Finding Text
Federal Program Information: Student Financial Assistance Cluster (ALN: Various), Title III Strengthening Historically Black Colleges and Universities Program (ALN: 84.031B), TRIO Cluster (ALN: Various) and Education Stabilization Fund - Higher Education Emergency Relief Fund (ALN: Various)
Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): L. Reporting - Per Uniform Guidance, §200.510(b), the auditee shall also prepare a schedule of expenditures of Federal awards (“Schedule”) for the period covered by the auditee's financial statements. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. For example, when a Federal program has multiple award years, the auditee may list the amount of Federal awards expended for each award year separately. At a minimum, the Schedule shall:
• List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For the Research and Development Cluster, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency.
• For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included.
• Provide total Federal awards expended for each individual Federal program and the Assistance Listings Number (“ALN”) or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster.
• Include the total amount provided to subrecipients from each Federal program.
• For loan or loan guarantee programs, identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule.
Condition: During our audit procedures, we noted that the University did not complete the Schedule timely or accurately and the Schedule was also not properly reviewed by management prior to being provided for audit purposes.
Cause: Insufficient internal controls and administrative oversight with respect to the timely preparation and review of Schedule.
Effect: The University is not in compliance with reporting requirements.
Questioned Costs: Indeterminable.
Context: The initial Schedule received by management excluded certain federal programs and expenditures that were applicable to the current year. Additionally, the Schedule did not include appropriate federal program names, ALNs, cluster identification, pass through entity identifiers or subrecipient information.
Identification as a Repeat Finding: No similar findings noted in the prior year.
Recommendation: We recommend that the University enhance its internal controls, policies and procedures to ensure that the Schedule is appropriately prepared and properly reviewed during the year-end financial statement close process.
Views of Responsible Officials and Planned Corrective Actions: The enhanced internal controls and policies and procedures now in place over the financial reporting process will aid current management in the accurate and timely completion of the Schedule of Expenditures of Federal Awards (SEFA). Additionally, current management has reviewed the reporting requirements for the SEFA and going forward, grant setup procedures will include a checklist that will identify the correct federal grant name (and cluster, if applicable), assistance listing number and total expenditure amount per program to ensure accuracy in reporting on the SEFA. Additionally, further review will be conducted by the Controller and Vice President of Finance to ensure accuracy.