Finding 613272 (2022-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-04-23
Audit: 35370
Organization: New Jersey City University (NJ)
Auditor: Kpmg LLP

AI Summary

  • Core Issue: The University failed to update its website quarterly as required for the HEERF funding, only posting updates for one quarter in 2022.
  • Impacted Requirements: The University did not comply with Department of Education criteria for timely and accurate public reporting, lacking necessary internal controls.
  • Recommended Follow-Up: Strengthen policies for website updates and ensure proper review and documentation processes are in place to meet compliance standards.

Finding Text

2022 002 Reporting U.S. Department of Education: Education Stabilization Fund ? Higher Education Emergency Relief Fund (HEERF) Student Aid Portion (ALN 84.425E) Federal Award Numbers and Years: P425F200214 (4/21/20 ? 6/30/23) Statistically Valid Sample: The sample was not intended to be, and was not, a statistically valid sample. Prior Year Finding: 2021-003 Finding Type: Material Weakness and Material Noncompliance Criteria The Department of Education requires that institutions who received the Section 18004(a)(1) Student Aid Portion of higher education emergency relief funding (HEERF) to publicly post certain information on their website every calendar quarter. The report must be updated no later than 10 days after the end of each calendar quarter (October 10, January 10, April 10, and July 10). Additionally, in accordance with Federal requirements, the University shall maintain internal controls over Federal programs designed to provide reasonable assurance that transactions are executed in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award that could have a direct and material effect on a Federal program. Condition and Context During 2022, the University did not update their website each quarter. The University only updated its website for the quarter ending June 30, 2022. In addition, the University could not provide evidence that the information for the quarter ended June 30, 2022 was updated on the website timely or appropriately reviewed prior to posting. The University?s policies and procedures to ensure compliance with the above requirements did not include certain internal controls that were designed properly and operating effectively to ensure that information displayed on the website was reported timely, complete and accurate. Cause The University did not have policies and procedures in place to ensure that the website was appropriately updated on a quarterly basis. In addition, the University did not maintain documentation that the information was reported timely and was properly reviewed by someone other than the preparer with knowledge of the subject matter. Effect The information displayed on the University?s website was not current throughout fiscal year 2022. Questioned Costs There are no known questioned costs related to this finding. Recommendation We recommend that the University strengthen its policies and procedures over the website reporting in relation to the Education Stabilization Fund program. We also recommend that the University ensure that internal controls in place surrounding the review of the website reporting are performed as designed and that documentation supporting the amounts reported is adequately maintained, along with evidence that the information was adequately reviewed by someone other than the preparer with knowledge of the subject matter.

Categories

Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 36828 2022-004
    Material Weakness
  • 36829 2022-004
    Material Weakness
  • 36830 2022-002
    Material Weakness Repeat
  • 36831 2022-003
    Material Weakness
  • 36832 2022-001
    Significant Deficiency
  • 36833 2022-001
    Significant Deficiency
  • 613270 2022-004
    Material Weakness
  • 613271 2022-004
    Material Weakness
  • 613273 2022-003
    Material Weakness
  • 613274 2022-001
    Significant Deficiency
  • 613275 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $25.61M
84.063 Federal Pell Grant Program $15.20M
84.031 Higher Education_institutional Aid $2.28M
84.038 Federal Perkins Loan Program $1.04M
84.007 Federal Supplemental Educational Opportunity Grants $494,591
84.033 Federal Work-Study Program $444,494
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $367,944
84.042 Trio_student Support Services $301,241
93.732 Mental and Behavioral Health Education and Training Grants $186,534
47.076 Education and Human Resources $82,894
59.064 Small Business Development Centers $71,241
47.074 Biological Sciences $55,850
93.279 Drug Abuse and Addiction Research Programs $46,499
12.902 Information Security Grants $33,358
84.335 Child Care Access Means Parents in School $32,282
93.859 Biomedical Research and Research Training $28,521
84.425 Education Stabilization Fund $16,487
59.037 Small Business Development Centers $11,413
45.164 Promotion of the Humanities_public Programs $10,090
12.596 Ic Cae at Rutgers $9,016