SINTE GLESKA UNIVERSITY

2023-002 Physical Count of Capital Assets This is a repeat finding. See schedule of prior year findings number 2022-002. Condition: Management has not performed a complete physical count of the University’s capital assets once within the past two years. Physical counts of some assets were conducted. However, reliance was placed on word of mouth for the existence of some assets. Also, the property listing was found to be missing some assets and contain duplicate entries for other assets. Criteria: The Accountability section of the University’s Procedural Manual – Fixed Asset & Inventory Control states, “Physical inventories are to verify the existence, condition accuracy of our records for equipment owned, donated, and purchased, that are accountable to Sinte Gleska University. This has to be a team effort involving immediate Supervisors, Department Heads, Administrative Assistants, Staff Assistants, employees, all who are concerned in accountability. Annual physical inventories for each Department should take place at the end of a fiscal year (September) before the Audit. A Fixed assets physical inventory is required every two years, prior to September.” Cause: Not assigning responsibility for physical counts to a select few individuals (a “count team”) and not properly planning/scheduling the complete physical count event. Effect: Not performing physical counts of capital assets puts the University at a higher risk of material misstatement of the financial statements, a higher risk of being under or over insured, and a higher risk of undetected asset misappropriation. This is also a violation of the Office of Management Budget’s (OMB) Uniform Guidance. Therefore, this finding will be reported in Part C of the Schedule of Findings and Questioned Costs. Recommendation: Adhere to the Accountability section of the University’s Procedural Manual – Fixed Asset & Inventory Control. The requirements of the OMB’s Uniform Guidance are already addressed in your currently adopted policies (A Fixed assets physical inventory is required every two years). Properly plan and execute the complete physical count. Update the property listing to reflect the complete physical count records. Make sure the property listing is clear and concise. Views of Responsible Officials and Planned Corrective Actions: See corrective action plan.

Federal Program CFDA #84.031: Title III ? Higher Education Institutional Aid Criteria The amounts reported on the grant program APR reports that were submitted do not agree to the general ledger. Condition We reviewed the reports submitted to the funding agency and noted that the expenditures reported do not agree to the trial balance. The reports tested had expenditures on the report understated by a combined $239,679. Cause The University reports did not reflect the proper amounts on their reporting to the funding agency. Effect The University is not reporting the correct financial information. Recommendation We recommend that the University ensure that the amounts they report agree to the actual amounts in the University?s general ledger. Views of Responsible Officials Indication of Repeat Finding: This is a new finding for this fiscal year.

Federal Program All major programs Criteria As a matter of grant compliance, the data collection form and reporting package much be submitted to the Federal Clearinghouse within 30 days after the receipt of the auditor?s report or within nine months after the end of the audit period. Due to the COVID-19 pandemic, the deadline was extended to December 31, 2020 if the organization was impacted by the pandemic. Condition The 2019 data collection form was not filed timely. Cause There was a delay in the audit being completed due to COVID and turnover in the business office. Effect The University is not in compliance with Uniform Guidance requirements. Recommendation We recommend the University takes the necessary procedures to ensure that future single audits are completed within the required time periods of the Uniform Guidance. Views of Responsible Officials Indication of Repeat Finding: This is a new finding for this fiscal year.

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