Audits note universities’ problems handling federal money

Posted by Jane Stancill on March 20, 2014 

State Auditor Beth Wood has issued findings in compliance reviews of three universities for their handling of federal funds last year.

In a report released Thursday on UNC-Chapel Hill, the auditor found that the university didn’t adequately safeguard equipment or maintain records for three of 60 items tested. Two items could not be found, including a metallic tester and a computer. Also, the report said the university didn’t send appropriate letters to grant sub-recipients who themselves had audit problems. Finally, the report said UNC-CH didn’t properly monitor for-profit entities that received federal payments through the university in eight of 12 transactions reviewed.

In a report released Thursday on Elizabeth City State University, the auditor noted that when issuing purchase orders to vendors, the university had not properly documented that it had first checked a federal list of excluded vendors.

A report released Wednesday noted that N.C. A&T State University had not properly notified students and parents when federal direct loan payments were credited to a student’s account. In a sample of 60 recipients’ records tested, the auditors found that six recipients did not receive adequate notification about their loan disbursements.

The universities said they had taken steps to remedy the problems.

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