MICHIGAN
TECHNOLOGICAL
UNIVERSITY
OMBCIRCULAR
A.133SUPPLEMENTARY
FINANCIALREPORT
FOR.THEYEARENDEDJUNE30. 1991
MICHIGAN TECHNOLOGICALUNIVBRSITY
oMB CTRCULAR A-133
SUPPLEMENTARYFTNAIiCTAL REPORT
TABLE OF CONTE}TIS
Descriotion
TABLE OF COMENTS
INDEPENDEM AUDITORS' REPORTSON INTERNAL CONTROLS
The UniversiEy
-
1
as an EnEit'Y
Federal Financial
4
AssisEance Programs
INDEPENDEI{TAUDITORS' REPORTSON COMPLIANCE
The UniversiEy
Federal
as an Ent,ity
Programs of Ehe University
o
General RequiremenLs of Major Federal
AssisEance Programs
.
ReguiremenEs of Major Federal
specific
Financial Assistance Prograns
o
Nonmajor Federal
Financial
Financial
Assistance
9
1_1_
Programs
13
SCHEDULEOF FEDERALFINANCIAL ASSISTANCE
-
Independent Audit'ors'
-
Schedule of Federal Financial
Year Ended .Iune 30, 1991
-
'J"4
RePorE
AssisEance for
15
NoEes to Uhe Schedule of Federal Financial
SCHEDULE I
- SCHEDULE OF FINDINGS -
the
AssisEance
1991
SCHEDULE II - STATUS OF PRIOR YEAR (1990) AUDIT F]NDINGS
RELATING TO THE STUDE}TT FINANCIAL ASSISTANCE PROGRAMS
GENERAL INFORMATION
27
z6
33
34
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.AnnrunANnEuse
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROLS
OF THE UNIVERSITY AS AN ENTITY
To the Board of Control,
University:
Michigan Technological
o f M I C H I G A I { T E C H N O L O G I C A LU N I V E R S I T Y
statements
We have audited the basic financial
(the "University")
as of and for the year ended June 30, 1991, and have issued our
report thereon dated October 31, 1991.
standards and
accepted auditing
We conducted our audit in accordance with generally
Standards (fSAS
audits contained in Government Auditing
the standards for financial
Those standards
General of the United States.
Revision) , issued by the Comptroller
require that we plan and perform the audit to obtain reasonable assurance about
misstatement.
statements are free of material
whether the basic financial
statements of the
In planning and performing our audit of the basic financial
control
University
for the year ended June 30, 1991, we considered its internal
procedures for the purpose of
in order to determine our auditing
structure
statements and not to provide
expressing our opinion on the basic financial
control
structure.
assurance on the internal
an
and maintaining
for establishing
is responsible
The management of the University
estirnates and
In fulfilling
this responsibility,
internal
control
structure.
and related
judgments by management are required to assess the expected benefits
The objectives
of an
policies
and procedures.
structure
costs of internal
control
are to provide management with reasonable, but not
internal
structure
control
assurance that assets are safeguarded against loss from unauthorized use
absolute,
are executed in accordance with management's
and that transactions
or disposition,
of financial
to permit the preparation
authorization
and recorded properly
Because of
accepted accounting principles.
statements in accordance with generally
may
errors or irregularities
in any internal
control
structure,
inherent limitations
of the
of any evaluation
A1so, projection
occur and not be detected.
nevertheless
structure
to future periods is subject to the risk that procedures may become
of the design
or that the effectiveness
inadequate because of changes in conditions
p
r
o
c
e
d
u
r
e
s
m
a
y
d
e
t
e
r
i
o
r
a
t
e
.
p
o
l
i
c
i
e
s
a
n
d
and operation of
-1
For the purpose of
policies
structure
o
we have classified
this report,
and procedures in the following
the significant
categories.
internal
control
to ensure
established
the controls
Reporting Cycle (including
Financial
i
m
p
a
c
t on the
m
a
t
e
r
i
a
l
that have a
compliance with laws and regulations
audit
o
f
t
h
e
statements and the results
basic financial
University's
thereof)
Treasury Cycle
Revenue Cycle
Payroll
Expenditure CYcle
Vendor Expenditure Cycle
Conversion (Fixed Assets/Inventory)
o
Federal
Grants
Cycle
Cvcle
above, we obtained
listed
categories
structure
control
For all of the internal
p
r
o
c
e
d
u
r
es and determined
p
o
l
i
c
i
e
s
a
n
d
o
f
r
e
l
e
v
a
n
t
d
e
s
i
g
n
of the
understanding
risk.
c
ontrol
a
s
s
e
s
s
e
d
a
n
d
v
r
e
p
l
a
c
e
d
i
n
o
p
e
r
a
t
i
o
n
,
whether they have been
an
disclose
would not necessarily
structure
control
of the internal
Our consideration
w
e
a
k
n
esses
m
a
t
e
r
i
a
l
b
e
m
i
g
h
t
t
h
a
t
s
t
r
u
c
t
u
r
e
control
alf matters in the internal
P
u
b
l
i
c
C
e
r
t
i
f
i
e
d
o
f
I
n
s
t
i
t
u
t
e
A
m
e
r
i
c
a
n
by the
under standards established
in which the design or
condition
weakness is a reportable
A material
Accountants.
elements does
s
t
r
ucture
c
o
n
t
r
o
l
i
n
t
e
r
n
a
l
s
p
e
c
i
f
i
c
operation of one or nore of the
in
i
r
r
e
g
u
l
a
r
ities
o
r
e
r
r
o
r
s
r
i
s
k
t
h
a
t
t
h
e
1ow leve1
not reduce to a relatively
being
j
n
s
t
a
t
e
m
e
n
t
s
f
i
n
a
n
c
i
a
l
b
a
s
i
c
t
o
t
h
e
r
e
l
a
t
i
o
n
amounts that would be material
i
n
the
p
e
r
i
o
d
e
m
p
l
o
y
e
e
s
b
y
a
t
i
m
e
l
y
audited may occur and not be detected within
i
n
v
olving
m
a
t
t
e
r
s
n
o
n
o
t
e
d
W
e
f
u
n
c
t
i
o
n
s
.
assigned
their
normal course of performing
m
a
t
e
rial
b
e
t
o
w
e
c
o
n
s
i
d
e
r
e
d
t
h
a
t
and its operation
structure
control
the internaL
weaknesses as defined above.
the internal
However, we noted certain matters involving
to the manageDent of the
that ve have reported
operation
dated October 31' 1991.
letter
and its
structure
control
in a separate
University
of the Board of Control members,
This report is intended for the infornation
Departnent
Health and Human Services (the
of
the
U.S.
Uoiversity manag,e$ent,
grantor
agencies,
and should not be used for any other
Federal
and
cognizant agency)
of this report'
i
n
t
e
n
d
e
d
n
o
t
l
i
r
n
it the distribution
i
s
t
o
r
e
s
t
r
i
c
t
i
o
n
purpose. This
record.
of
which is a natter
Public
A/t',.rfui€,
Michigan,
Detroit,
February 25, L992.
