Management letters from state auditors who looked at the financial practices of Lafayette's higher education institutions found mixed results this year.
UL had repeat findings about problems with research funding accounting, but South Louisiana Community College had zero findings.
The letters are the result of the Legislative Auditor taking a look at procedures at public entities, and part of an audit of each system's financial statements, as well as the single audit of the State of Louisiana for the fiscal year that ended June 2024. They're not intended to provide an opinion on either entity's internal control over financial reporting, the auditor wrote.
Here's what the Legislative Auditor said about the UL report:
"For the third consecutive year, auditors found the university did not bill for federal, state, local, and non-governmental grants and contracts revenue in a timely manner in accordance with contract terms and internal policy. For the fourth consecutive year, the university did not have adequate controls in place to ensure personnel expenses charged to federal Research and Development awards accurately reflected work performed. Also, for the fourth consecutive year, the university did not adequately monitor subrecipients of the R&D Cluster programs. In addition, auditors found the university did not ensure that all expenses charged to federal R&D awards complied with period of performance requirements," the auditor wrote.
To read that management letter for yourself, which includes the detailed findings and the University's responses, scroll down.
Here's what the Legislative Auditor said about the SoLAcc report:
"Auditors evaluated how SLCC ensures accurate financial reporting to the Louisiana Community and Technical College System, compliance with applicable laws and regulations, and accountability over public funds. No findings were reported," the auditor wrote.
You can read that management letter by scrolling past the UL audit below.
Auditors found that UL had not corrected several issues that had been raised in prior-year audits.
"Our auditors reviewed the status of the prior-year findings reported in the UL Lafayette management letter dated March 20, 2024. The prior-year findings related to Untimely Billing Related to Grant and Contract Agreements; Control Weakness and Noncompliance with Personnel Expenses Charged to Federal Awards; and Noncompliance with Subrecipient Monitoring Requirements have not been resolved and are addressed again in this letter," the letter states.
Here are some details, along with the University's response to each finding:
Untimely billing related to grant and contract agreements
"For the third consecutive year, UL Lafayette did not bill for federal, state, local and nongovernmental grants and contracts revenue timely in accordance with contract terms and internal policy," the letter states.
The University "partially concurs" with that finding.
"While untimely billing has been identified in the FY 2024 audit findings and aligns with previous years' reports, significant progress has been made in reducing delays and improving processes despite ongoing challenges such as high turnover and staffing shortages within the Office of Sponsored Programs Finance Administration and Compliance," the University's response states. "In FY 2024, we achieved a marked improvement and, while there is still room for growth, this improvement demonstrates our commitment to better aligning with contract terms and internal policies."
Control weakness and noncompliance with personnel expenses charged to federal awards
"For the fourth consecutive year, UL Lafayette did not have adequate controls in place to ensure personnel expenses charged to federal Research and Development awards accurately reflected work performed. Inadequate controls related to federal documentation standards for personnel expenses could result in noncompliance with federal allowable costs and cost principles, as well as noncompliance with special tests and provisions related to key personnel effort," the letter states.
The University "partially concurs" with this finding.
"The audit finding states that UL Lafayette did not perform time and effort certifications for the perioo January 1, 2024 through June 30, 2024. However, we clarify that these certifications were not intentionally omitted," the response states.
Part of the issue is a transition from manual to electronic effort certification systems, and a shift from fiscal-year-based reporting to calendar-year-based reporting. The effort certifications in question should be complete by April 15, "at which point they will fully support that salaries and wages charged to federal awards are based on records accurately reflecting work performed."
Noncompliance with subrecipient monitoring requirements
"For the fourth consecutive year, UL Lafayette did not adequately monitor subrecipients of the R&D Cluster Programs. Failure to properly monitor subrecipients results in noncompliance with federal regulations and increases the likelihood of improper payments which may have to be returned to the federal awarding agency," the letter states.
The University concurs with this finding "and has taken steps to address the issue."
"To enhance compliance, the Sponsored Programs Finance Administration and Compliance office conducted mandatory refresher training on subaward processing in accordance with federal regulations on April 22, 2024. The training was led by the Sponsored Programs Administration Manager and attended by all Sponsored Programs Administrators. Despite these efforts, staffing challenges continue to impact full implementation of subrecipient monitoring procedures," the response states.
Noncompliance with period of performance requirements
"UL Lafayette did not ensure that all expenses charged to federal R&D awards complied with the period of performance requirements," the letter states.
Auditors looked at 17 grants for testing of the requirements, and two, or about 12 percent of those tested, were noncompliant.
The University concurs with this finding.
"The delay occurred because the Personnel Action Form was received after the June payroll run, resulting in disbursements in July and August," the response states. "Although the work was completed on time, the payroll posting did not align with the periodo of performance requirements. We are reviewing processes to ensure all required documentation is received and processed promptly."
Here's the UL management letter:
And here's the one for SoLAcc:
