FAC Explorer

Finding 616469 (2022-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-02-23
Audit: 44191
Organization: Bradley University (IN)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: Checks to students were signed by a former CFO, raising concerns about unauthorized disbursements.
  • Impacted Requirements: Internal controls must ensure that only current, authorized personnel can sign financial documents.
  • Recommended Follow-Up: Improve termination procedures to automatically revoke signing authority for employees who leave the organization.

Finding Text

Type of Finding: ? Significant Deficiency in Internal Control over Financial Reporting Condition: During testing of disbursements made to students under Higher Education Emergency Relief Fund (HEERF) program, we noted that all checks written to students were signed by the former CFO who was not employed during the audit period tested. Criteria or specific requirement: A fundamental concept in a good system for internal control includes ensuring personnel with authorization to financial assets of an entity are periodically reviewed to ensure authorized individuals are accurate and appropriate. Effect: There is a potential for unauthorized disbursements to be made based on a former employee signature being used for disbursement checks. Cause: Controls in place around terminated employees did not include removing signing authority and responsibilities of the individual. Repeat Finding: No. Recommendation: We recommend the University enhance termination procedures to include a control to ensure employees lose authorized signer rights for the University upon termination. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding. Management has subsequently updated authorized users and the signature to the current CFO.

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 40027 2022-001
    Significant Deficiency
  • 40028 2022-002
    Significant Deficiency Repeat
  • 40029 2022-001
    Significant Deficiency
  • 40030 2022-002
    Significant Deficiency Repeat
  • 616470 2022-002
    Significant Deficiency Repeat
  • 616471 2022-001
    Significant Deficiency
  • 616472 2022-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $44.22M
84.063 Federal Pell Grant Program $6.35M
84.425 Higher Education Emergency Relief Fund - Institutional Portion (covid-19) $5.54M
84.425 Higher Education Emergency Relief Fund - Student Aid Portion (covid-19) $5.50M
84.038 Perkins Loan Program $3.56M
84.007 Federal Supplemental Educational Opportunity Grants $830,946
11.611 Central Regional Center $483,154
84.033 Federal Work-Study Program $365,608
93.364 Nursing Student Loans $230,142
59.037 Small Business Development Centers $151,563
84.153 Business and International Education Projects $32,761
21.027 Community Navigator Subgrant $31,576
93.351 Resource Center for Tetrahymena Thermiphila 27-89 332 $27,153
45.163 Middle Eastern Christianity: A Historic and Living Tradition 27-86363 $20,508
93.052 Caregiver Counseling, Support Groups, Traning and Education 27-89341 $19,067
43.008 Development of Low-Cost Polymer-Based Biosensors for Next Generation Medical Diagonostics 27-86532c $9,710
93.052 Caregiver Counseling, Support Groups, Traning and Education 27-89340 $9,166
43.008 Application of Remote Sensing Lidar Data 27-86531f $8,052
43.008 Continuation of Undergraduate Experimental and Simulation Research in Emerging Areas of Nanotechnology 27-86531b/27-86532a $6,309
43.008 Underrepresented Stem Engagement Through University, School District and Community Collaboration 27-86531e $6,221
43.008 Illinois Space Grant Consortium Scholarship/award Management $6,000
43.008 Nanofluid Forced Convection Heat Transfer in Microchannels; Nanoparticle Production & Heat Transfer Enhancement 27-86532b $5,288
43.008 Research Experience for Undergraduates in Intelligent Control of Networked Autonomous Robotics Systems 27-86530c $4,514
43.008 Signal Processing Prospectives 27-86529b/27-86530g $4,282
43.008 Waterless Thermoplastic Lunar Concrete-3d Printing 27-86531g $4,088
43.008 Continued Enhancement of Speace-Related Demostrations in Science Outreach Shows 27-86531d/27-86532d $3,294
43.008 Sulfur Concrete Members Reinforced with Cast-Flow Induced Fibers for Planetary Applications 27-86532f $1,251
43.008 Multi-Scale Quantification of Stiffness Properties in Tissues, Scaffolds & Cells 27-86531c $786
43.008 Study and Development of Area Coverage Strategies for Nondeterministics Environments 27-86529c $683
43.008 Nano Modified Sulfur Concrete with Automated 3d Printing on Mars 27-86520 $192
43.008 Investigation of Sulfur Concrete Members Reinforced with Bamboo for Planetary Applications 27-86531h $148