FAC Explorer

Finding 610620 (2022-002)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 30456
Organization: Clarkson University (NY)
Auditor: Kpmg LLP

AI Summary

  • Core Issue: The schedule of expenditures of federal awards (SEFA) was understated by $408,822 due to management adjustments for encumbrances that were not actual expenditures.
  • Impacted Requirements: This finding highlights a material weakness in internal controls related to the accuracy and completeness of federal award reporting as required by Uniform Guidance.
  • Recommended Follow-Up: Implement a detailed review process for preparing the SEFA, including reconciliation with the general ledger, conducted by someone other than the preparer to prevent future misstatements.

Finding Text

Program: Research and Development Cluster Federal Agency Name: U.S. Environmental Protection Agency Federal Award Number: OOEO2957 Federal Award Year: July 1, 2021 ? June 30, 2022 Federal Assistance Listing Numbers: 66.469 Criteria Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) Subpart F ? Audit Requirements ? 200.510 requires the auditee to prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with ? 200.502. The Uniform Guidance requires the auditor to determine whether the auditee?s schedule of expenditures of federal awards is fairly stated, in all material respects, in relation to the entity's audited financial statements as a whole. In addition, the Uniform Guidance places the responsibility for identifying major programs on the auditor and the schedule of expenditures of federal awards serves as the primary basis for the auditor?s major program determination. Therefore, appropriate major program determination by the auditor is dependent on the accuracy and completeness of the information in the schedule of expenditures of federal awards. Condition In preparation of the schedule of expenditures of federal awards (SEFA) management adjusted the total federal awards in the R&D Cluster to reduce expenditures recorded in the general ledger by ?encumbrances? which are not recorded as expenditures for the period covered by the SEFA. These ?encumbrances? represented future expenditures that were obligated but not yet accrued in the accounting records. The adjustment inadvertently reduced actual expenditures for one award in the amount of $408,822 and resulted in the SEFA being understated. As a result of the audit, the adjustment was reversed and as such the award is properly stated in the SEFA for the year ended June 30, 2022. We deemed this to be a material weakness in internal controls This finding is not a repeat finding in the immediately prior audit. Our sample was not and was not intended to be statistically valid. Questioned Costs No questioned costs Cause The University did not have an adequately designed internal control to identify the error to federal awards expended and as such, the amount of the errors could have been greater and not detected by the University?s control environment. Effect Potential misstatement to the schedule of expenditures of federal awards. Recommendation We recommend that the University implement a more thorough and detailed process for preparing and reviewing the SEFA to identify adjustments that could result in a misstatement of the SEFA. This should include a formalized and detailed review of the SEFA and its reconciliation to the general ledger and financial statements by someone other than the preparer.

Categories

Reporting Internal Control / Segregation of Duties Allowable Costs / Cost Principles Material Weakness

