Finding 609132 (2022-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 32312
Organization: University of La Verne (CA)

AI Summary

  • Core Issue: Reports lacked proper review and approval, violating internal control standards.
  • Impacted Requirements: Non-compliance with 2 CFR sections 200.328 and 200.329 regarding HEERF reporting.
  • Recommended Follow-Up: Management should enhance internal controls to ensure thorough documentation of report approvals.

Finding Text

Finding #: 2022-003 Funding Year(s): 7/1/2021 ? 6/30/2022 Education Stabilization Fund (ESF) (FAL #84.425L, 84,425F, 84,825E) Award Numbers: P425L200075-20C; P425F201063-20B; P425E200786-20B Federal Agency: U.S. Department of Education Type of Finding: Reporting - Internal Control (Material Weakness) Criteria: In accordance with 2 CFR sections 200.328 and 200.329, there are three components to reporting for HEERF: 1) public reporting on the Student Aid Portion; 2) public reporting on the Institutional Portion and subprograms (Quarterly Reporting Form), as applicable; and 3) the annual report. A complete system of internal controls requires all expenditures be properly approved and supported by appropriate documentation. Condition/Context: From a non-statistical sample of two (2) reports subject to testing, we identified two (2) instances where the report tested lacked evidence of review in accordance with the University?s control policies. Cause/Effect: Based on discussions with Management, the above occurred due to efforts made to abide by the 10-day time period between quarter-end and the reporting deadline. Due to the short time period, the review and approval process is rushed, and the necessary review took place during tele-conference and the CFO provided approval over the phone to get the report posted accordingly. Questioned Costs: None noted. Identification as a Repeat Finding: Repeat finding. See prior year finding 2021-003. Recommendation: We recommend the University?s Management routinely review and consider modifications that would strengthen the internal controls surrounding reporting specifically as it relates to documenting approval of reports. Views of Responsible Official: Management agrees with finding.

Categories

Procurement, Suspension & Debarment Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 32688 2022-001
    Significant Deficiency
  • 32689 2022-002
    Material Weakness Repeat
  • 32690 2022-003
    Material Weakness Repeat
  • 32691 2022-002
    Material Weakness Repeat
  • 32692 2022-003
    Material Weakness Repeat
  • 32693 2022-002
    Material Weakness Repeat
  • 32694 2022-003
    Material Weakness Repeat
  • 609130 2022-001
    Significant Deficiency
  • 609131 2022-002
    Material Weakness Repeat
  • 609133 2022-002
    Material Weakness Repeat
  • 609134 2022-003
    Material Weakness Repeat
  • 609135 2022-002
    Material Weakness Repeat
  • 609136 2022-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loan $64.06M
84.063 Federal Pell Grant $8.41M
84.425 Higher Education Emergency Relief Fund (heerf) Institutional Portion $6.02M
84.425 Higher Education Emergency Relief Fund (heerf) Student Aid Portion $5.54M
84.038 Federal Perkins Loan $1.08M
84.031 Higher Education Institutional Aid - Title III $822,307
84.007 Federal Supplemental Educational Opportunity Grant (fseog) $816,284
84.033 Federal Work Study $780,962
84.031 Higher Education Institutional Aid - Title V $446,660
59.037 Small Business Development Centers $201,214
93.866 Aging Research $88,502
59.037 Small Business Development Centers - Cares Grant $50,205
84.425 Higher Education Emergency Relief Fund (heerf) Minority Serving Institutions $41,418
47.076 Stem Education $25,225
47.049 Mathmatical and Physical Sciences $15,244
45.149 Promotion of the Humanities Division of Preservation and Access $9,114