^AruHun
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AtrruuttANpt tist,N
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INDBPENDENTAUDITORS' REPORTON INTERNAL CONTROLS
PROGRAMS
OF THE UNIVERSTTY'SFEDERALEINAT.ICIALASSTSTANCE
To the Board of Control,
Michigan Technological
University:
statements
o f M I C H I G A N T E C H N O L O G I C A LU N I V E R S I T Y
We have audited the basic financial
(the "University")
as of and for the year ended June 30, 1991, and have issued our
report thereon dated October 31, 1991.
the
standards,
accepted auditing
We conducted our audit in accordance with generally
(
1
9
8
8
S
t
a
n
d
a
r
d
s
c
o
n
t
a
i
n
e
d
i
n
G
o
v
e
r
n
m
e
n
t
A
u
d
i
t
i
n
g
standards for financial
audits
Revision) , issued by the Comptroller
General of the United States, and the
provisions
of Higher Education and
A-133, Audits of fnstitutions
of OMBCircular
A-133 require
that
Those standards and OMBCircular
Institutions.
Other Nonprofit
t
h
e
basic
we plan and perform the audit to obtain reasonable assurance about whether
financial
misstatement
and about whether the
statements
are free of material
noncompliance with which would be
University
complied with laws and regulations,
program.
material
financial
assistance
to a major federal
statements of the
In planning and performing our audit of the basic financial
internal
Universj.ty for the year ended June 30, 1991, we considered the University's
procedures for the purpose of
in oider to determine our auditing
control
structure
statements
and not to provide
expressing
on the basj-c financial
our opinion
structure.
assurance on the internal
control
expended 97% of its total
During the year ended June 30, 1991, the University,
Assistance under its major Federal financial
and noncash Federal Financial
As required by OMBC i r c u l a r A - 1 3 3 , o u r c o n s i d e r a t i - o n o f
assistance programs.
internal
structure
also included
control
1.
cash
the
of the design and operation
Tests of controls
to evaluate the effectiveness
policies
and procedures that we considered
control
structure
of internal
material
noncompliance with specific
relevant
to preventing
or detecting
general requirements,
and requirements governing claims for
requirements,
advances and reimbursements and amounts claimed or used for matching that
assistance
major Federal financial
are applicable
to the University's
programs, which are identified
in the accompanying Schedule of Federal
Our procedures were less
Financi.al Assistance.
necessary to render an opinion on these internal
Accordingly,
we do not express
and procedures.
in scope than would be
policies
structure
control
o
p
i
n
i
o
n
.
such an
2.
Academic Financial
Services (AFS) as servi.cer for
utilizes
The University
of
hle did not perform tests
by the University.
Perkins Loans adninistered
o
f
of the design and operation
to evaluate the effectiveness
controls
policies
and procedures that would detect
stfucture
control
internal
to the University's
materiaL noncompliance with requirements applicable
Accordingly,
we do not express an opinion on the controls
Perkins Loans.
bv AFS.
utilized
3.
structure
internal
control
of (a) the design'of
Obtaining an understanding
to Preventing or
policies
and procedures that we considered relevant
noncompliance with specJ-fic requi.rements, general
material
detecting
and requirements governing claims for advances and
requirements,
reimbursements and amounts claimed or used for matching that are applicable
assistance programs, and (b)
nonmajor Federal financial
to the University's
whether they have been placed in operation.
an
and maintaining
for establishing
is responsible
The management of the University
estimates and
this responsibility,
In fulfilling
control
internal
structure.
and related
judgments by management are required to assess the expected benefits
of an
The objectives
policies
and procedures.
control
structure
costs of lnternal
but not
are to provide management with reasonable,
internalcontrol
structure
assurance (1) that assets are safeguarded against loss from unauthorized
absolute,
are executed in accordance with
d
i
s
p
osition,
use or
Q) that transactions
of basic
management's authorization
and recorded properly to permit the preparation
p
r
i
n
c
i
p
les
'
g
e
n
e
r
a
l
l
y
a
c
c
o
u
n
t
i
n
g
a
c
c
e
p
t
e
d
i
n
a
c
c
o
r
d
a
n
c
e
w
i
t
h
s
t
a
t
e
m
e
n
t
s
financial
w
i
t
h
c
o
m
p
l
i
a
n
c
e
(
3
)
p
r
o
g
r
a
n
s
i
n
m
a
n
a
g
e
d
a
r
e
F
i
n
a
n
c
i
a
l
A
s
s
i
s
t
a
n
c
e
F
e
d
e
r
a
l
and
that
in any internal
Because of inherent limitations
laws and regulations.
applicable
n
o
n
c
o
m
p
liance may
o
f
i
n
s
t
a
n
c
e
s
o
r
i
r
r
e
g
u
l
a
r
i
t
i
e
s
,
errors,
control
structure,
of the
e
v
aluation
p
r
o
j
e
c
t
i
o
n
a
n
y
o
f
A
1
s
o
,
nevertheless
occur and not be detected.
m
a
y
p
r
o
c
e
d
u
r
e
s
b
e
c
o
m
e
r
i
s
k
t
h
a
t
p
e
r
i
o
d
s
t
h
e
is subject to
to future
structure
design
t
h
e
o
f
e
f
f
e
c
t
i
v
e
n
e
s
s
o
r
t
h
a
t
t
h
e
inadequate because of changes in conditions
d
e
t
e
r
i
o
r
a
t
e
.
and procedures may
and operation of policies
For the purpose of
policies
structure
we have classified
this report,
and procedures in the following
Accounting
Categories
o
o
Control
the significant
categories.
internal
control-
to ensure
established
the controls
Reporting Cycle (including
Financial
inpact
on the
that have a material
compliance with laws and regulations
of the
Federal financial
assistance programs and the results
University's
audit thereof)
Treasury Cycle
o
Revenue Cycle
o
Payroll Expenditure Cycle
o
Vendor Expenditure Cycle
o
Conversion (Fixed Assets/Inventory)
o
Federal Grants Cycle
Cycle
Adninistrative
Control Categories (* = Not a p p l i c a b l e t o t h e U n i v e r s i t y ' s
Federal financial assistance programs)
o
General
Requirements
Political
activity
Davis-BaconAct*
Civil
rights
Cash management
Relocation assistance and real property acquisitj-on*
Federal financial
reports
Drug-Free Workplace Act
Allowable costs
Administrative
requirements
Specific Requirements
-
Types of services allowed or unallowed
-
Eligibility
-
Matching, 1evel of effort
and/or earmarking
Reporting
Special requJ-rements(if
Monitoring subrecipients
applicable
to specific
programs)
1991
Indirect
cost allocation
Cl.aims for
-
advances and reimbursenents
Amounts clained
or used for
natching
For aL1 of the internal control structure categories listed above, we obtained an
understanding of the design of re:levant policies and procedures and deternined
uhether they have been placed in operation, and ne assessed control risk.
Our consideration of the internal control structure would not necessarily disclose
control structure that might be material weaknesses
all natters in the internal
of Certified Public
under standards established by the American Institute
Accountants. A material weakness is a reportable condition in which the design or
operation of one or more of the specific internal control structure elements does
in
1ow leve1 the risk that errors or irregularities
not reduce to a relatively
statements being
to the basic financial
amounts that would be material in relation
audited may occur and not be detected within a timely period by employees in the
We noted no matters involving
normal course of perforning their assigned functions.
its
that
we
considered to be nraterial
structure
oDeration
control
and
the internal
above.
weaknesses as defined
However, we noted certain natters involving the internal control structure and its
operation that rre have reported to the management of the University in a separate
letter dated October 31, 1991.