Other Findings in this Audit

  • 29984 2022-003
    Material Weakness Repeat
  • 29985 2022-003
    Material Weakness Repeat
  • 29986 2022-003
    Material Weakness Repeat
  • 29987 2022-003
    Material Weakness Repeat
  • 29988 2022-003
    Material Weakness Repeat
  • 29989 2022-003
    Material Weakness Repeat
  • 29990 2022-003
    Material Weakness Repeat
  • 29991 2022-003
    Material Weakness Repeat
  • 29992 2022-003
    Material Weakness Repeat
  • 29993 2022-003
    Material Weakness Repeat
  • 29994 2022-003
    Material Weakness Repeat
  • 34155 2022-003
    Material Weakness Repeat
  • 34156 2022-003
    Material Weakness Repeat
  • 34157 2022-003
    Material Weakness Repeat
  • 34158 2022-003
    Material Weakness Repeat
  • 34159 2022-003
    Material Weakness Repeat
  • 34160 2022-003
    Material Weakness Repeat
  • 34161 2022-003
    Material Weakness Repeat
  • 34162 2022-003
    Material Weakness Repeat
  • 34163 2022-003
    Material Weakness Repeat
  • 34164 2022-003
    Material Weakness Repeat
  • 34165 2022-003
    Material Weakness Repeat
  • 34166 2022-003
    Material Weakness Repeat
  • 34167 2022-003
    Material Weakness Repeat
  • 34168 2022-003
    Material Weakness Repeat
  • 34169 2022-003
    Material Weakness Repeat
  • 34170 2022-003
    Material Weakness Repeat
  • 34171 2022-003
    Material Weakness Repeat
  • 34172 2022-003
    Material Weakness Repeat
  • 34173 2022-003
    Material Weakness Repeat
  • 34174 2022-003
    Material Weakness Repeat
  • 34175 2022-003
    Material Weakness Repeat
  • 34176 2022-003
    Material Weakness Repeat
  • 34177 2022-003
    Material Weakness Repeat
  • 34178 2022-002
    Material Weakness
  • 34179 2022-003
    Material Weakness Repeat
  • 34180 2022-003
    Material Weakness Repeat
  • 34181 2022-003
    Material Weakness Repeat
  • 34182 2022-003
    Material Weakness Repeat
  • 34183 2022-003
    Material Weakness Repeat
  • 34184 2022-003
    Material Weakness Repeat
  • 34185 2022-003
    Material Weakness Repeat
  • 34186 2022-003
    Material Weakness Repeat
  • 34187 2022-003
    Material Weakness Repeat
  • 34188 2022-003
    Material Weakness Repeat
  • 606426 2022-003
    Material Weakness Repeat
  • 606427 2022-003
    Material Weakness Repeat
  • 606428 2022-003
    Material Weakness Repeat
  • 606429 2022-003
    Material Weakness Repeat
  • 606430 2022-003
    Material Weakness Repeat
  • 606431 2022-003
    Material Weakness Repeat
  • 606432 2022-003
    Material Weakness Repeat
  • 606433 2022-003
    Material Weakness Repeat
  • 606434 2022-003
    Material Weakness Repeat
  • 606435 2022-003
    Material Weakness Repeat
  • 606436 2022-003
    Material Weakness Repeat
  • 610597 2022-003
    Material Weakness Repeat
  • 610598 2022-003
    Material Weakness Repeat
  • 610599 2022-003
    Material Weakness Repeat
  • 610600 2022-003
    Material Weakness Repeat
  • 610601 2022-003
    Material Weakness Repeat
  • 610602 2022-003
    Material Weakness Repeat
  • 610603 2022-003
    Material Weakness Repeat
  • 610604 2022-003
    Material Weakness Repeat
  • 610605 2022-003
    Material Weakness Repeat
  • 610606 2022-003
    Material Weakness Repeat
  • 610607 2022-003
    Material Weakness Repeat
  • 610608 2022-003
    Material Weakness Repeat
  • 610609 2022-003
    Material Weakness Repeat
  • 610610 2022-003
    Material Weakness Repeat
  • 610611 2022-003
    Material Weakness Repeat
  • 610612 2022-003
    Material Weakness Repeat
  • 610613 2022-003
    Material Weakness Repeat
  • 610614 2022-003
    Material Weakness Repeat
  • 610615 2022-003
    Material Weakness Repeat
  • 610616 2022-003
    Material Weakness Repeat
  • 610617 2022-003
    Material Weakness Repeat
  • 610618 2022-003
    Material Weakness Repeat
  • 610619 2022-003
    Material Weakness Repeat
  • 610621 2022-003
    Material Weakness Repeat
  • 610622 2022-003
    Material Weakness Repeat
  • 610623 2022-003
    Material Weakness Repeat
  • 610624 2022-003
    Material Weakness Repeat
  • 610625 2022-003
    Material Weakness Repeat
  • 610626 2022-003
    Material Weakness Repeat
  • 610627 2022-003
    Material Weakness Repeat
  • 610628 2022-003
    Material Weakness Repeat
  • 610629 2022-003
    Material Weakness Repeat
  • 610630 2022-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $27.58M
84.038 Federal Perkins Loan Program $3.59M
84.425 Education Stabilization Fund $3.20M
84.063 Federal Pell Grant Program $2.84M
66.469 Great Lakes Program $1.02M
47.070 Computer and Information Science and Engineering $723,533
84.033 Federal Work-Study Program $584,074
84.007 Federal Supplemental Educational Opportunity Grants $440,184
84.042 Trio_student Support Services $300,517
84.217 Trio_mcnair Post-Baccalaureate Achievement $276,721
12.300 Basic and Applied Scientific Research $170,651
93.213 Research and Training in Complementary and Integrative Health $166,991
27.011 Intergovernmental Personnel Act (ipa) Mobility Program $141,986
12.000 Serdp Treatment Train $140,863
20.200 Highway Research and Development Program $135,549
47.050 Geosciences $129,946
81.049 Office of Science Financial Assistance Program $126,925
47.075 Social, Behavioral, and Economic Sciences $119,135
47.076 Education and Human Resources $80,122
10.310 Agriculture and Food Research Initiative (afri) $70,312
12.420 Military Medical Research and Development $66,293
93.865 Child Health and Human Development Extramural Research $52,375
93.173 Research Related to Deafness and Communication Disorders $50,822
12.800 Air Force Defense Research Sciences Program $49,619
11.609 Measurement and Engineering Research and Standards $43,130
43.002 Aeronautics $27,830
12.910 Research and Technology Development $26,605
47.074 Biological Sciences $26,278
97.GSA_MIGRATION US Geological Survey - Natural Resource Stewardship $25,000
66.511 Office of Research and Development Consolidated Research/training/fellowships $17,249
47.049 Mathematical and Physical Sciences $17,248
81.117 Energy Efficiency and Renewable Energy Information Dissemination, Outreach, Training and Technical Analysis/assistance $17,051
12.901 Mathematical Sciences Grants Program $13,158
12.000 Battelle $7,793
93.913 Grants to States for Operation of Offices of Rural Health $7,600
12.431 Basic Scientific Research $6,819
15.944 Natural Resource Stewardship $6,170
84.037 Federal Perkins Loan Cancellations $4,700
47.041 Engineering $4,219
40.070 University of Buffalo $4,156
20.215 Highway Training and Education $3,798
93.859 Biomedical Research and Research Training $2,616
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $344