Finding 974633 (2022-001)

Criteria: In accordance with 2 CFR 200.200.510(b), the auditee must prepare a Schedule of Expenditures of Federal Awards (Schedule) for the period covered by the auditee's financial statements which must include the total Federal Awards expended as determined in accordance with 2 CFR 200.502. Condition: The University’s Schedule of Expenditures for Federal Awards for the year ended June 30, 2022, was restated to include federal expenditures totaling $3,035,255 for the Disaster Grants - Public Assistance (Presidentially Declared Disasters), Assistance Listing Number 97.036, resulting in total expenditures of $3,030,346. Cause: The federal program activity for the Disaster Grants - Public Assistance (Presidentially Declared Disasters), Assistance Listing Number 97.036, was omitted from the Schedule of Expenditures for Federal Awards due to an oversight in the preparation of the Schedule. Effect: Improper reporting of federal expenditures can result in material errors on the Schedule leading to inaccurate major program determination by the auditors. In this instance, an error did result in the identification of an additional major program. Questioned Cost: None. Context: The University improperly excluded grant expenditures for the Disaster Grants - Public Assistance (Presidentially Declared Disasters) program on the original Schedule for the year ended June 30, 2022 in the amount of $3,035,255 resulting in total expenditures of $3,030,346 for the program and, therefore, the single audit report was reissued for the correction of the error. Recommendation: We recommend the University enhance the process and internal controls around the timely identification of federal awards and preparation of the Schedule to ensure accuracy and completeness of the Schedule. Views of responsible officials: We agree with the compliance finding. See the Corrective Action Plan at pages 71-72.