Hampton University

Finding 2025-002 Federal Programs: Student Financial Aid Cluster • Federal Direct Student Loans (ALN 84.268) • Federal Pell Grant Program (ALN 84.063) Federal Award #’s: P268K240395 and P063P230395 Federal Award Years: July 1, 2024 to June 30, 2025 Federal Agencies: U.S. Department of Education Pass Through Entity: None Compliance Requirement: Special Tests and Provisions – Enrollment Reporting Criteria: Under the Pell grant and the Direct and Federal Family Education Loan programs, institutions are required to report enrollment information via the National Student Loan Data System (NSLDS) (OMB No.1845-0035). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update and verify student enrollment statuses, program information and effective dates that appear on the Enrollment Reporting Roster file or on the Enrollment Maintenance page of the NSLDS Professional Access (NSLDSFAP) website. The data on the institution’s Enrollment Reporting Roster, or Enrollment Maintenance page, is what NSLDS has as the most recently certified enrollment information. There are two categories of enrollment information; “Campus Level” and “Program Level,” both of which need to be reported accurately and have separate record types. Institutions are responsible for accurately reporting the following significant data elements under the Campus-Level Record that the Department of Education (ED) considers high risk: (1) OPEID number, (2) enrollment effective date, (3) enrollment status and (4) certification date. Institutions are responsible for accurately reporting the following significant data elements under the Program-Level Record that ED considers high risk: (1) OPEID number, (2) CIP code, (3) CIP year, (4) credential level, (5) published program length measurement, (6) published program length, (7) program begin date, (8) program enrollment status and (9) program enrollment effective date. Institutions are responsible for timely reporting, whether they report directly or via a third-party servicer. Institutions must complete and return the Enrollment Reporting roster file placed in their Student Aid Internet Gateway (SAIG) (OMB No. 1845-0002) mailboxes sent by ED via NSLDS within 15 days. An institution determines how often it receives the Enrollment Reporting roster file with the default set at a minimum of every 60 days. Once received, the institution must update for changes in the data elements for the Campus Record and the Program Record identified above, and submit the changes electronically through the batch method, spreadsheet submittal or the NSLDS website. Additionally, in accordance with Federal requirements, the University shall maintain internal controls over Federal programs designed to provide reasonable assurance that transactions are executed in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award that could have a direct and material effect on a Federal program. Condition and Context: The University utilizes the National Student Clearinghouse (the Clearinghouse) as a service provider for transmissions of its enrollment reporting changes to the National Student Loan Data System (NSLDS). The University receives the Enrollment Reporting Roster and updates it for changes in student status. The file is sent to the Clearinghouse who transmits the updated information to NSLDS. For a sample of 60 students who were recipients of Direct Loans or Pell Grants between July 1, 2024, and June 30, 2025, who had been identified as having withdrawn, graduated, or modified their enrollment status as defined by the University’s Satisfactory Academic Progress Policy through a change in course load, the following were noted: • For seven out of the 60 students selected for testwork, the University did not report their enrollment status change within the 60 days of change. • For two out of the 60 students selected for testwork, the University inaccurately reported their enrollment status as half-time or full-time, whereas the University’s enrollment records indicated the students were enrolled at three-quarter-time. • For one out of the 60 students selected for testwork, the graduation enrollment status change was not reported to NSLDS. • For one out of the 60 students selected for testwork, the campus-level enrollment record was not updated to reflect half-time status, resulting in the enrollment status change not being reported to NSLDS within the required 60-day timeframe. Cause and Possible Asserted Effect: The University’s controls over its review of the recording and communication of these status changes did not operate consistently to ensure that individuals’ enrollment statuses are completely and accurately communicated to NSLDS. Identification of Questioned Costs: There are no questioned costs related to this finding. Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend that the University improve its IT processes and functionality so that enrollment statuses are reported completely and accurately. We also recommend strengthening controls over the accuracy and processing of student enrollment status changes. Identification of Repeat Finding: This audit finding is a repeat of Finding 2024-004 in the immediately prior year. Views of Responsible Officials: The University concurs with the finding. We will work with IT to enhance the information included in the Comprehensive Graduation Report to ensure complete, accurate and timely reporting.

