Finding Text
Information on the Federal Program: Higher Education Institutional Aid (CFDA Number 84.031B) – U.S. Department of Education
Criteria: The University’s approval policy, as found in the Business Policies and Procedures Manual, is outlined as follows:
• Purchases less than $10,000 require the approval of the Department Chair and the Principal
Investigator
• Purchases between $10,000 and $19,999.99 require the additional approval of the Director, Dean,
Associate/Assistant VP
• Purchases between $20,000 and $39,999.99 require the additional approval of the Vice
President
• Purchases above $40,000 require the additional approval of the President
Condition and context: Out of a population of 1,377 expenses, including 18 credit card payments, made from Title III Part B funds totaling $1,774,314, we sampled 42 expenditures, including 2 credit card payments, totaling $353,291.64. Out of this sample, the University failed to correctly provide approval for both of the credit card expenditures. The University pays all corporate credit
card bills without consideration of the published approval policy. Therefore, it can be determined that the entire population of credit card expenditures were not in compliance with the above criteria.
Questioned Cost: $12,639
Cause: The University pays all corporate credit card bills without consideration of the published approval policy.
Effect: Expenditures made via corporate credit card were not subject to approval.
Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval.