
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $245,239
93.859 Biomedical Research and Research Training $239,415
84.235 Rehabilitation Services Demonstration and Training Programs $239,009
94.006 Americorps State and National 94.006 $225,776
47.050 Geosciences $223,376
45.163 Promotion of the Humanities Professional Development $200,179
10.516 Rural Health and Safety Education Competitive Grants Program $195,636
12.U01 U.s. Department of Defense $176,287
16.922 Equitable Sharing Program $129,962
10.223 Hispanic Serving Institutions Education Grants $126,272
84.129 Rehabilitation Long-Term Training $120,942
93.600 Head Start $116,936
11.012 Integrated Ocean Observing System (ioos) $105,776
93.069 Public Health Emergency Preparedness $95,603
93.889 National Bioterrorism Hospital Preparedness Program $95,603
93.847 Diabetes, Digestive, and Kidney Diseases Extramural Research $92,343
93.959 Block Grants for Prevention and Treatment of Substance Abuse $89,991
16.525 Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus $88,777
11.419 Coastal Zone Management Administration Awards $86,339
10.664 Cooperative Forestry Assistance $85,771
12.RD U.s. Department of Defense $82,754
93.866 Aging Research $81,537
93.084 Prevention of Disease, Disability, and Death by Infectious Diseases $81,355
81.RD MacHine Learning Based Model $76,941
47.070 Computer and Information Science and Engineering $75,089
93.991 Preventive Health and Health Services Block Grant $70,422
93.242 Mental Health Research Grants $68,959
15.808 U.s. Geological Survey Research and Data Collection $67,207
45.161 Promotion of the Humanities Research $65,770
94.013 Americorps Volunteers in Service to America 94.013 $62,680
93.865 Child Health and Human Development Extramural Research $58,835
59.075 Shuttered Venue Operators Grant Program $55,367
66.461 Regional Wetland Program Development Grants $54,893
93.994 Maternal and Child Health Services Block Grant to the States $54,259
93.855 Allergy and Infectious Diseases Research $53,808
47.075 Social, Behavioral, and Economic Sciences $53,343
12.431 Basic Scientific Research $51,469
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $51,172
11.478 Center for Sponsored Coastal Ocean Research Coastal Ocean Program $49,634
16.560 National Institute of Justice Research, Evaluation, and Development Project Grants $49,592
15.810 National Cooperative Geologic Mapping $46,547
21.017 Social Impact Partnerships to Pay for Results Act (sippra) $42,074
84.382 Strengthening Minority-Serving Institutions $40,829
11.999 Marine Debris Program $34,553
93.426 Improving the Health of Americans Through Prevention and Management of Diabetes and Heart Disease and Stroke $32,712
93.399 Cancer Control $32,179
10.558 Child and Adult Care Food Program $31,450
93.RD Nih Infant and Toddler Toolbox $31,282
45.160 Promotion of the Humanities Fellowships and Stipends $29,934
81.RD Sensei $26,641
93.394 Cancer Detection and Diagnosis Research $25,883
93.658 Foster Care Title IV-E $25,801
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $25,731
12.550 The Language Flagship Grants to Institutions of Higher Education $25,030
93.879 Medical Library Assistance $24,719
97.067 Homeland Security Grant Program $23,560
11.429 Marine Sanctuary Program $22,203
11.469 Congressionally Identified Awards and Projects $19,948
93.788 Opioid Str $19,305
11.454 Unallied Management Projects $16,712
45.169 Promotion of the Humanities Office of Digital Humanities $16,476
81.123 National Nuclear Security Administration (nnsa) Minority Serving Institutions (msi) Program $14,425
43.008 Office of Stem Engagement (ostem) $13,796
12.006 National Defense Education Program $13,712
47.041 Engineering $12,223
12.300 Basic and Applied Scientific Research $11,088
45.024 Promotion of the Arts Grants to Organizations and Individuals $10,891
93.273 Alcohol Research Programs $10,792
11.417 Sea Grant Support $10,000
15.664 Fish and Wildlife Coordination and Assistance $9,902
15.224 Cultural and Paleontological Resources Management $9,845
93.157 Centers of Excellence $9,371
93.575 Child Care and Development Block Grant $8,392
15.945 Cooperative Research and Training Programs – Resources of the National Park System $7,424
93.353 21st Century Cures Act - Beau Biden Cancer Moonshot $6,790
15.512 Central Valley Improvement Act, Title Xxxiv $6,659
84.408 Postsecondary Education Scholarships for Veteran's Dependents $5,547
45.129 Promotion of the Humanities Federal/state Partnership $4,052
45.025 Promotion of the Arts Partnership Agreements $4,000
20.819 Ballast Water Treatment Technologies $2,846
93.121 Oral Diseases and Disorders Research $2,573
47.084 Nsf Technology, Innovation, and Partnerships $2,500
84.411 Education Innovation and Research (formerly Investing in Innovation (i3) Fund) $2,256
47.079 Office of International Science and Engineering $2,172
15.608 Fish and Wildlife Management Assistance $1,866
84.031 Higher Education Institutional Aid $1,718
45.164 Promotion of the Humanities Public Programs $1,231
10.699 Partnership Agreements $1,223
15.904 Historic Preservation Fund Grants-in-Aid $1,000
15.657 Endangered Species Recovery Implementation $539