Corrective Action : The U niversity agrees with the find ings. We will update our interna l review repoti so that we wi ll meet the enrollment status changes withi n the 60 day period. . The Program Level is updated by the SHRDEGV report and is al ready submitted in a timely manner. The time status issues were addressed and updated during the Fall 2025 term merge project. We will work with IT to enhance the information included in the Comprehensive Graduation Report (CRT) to ensure complete, accurate and timely repmiing.Contact Person: Regina Cotter, University Registrar Anticipated Completion Date: June 15, 2026

2024-004

Finding 2025-004 Federal Programs: Student Financial Assistance Cluster • Federal Direct Student Loans (ALN 84.268) • Federal Pell Grant Program (ALN 84.063) Federal Award #’s: P268K240395 and P063P230395 Federal Award Years: July 1, 2024 to June 30, 2025 Federal Agencies: U.S. Department of Education Pass Through Entity: None Compliance Requirement: Special Tests and Provisions - Disbursements to or on Behalf of Students Criteria: When Title IV funds are credited to a student account and they exceed the amount of tuition and fees, food and housing, and other authorized charges assessed to the student, a credit balance is created. The institution must pay the resulting credit balance directly to the student or parent borrower within 14 days after (1) the first day of class of a payment period if the credit balance occurred on or before that day, or (2) the balance occurred if that was after the first day of class. An institution is permitted to hold credit balances if it obtains a voluntary authorization from the student. Regardless of any authorization obtained by the institution, the institution must pay any remaining loan balance by the end of the loan period and any other remaining Title IV funds by the end of the last payment period in the award year for which the funds are awarded. Condition and Context: The University generates a Title IV refund report following each disbursement date to identify credit balances created on student accounts and facilitate timely refunds in accordance with the required time frame. For 4 out of 40 students selected for testwork, the Title IV funds credited to the students’ accounts resulted in credit balances owed to the students. For 3 of these students, the institution did not refund the credit balances within the required 14-day timeframe and did not obtain proper authorization from the student to retain the balance. The delays in issuing refunds ranged from 15 to 92 days. Additionally, for 1 student, although authorization was obtained to retain the credit balance, the institution did not refund the credit balance by the end of the award year for which the funds were awarded. Cause and Possible Asserted Effect: In the current fiscal year, the University was in the process of implementing enhanced processes related to Title IV returns, and as a result, the controls were not operating effectively. This contributed to the institution’s failure to refund credit balances to students within the 14-day timeframe required by the Department of Education and to obtain voluntary authorization from students to retain credit balances for the semester. Identification of Questioned Costs: There were no questioned costs related to this finding. Sampling: The sample was not intended to be, and was not, a statistically valid sample. Identification of Repeat Finding: This finding is not a repeat of a finding in the immediately prior year. Recommendation: We recommend that management perform a completeness review of the Title IV refunds to ensure all credit balances are refunded to students within the required 14 day timeframe. In addition, management should review the existing system of controls related to the timely refund of credit balances. Further, management should reinforce control ownership and provide targeted training to individuals responsible for compliance. These actions will help ensure that appropriate controls are in place, responsibilities are clearly defined, and instances of noncompliance are prevented or promptly identified and corrected, thereby supporting effective control operation. Views of Responsible Officials: The University agrees with the findings. Management will perform a review of Title IV refunds to ensure credit balances are refunded to students within the required 14-day timeframe. In addition, management will review the existing system of controls related to the timely refund of credit balances. Further, management will reinforce control ownership and provide targeted training to individuals responsible for compliance. The actions will help to ensure that appropriate controls are in place and responsibilities are clearly defined, and instances of noncompliance are mitigated to support controls.

Corrective Action: The University agrees with the findings. Management will perform a review of Title IV refunds to ensure credit balances are refunded to students within the required 14-day timeframe. In addition, management will review the existing system of controls related to the timely refund of credit balances. Further, management will reinforce control ownership and provide targeted training to individuals responsible for compliance. The actions will help to ensure that appropriate controls are in place and responsibilities are clearly defined, and instances of noncompliance are mitigated to support controls. Contact Person: Terry Nixon, Assistant Comptroller, Student Business Services Anticipated Completion Date: June 15, 2026

