FAC Explorer

Audit 15659

FY End
2023-09-30
Total Expended
$15.42M
Findings
6
Programs
14
Organization: George C. Wallace Community College - Dothan (AL)
Year: 2023 Accepted: 2024-02-05
Auditor: Carr Riggs & Ingram

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
11831 2023-001 Significant Deficiency - AB
11832 2023-001 Significant Deficiency - AB
11833 2023-001 Significant Deficiency - AB
588273 2023-001 Significant Deficiency - AB
588274 2023-001 Significant Deficiency - AB
588275 2023-001 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
84.063 Federal Pell Grant Program $9.70M - 0
84.425 Covid-19 Education Stabilization Fund $2.39M Yes 0
84.042 Trio_student Support Services $678,645 Yes 1
84.031 Higher Education_institutional Aid $451,924 - 0
17.258 Wia Adult Program $378,212 - 0
84.002 Adult Education - Basic Grants to States $370,946 - 0
84.048 Career and Technical Education -- Basic Grants to States $358,584 - 0
84.047 Trio_upward Bound $344,644 Yes 1
84.044 Trio_talent Search $340,521 Yes 1
84.007 Federal Supplemental Educational Opportunity Grants $162,862 - 0
84.033 Federal Work-Study Program $110,346 - 0
17.259 Wia Youth Activities $57,964 - 0
17.268 H-1b Job Training Grants $49,980 - 0
17.278 Wia Dislocated Worker Formula Grants $3,092 - 0

