FAC Explorer

Finding 627223 (2022-003)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2022-12-27
Audit: 53290
Organization: University of South Alabama (AL)
Auditor: Kpmg LLP

AI Summary

  • Core Issue: An expenditure was approved based on an inaccurate calculation from a vendor invoice, leading to improper use of federal funds.
  • Impacted Requirements: The finding highlights a failure to maintain effective internal controls as required by 2 CFR 200.303.
  • Recommended Follow-Up: Strengthen the management review process to ensure accurate invoice assessments before payment approvals.

Finding Text

Finding No: 2022 003 Activities Allowed or Unallowed/Allowable Costs Federal Agency: U.S. Department of Transportation Assistance Listing Number: 20.205 Pass-through Entity: Alabama Department of Transportation Pass-through Award Number: #2283(OX-002283-000) Program: Highway Planning and Construction Cluster Award Year: August 4, 2021 through January 13, 2024 (a) Criteria or Requirement Per 2 CFR 200.303, the non Federal entity must 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. (b) Condition Found, Including Perspective During our test work over the Highway Planning and Construction program, we selected a sample of 50 disbursements made during the fiscal year. For one of the 50 disbursements sampled, we noted that the expenditure was approved for payment based on an inaccurate calculation on the underlying vendor invoice. (c) Possible Cause The University has a management review process to review invoices and related documentation before payments are disbursed. The management review control that was in place did not operate effectively to prevent inaccurate amounts from being submitted for reimbursement by the federal agency. (d) Questioned Cost None reportable. (e) Effect Federal funds were expended for inaccurate amounts. (f) Statistical Validity The sample was not intended to be, and was not, a statistically valid sample. (g) Repeat Finding in the Prior Year Not a repeat finding. (h) Recommendation We recommend that the University strengthen controls over the management review process to prevent inaccurate amounts from being charged to the Federal programs. (i) View of Responsible Officials Management concurs with the finding. While we have an adequate process in place, those responsible for steps of the review process need to be reminded of the importance of completing adequate reviews.

