Finding 8985 (2023-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-01-18
Audit: 12324
Organization: Kirtland Community College (MI)

AI Summary

  • Core Issue: The College's Gramm Leach Bliley Policy lacks multi-factor authentication for accessing customer information.
  • Impacted Requirements: This noncompliance affects the College's ability to meet FTC safeguard requirements for sensitive data.
  • Recommended Follow-Up: Implement a review process to ensure all safeguard policies are verified by a second individual.

Finding Text

Finding Type. Immaterial Noncompliance / Significant Deficiency in Internal Control over Compliance (Special Tests and Provisions). Program. Student Financial Assistance Cluster; U.S. Department of Education; Assistance Listing Numbers 84.007, 84.033, 84.063, and 84.268; Award Numbers P007A212026, P007A222026, P033A222026, P063P212898, and P063P222898. Criteria. The Federal Trade Commission (FTC) states that the Gramm Leach Bliley Act "requires financial institutions to explain their information‐sharing practices to their customers and safeguard sensitive data." Condition. The most recent Gramm Leach Bliley Policy fails to address the implementation of multi‐factor authentication for anyone accessing customer information on the institution's system. Cause. The College does not have a review process in place for ensuring all safeguard policies are met in the Gramm Leach Bliley Policy. Effect. As a result of this condition, the College isn't meeting the safeguard requirements necessary to comply with the FTC. In addition, the lack of safeguard controls creates an increased risk to highly sensitive data that is possessed by the College. Recommendation. We recommend that the College implement procedures to ensure that all Gramm Leach Bliley Policies are met and verified by a second individual.View of Responsible Officials. Management agrees with this finding and has prepared a Corrective Action Plan.

Corrective Action Plan

Auditor Description of Condition and Effect. The most recent Gramm Leach Bliley Policy fails to address the implementation of multi‐factor authentication for anyone accessing customer information on the institution's system. Auditor Recommendation. We recommend that the College implement procedures to ensure that all Gramm Leach Bliley Policies are met and reviewed by a second individual. As a result of this condition, the College isn't meeting the safeguard requirements necessary to comply with the Federal Trade Commission. In addition, the lack of safeguard controls creates an increased risk to highly sensitive data that is possessed by the College. Corrective Action. Currently, the College is reviewing the compliance requirements for Gramm Leach Bliley and will amend the current policy to ensure multi‐factor authentication and all other requirements of the Gramm Leach Bliley Act are appropriately included in the College's policy. Responsible Person. Matt Biermann, Director of IT Anticipated Completion Date. June 30, 2024

Categories

Special Tests & Provisions Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 8986 2023-001
    Significant Deficiency
  • 8987 2023-001
    Significant Deficiency
  • 8988 2023-001
    Significant Deficiency
  • 8989 2023-001
    Significant Deficiency
  • 8990 2023-001
    Significant Deficiency
  • 585427 2023-001
    Significant Deficiency
  • 585428 2023-001
    Significant Deficiency
  • 585429 2023-001
    Significant Deficiency
  • 585430 2023-001
    Significant Deficiency
  • 585431 2023-001
    Significant Deficiency
  • 585432 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $2.98M
84.063 Federal Pell Grant Program $2.27M
84.048 Vocational Education - Basic Grants to States: Regional Allocation $277,937
84.007 Federal Supplemental Educational Opportunity Grants $148,915
84.033 Federal Work-Study Program $38,324