This report is intended for the information of the Board of Control members'
University management, the U.S. Departnent of Health and Human Services (the
cognizant agency) and Federal grantor agencies, and should not be used for any other
of this rePort,
purpose. This restriction
is not intended to limit the distribution
which is a matter of public record.
Detroit,
Michigan,
February 25, 1992.
^ARTHUR
l\NDERSEN
(it S(ANoetist,x.r.
Ar<'rHuri
INDEPENDENTAUDITORS' REPORTON COMPLIA}ICE
OF THE UNIVERSIfi AS AI\I ENTITY
To the Board of Control,
Michigan Technological University:
UNIVERSfTY
statements of MICHIGANTECHNOLOGICAL
We have audited the basic financial
y
e
a
r
i
s
sued our
(the "University")
h
a
v
e
e
n
d
e
d
o
f
a
n
d
t
h
e
J
u
n
e
3
0
,
1
9
9
1
,
a
n
d
for
as
1
9
9
1
.
report thereon dated October 31,
We conducted our audit in accordance with generally accepted auditing standards and
t h e s t a n d a r d s f o r f i n a n c i a l a u d i t s c o n t a i n e d i n G o v e r n m e n tA u d i t i n g S t a n d a r d s ( 1 9 8 8
Those standards
Revision) , issued by the Conptroller General of the United States.
require that we plan and perforn the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement.
Conpliance with laws, regulations, contracts and grants applicable to the University
of University management. As part of obtaining reasonable
is the responsibility
statements are free of material
assurance about whether the basic financial
compliance with certain
nisstatement, we performed tests of the University's
However, our objective was
provisions of lavs, regulations, contracts and grants.
not to provide an opinion on overall compliance with such provisions.
The results of our tests indicate that, with respect to the itens tested, the
University complied, in all material respects, with the provisions referred to in
the preceding paragraph. With respect to items not tested, nothing came to our
attention that caused us to believe that the University had not complied, in all
material respects, with those provisions.
of the Board of Control members,
This report is intended for the infornation
Health and Human Servj-ces (the
Departnent
of
University management, the U.S.
grantor
agencies,
and should not be used for any other
cognizant agency) and Federal
of this report'
i
n
t
e
n
d
e
d
t
o
l
i
m
it the distribution
purpose. This restriction
is not
which is a matter of public record.
A/r..rfui€'
Michigan,
Detroit,
February 25, L992.
^ARtttuR
,r\NDERSEN
AriruL;nANnrnsrxcCo S(
INDEPENDENT
AUDITORS' REPORTON COMPLIA}ICE
WITH
THE GENEML REQUTRE}IENTS
APPLICABLE TO THE UNIVERSITY'S
I'IAJORFEDERALFINANCTAL ASSISTANCEPROGRMS
To the Board of Control,
Michigan Technological
University:
p r o c e d u r e s t o t e s t M I C H I G A N T E C H N O L O G I C A LU N I V E R S I T Y ' S ( t h e
We have applied
compliance with the following
requirements applicable
to its major
"Universityn)
Federal financial
programs, which are identified
assistance
in the accompanying
Schedule of Federal Financial Assistance, for the year ended June 30, 1991.
o
Political
o
Davis-Bacon Act (not applicable
assistance programs)
o
civil
o
Cash management
activity
to
the University's
1991 Federal
financial
rights
(not
Relocation assistance and real property acquisition
University's
1991 Federal financial
assistance programs)
Federal
financial
Drug-Free
applicable
to
the
reports
Workplace Act
A11owable costs
Adninistrative
requirements
Our procedures were linited
to the applJ.cable procedures described in the OMB's
Draft Compliance Supplement for Audits of Universities
and Other Nonprofit
(dated May 1991).
Institutions
Our procedures were substantially
less in scope than
an audit,
the objective
of which is the expression of an opinion on the University's
compliance with the requirements listed
in the preceding paragraph.
Accordingly,
we
do not express such an opinion.
With respect to the itens tested, the results of those procedures disclosed no
material instances of noncompliance with the requirenents listed in the first
With respect to items not tested, nothing came to our
paragraph of this report.
had not conplied, in all
attention that caused us to believe that the university
However, the results of our procedures
rnaterial respects, with those reguirenents.
disclosed an immaterial instance of nonconpliance with those requirenents, which is
- 1991.
described in the accompanying Schedule of Findings
of the Board of Control menbers,
This report is intended for the infornation
Health and Human Services (the
of
U.S.
the
Department
manag,ement,
University
cognizant agency) and Federal grant,or agencies. and should not be used for any other
of this report '
the distributlon
is not inteRded to linit
purpose. This restriction
p
u
b
l
i
c
r
e
c
o
r
d
.
which is a matter of
Ad..rfu;€'
Michigan,
Detroit,
February 25, 1992.
A I{I"HUR
ANDEI{SEN
x c tl r 5(
AtirHuti,\NDt'R*sl
INDEPENDENTAUDITORS' REPORTON COMPLIANCEI'IITH
APPLICABLETO THE TINIVERSITY'S
SPECIFIC REQUTREMENTS
MA.TORFEDERALFINANCIAL ASSISTANCEPROGRAT'IS
To the Board of Control '
University:
Michigan Technological
(the "universityn)
compliance
w e h a v e a u d i t e d M I C H T G A NT E C H N O L O G T C AULN T V E R S T T Y ' s
u
n
a
l
l
o
w
ed'
o
r
a
l
l
o
w
e
d
(
1
)
o
f
s
e
r
v
i
c
e
s
types
with the reguirements governing
(
4
)
r
e
porting'
e
a
r
m
a
r
k
i
n
g
,
a
n
d
/
o
r
(3) matching, leve1 of effort
(2) e1j-gibiiity,
c
o
s
t
i
n
d
i
r
e
c
t
(
6
)
Q
)
monitoring subrecipients'
(5) special requirements,
(
9
)
c
laimed or
a
m
o
u
n
t
s
a
n
d
(8) claims for advances and reimbursements,
allocation,
f
i
nancial
F
e
d
e
r
a
l
m
a
j
o
r
to the university's
used for matching that are applicable
Federal
o
f
S
c
h
e
d
u
l
e
a
c
c
o
m
p
a
n
y
i
n
g
in the
which are identified
ptogt"ts,
assistanc.
the
o
f
r
n
a
n
a
g
e
m
e
n
t
T
h
e
1
9
9
1
'
for the year ended June 30,
Assistance,
Financial
r
e
q
u
i
r
e
ments '
t
h
o
s
e
w
i
t
h
compliance
for the university's
is responsible
university
r
e
q
u
i
r
e
ments
t
h
o
s
e
w
i
t
h
is to express an opinlon on compliance
Our responsibility
based on our audit.
standards ' the
accepted auditing
We conducted our audit in accordance with generally
S
t
a
n
d
a
r
ds (1988
in Government Auditing
contained
audits
standards for financial
the
a
n
d
'
S
t
a
t
e
s
General of the United
Revision) , issued by the Comptroller
E
d
u
c
ation and
H
i
g
h
e
r
of
A-133, Audits of Institutions
provisions
of oMB circular
that
r
e
quire
A
1
3
3
T h o s e s t a n d a r d s a n d O I ' I BC i r c u l a r
Institutions.
