Finding Text
Federal Agency: U.S. Department of Education
Federal Program Title: Student Financial Assistance Cluster
Federal Assistance Listing Number: 84.063, 84.007, 84.268, 84.379, 84.033, & 84.038
Award Period: 7/1/2022 – 6/30/2023
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or Specific Requirement: An essential part of internal control is that procedures are properly segregated, and the results of their performance be adequately reviewed. This is normally accomplished by assigning duties so that 1) no one person handles a transaction from beginning to end, and 2) incompatible duties between functions are not handled by the same person. In addition, a review of these completed duties should be performed by an individual independent of those functions.
Condition: During testing of cash management, there was no approval support for 2 of 6 Title IV drawdowns selected for testing.
Questioned Costs: None
Context: During our testing cash management, the University was unable to locate documented approval for 2 of 6 drawdown selections.
Cause: There was turnover throughout the year and a paper trail was not always maintained.
Effect: Documentation was not maintained to support the review and approval of drawdowns made by management.
Repeat Finding: No.
Recommendation: We recommend that the University ensure proper evidence of approval is maintained for all Title IV drawdowns.
Views of Responsible Officials: Management agrees with the finding.