Contacts

Name Title Type
RSMDGHDC3DC6 Linda C. Young Auditee
3345562234 Brian Free Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: This Schedule of Expenditures of Federal Awards (the schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principal portion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms to the basis of reporting to grantors for reimbursement under the terms of George C. Wallace Community College’s (the College) federal grants. De Minimis Rate Used: N Rate Explanation: The College has elected to not use the 10% de Minimis indirect cost rate. The College uses the negotiated indirect cost rate of 8%. The accompanying schedule summarizes the federal expenditures of the College under programs of the federal government for the year ended September 30, 2023. The amount reported as federal expenditures were obtained from the College’s general ledger. Because the schedule presents only a selected portion of the operations of the College, it is not intended to and does not present the financial position, changes in net margins and cash flows of the College.For purposes of the schedule, federal awards include all grants, contracts, and similar agreements entered into directly with the federal government and other pass through entities. Payments received for goods or services provided as a vendor do not constitute federal awards for purposes of the schedule. The College has obtained Assistance Listing Numbers (ALN) to ensure that all programs have been identified in the Schedule. ALN have been appropriately listed by applicable programs. Federal programs with different ALNs that are closely related because they share common compliance requirements are defined as a cluster by the Uniform Guidance. Three clusters were identified in the schedule as follows: Student Financial Aid Cluster ‐ This cluster includes awards that assist agencies in providing financial assistance to eligible students attending eligible institutions of postsecondary education. TRIO Cluster – This cluster includes awards that assist agencies in providing outreach and student services programs designed to identify and provide services for individuals from disadvantaged backgrounds (low‐income individuals, first‐generation college students, and individuals with disabilities). Workforce Innovation and Opportunity Act (WIOA) Cluster ‐ This cluster includes awards designed to help job seekers access employment, education, training, and support services to succeed in the labor market and to match employers with the skilled workers they need to compete in the global economy
Title: Relationship of the Schedule to Program Financial Reports Accounting Policies: This Schedule of Expenditures of Federal Awards (the schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principal portion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms to the basis of reporting to grantors for reimbursement under the terms of George C. Wallace Community College’s (the College) federal grants. De Minimis Rate Used: N Rate Explanation: The College has elected to not use the 10% de Minimis indirect cost rate. The College uses the negotiated indirect cost rate of 8%. The amounts reflected in the financial reports submitted to the awarding federal and/or pass‐through agency and the schedule may differ. Some of the factors that may account for any difference include the following:  The College’s fiscal year end may differ from the program’s year end.  Accruals recognized in the schedule, because of year end procedures, may not be reported in the program financial reports until the next program reporting period.  Fixed asset purchases and the resultant depreciation charges are recognized as property and equipment, net in the College’s financial statements and as expenditures in the program financial reports.
Title: FEDERAL PASS‐THROUGH FUNDS Accounting Policies: This Schedule of Expenditures of Federal Awards (the schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principal portion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms to the basis of reporting to grantors for reimbursement under the terms of George C. Wallace Community College’s (the College) federal grants. De Minimis Rate Used: N Rate Explanation: The College has elected to not use the 10% de Minimis indirect cost rate. The College uses the negotiated indirect cost rate of 8%. The College is the sub‐recipient of federal funds that have been subjected to testing and are reported as expenditures and listed as federal pass‐through funds. Federal awards other than those indicated as “pass‐through” are considered direct and will be designated accordingly.
Title: CONTINGENCIES Accounting Policies: This Schedule of Expenditures of Federal Awards (the schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principal portion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms to the basis of reporting to grantors for reimbursement under the terms of George C. Wallace Community College’s (the College) federal grants. De Minimis Rate Used: N Rate Explanation: The College has elected to not use the 10% de Minimis indirect cost rate. The College uses the negotiated indirect cost rate of 8%. Grant monies received and disbursed by the College are for specific purposes and are subject to review by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based upon experience, the College does not believe that such disallowance, if any, would have a material effect on the financial position of the College. As of September 30, 2023, there were no known material questioned or disallowed costs as a result of grant audits in process or completed.
Title: NONCASH ASSISTANCE Accounting Policies: This Schedule of Expenditures of Federal Awards (the schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principal portion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms to the basis of reporting to grantors for reimbursement under the terms of George C. Wallace Community College’s (the College) federal grants. De Minimis Rate Used: N Rate Explanation: The College has elected to not use the 10% de Minimis indirect cost rate. The College uses the negotiated indirect cost rate of 8%. The College did not receive any federal noncash assistance for the fiscal year ended September 30, 2023.
Title: SUBRECIPIENTS Accounting Policies: This Schedule of Expenditures of Federal Awards (the schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principal portion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms to the basis of reporting to grantors for reimbursement under the terms of George C. Wallace Community College’s (the College) federal grants. De Minimis Rate Used: N Rate Explanation: The College has elected to not use the 10% de Minimis indirect cost rate. The College uses the negotiated indirect cost rate of 8%. The College did not provide federal funds to subrecipients for the fiscal year ended September 30, 2023.
Title: LOANS AND LOAN GUARANTEES Accounting Policies: This Schedule of Expenditures of Federal Awards (the schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principal portion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms to the basis of reporting to grantors for reimbursement under the terms of George C. Wallace Community College’s (the College) federal grants. De Minimis Rate Used: N Rate Explanation: The College has elected to not use the 10% de Minimis indirect cost rate. The College uses the negotiated indirect cost rate of 8%. The College did not have any loans or loan guarantee programs required to be reported on the schedule.
Title: FEDERALLY FUNDED INSURANCE Accounting Policies: This Schedule of Expenditures of Federal Awards (the schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principal portion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms to the basis of reporting to grantors for reimbursement under the terms of George C. Wallace Community College’s (the College) federal grants. De Minimis Rate Used: N Rate Explanation: The College has elected to not use the 10% de Minimis indirect cost rate. The College uses the negotiated indirect cost rate of 8%. The College did not have any federally funded insurance required to be reported on the schedule for the fiscal year ending September 30, 2023.