Other Nonprofit
m
a
t
e
rial
w
h
e
t
h
e
r
about
we plan and perform the audit to obtain reasonable assurance
i
n
c
l
u
d
es
A
n
a
u
d
i
t
to above occurred '
noncompliance with the requirements referred
t
h
o
s
e
w
i
t
h
compliance
evidence about the University's
examining, on a test basis,
f
o
r
o
u
r
We believe that our audit provides a reasonable basis
requirements.
opinion.
instance of
of our audit procedures disclosed an immaterial
The resufts
is described
w
h
i
c
h
a
b
o
v
e
'
t
o
r
e
f
e
r
r
e
d
r
e
g
u
i
r
e
m
e
n
t
s
nonconpliance with the
instance of
t
h
i
s
c
o
n
s
i
d
e
r
e
d
W
e
1
9
9
1
.
F
i
n
d
i
n
g
s
Schedule of
r""orp"rying
i
s
e
x
pressed in
w
h
i
c
h
c
o
m
p
l
i
a
n
c
e
,
o
n
o
p
i
n
i
o
n
o
u
r
noncompliance in forning
paragraPh.
following
in
the
the
with the
respects'
complied, in all material
the University
In our opinion,
Q) eligibility'
o
r
u
n
a
l
l
o
w
e
d
,
(
1
)
a
l
l
o
w
e
d
s
e
r
v
i
c
e
s
o
i
types
requif,ements governing
(5) special
(
4
)
r
e
p
o
r
t
i
n
g
'
e
a
r
m
a
r
k
i
n
g
,
a
n
d
/
o
r
(3) matchj-ng, leve1 of effort,
(8) claims
Q) indirect cost allocation,
requirenents, (6) nonitoring subrecipients,
foi advances and reimbursenents, and (9) amounts.clained or used for matching that
major Federal financial assistance programs for
are applicabl.e to the University's
the year ended June 30, 1991.
This report is intended for the information of the Board of ControL nenbers '
University nanagement, the U.S. Department of Health and Hunan Services (the
cognizant agency) and Federal grantor agencies, and should not be used for any other
of this report,
purpose. ThiS restriction
is not intended to limit the distribution
which is a natter of public record.
Ad.-,fui€.
Detroit,
Michigan,
February 25, 1992.
A RTHUR
AN DER.SEN
AnrHunAxpensrxs(-cl.SC
INDEPENDENTAUDITORSI REPORTON THE I.'NIVERSITY'S COI'TPLIANCE
}TTTH REQUTRE}TENTS
APPLICABLE TO NONI{AJOREEDERAI,EINAI.ICIAL
ASSTSTANCB PROGRAM TRANSAETTONS
To the Board of Control.
Michigan TechnoJ.ogical University:
In connection with our audit of the 1991 basic financial
statements of MICHIGAN
TECHNOLOGICAL
UNIVERSITY(the "University")
and with our study and evaluation of the
University's
internal control systems used to administer Federal financial
a s s i s t a n c e p r o g r a t n s , a s r e q u i r e d b y O M BC i r c u l a r A - 1 3 3 , A u d i t s o f I n s t i t u t i o n s
of
Higher Education and Other Nonprofit Institutions,
we selected certain transactions
applicable to certain nonmajor Federal financial assj.stance programs for the year
ended June 30. 1991.
A s r e q u i r e d b y O M BC i r c u l a r A - 1 3 3 , w e h a v e p e r f o r m e d a u d i t i n g p r o c e d u r e s t o t e s t
compliance with the requirements governing (1) types of services allowed or
(3) rnatching, 1eve1 of effort and/or earmarking
unallowed, Q) eligibility,
requirenents, (4) special reporting requirements and (5) special tests and
provisions, that are applicable to those transactions.
Our procedures hrere
substantially
less in scope than an audit, the objective of which is the expression
of an opinion on the University's
Accordingly,
compliance with these requirenents.
we do not express such an opinion.
With respect to the itens tested, the results of those procedures disclosed no
material instances of noncompliance r+rith the requirements listed in the preceding
paragraph. With respect to itens not tested, nothing came to our attention that
caused us to believe that the University had not conplied, in all naterial respects,
with those requirements. However, the results of our procedures disclosed an
immaterial instance of noncompliance with those requirements, which is described in
the accompanying Schedule of Findings 1991.
This report j-s intended for the information of the Board of Control members,
U n i v e r s i t y m a n a g e n e n t , t h e U . S . D e p a r t m e n t o f H e a l t h a n d H u m a nS e r v i c e s ( t h e
cognizant agency) and Federal grantor agencies, and should not be used for any other
purpose. This restriction
is not intended to limit the distributlon
of this report,
which is a matter of public record.
A/r..rfui€.
Detroit,
Michigan,
February 25 , 1992.
^AIiI'FIL]I(
NN DEI{SIJN
.vCrt SC
Aursuu AtLtt'tist-x
TNDEPENDENT
AUDITORS' REPORTON THE SCHEDULEOF
FEDERALFINA}ICIAL ASSISTANCE
To the Board of Control,
Michigan Technological
University:
We have audited the basic financial
statements
o f M I C H I G A N T E C H N O L O G I C A LU N M R S f T Y
(the "University")
as of and for the year ended June 30, 1991, and have issued our
report thereon dated October 31, 1991.
These financial
are the
statenents
responsibility
of the University's
nanagement.
Our responsibility
is to express an
opinion on the basic financial
statements based on our audit.
We conducted our audit in accordance with generally
accepted auditing
standards and
the standards for financial
audits contained in Governrnent Auditing
Standards (1988
Revision) , issued by the Comptroller
General of the United States.
Those standards
require that we plan and perform the audit to obtain reasonable assurance about
whether the basic financial
statements
are free of material
misstatenent.
An audit
includes exanining'
on a test basis, evidence supporting
the amounts and disclosures
in the basic financial
statements.
An audit also includes assessing the accounting
principles
used and significant
estinates
rnade by management, as well as evaluating
the overall
presentation.
financial
statenent
lJe believe that our audit provides a
reasonable basis for our opinion.
Our audit was made for the purpose of forming an opinion
on the basic financial
statements
of the University
The accompanying Schedule of Federal
taken as a whole.
Financial
Assistance for the year ended June 30, 1991, is presented for purposes of
additional
analysis
and is not a required part of the basic financial
statements.
The information
in that Schedule has been subjected to the auditing
procedures
applied in the audit of the basic financial
statements and, in our opinion,
is
presented,
fairly
in all material
respects,
in relation
to the basic financial
statenents
taken as a who1e.
Ad-.,fui4.
Detroit,
Michigan,
February 25, L992
MICHIGAN TECHNOLOGICALUNIVERSITY
SCHEDULEOF FEDERAL FINANCIAL ASSISTANCE
FOR THE YEAR ENDED .]UNE 30.
