Finding 946863 (2023-001)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2023
Accepted
2024-02-23
Audit: 291993
Organization: Pacific University (OR)
Auditor: Kpmg LLP

AI Summary

  • Core Issue: Timesheets for 3 out of 80 payroll transactions lacked supervisor approval, risking improper charges to federal grants.
  • Impacted Requirements: Compliance with 2 CFR 200.403 and Federal Student Aid Handbook guidelines on timesheet certification and internal controls.
  • Recommended Follow-Up: Strengthen timekeeping approval processes and provide mandatory training for supervisors to ensure compliance.

Finding Text

Program Information Federal Agency: U.S. Department of Education, Department of Health and Human Services Federal Agency: Student Financial Assistance Cluster, Research and Development Cluster Federal Programs: 84.033 Federal Work-Study Program, 93.243 Drug Abuse and Addiction Research Programs, and 93.855 Allergy and Infectious Diseases Research Pass-through entity(ies): None Federal Award Year: July 1, 2022 – June 30, 2023 Criteria or Requirement Title 2, U.S. Code of Federal Regulations Part 200 (2 CRF 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, (Subpart E, Section 200.403), requires that charges to federal awards for salaries and wages be based on records that accurately reflect the work performed. Per chapter 2, Volume 6, of the 2022-2023 Federal Student Aid Handbook, institutions must maintain adequate timesheets or records of hours worked for Federal Work Study (FWS) students. Students working for your school must have their timesheets certified by either their supervisor or an official at the school. Students working in off-campus jobs must have their timesheets certified by an official at the off-campus site Title 200 part 2 CFR 200.303 states that the Institution, as a federal grant recipient, must “establish and maintain effective internal controls over the Federal awards 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. Condition found, including facts that support the deficiency identified in the finding and information to provide proper perspective for judging the prevalence and consequences of the finding For 3 of 80 payroll transactions selected for testing, the engagement team identified that the timesheet did not contain evidence of approval by the supervisor/manager. Cause and Possible Asserted Effect The University did not have sufficient controls over approval of time worked. As a result, expenditures may be charged to federal grants for time that was not worked. Identification of questioned costs and how they were computed None Sample statistically valid The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding from prior year The audit finding is not a repeat finding. Recommendation We recommend that the University strengthen its controls over timekeeping approvals of all employee timesheets, in order to ensure that payroll expenditures charged to the program are allowable. Views on responsible officials Pacific University acknowledges the importance of an effective control environment. The University’s policies do currently require approval of all timesheets; therefore, management will re-emphasize the importance of this approval control, including review of supervisor compliance with this approval requirement, and follow-up with supervisors who may not be meeting requirements. Additionally, management will begin offering mandatory annual training for all supervisors overseeing Federal Work Study students.

Categories

Internal Control / Segregation of Duties Student Financial Aid Subrecipient Monitoring Allowable Costs / Cost Principles HUD Housing Programs Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 370421 2023-001
    Significant Deficiency
  • 370422 2023-001
    Significant Deficiency
  • 370423 2023-001
    Significant Deficiency
  • 370424 2023-002
    Significant Deficiency
  • 370425 2023-002
    Significant Deficiency
  • 946864 2023-001
    Significant Deficiency
  • 946865 2023-001
    Significant Deficiency
  • 946866 2023-002
    Significant Deficiency
  • 946867 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $78.58M
93.342 Health Professions Student Loans, Including Primary Care Loans/loans for Disadvantaged Students $4.28M
84.038 Federal Perkins Loan Program $2.73M
84.063 Federal Pell Grant Program $2.21M
84.003 Federal Work-Study Program $1.01M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $949,829
93.213 Research and Training in Complementary and Integrative Health $568,238
84.031 Higher Education_institutional Aid $227,038
84.007 Federal Supplemental Educational Opportunity Grants $226,837
93.107 Area Health Education Centers Point of Service Maintenance and Enhancement Awards $182,865
47.076 Education and Human Resources $133,458
84.116 Fund for the Improvement of Postsecondary Education $125,834
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $106,668
93.855 Allergy, Immunology and Transplantation Research $95,933
15.657 Endangered Species Conservation Ð Recovery Implementation Funds $60,036
93.859 Biomedical Research and Research Training $53,416
84.016 Undergraduate International Studies and Foreign Language Programs $52,382
10.009 Academic Exchange Programs - Undergraduate Program $41,162
93.395 Cancer Treatment Research $31,622
93.866 Aging Research $31,244
16.812 Second Chance Act Reentry Initiative $26,997
84.425 Education Stabilization Fund $23,230
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $22,316
93.924 Ryan White Hiv/aids Dental Reimbursement and Community Based Dental Partnership Grants $5,737
93.865 Child Health and Human Development Extramural Research $2,956
47.074 Biological Sciences $178
47.079 Office of International Science and Engineering $-2