Categories

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 50779 2022-002
    Significant Deficiency
  • 50780 2022-004
    Significant Deficiency
  • 50781 2022-003
    Significant Deficiency
  • 50782 2022-001
    Significant Deficiency
  • 627221 2022-002
    Significant Deficiency
  • 627222 2022-004
    Significant Deficiency
  • 627224 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loan Program $112.33M
84.063 Federal Pell Grant Program $17.63M
93.498 Covid-19 Provider Relief Fund and American Rescue Plan Rural Distribution* $14.12M
84.425 Covid-19 Higher Education Emergency Relief Fund Institution $13.78M
20.205 Highway Planning and Construction $2.74M
93.680 Medical Student Education $2.36M
93.247 Advanced Education Nursing Workforce Grant Programs $1.05M
93.461 Covid-19-Claims Reimbursement to Health Care Providers and Facilities for Testing, Treatment, and Vaccine Administration for the Uninsured $987,806
81.049 Basic Energy Sciences University and Science Education $951,954
84.038 Federal Perkins Loan Program $942,050
93.889 National Bioterrorism Hospital Preparedness Program $829,954
47.079 International Science and Engineering (oise) (b) $813,113
11.417 Sea Grant Support $765,177
93.310 Trans-Nih Research Support $721,608
93.884 Grants for Primary Care Training and Enhancement $629,773
93.153 Coordinated Services and Access to Research for Women, Infants, Children and Youth $608,023
93.732 Pphf-2012 Mental and Behavioral Health Education and Training Grants $604,940
93.213 Research and Training in Alternative Medicine $602,329
12.420 Military Medical Research and Development $526,902
11.451 Gulf Coast Ecosystem Restoration Science, Observation, Monitoring, and Technology $521,501
84.033 Federal Work Study Program $497,404
84.407 Transition Programs for Students with Intellectual Disabilities Into Higher Ed $490,221
10.761 Technical Assistance and Training Grants $478,805
87.051 Gulf Coast Ecosystem Restoration Council $476,660
93.859 Pharmacology Physiology and Biological Chemistry $474,172
84.007 Federal Supplemental Educational Opportunity Grant Program $464,102
93.178 Nursing Workforce Diversity $377,217
84.047 Trio Upward Bound $330,447
12.U09 U.s. Department of Defense $245,736
84.425 Covid-19 - Elementary and Secondary School Emergency Relief Fund $232,547
47.074 Biological Sciences $218,441
47.049 Mathematical and Physical Sciences $206,828
10.U00 U.s. Department of Agriculture $195,788
84.031 Higher Education Institutional Aid $191,294
11.307 Economic Adjustment Assistance $181,616
66.475 Gulf of Mexico Program $176,571
43.008 Education $164,412
12.630 Basic, Applied, and Advanced Research in Science and Engineering $160,992
47.083 Office of Integrative Activities $159,288
16.582 Crime Victim Assistance / Discretionary Grants $153,067
17.259 Wioa Youth Activities Cluster $150,548
93.264 Nurse Faculty Loan Program $150,463
84.367 Teacher Tech in Motion $147,373
93.U06 Medicaid $145,892
45.149 Promotion of the Humanities Division of Preservation and Access $139,040
93.889 Covid-19 National Bioterrorism Hospital Preparedness Program $126,939
47.041 Engineering Grants $125,535
93.838 Lung Diseases Research $114,419
93.359 Nurse Education, Practice Quality and Retention Grants $113,309
93.658 Foster Care Title IV-E $111,922
93.361 Nursing Research $109,180
93.286 Discovery and Applied Research for Technological Innovations to Improve Human Health $104,733
93.113 Biological Response to Environmental Health Hazards $101,622
47.075 Social Behavioral and Economic Sciences $100,040
84.044 Trio Talent Search $92,353
93.866 Aging Research $89,719
81.089 Fossil Energy Research and Development $83,726
47.050 Geosciences $72,547
43.008 Office of Stem Engagement $70,093
12.431 Basic Scientific Research $69,544
93.393 Cancer Cause and Prevention Research $69,290
10.652 Forestry Research $66,586
84.425 Covid-19 - Education Stabilization Fund $64,125
11.420 Coastal Zone Management Estuarine Research Reserves $63,407
47.U04 National Science Foundation $62,096
93.323 Epidemiology & Laboratory Capacity for Infectious Diseases $62,068
84.379 Teacher Education Assistance for College and Higher Education $58,925
11.434 Cooperative Fishery Statistics $57,676
93.079 Cooperative Agreements to Promote Adolescent Health Through School-Based Hiv/std Prevention and School-Based Surveillance $50,090
11.U08 U.s. Department of Commerce $49,980
10.U07 U.s. Department of Agriculture $39,419
93.889 Covid-19 National Bioterrorism Hospital Preparedness Program $37,538
93.351 Research Infrastructure Programs $33,763
84.016 Undergraduate International Studies and Foreign Language $33,360
47.070 Computer and Information Science and Engineering $33,348
93.837 Cardiovascular Diseases Research $32,836
16.U03 U.s. Department of Justice $29,294
93.847 Diabetes, Digestive, and Kidney Diseases Extramural Research $29,052
11.609 Measurement and Engineering Research and Standards $28,563
84.367 Improving Teacher Quality State Grants $28,531
93.940 Hiv Prevention Activities Health Department Based $28,121
21.015 Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States $26,929
47.076 Education and Human Resources $25,758
47.078 Polar Programs $21,631
93.396 Cancer Biology Research $20,629
93.350 National Center for Advancing Translational Sciences $20,188
93.395 Cancer Treatment Research $18,206
93.U06 Research Institute $12,767
93.087 Enhance Safety of Children Affected by Substance Abuse $12,562
16.560 National Institute of Justice Research, Evaluation, and Development Project Grants $12,016
93.389 National Center for Research Resources $11,051
93.U11 Medicaid $10,000
43.U10 National Aeronautics and Space Administration $9,467
94.006 Americorp $8,661
11.478 Center for Sponsored Coastal Ocean Research Coastal Ocean $8,250
93.855 Allergy and Infectious Diseases Research $8,000
11.012 Integrated Ocean Observing System (ioos) $7,933
93.307 Minority Health and Health Disparities Research $6,478
16.753 Congressionally Recommended Awards $6,420
16.922 Equitable Sharing Program $5,270
93.994 Maternal and Child Health Services Block Grant to the States $4,538
12.U01 Department of Defense $4,067
11.008 Noaa Mission-Related Education Awards $3,554
11.467 Meteorologic and Hydrologic Modernization Development $1,824
43.001 Aerospace Education Services Program $1,500
15.611 Wildlife Restoration $1,293
12.800 Air Force Defense Research Sciences Program $559
93.853 Clinical Research Related to Neurological Disorders $477
64.U05 U.s. Department of Veteran Affairs $400
45.160 Promotion of the Humanities, Fellowships, and Stipends $290
93.917 Hiv Care Formula Grants $72
15.U02 Department of Interior $-35
43.003 Exploration $-89
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $-17,110
12.300 Basic and Applied Scientific Research $-18,704
21.019 Covid-19 Coronavirus Relief Fund $-30,090
84.425 Covid-19 Higher Education Emergency Relief Fund Student $-145,138