1991
Ens.ldiblg
STI'DENT FINAI\CIAL AID
U . S . D E P A R T M E N TO F E D U C A T I O N :
PELL
College Work St,udy
Supplemental
Educational
Opport.unity
Perkins Loans
5 2,1,76,37'J,
3 3 6 ,4 8 5
2 L 9, 4 6 0
4,614,031_
cranE
s 1, 3 4 6 , 3 4 ' l *
Total Student Financial Aid
RESEARCH AIYD DEVELOPMENT
U.S DEPARTMENTOF DEFENSE
U.S. ARMY TANK AUTOMOTIVE COMMAND:
D A A E O 7- 8 9 - C - R 0 7 1
D A A E o 7- 8 7 - C - R 0 1 2
91,7,9'1.5
>2,)oL
10,456
752
DAAA21 B9M2659
D A A 30 7 - 9 1 - V - C 1 0 8
1,,02]- , 684
U.S. ARMY COLD REGIONSRESEARCH:
D A C A 8 9- 9 0 - K - 0 0 0 8
D A C A 8 9- 8 9 - K - 0 0 1 2
DAALO3-90-c-0151
D A C A 8 9- 9 0 - K - 0 0 0 6
D A C A 8 9- 9 0 - K - 0 0 1 0
D A C A 8 9- 9 0 - K - 0 0 0 9
DACA89-90 -yt-'1,292
DAAK70-90 -P-'J,924
D A C A 8 9- 8 9 - M - 3 0 0 1
88,594
7 2, 8 L ' 7
2 9, 9 2 4
24,7'J-1,
10,2I7
8,624
4,0I5
4,002
2,!49
245,053
The accompanying
notes
are
an integral
- 1 5-
parE of Ehis schedule.
UNIVERSITY
MICHIGANTECHNOLOGICAL
OF FEDERALFINANCIAL ASSISTANCE
SCHEDULE
FOR THE YEARENDEDJUNE 30. 1991
(Continued)
Exnenditures
Federal Asencv/Grant Number
RESEARCII AI\D DEVELOPMENT (Continued)
OF DEFENSE(Continued)
U.S DEPARTMENT
U.S. ARMY DCASR:
D A A E o -78 7 - G - R 0 0 4
D A A B o -79 0 - G - R 0 0 1
D A A E o -78 7 - G -0 0 0 4
DAAHo1-9-P-1143
IPA R07-91-0064
DAAEOT-87-GROO4
5 76 , 9 3 L
2r2,085
7 2, 2 7 7
2,9I4
2,864
2.027
809.032
U . S . A R M Y- F O R TB E L V O I R :
D A A K 7 0 - 8 9 --P2 4 9 7
FUNDINGFROMOTHERS
U.S. ARMYPASS THROUGH
AM GENERALCORPOMTION(Purchase Order Numbers):
6 3 1 7 8 8a n d 6 3 3 1 1 1
6 2 7 2 2 LW A
6 2 8 8 6 0W A
55
A7 1
4 7, 3 9 7
21,854
L 2 +, 9 2 2
ITY :
NORTHWESTERN
UNIVERS
0 6 5 0- 3 5 0- W 4 8 4 M T U
16,571
DIVISION:
BATTELLECOLUMBUS
T 2 3 9 6( 1 4 9 3 )- 1 3 4 7
12396 SUPL/I05
7,96L
+,2+/
12,208
The acconpanying notes a r e a n i n t e g r a l
-16-
part of this
schedule.
MICHIGAN TECHNOLOGICALUNIVERSITY
SCHEDUL4 OF FEDERAL FINANCIAL ASS.ISTANCE
FOR THE YEAR ENDED JUNE 30.
(Continued )
1991
Exoenditures
tr'ederel Agencv/Grent Number
RESEARCH AhTDDEVELOPMENT (Continued)
U . S D E P A R T M E N TO F D E F E N S E ( C o n t i n u e d )
T E T E C H N O L O G YI,N C . :
Agreenent 1190
Agreement 910315
5,226
3.540
8,766
FMC CORPORATION:
PTl2096-00
P T 1 2 4 3 -50 0
2,85r
1,530
4,381
U.S. AIR FORCE:
74 , 0 4 6
F086s35-90-C-0063
FUNDINGFROMOTHERS:
U.S. AIR FORCEPASSTHROUGH
UNIVERSALENERGYSYSTEMS,INC.
s-210-11MG-003
2 L, 6 8 2
D Y N E T I C S ,I N C . :
1 3 4 3I - A
7 8, 8 4 2
THE ANALYTIC SCIBNCESCORPORATION:
s u B 9 11 1 2 D 0 / 1 0 1
2,778
ASSOCIATES,INC. :
APPLIED RESEARCH
ARA-ss71-90-KRC
r.707
The accompanying notes are a n i n t e g r a l
-t7 -
part of this
schedule.
MICHIGAN TECHNOLOGICALUNIVERSITY
SCHEDULEOF FEDERAL FINANCIAL ASSISTANCE
FOR THE YEAR ENDED JUNE 30.
( Continued )
1991
Federal Asencv/GrqtrrtNumber
Exoenditures
RESE^ARCH
AIYDDEVELOPMENT (Continued)
U.S DEPARTMENT
OF DEFENSE(Continued)
U.S. NAVY OFFICE OF NAVALRESEARCH:
N 0 0 0 1 4 - 8 9 - J- 1 9 6 6
1100014-89-J-1601
N00014-89-J-7326
N62269-90-C-0272
r23 , r92
9 6, 3 9 2
72,876
6 6. 6 9 r
?qq
U . S . N A V Y P A S ST H R O U GFUNDING
H
FROM OTHERS
ILLINOIS INSTITUTE OF TECHNOLOGY:
E06s9s-88-C-001
8 0 6 5 9 s- 8 8 - C - 0 0 2
151
351,611
9 2, 4 3 7
4 4 4, 0 4 2
NATIONALRESEARCH
COUNC]L:
S H R P - 8 8 - H 2 0A
4O 3
9 8, 2 6 r
NASA-LEWISRESEARCH
CENTER:
N A G3 - 5 6 0 S U P / I 8
N A G3 - 1 1 0 9 S U P / l l
N A G3 - 1 1 0 9 S U P / I 2
N C C l- 1 4 5
N A G 3 - s 1 9S U P / 1 8
N C C 3 . 1 8 3S U P L / I I
NAc3- 216 SUPL/f
1s
N A G3 - 1 0 1 7
75,740
71,321
2r,867
3 7, 0 0 0
13,738
2,317
1,556
718
2 2 4, 2 5 7
The accompanying
notes
are an integral
-18-
part
of
this
schedule.
MICHIGAN TECHNOLOGICALUNIVERSITY
S C H E D U L EO F F E D E R A L F I N A N C I A L A S S I S T A N C E
FOR THE YEAR ENDEDJUNE 30.
( Continued )
199I
Fedeial Afencv/Grant Number
Exoenditures
RESEARCHAl{D DEVELOPMENT(Continued)
U.S DEPARTMENT
OF DEFENSE(CONtiriUEd)
HEADQUARTERS:
NASA
NGT- 7os 14 SUPL /12
N A S W4-4 8 6
NAG3- 711 SUPL/fO8
23,73r
2 2, t 6 0
s
Rqq
5 1, 7 9 0
NATIONALSECURITYAGENCY:
M D A 9 0-49 0 - H - 1 0 2 6
1 3, 9 1 6
OTHERPRSSTNNOUGH
CONTMCTS
UNIVERSALTECHNOLOGY
CORPOMTION:
suB s476-07-0s-1
3 5, 6 3 8
HONEYWELL
I N, C . :
l fs tt g tz - o w
l f s t t g + t- o s
10,158
1,807
11,965
THE UNIVERSITY OF MICHIGAN:
7. 4799s AMD/Io1
2t5022
43,820
JOJ
44, L83
The accompanying notes a r e a n i n t e g r a l
-19-
part of this
schedule.
MICHIGAN TECHNOLOGICALUNIVERSITY
SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
FOR THE YEAR ENDEDJUNE 30.
