Material weaknessesA Significant Deficiency that would not prevent or timely detect a material error in the University's financial reports.
A measurement or threshold to gauge the significance of a fiscal transaction. Determining materiality often involves the reasonable person test; there are two ways to gauge this question: 1. By quantity: In the University, items that are in excess of $200,000 or in excess of 5% of the revenue or expense base (whichever is less) are always considered material. 2. By quality: No matter what the amount, an item is material if the misstatement or omission makes it probable that the judgment of a reasonable person, who was relying on the information to make a decision or to take an action, would be changed or influenced.