Current Year Finding: Number 2024 004 Federal Programs: Student Financial Assistance Cluster • Federal Direct Student Loans (ALN 84.268) • Federal Pell Grant Program (ALN 84.063) Federal Award #’s: P268K240395 and P063P230395 Federal Award Years: July 1, 2023 to June 30, 2024 Federal Agencies: U.S. Department of Education Pass Through Entity: None Compliance Requirement: Special Tests and Provisions – Enrollment Reporting Criteria: Under the Pell grant and the Direct and Federal Family Education Loan programs, institutions are required to report enrollment information via the National Student Loan Data System (NSLDS) (OMB No. 1845 0035). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update and verify student enrollment statuses, program information and effective dates that appear on the Enrollment Reporting Roster file or on the Enrollment Maintenance page of the NSLDS Professional Access (NSLDSFAP) website. The data on the institution’s Enrollment Reporting Roster, or Enrollment Maintenance page, is what NSLDS has as the most recently certified enrollment information. There are two categories of enrollment information; “Campus Level” and “Program Level,” both of which need to be reported accurately and have separate record types. Institutions are responsible for accurately reporting the following significant data elements under the Campus Level Record that the Department of Education (ED) considers high risk: • OPEID number, enrollment effective date, enrollment status and certification date Institutions are responsible for accurately reporting the following significant data elements under the Program Level Record that ED considers high risk • OPEID number, CIP code, CIP year, credential level, published program length measurement, published program length, program begin date, program enrollment status and program enrollment effective date Institutions are responsible for timely reporting, whether they report directly or via a third party servicer. Institutions must complete and return the Enrollment Reporting roster file placed in their Student Aid Internet Gateway (SAIG) (OMB No. 1845 0002) mailboxes sent by ED via NSLDS within 15 days. An institution determines how often it receives the Enrollment Reporting roster file with the default set at a minimum of every 60 days. Once received, the institution must update for changes in the data elements for the Campus Record and the Program Record identified above, and submit the changes electronically through the batch method, spreadsheet submittal or the NSLDS website. Additionally, in accordance with Federal requirements, the University shall maintain internal controls over Federal programs designed to provide reasonable assurance that transactions are executed in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award that could have a direct and material effect on a Federal program. Condition and Context: The University utilizes the National Student Clearinghouse (the Clearinghouse) as a service provider for transmissions of its enrollment reporting changes to the National Student Loan Data System (NSLDS). The University receives the Enrollment Reporting Roster and updates it for changes in student status. The file is sent to the Clearinghouse who transmits the updated information to NSLDS. For a sample of 60 students who were recipients of Direct Loans or Pell Grants between July 1, 2023 and June 30, 2024 who had been identified as having withdrawn, graduated, or modified their enrollment status as defined by the University’s Satisfactory Academic Progress Policy through a change in course load, the following were noted: • For 12 out of the 60 students selected for testwork, the University inaccurately reported their enrollment status as half time or full time when the University’s published policies and enrollment records indicated that they are enrolled as three-quarter time. The University updated the students’ NSLDS record in the final quarter of 2024. Additionally, for one of the 12 students, the University also incorrectly reported their spring enrollment status as less than half time rather than full time. This is due to a system limitation where only the student’s graduate courses enrollment status is reported when the student was also enrolled full-time in undergraduate courses. This student is in the Architecture program. • For one out of the 60 students selected for testwork, the University did not report their Campus-Level and Program-Level enrollment status in NSLDS. The individual was enrolled full time during the 2023-2024 school year and graduated at the end of the spring semester. • For two out of the 60 students selected for testwork, the University inaccurately reported their enrollment status as other than half time rather than full-time students. This is due to a system limitation of only reporting the student’s graduate courses enrollment status when the student was also enrolled in undergraduate courses for a full-time course load. These students are in the Architecture program. • For one out of the 60 students selected for testwork, the University inaccurately reported their enrollment status as less than half time rather than full time. This is due to a system limitation of reporting only the student’s online enrollment status when the student was also enrolled in main campus courses for a full-time course load. • For one of the 60 students selected for testwork, the University did not report their winter online enrollment status as half time. This is due to a system limitation of reporting only continuous enrollment based on the student’s main campus enrollment, rather than the online winter term enrollment status. • For one of the 60 students selected for testwork, the University did not report their withdrawn status within the 60 days of the change. • For one of the 60 students selected for testwork, the University did not report their enrollment status change from full time to less than half time during the spring semester within the 60 days of the change. This is due to a system limitation of reporting only the student’s main campus enrollment status when the student only enrolled in online courses for the spring semester Cause and Possible Asserted Effect: The University’s controls over its review of the recording and communication of these status changes did not operate consistently to ensure that individuals’ enrollment statuses are completely and accurately communicated to NSLDS. The University had a system limitation that does not allow enrollment statuses to be reflected as three-quarter time, which was not corrected until March 2024. Additionally, the University has a system limitation when students are enrolled in multiple campuses and program, causing the reporting of only one program or campus in NSLDS. Identification of questioned Costs: There are no questioned costs related to this finding. Sampling: The sample was not intended to be and was not a statistically valid sample. Recommendation: We recommend that the University improve its IT processes and functionality so that enrollment statuses, particularly enrollment statuses for students who are enrolled in multiple programs, are reported completely and accurately. We also recommend the University strengthens its controls over the accuracy of students enrollment status changes. Identification of Repeat Finding This finding is not a repeat of a finding in the prior year Views of Responsible Officials: The University concurs with the finding. The University is working with the Clearinghouse and consultants to correct system errors with Banner, so we do not have these concerns in the future. The Architect students mapping issues was corrected by the Registrars Office in March 2025. The Registrar's Office has created a new program code that will reflect next semester's registrations and uploaded majors.

The University concurs with the finding. The University is working with the Clearinghouse and consultants to correct system errors within Banner, so we do not have these concerns in the future. The Architect students mapping issue was corrected by the Registrar Office in March 2025. The Registrar’s Office has created a new program code that will reflect next semester’s registrations and updated previous majors.

Findings and Questioned Costs Relating to Federal Awards Current Year Finding: Number 2023-004 Federal Programs: Student Financial Assistance Cluster • Federal Direct Student Loans (ALN 84.268) • Federal Pell Grant Program (ALN 84.063) Federal Award #’s: P268K230395, P063P220395 Federal Award Years: July 1, 2022 to June 30, 2023 Federal Agencies: U.S. Department of Education Pass-Through Entity: None Compliance Requirement: Special Tests and Provisions – Enrollment Reporting Criteria: Under the Pell grant and the Direct and Federal Family Education Loan programs, institutions are required to report enrollment information via the National Student Loan Data System (NSLDS) (OMB No. 1845-0035). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update and verify student enrollment statuses, program information and effective dates that appear on the Enrollment Reporting Roster file or on the Enrollment Maintenance page of the NSLDS Professional Access (NSLDSFAP) website. The data on the institution’s Enrollment Reporting Roster, or Enrollment Maintenance page, is what NSLDS has as the most recently certified enrollment information. There are two categories of enrollment information; “Campus Level” and “Program Level,” both of which need to be reported accurately and have separate record types. Institutions are responsible for accurately reporting the following significant data elements under the Campus-Level Record that the Department of Education (ED) considers high risk: • OPEID number, enrollment effective date, enrollment status and certification date Institutions are responsible for accurately reporting the following significant data elements under the Program-Level Record that ED considers high risk • OPEID number, CIP code, CIP year, credential level, published program length measurement, published program length, program begin date, program enrollment status and program enrollment effective date Institutions are responsible for timely reporting, whether they report directly or via a third-party servicer. Institutions must complete and return the Enrollment Reporting roster file placed in their Student Aid Internet Gateway (SAIG) (OMB No. 1845-0002) mailboxes sent by ED via NSLDS within 15 days. An institution determines how often it receives the Enrollment Reporting roster file with the default set at a minimum of every 60 days. Once received, the institution must update for changes in the data elements for the Campus Record and the Program Record identified above, and submit the changes electronically through the batch method, spreadsheet submittal or the NSLDS website. Additionally, in accordance with Federal requirements, the University shall maintain internal controls over Federal programs designed to provide reasonable assurance that transactions are executed in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award that could have a direct and material effect on a Federal program. Condition and Context: The University utilizes the National Student Clearinghouse (the Clearinghouse) as a service provider for transmissions of its enrollment reporting changes to the National Student Loan Data System (NSLDS). The University receives the Enrollment Reporting Roster and updates it for changes in student status. The file is sent to the Clearinghouse who transmits the updated information to NSLDS. For a sample of forty students who were recipients of Direct Loans or Pell Grants between July 1, 2022 and June 30, 2023 who had been identified as having withdrawn, graduated, or modified their enrollment status as defined by the University’s Satisfactory Academic Progress Policy through a change in course load, the following were noted: • For one student out of forty selected for testwork, the University inaccurately reported their Campus_x0002_Level and Program-Level enrollment status as Withdrawn instead of Graduated. • For one student out of the forty selected for testwork, the University inaccurately reported their Campus-Level and Program-Level enrollment status as half time when the University’s published policies and enrollment records indicated that they are enrolled as three-quarter time. • For one student out of the forty selected for testwork, the University inaccurately reported their Campus-Level enrollment status as half time when the University’s published policies and enrollment records indicated that they are enrolled as three-quarter time. Additionally, we were not able to inspect this student’s Program-Level data from NSLDS to validate the accuracy of those significant data elements. • For one student out of the forty selected for testwork, the University inaccurately reported their Campus-Level and Program-Level enrollment status as less-than-half-time, instead of Graduated. • For two students out of the forty selected for testwork, the University inaccurately reported their Campus-Level enrollment status as less-than-half-time, instead of Graduated. Additionally, we were not able to inspect these students’ Program-Level data from NSLDS to validate the accuracy of those significant data elements. • For nine students out of forty selected for testwork, we were not able to inspect either Campus-Level or Program-Level data from NSLDS to validate the accuracy of significant data elements. Cause and Possible Asserted Effect: The University’s controls over its review of the recording and communication of these status changes does not operate consistently to and ensure that individuals’ enrollment statuses are completely and accurately communicated to NSLDS. The University has a system limitation that prevents the enrollment statuses to be reflected as three-quarter time, as well as a system limitation that prevents review of the Campus-Level or Program-Level data from NSLDS. Identification of questioned Costs: There are no questioned costs related to this finding. Sampling: The sample was not intended to be and was not a statistically valid sample. Recommendation: We recommend that the University strengthen its review of graduation and withdrawn enrollment statuses. Additionally, we recommend the University update its system configuration to add the three-quarter time enrollment status. We also recommend that the University work with the Department of Education to ensure access to NSLDS is maintained in order to review Program-Level data elements. Identification of Repeat Finding This finding is not a repeat of a finding in the immediately prior year. Views of Responsible Officials: The University agrees with this finding. The University submits its enrollment status changes through the National Student Clearinghouse system to ensure proper recording in NSLDS. The University will strengthen its controls to ensure that the Registrar Office validates the completeness and accuracy in the NSLDS system by reconciling the data per the NSLDS system to what is recorded in the University’s system for both branch locations; the main campus (003714-00) and HU Online (003714-81). Additionally, the Registrar’s Office will strengthen its monitoring controls over the transmission for both branch locations to ensure the data transmission is complete and accurate.