(Continued )
I99I
Federal Asencv/Gr:ant Number
Exnenditures
RESEARCH AIYD DEVELOPMEhIT (Continued)
U.S. DEPARTMENT
OF AGRICULTURF
U . S . F O R E S T R YS E R V I C E :
Unknown
L73,077
6 9, 1 1 3
42,327
39,099
6,498
2,27I
9 5, 6 1 9
s3,766
42,93r
2 8, 2 4 9
s,000
7,996
s91
2r0
A/i 88 -33szr -408s
90-3729t-5708
c/i s9 -34171-4384
8 8 - 3 4 1 5 8- 3 2 7 4
/ i a z- r s r v - 9 - 0 2 7 8
AGR 23 -448 AMDII}
cooP AGR23-448
I N T - 9 0 - 5 0 4 - C o A1
cN /is6Ar-9-o13sl
A G R M T0 1 0 8 9 1
cooP /128-c9-s1r
P O / l4 3 - s 4 A T - 0 0 3 0
c00P/f23-s83
U S D A - A R-SS A A 58-43YK-0-0049
FEDrD/f 23-91-01
2 3 - 88 - 20 AMEND/12
R910-CS-90-002
Challenge 050490
Letter 040591
A / l 8 9 - 3 4 1 s 8- 4 2 3 3
e/f es-34ls8 -4234
91-34158-5887
19,8s3
65,250
9,038
3 0 . 2 77
14
q54
r0, s24
z+,zzt
2L,597
1,366
7 5 7, 8 3 3
The accompanying notes
are an integral
-20-
part of this
schedule.
MICHIGAN. TECHNOLOGICALUNIVERSITY
SCqEDI'LE OF FEDERAL FINANCIAL ASSISTANCE
F O R T H E Y E A R E N D E DJ U N E 3 0 .
(Continued )
l99t
Federal Ag>ncv/Grant lYumber
Exnenditures
R'ESEARCH AND DEVELOPMEITT (Continued)
U.S. DEPARTMENT
OF ENERGY
D E F G o-58 9 E R 7 5 15 4
DEFGo2-878R45315
DEACz2-88PC888s6
DEFGo
2 - 86ER4s255
OF-69 R W HECKEL
510,121
r 4 6. 2 6 6
6s,303
3 2, 0 r 4
L7.073
770,771
T F E N E R G YP A S S T H R O U G HF U N D I N G :
U . S . D E P A R T } , I E NO
M A R T I N M A R I E T T A E N E R G YS Y S T E M S , I N C .
79,620
NATIONAL SCIENCE FOUNDATION
cr /l DMR-8808294
'I
u s E - 8 9 s 3 5 0A
4Mo1
1Sq
9 9, 2 0 8
83,463
8 3, 2 6 3
77,092
74 , 4 9 8
6 4, 5 6 0
5 2, 0 9 8
4 2, 2 3 8
39,776
3 7, 2 9 ) .
34,046
EAR-8916492
DMR-8922824
D M R - 8 8 1 5 0 4 MOD2
9
EAR-8916323
M r P - 8 9 1 2 9 9 0AMO1
DrR-8921936
ECS-8913663
AMO4
E A R - 9 0 5 2 3 2 AMDl
8
c E S 8 8 0 0 4 59
DMR-9015665
PHY-89s0926
u s B - 9 1 5 2 72 2
cTS-8910518
MSM-8910012
E A R - 8 8 0 3 7 4 5AMifi
c T S- 9 0 0 9 51 8
EAR-8916932
DCB-9020773
The accompanying notes
?R
??
7so
3 2, 8 0 2
32,341
2 9, 0 4 9
2 7. 6 5 0
25,046
25,037
2 3, 6 2 0
are
an integral
-2I-
part of this
schedule.
Federal Asencv/Grant Number
RESEARCH AM
DEVDLOPMENT (Continued)
N A T I O N A L S C I E N C E F O U N D A T I O N( C o n t i n u e d )
BSR-871609s AMD2
2 0, 6 6 0
15,064
1 1, 4 6 1
11,200
11,171
1n ssa
8,803
c c R - 8 8 2 3 0 3 rM o D 1
M I P - 8 7 7 0 7 5 7A M o 2
DDM-900260s
-8803998
DMB
P H Y - 8 9 1 7 7 4 6A M D l
cES - 8858s26
usE - 8950504
ocB- 87 22960
M S S - 8 8 2 0 1 7 2A M I I L
I P A A G R1 I 1 4 8 9
rNT-9017063
rNT - 89 14847
DMS-9100829
, r N T -8 9 7 5 8 2 7
R
S??
7,439 ,
6,683
6,557
4 , 4 76
3.729 .
2,077
2,009
I ,452
crs-91tr244
EAR-9017821
JUO
usE-8B54lss
rNT-8914718
P H Y - 8 s 0 6 1 7A7M / i l
284
153
487
1, 188,094
NATIONAL SCIENCE FOUNDATION FEDERAL PASS THROUGHFUNDING FROM OTHERS
UNIVERSITY OF CALIFORNIA:
vR6427 4-0 C/0/101
v864274-O
2 9, 6 9 0
la
?1.4
44,008
The accompanying notes
are an integral
-22-
part
of
this
schedule.
M I C H I G A N T E C H N O L O G I C A LU N I V E R S I T Y
SCHEDULEOF FEDERAL FINANCIAL ASSISTANCE
FOR THE YEAR ENDEDJUNE 30.
(Continued )
I99I
Federal Asencv/Grant Nurnber
Exoenditures
RESEARCH AIYD DEVELOPMENT (Continued)
DEPARTMENT
OF INTERIOR
NATIONALPARK SERVICE:
607s-0325-188-90
cA-6310-0-8008M1
c A - 6 0 0 0 - 6 - 8 0 1 3M 3
cA-6310-9-0001
cA-6310-8-8034
PX-6310-9-0432
cA-63r0-8-8034 M1
cA-6140-7-8033
cA-611s=6-8008M3
P X - 6 3 1 0 r- - 0 3 0 4
6 0 7 5 - 0 3 2 5 - 1 8 88 9
C A - 6 0 , 0 0 - 8 - 8 0 3M
0I
c A - 6 0 0 0 - 9 - 8 0 0 7M 1
cA-6000-6-8015M/14
c A - 6 0 0 0- 9 - 8 0 2 2
130,s06
4 2, 8 3 1
3 9. 4 3 2
3 9 , 1 77
2 7 , 0 76
15
151
r0, 600
1, 0 0 2
669
r87
3 2, 0 2 6
8,s68
2,846
1,909
L,706
347.686
PICTURED ROCKS NATIONAL LAKESHORE:
c x 6 0 0 0- 1 ' 0 0 0 4
t!
PROTECTION
ENVIRONMENTAL
AGENCY:
R-816894-01-0
cR-815683-01-0
cR-814319-02-I
Illinois
S h r S( F e d e r a l P a s s T h r o u g h F u n d i n g )
s u b / l s o - 1 6 8 A M DI
7 \'l
8s,099
28,473
19,177
19,516
L 5 2, 2 6 5
The accompanying notes
are an integral
-23-
part
of
this
schedule.
MICHIGAN TECHNOLOGICALUNIVERSITY
SCHEDULEOF FEDERAL FINANCIAL ASSISTAI'IqE
IOR THE YEAR ENpEp JUNE 30.
(Continued)
I
.
