Finding Text
Comment 2021-006
THE UNIVERSITY FAILED TO COMPLETE AND FILE ITS ANNUAL AUDIT AND COMPLETE ITS FILING WITH THE FEDERAL AUDIT CLEARING HOUSE FOR THE JUNE 30, 2021 YEAR END
STUDENT FINANCIAL AID CLUSTER AND OTHER FEDERAL PROGRAMS
CFDA # 84.007, 84.033, 84.063, 84.268, 84.425E, 84.425F, 84.425L, 84.425N and 84.287
(Questioned Costs - None)
(Repeat) Condition:
Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements for Federal Awards (Uniform
Guidance), Section 200.508 - Auditee responsibilities, requires the auditee (the University) arrange for the audit of the
its financial statements to meet the requirements as set forth in Section 200.512, Report submission. Section 200.512 states
that the audit must be completed and the data collection form filed with the Federal Audit Clearing House within the
earlier of 30 calendar days after receipt of the auditor’s report or nine months after the end of the audit period. Certain
extensions were granted due to the pandemic. The University is also required to submit its audit to the Department of
Education FSA eZ-Audit System.
The University failed to complete and submit its June 30, 2021 audit in a timely manner as required by federal regulations.
Context:
Review of the University’s reporting requirements under the Uniform Guidance and the Department of Education eZ-
Audit System requirement.
Criteria:
Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements for Federal Awards (Uniform
Guidance), Section 200.508 - Auditee responsibilities, requires the auditee (the University) arrange for the audit of the
its financial statements to meet the requirements as set forth in Section 200.512, Report submission. FSA eZ-Audit System.
Effect:
The University is subject to general and specific sanctions as set forth in federal regulations.
Cause:
The University did not perform its independent due diligence with respect to the federal reporting requirements and filing
its annual audit report as set forth by the Uniform Guidance. The University’s board of trustees and senior management
relied entirely on the former CFO to fulfill the regulatory filing requirements. Recommendation:
The University must established, through its board of Trustees, an independent committee thoroughly familiar with the
federal and state reporting requirements promulgated by the Uniform Guidance, the Department of Education and the State
of Indiana to ensure complete compliance with the various reporting mandates set forth by regulators.
Views of Responsible Officials and Planned Corrective Actions:
In 2022, the board of trustees expanded the duties of the Audit and Finance Committee to include annual traning on SFA federal and state financial reporting regulations and audit requirements. The University also will provide risk assessment training to all board members and the President's Cabinet focusing on covering common risk factors of institutions of higher education. The University hired a new CFO in November 2023 and completed its FY 2021 audit in December 2023. The Universith received an extension from the DOE to complete its FY 2022 audit by March 2024.