The University agrees with this finding. The University submits its enrollment status changes through the National Student Clearinghouse system to ensure proper recording in NSLDS. The University will strengthen its controls to ensure that the Registrar Office validates the completeness and accuracy in the NSLDS system by reconciling the data per the NSLDS system to what is recorded in the University’s system for both branch locations; the main campus (003714-00) and HU Online (003714-81). Additionally, the Registrar’s Office will strengthen its monitoring controls over the transmission for both branch locations to ensure the data transmission is complete and accurate.

Current Year Finding: Number 2023-005 Federal Programs: COVID-19 Education Stabilization Fund Cluster (ALN 84.425E, 84.425F, 84.425G, 84.425J) HAMPTON UNIVERSITY AND SUBSIDIARIES Schedule of Findings and Questioned Costs Year ended June 30, 2023 15 Federal Award #’s: P425E200695, P425F202060, V425G200028, P425J200072 Federal Award Years: 84.425 E (4/28/2020 – 6/30/2023), 84.425 F (5/7/2020 – 6/30/2023), 84.425 G (10/1/2020 – 9/30/2024), 84.425 J (5/1/2020 – 6/30/2023) Federal Agencies: U.S. Department of Education Pass-Through Entity: None Compliance Requirement: Equipment Criteria: Per the Uniform Guidance, non-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that a control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). Condition and Context: Of the 41 Property tag (Ptag) samples selected for inspection from the total population of equipment on hand, 1 of the 41 Ptags selected for testing had multiple items that were not tagged with a Ptag. The 1 sampled Ptag consisted of 219 equipment items, and during our inspection of these 219 equipment items, we noted that 5 equipment items were not tagged with a Ptag. Cause and Possible Asserted Effect: The equipment was not properly tagged in accordance with the University’s policy to ensure equipment is adequately safeguarded to prevent loss, damage, or theft of the property. Although improperly tagged, the University was able to locate, and KPMG inspected, the 5 pieces of equipment, thereby confirming their existence and that they are secured from theft behind locked doors, and as such, we did not note any instances of noncompliance. Failure to properly tag purchased equipment could result in lost, stolen or damaged equipment not being identified. Identification of questioned Costs: There are no questioned costs related to this finding. Sampling: The sample was not intended to be and was not a statistically valid sample. HAMPTON UNIVERSITY AND SUBSIDIARIES Schedule of Findings and Questioned Costs Year ended June 30, 2023 16 Recommendation: We recommend that the University strengthen its process and controls over the tagging of equipment purchased with federal funds. Identification of Repeat Finding This finding was a repeat of finding 2022-001. Views of Responsible Officials: The University agrees with this finding. As a result of the prior year finding, the University made significant improvements to its equipment management process. The University reviewed all equipment pieces in every building on campus and compared the items against the Ptag information in the Universities Banner System. Any noted discrepancies were updated accordingly. Additionally, the University provided additional training to its staff accountants and temporary workers. Lastly, the University’s internal auditor re-reviewed the equipment that was inspected during the prior year audit and verified that the item was property tagged with a Ptag and that the item was accurately recorded in the University’s Banner IT system. During the current year audit, there were 41 Ptag samples selected for inspection, which consisted of over 800 individual equipment items. The 5 equipment items noted during inspection that were not tagged equate to an error rate that is less than 1%. The University will continue to enhance it procedures to ensure all equipment items are tagged, including the use of a more durable adhesive tag. Management will also perform a monthly audit of various equipment items throughout the year across a variety of departments. The Univesity will also reviewa virtual inspection of its inventory.