1991
Fedenal AsencvlGrant Numlrer
ErpesdifsEes
RESEARCH AI{D DEVELOPMENT (Continued)
DEPARTMENT
OF INTERIOR (Continued)
BUREAUOF MINES:
G 11 0 4 126
Gr004126
. P0 203201
GIII4L26
GLI94L26
I12,005
14 sO4
17,858
I4,6t6
1s8
'I
U.S. BUREAUOF MINES FEDERALPASSTHROUGH
FUNDINGFROM OTHERS
THE PENNSYLVANIA
STATE UNIVERSITY:
USDITPSU
T -4 2 - 5 5 9
USDITPSU.T42-427
U S D I T P S- U
I42. 639
70
??l
87, r89
26,543
1 3, 7 0 1
r 2 7, 4 3 3
U . S . G E O L O G I C A LS U R V E Y :
'90-4420-0336
U . S . D E P A R T M E N TO F T R A N S P O R T A T I O N
90-1/88-0008
LVO, ZJ /
9r-1l88-0008
100,3r2
206,549
The accompanyingnotes are an integral
- 24-
part of this
schedule.
M I C H I G A N T E C H N O L O G I C A LU N I V E R S I T Y
SCHEDULEOF FEDERAL FINANCIAL ASSISTANCE
FOR THE YEAR ENpEp JUNF 30.
( Contlnued )
1991
Federal Asencv/Grant Number
Exoenditures
RESEARCH AhID DEVELOPMEI{"I (Continued)
U . S . D E P A R T M E N TO F H E A L T H A N D H U M A NS E R V I C E S
HEALTH EFFECTS INSTITUTE:
Agreement 89- f0 - ?
Agreement 89- l0
99 .7 60
92 .600
r92,360
NAT]ONALTI'ISTITUTE
OF HEALTH:
s R O l 0 H 0 2 6 1 -10 2
5 R01 0H026rr.-03
IR15AR39940-01A2
4 7. 3 r 0
?\
aso
4 ,857
88,026
<
Total Research and Development
W
7t
rt
700
0qQ*
OTHER
T F EDUCATION
U . S . D E P A R T M E NO
16A900i3 90 ACT3
Pr 8 3 D 9 0 0 6 5
GT /lPo 16A90013
44 , 106
L7.483
r,606
M I C H I G A N D E P A R T M E N TO. F E D U C A T I O N
P.A. 102 0F 1986
P.A. 219 0F 1986
5 ,469
rr3,330
U.S. ARMY - MAINTENANCE
D A A 3 0 7- 9 0 - C - R 0 0 2
The accompanying notes
5 3, 8 6 2
are an integral
-25-
part
of
this
schedule
MICHIGAN TECHNOLOGICALUNIVERSITY
S C H E D U L EO F F E D E R A L F I N A N C I A L A S S I S T A N C E
FOR THE YEAR ENDED JUNE 30.
(Continued )
1991
Exoenditures
Federal Asencv/Grant Number
OTHER (Continued)
P A S S T H R O U G HF U N D I N G F F , O MO T } I E R S
U . S . D E P A R T M E N TO F C O M M E B C E
T ^ J A Y NS
ET A T E U N I V E R S I T Y :
P153961
Pl4l186
Pr53962
Pl 4 l I 1 8 5
47,4r9
30.892
2 9, 6 9 6
??
)1)
? \
IrO2
M I C H I G A N D E P A R T M E N TO F C O M M E R C E :
91-CGA-0094
M D O CG A N T 9 0 - 6 9 3
6ONANB9DO948
2 0, 6 4 r
19,83s
P E N I N S U L AC O P P E RI N D U S T R I E S I N C . :
Agreement 080189
2,t 49
S M A L L B U S I N E S SA D M I N I S T R A T I O N :
SBA 9049 MA-86
4,384
U . S . D E P A R T M E N TO F L A B O R
VJESTERN
U P MANPOWER
CONSORTIUM:
Contract 89-4005
8,138
458,244
Total Other
NONCA.SH A.SSI STAITICE
$ 1 , 4 9 6, 2 2 9 "
STAFFORD LOANS
$ 1 7 .r 0 0 , 7 7 8
TOTAL FEDER.AL FINANCIAL ASSISTAI{CE
n Maj or
program
The accompanying notes are an integral
-26-
part
of
this
schedule.
M I C H I G A N T E C H N O L O G I C A LU N I V E R S I T Y
N O T E S T O T H E S C H E D U L EO F F E D E R A L F I N A N C I A L A S S I S T A N C E
FOR THE YEAR ENDEDJUNE 3.0. 199I
(1)
S C O P EO F A U D I T P U R S U A N TT O O M B C I R C U L A RA - 1 3 3
(the
University
of Michigan Technological
A11 Federal grant operatlons
A
1
33 audit
C
i
r
c
u
l
a
r
O
M
B
are included in the scope of the
"University"),
,
'
S
i
n
g
l
e
a
c
c
o
r
d
a
n
ce with
i
n
p
e
r
f
o
r
m
e
d
(the
The Single Audit was
Audit").
A
u
d
i
t
s of
f
o
r
S
i
n
g
l
e
the provisions of the OMB's Compliance Supplement
D
r
a
f
t
t
h
e
(
S
e
p
t
e
n
b
e
r
a
n
d
1990 Revision)
State and Local Governments
N
o
n
p
r
o
f
it
and Other
Compliance Supplement for Audits of Universities
(
t
h
e
C
o
m
pliance
(dated May 1991)
Institutions
"Compliance Supplements").
testing of all general requirements, as described in the Compliance
SuPPlements, was Performed.
The U.S. Department of Health and HumanServices has been deslgnated
cognj.zant agency for the Single Audit'
University's
(2)
as the
FISCAL PERIODAUDITED
Student
Audits have been performed in prior years of the Universit.v's
Financial Assistance (SFA) Programs in accordance with applicable audit
occurring during the year ended
guldes.
The audit of program transactions
J u n e 3 0 , I 9 9 1 , h a s b e e n p e r f o r m e d P u r s u a n t t o Q M BC i r c u l a r A - 1 3 3 .
(3)
O F S I G N I F I C A N T A C C O U N T I N GP O L I C I E S
SUMMARY
Basis
of
Presentation
The accompanying Schedule of Federal Flnancj.al Assistance includes all
during the year
which had activlty
Federal grants to the University
financiaf
f
o
r
r
e
c
o
r
d
e
d
a
r
e
r
e
v
e
n
u
e
s
G
r
a
n
t
1
9
9
I
.
ended June 30,
for
g
u
a
lifications
t
h
e
m
e
t
h
a
s
U
n
i
v
e
r
s
i
t
y
t
h
e
p
u
r
p
o
s
e
s
w
h
e
n
reporting
grant
F
e
d
e
r
a
l
a
g
a
i
n
s
t
a
p
p
l
i
e
d
g
r
a
n
t
s
a
r
e
F
e
d
e
r
a
l
g
r
a
n
t
s
.
the respective
the
t
o
a
p
p
l
y
p
r
o
p
e
r
l
y
w
h
e
n
t
h
e
y
a
v
a
i
l
a
b
l
e
r
e
v
e
n
u
e
funds to the extent of
grant.
