Finding Text
Federal Agency: U.S. Department of Education
Federal Program Name: Education Stabilization Fund – Higher Education Emergency Relief Fund – Student Portion, and Minority Serving Institutions
Assistance Listing Number: 84.425E and 84.425L
Award Period: July 01, 2022 – June 30, 2023
Type of Finding:
Significant Deficiency in Internal Control over Compliance
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 to 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: While testing cash management and reporting, we noted there is not a process in place to review and approve drawdowns and reports being submitted for cash management and reporting. One individual performs the process of creating and submitting reports and reimbursement requests.
Questioned costs: None.
Context: While testing cash management and reporting, we noted there is not a process in place to review and approve drawdowns and reports being submitted for cash management and reporting. One individual performs the process of creating and submitting reports and reimbursement requests.
Cause: The University does not have formal procedures in place for reviewing calculations for funds to be drawn and reports prior to submission.
Effect: When separation of duties is inadequate, there is an increased risk that errors can occur and not be detected.
Repeat finding: Yes, 2022-004.
Recommendation: We recommend that the University review the current assignment of duties for individuals and incorporate review processes for individuals where appropriate.
Views of responsible officials: Management agrees with the finding.