Corrective Action: The University agrees with this finding. As a result of the prior year finding, the University made significant improvements to its equipment management process. The University reviewed all equipment pieces in every building on campus and compared the items against the Ptag information in the Universities Banner System. Any noted discrepancies were updated accordingly. Additionally, the University provided additional training to its staff accountants and temporary workers. Lastly, the University’s internal auditor re-reviewed the equipment that was inspected during the prior year audit and verified that the item was property tagged with a Ptag and that the item was accurately recorded in the University’s Banner IT system. During the current year audit, there were 41 Ptag samples selected for inspection, which consisted of over 800 individual equipment items. The 5 equipment items noted during inspection that were not tagged equate to an error rate that is less than 1%. The University will continue to enhance it procedures to ensure all equipment items are tagged, including the use of a more durable adhesive tag. Management will also perform a monthly audit of various equipment items throughout the year across a variety of departments. The University will also review a virtual inspection of its inventory.

2022-001

Criteria: Per the Uniform Guidance, non-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which require that a control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of property. Any loss, damage, or theft must be investigated (2 CFR section 200.313(d)(3)). Condition and Context: Of the 84 samples selected for inspection from the total population of equipment on hand, 8 of the 84 items selected for testing were tagged with the incorrect Property tag (?Ptag?). During the inspection of the items, we noted the Ptag number on 8 pieces of equipment did not match the equipment description per the purchase order. Cause and Possible Asserted Effect: The equipment was not properly tagged in accordance with the University?s policy to ensure equipment is adequately safeguarded to prevent loss, damage, or theft of the property. Although improperly tagged, the University was able to locate, and KPMG inspected, the 8 pieces of equipment, thereby confirming their existence and that they are secured from theft behind locked doors, and as such, we did not note any instances of noncompliance. Failure to properly tag purchased equipment could result in lost, stolen or damaged equipment not being identified. Identification of questioned Costs: There are no questioned costs related to this finding. Sampling: The sample was not intended to be and was not a statistically valid sample.

The University did not have any prior audit findings with its equipment management, nor is there any questioned costs associated with this current year?s finding. The correction action plan for tagging equipment will include two components: (1) its current procedures will include additional training of employees responsible for tagging equipment and; (2) a secondary physical review of a sample of equipment will be performed each month by the University?s internal auditor to ensure federal equipment is properly tagged.