SCHEDULE I
M I C H I G A N T E C H N O L O G I C A LU N I V E R S I T Y
S C H E N I I I , EO F F T N N T N G S-
1q9'I
Questioned
Program
Findine
Finding
/fl
Observation
We noted during our audit of the University's
financial
statements that the University's
decentrallzed
in a loss
responsibility
structure
resulted
and reporting
of accountabili.ty
and a lack of information
being reported
to the Board of Control and to upper management. The
direct
impact of this was that the system of internal
accounting controls
could not ensure that commitments were
in the University's
adequately or accurately reflected
financial
accounting,
reporting
and cash nanagement
systems until
the time that invoices were actuaLLy paid.
This presented the risk that expenditures
could exceed
f
u
n
d
i
n
g
was not
budgeted anounts, or that adequated
available to support expenditures.
This matter hras consi.dered in our review of the
University's
administration
of its Federaf financial
l,le noted that , with respect to the
assistance programs.
grants tested,
had reimbursement type
the University
and the impact of the finding
above was to
contracts,
delay reimbursement to the University.
l^lealso noted that
in situations
where expenditures
exceeded amounts
authorized
under grants,
that rej-mbursement was not
requested until
the amounts were properly bj.11able under
grant.
an amendment to the original
' The reimbursement effect
is either nominal
not reimbursable or not ascertainable.
a^^+^
---Ir-W!l--
SCHEDULE I
( Continued )
MICHIGAN TECHNOLOGICALUNIVERSITY
S C H E D U L EO F F I N D I N G S .
i99I
Questioned
Costs
Program
University
Response
monitoring
is re-,establishing
a centralized
The University
be
for expenditures will
function
where all requisitions
reasonableness and budgetary
reviewed for appropriateness,
prior to granting approval for the requested
availability
expenditure.
Finding
/12
Observation
procedures to
has instituted
We noted that the University
and obtain audit reports fron them
monitor subrecipients
We noted
o f O M BA - 1 3 3 .
in accordance with the provisions
audit rePorts
at the time of our audit that subrecipient
to
We encourage the University
had not yet been received.
the need to
continue to communicate to subrecipients
s u b g r a n t s i n a c c o r d a n c e w i t h O M BA obtain audits of their
133.
Uhiversity
Response
Procedures have been inplemented to obtain audit reports
Since the provisions of A-133
from our subrecipients.
many of our subrecipients
provide for biannual audits,
on their
have elected the biannual method of reporting
In
r
e
ceived '
as r,Jell as subgrants they have
expenditures,
p
e
r
f
o
r
m
e
d
Arthur Andersen & Co.'s audit was
addition;
We
prior
to the subnission deadline for single audits.
in the
be diligent
have procedures in place and will
of single audit reports from
monitoring
and collection
subrecipients.
* The reimbursement
not reinbursable
is either nominal
effect
or not ascertainable.
SCHEDULE I
(Continued )
M I C H I G A N T E C H N O L O G I C A LU N I V E R S I T Y
S C H E D U L EO F F I N D I N G S -
Progrem
1991
Findins
Finding
{13
Observation
has not received CFDA numbers
We noted that the University
As a -result,
we were
on all grants with Federal monies.
required to expand our audit procedures to audit more
grants than may otherwise have been required in order to
ensure that audit scopes were adequate and in accordance
This has resulted in
with the provisions of oMB A-133.
than would have otherwise
higher cost to the University
been required.
We recommend that Research Services
personnel reguest the appropriate
CFDA numbers at the time
g
r
a
n
t
a
is inj.tiated.
UniversitJr
Response
has begun requesting Catalog of Federal
The University
Domestic Assj.stance (CFDA) numbers at the time nevr grants
process
Improvements to this requesting
are initiated.
being implemented.
are currently
granting
Then University
has found that many federal
Therefore,
with CFDA numbers.
agencies are unfamiliar
with
these agencies are unable to provide the University
such numbers.
* The reimbursement effect
nominal,
is either
not reimbursable or not ascertainable.
Questioned
Costs
SCHEDULE I
(Continued )
MICHIGAN TECHNOLOGICALUNIVERSITY
S C H E D U L EO F F I N D I N G S -
Program
Findinp
/14
Finding
Student
Financial
Assistance
I99I
High school diplomas or the equivalent
are not maintained
in admissions files
prior to the 89-90 enrollment year.
University
Response
The Admissions Office staff
now retains
documentation to
(C.f.n.
high school graduation or the equivalent
verify
or
other examination).
F4nding
Student
Financial
Assistance
/15
The University
applies financial
aid to student's accounts
before the time allowed by the Federal regulations.
However, no funds are disbursed directlv
to students until
the time a1lowed.
Unj.versity
Response
As we have done in the past, we vil1
continue to draw down
Federal funds within
the appropriate
time period prior to
classes, and we will
continue to withhold disbursement of
funds to students until
the first
day of classes.
i The reimbursement effect
is either nominal,
not reimbursable or not ascertainable.
-31-
Questioned
Costs
SCHEDULE I
(Continued )
M T C H I G A NT E C H N O L O G I C A LU N I V E R S I T Y
S C H E D U L EO F F I N D I N G S (Continued )
Proeram
_ El n a l 1 n p
Finding
Student
Financial
Assistance
1991
#6
Refund calculations
are not standardized, increasing the
risk of error.
V J en o t e d n o e r r o r s i n r e f u n d c a l c u l a t i o n s
which uere tested. however.
Universi!.rr
Response
The University
has agreed upon a standard form to record
refund calculations
and thls form will
be used beginning
year.
with the f991-92 fiscal
* The reimbursement
not reimbursable
effecE is either nominal
or not ascertainable.
Questioned
Costs
S C H E D U L EI I
1990 Audit of Student Financiaf
during the fiscal
There were five findings
loan
of Stafford
to high school diploma, application
Assistance Programs relating
has implemented
The Universlty
aid award notification.
fr,rnds; refunds and financial
similar
events of noncompliance unless otherwise noted on
procedures to dlininate
the Schedule of Findings for 1991
MICHIGAN TECHNOLOGICALUNIVERSITY
GENERAL INFORMATION
H O U G I I T O N ,M I C H I G A N 4 9 9 3 1
Arthur Andersen
One DetroiE CenEer
500 Woodward Avenue
Derroit, Michigan
Mark W. Mehall
EngagemenEPartner:
(
3
1
3
)
Tel No.:
596-9000
'the audiE was performed beEween May 27, 1991 and February 25, ' 1 , 9 9 2 , a E t h e
UniversiLy's faciliE j-es, as f o11ows:
Locat i on
FloughEon, Michigan
DescripEion
of
Faci liLv
UniversiEy
I'lichigan Technological
AdminisErat ive Bui lding
Commission on tligher
OrganizaLion:
.l.nsLiLuEion,s; AcCrediting
CenLral Associat,ion of Colleges and Secondary Schools.
DaEes VisiEed
5/21/91-2/2s/92
EducaEion of
The Universit,y
an SFA ConsulEanE.
does not uEilize
The University
as servicer
for t,he Perkins Loan Program.
DaEa corporaLion
uEilizes
the North
AFSA
payment processing and delinquenE account
utilizes
Ehe billing,
The University
process of AFSA. The UniversiEy received the service cenE,er review
follow-up
performed by KPMG Peat Marwick for Ehe year ended June 30, L991 whj.ch review
reasonable assurance EhaE the
indicaCed EhaE the degree of compliance provided
were achieved.
objecEives
Assistance
of Ehe Federal Financial
Records for the account,ing and adminisf,rat,ion
on Ehe Campus of Michigan
Building
programs are located at Ehe AdminisEraEion
49931-.
Houghton, Michigan
University,
Technological