Finding 618019 (2022-001)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-04-10
Audit: 49955
Organization: Maranatha Baptist University (WI)

AI Summary

  • Core Issue: The University lacks proper documentation for vendor reviews related to suspension and debarment.
  • Impacted Requirements: This finding violates Section 200.303 on maintaining effective internal controls over federal awards.
  • Recommended Follow-up: Implement a process to document who reviews vendors, when the review occurs, and the outcome regarding their suspension or debarment status.

Finding Text

2022 ? 001: Suspension and Debarment Federal Agency: U.S. Department of Education Federal Program Name: Higher Education Emergency Relief Fund (COVID-19) Assistance Listing Number: 84.425F Federal Award Identification Number and Year: P425F201884-2022 Award Period: 5/6/2020 to 6/30/2023 Type of Finding: ? Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Section 200.303, Internal Controls, states that the College shall ?establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The University?s policies and procedures and related internal controls did not result in the University maintaining documentation as to the individual performing the review, the date of the review, and the conclusion on whether a vendor is suspended or debarred. Questioned costs: There are no questioned costs. Context: The University did not document the internal control to document the review of suspension and debarment with obtaining evidence of compliance with the stated criteria. Cause: The University?s current policies and procedures do not include the step to document the individual performing the review, the date of the review, and the conclusion on whether a vendor has been suspended or debarred. Effect: There is a risk that the University may enter into a contract for services with a vendor who is suspended or debarred. Repeat Finding: No Recommendation: We recommend that the University document the individual performing the review, the date of the review, and the conclusion on whether a vendor is suspended or debarred based on performing the appropriate search. Views of responsible officials: There is no disagreement with the audit finding.

Categories

Procurement, Suspension & Debarment Significant Deficiency

Other Findings in this Audit

  • 41577 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $1.58M
84.063 Federal Pell Grant Program $1.14M
84.425 Education Stabilization Fund $590,315
84.007 Federal Supplemental Educational Opportunity Grants $24,000