FAC Explorer

Finding 8032 (2022-007)

Material Weakness Repeat Finding
Requirement
G
Questioned Costs
-
Year
2022
Accepted
2024-01-09
Audit: 10523
Organization: Central State University (OH)
Auditor: Crowe LLP

AI Summary

  • Core Issue: The University failed to provide the required $200,000 match for the Title III endowment funding during fiscal years 2021 and 2022.
  • Impacted Requirements: This non-compliance with the grant agreement affects the University’s eligibility for federal funding.
  • Recommended Follow-Up: Ensure that grant matches are executed simultaneously with expenditures, and establish timely protocols for fund transfers to the endowment.

Finding Text

Federal Program Information: Title III, ALN #84.031B Criteria: The Title III grant requires a match for endowment funding. Condition: The required match did not occur during the fiscal year. Context: During the fiscal year 2021 a contribution was recorded to the endowment for $200,000. This was an allowable expenditure under the grant agreement. However, a match of $200,000 was required, and the match was not made during fiscal year 2021 or fiscal year 2022. During the current year, there was no match made to the endowment. Questioned Cost: None Effect: The University was not in compliance with the grant agreement. Cause: The University did not follow up and make the transfer from local funds. Repeat Finding: Yes Recommendation: We recommend that when the original grant expenditure is recorded, that the grant match occurs at the same time. Response: We agree with the intent of this finding but not the dollar amounts. The contribution of $100,000 was received via Title III and Central State matched the $100,000. The total of both amounts is $200,000. Central State matches with $100,000. We did have a time lag for execution of the check and transfer to the endowment. The controller’s office will establish the protocol of being timely in matching the payment and in depositing the funds in the appropriate investment account. Responsible Person: Controller (Trasenna Gray) Completion Date: January 2024 and ongoing Auditor Response: The documentation provided shows that the endowment was funded $200,000 from federal funds during fiscal year 2021 and there has been no supporting documentation provided to show any funds related to a match. The $200,000 was included in the schedule of federal expenditures in fiscal year 2021 and was requested for reimbursement from federal funds.

Corrective Action Plan

We agree with the intent of this finding but not the dollar amounts. The contribution of $100,000 was received via Title III and Central State matched the $100,000. The total of both amounts is $200,000. Central State matches with $100,000. We did have a time lag for execution of the check and transfer to the endowment. The controller’s office will establish the protocol of being timely in matching the payment and in depositing the funds in the appropriate investment account. Responsible Person: Controller (Trasenna Gray) Completion Date: January 2024 and ongoing

Categories

Cash Management Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 8029 2022-009
    Material Weakness Repeat
  • 8030 2022-009
    Material Weakness Repeat
  • 8031 2022-009
    Material Weakness Repeat
  • 8033 2022-008
    Significant Deficiency
  • 8034 2022-010
    Significant Deficiency Repeat
  • 584471 2022-009
    Material Weakness Repeat
  • 584472 2022-009
    Material Weakness Repeat
  • 584473 2022-009
    Material Weakness Repeat
  • 584474 2022-007
    Material Weakness Repeat
  • 584475 2022-008
    Significant Deficiency
  • 584476 2022-010
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $11.68M
84.268 Federal Direct Student Loans $8.98M
10.512 Agriculture Extension at 1890 Land-Grant Institutions $3.37M
10.205 Payments to 1890 Land-Grant Colleges and Tuskegee University $3.23M
84.031 Higher Education_institutional Aid $2.85M
84.007 Federal Supplemental Educational Opportunity Grants $1.18M
12.360 Research on Chemical and Biological Defense $579,962
10.524 Scholarships for Students at 1890 Institutions (b) $575,652
10.500 Cooperative Extension Service $541,354
84.042 Trio_student Support Services $399,675
84.120 Minority Science and Engineering Improvement $341,837
84.047 Trio_upward Bound $308,019
84.033 Federal Work-Study Program $294,645
20.U01 Smokable Hemp Flower and E-Cigarettes $261,329
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $92,460
84.425 Education Stabilization Fund $90,076
10.902 Soil and Water Conservation $87,930
12.800 Air Force Defense Research Sciences Program $83,459
10.202 Cooperative Forestry Research $82,434
10.514 Expanded Food and Nutrition Education Program $82,364
47.049 Mathematical and Physical Sciences $72,047
10.216 1890 Institution Capacity Building Grants $67,761
20.701 University Transportation Centers Program $39,639
10.001 Agricultural Research_basic and Applied Research $26,242
16.525 Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus $24,518
10.515 Renewable Resources Extension Act and National Focus Fund Projects $24,424
43.001 Science $23,545
47.076 Education and Human Resources $22,526
10.523 Centers of Excellence at 1890 Institutions (b) $21,492
84.027 Special Education_grants to States $21,232
12.560 Dod, Ndep, Dotc-Stem Education Outreach Implementation $18,868
15.954 National Park Service Conservation, Protection, Outreach, and Education $17,508
10.170 Specialty Crop Block Grant Program - Farm Bill $15,693
47.041 Engineering $6,675
21.019 Coronavirus Relief Fund $6,226
12.U01 Fungal Biodegradation Responses $5,438
10.311 Beginning Farmer and Rancher Development Program $5,342
10.215 Sustainable Agriculture Research and Education $4,832
10.912 Environmental Quality Incentives Program $4,556
10.310 Agriculture and Food Research Initiative (afri) $4,078
93.788 Opioid Str $4,049
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $3,772
10.229 Extension Collaborative on Immunization Teaching & Engagement $1,026