Finding 566862 (2024-005)

Material Weakness
Requirement
C
Questioned Costs
-
Year
2024
Accepted
2025-06-24
Audit: 359750
Organization: Harris-Stowe State University (MO)
Auditor: Rubinbrown LLP

AI Summary

  • Core Issue: The University failed to document a second review of cash drawdown requests, leading to potential noncompliance with federal requirements.
  • Impacted Requirements: Uniform Guidance mandates effective controls over compliance for federal programs, which were not properly implemented.
  • Recommended Follow-Up: Establish a documented second review process for cash drawdowns, ensuring it is conducted by an informed individual other than the preparer.

Finding Text

Finding 2024-005 - Material Weakness: Cash Management - Control Finding ALN 84.042 - Student Support Services, 84.044 – Talent Search and 84.047 – Upward Bound - TRIO Cluster Federal Agency: Department of Education Federal Award Numbers: P042A151026, P044A160377, and P047A170574 Pass-Through Entity: None Criteria Or Specific Requirement: Uniform Guidance requires that controls over compliance be properly designed, in place and operating effectively to ensure compliance with the requirements of the federal programs. Condition: Based on the testing completed over the cash management compliance requirement, the University did not retain documentation of a second review of the cash drawdown to verify that the correct amount of funds are requested. Cause: Controls over compliance put in place by management were not operating effectively as it relates to these compliance requirements. Effect: The possibility exists that noncompliance with federal requirements could go undetected without proper controls over compliance. Questioned Costs: Not applicable. Context: During testing performed for cash management, for the 5 cash drawdowns reviewed, the draw down was completed without a second review. Statistical sampling was not used to test this compliance requirement Identification As A Repeat Finding: 2022-004 Recommendation: We recommend that management put a control in place for a second review of the cash drawdown requests. The second review should be properly documented with the reviewer’s signature and the date the review was performed. The second review should be performed by someone other than the preparer and who has knowledge of the grant’s requirements Views Of Responsible Officials: The University will enforce a review system for all federal drawdown requests. The Grant Accountant, Principal Investigator, and Comptroller will sign and date the drawdown documentation prior to submission. Review checklists will be used to validate expenditures against the general ledger support. Drawdowns are scheduled to be completed by the 15th of each month.

Corrective Action Plan

Finding 2024-005 Personnel Responsible for Corrective Action: Grant Accountant – Charme Benson and Comptroller – Steve Wille Anticipated Completion Date: June 30, 2025 Corrective Action Plan: The University will enforce a review system for all federal drawdown requests. The Grant Accountant, Principal Investigator, and Comptroller will sign and date the drawdown documentation prior to submission. Review checklists will be used to validate expenditures against the general ledger support. Drawdowns are scheduled to be completed by the 15th of each month.

Categories

Cash Management

Other Findings in this Audit

  • 566850 2024-008
    Material Weakness
  • 566851 2024-008
    Material Weakness
  • 566852 2024-008
    Material Weakness
  • 566853 2024-008
    Material Weakness
  • 566854 2024-008
    Material Weakness
  • 566855 2024-008
    Material Weakness
  • 566856 2024-008
    Material Weakness
  • 566857 2024-006
    Significant Deficiency
  • 566858 2024-006
    Significant Deficiency
  • 566859 2024-006
    Significant Deficiency
  • 566860 2024-006
    Significant Deficiency
  • 566861 2024-006
    Significant Deficiency
  • 566863 2024-005
    Material Weakness
  • 566864 2024-005
    Material Weakness
  • 566865 2024-007
    Material Weakness
  • 566866 2024-007
    Material Weakness
  • 566867 2024-004
    Material Weakness
  • 566868 2024-004
    Material Weakness
  • 566869 2024-004
    Material Weakness
  • 566870 2024-004
    Material Weakness
  • 1143292 2024-008
    Material Weakness
  • 1143293 2024-008
    Material Weakness
  • 1143294 2024-008
    Material Weakness
  • 1143295 2024-008
    Material Weakness
  • 1143296 2024-008
    Material Weakness
  • 1143297 2024-008
    Material Weakness
  • 1143298 2024-008
    Material Weakness
  • 1143299 2024-006
    Significant Deficiency
  • 1143300 2024-006
    Significant Deficiency
  • 1143301 2024-006
    Significant Deficiency
  • 1143302 2024-006
    Significant Deficiency
  • 1143303 2024-006
    Significant Deficiency
  • 1143304 2024-005
    Material Weakness
  • 1143305 2024-005
    Material Weakness
  • 1143306 2024-005
    Material Weakness
  • 1143307 2024-007
    Material Weakness
  • 1143308 2024-007
    Material Weakness
  • 1143309 2024-004
    Material Weakness
  • 1143310 2024-004
    Material Weakness
  • 1143311 2024-004
    Material Weakness
  • 1143312 2024-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $5.31M
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.37M
84.425 Education Stabilization Fund $1.39M
84.116 Fund for the Improvement of Postsecondary Education $440,825
84.268 Federal Direct Student Loans $427,127
84.044 Trio Talent Search $343,723
84.047 Trio Upward Bound $279,191
84.042 Trio Student Support Services $274,075
84.031 Higher Education Institutional Aid $209,393
11.307 Economic Adjustment Assistance $181,184
84.033 Federal Work-Study Program $122,317
84.007 Federal Supplemental Educational Opportunity Grants $82,223
47.076 Stem Education (formerly Education and Human Resources) $12,982
10.558 Child and Adult Care Food Program $7,535
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $3,772