Finding 614916 (2022-002)

Significant Deficiency Repeat Finding
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-03-28
Audit: 30596
Organization: McKendree University (IL)

AI Summary

  • Core Issue: The University has a written procurement policy but failed to follow it when using HEERF funding, and lacks a policy to check if vendors are debarred.
  • Impacted Requirements: Non-compliance with federal regulations under 2 CFR 200.318 and 2 CFR 180.995 regarding procurement and vendor verification.
  • Recommended Follow-Up: The University should update its procurement and vendor verification policies to include all necessary federal requirements.

Finding Text

2022 ? 002: Procurement Federal agency: U.S. Department of Education Federal program title: Education Stabilization Fund: Higher Education Emergency Relief Fund Student Portion and Institutional Portion ALN Number: 84.425E, 84.425F Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: July 1, 2021 through June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: Tile 2, Subtitle A, Chapter 2 Part 200, Subpart D, section 200.318 of the Code of Federal Regulations requires Universities to have a written procurement policy that includes certain requirements as it relates to procuring good and services using federal dollars. Additionally, 2 CFR 180.995 requires that the University has a written policy where Universities should perform a check to ensure vendors are not debarred. Condition: During our testing, it was noted that the University has a written procurement policy in place, however, the University did not adhere to the policy when acquiring goods with the HEERF funding. Also, it was noted during testing that there is no written policy that requires the University to verify that vendors are suspended or debarred. Questioned costs: None Context: The University did not have appropriate documentation that met the procurement, and suspension and debarment federal requirements. Cause: The University was unaware of this federal requirement. Effect: Without written policies it is likely that required steps in the process may be missed. Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2021-002. Recommendation: We recommend that the University review their Procurement and Suspension and debarment policies and ensure that any missing federal requirements are included in their written policies. Views of responsible officials: There is no disagreement with the audit finding.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 38473 2022-001
    Significant Deficiency Repeat
  • 38474 2022-002
    Significant Deficiency Repeat
  • 38475 2022-003
    Significant Deficiency Repeat
  • 38476 2022-001
    Significant Deficiency Repeat
  • 38477 2022-002
    Significant Deficiency Repeat
  • 38478 2022-003
    Significant Deficiency Repeat
  • 614915 2022-001
    Significant Deficiency Repeat
  • 614917 2022-003
    Significant Deficiency Repeat
  • 614918 2022-001
    Significant Deficiency Repeat
  • 614919 2022-002
    Significant Deficiency Repeat
  • 614920 2022-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $10.32M
84.063 Federal Pell Grant Program $2.16M
84.425 Education Stabilization Fund $2.02M
84.033 Federal Work-Study Program $139,000
84.038 Federal Perkins Loan Program $83,522
84.007 Federal Supplemental Educational Opportunity Grants $64,250
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $11,316