Finding Details

Finding 2023-001
TRIO Cluster ‐ Assistance Listing # 84.042, 84.044, 84.047 U.S. Department of Education Federal Assistance Identification Number – P042A2A200272, P044A210475, P047A220386 Federal Award Year ‐ 2022 Criteria – As specified in 2 CFR section 200.303 the non‐Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non‐ Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Adequate controls must be in place to ensure that expenditures are properly authorized and allowable under program guidelines and are reported in the applicable reporting periods. Condition – The College’s internal control over compliance with allowable costs and activities requires that the terms of employment in the program be documented in an executed contract which details the terms of the employment. This control was not consistently adhered to for all employees. Cause – We noted three instances in a sample of sixteen employees in which an executed employment contract was not obtained to document the terms and approval of the employment under the program. Effect – Failure to follow the College’s policy of obtaining an executed contract for each employee under the program could result in disallowed costs. Questioned Costs – Not determinable. Recommendation – We recommend that the College strictly adhere to its policy of obtaining executed contracts for all employed under the program to ensure there is evidence of review and approval of employee contracts prior to payment. Management’s Response – The College will put into place controls that will provide assurance of proper review and approval of contracts for employees payroll disbursements prior to payment. The Dean of Business Affairs will be responsible for this corrective action and anticipates completion of corrective action will be taken before February 29, 2024.
Finding 2023-001
TRIO Cluster ‐ Assistance Listing # 84.042, 84.044, 84.047 U.S. Department of Education Federal Assistance Identification Number – P042A2A200272, P044A210475, P047A220386 Federal Award Year ‐ 2022 Criteria – As specified in 2 CFR section 200.303 the non‐Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non‐ Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Adequate controls must be in place to ensure that expenditures are properly authorized and allowable under program guidelines and are reported in the applicable reporting periods. Condition – The College’s internal control over compliance with allowable costs and activities requires that the terms of employment in the program be documented in an executed contract which details the terms of the employment. This control was not consistently adhered to for all employees. Cause – We noted three instances in a sample of sixteen employees in which an executed employment contract was not obtained to document the terms and approval of the employment under the program. Effect – Failure to follow the College’s policy of obtaining an executed contract for each employee under the program could result in disallowed costs. Questioned Costs – Not determinable. Recommendation – We recommend that the College strictly adhere to its policy of obtaining executed contracts for all employed under the program to ensure there is evidence of review and approval of employee contracts prior to payment. Management’s Response – The College will put into place controls that will provide assurance of proper review and approval of contracts for employees payroll disbursements prior to payment. The Dean of Business Affairs will be responsible for this corrective action and anticipates completion of corrective action will be taken before February 29, 2024.
Finding 2023-001
TRIO Cluster ‐ Assistance Listing # 84.042, 84.044, 84.047 U.S. Department of Education Federal Assistance Identification Number – P042A2A200272, P044A210475, P047A220386 Federal Award Year ‐ 2022 Criteria – As specified in 2 CFR section 200.303 the non‐Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non‐ Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Adequate controls must be in place to ensure that expenditures are properly authorized and allowable under program guidelines and are reported in the applicable reporting periods. Condition – The College’s internal control over compliance with allowable costs and activities requires that the terms of employment in the program be documented in an executed contract which details the terms of the employment. This control was not consistently adhered to for all employees. Cause – We noted three instances in a sample of sixteen employees in which an executed employment contract was not obtained to document the terms and approval of the employment under the program. Effect – Failure to follow the College’s policy of obtaining an executed contract for each employee under the program could result in disallowed costs. Questioned Costs – Not determinable. Recommendation – We recommend that the College strictly adhere to its policy of obtaining executed contracts for all employed under the program to ensure there is evidence of review and approval of employee contracts prior to payment. Management’s Response – The College will put into place controls that will provide assurance of proper review and approval of contracts for employees payroll disbursements prior to payment. The Dean of Business Affairs will be responsible for this corrective action and anticipates completion of corrective action will be taken before February 29, 2024.
Finding 2023-001
TRIO Cluster ‐ Assistance Listing # 84.042, 84.044, 84.047 U.S. Department of Education Federal Assistance Identification Number – P042A2A200272, P044A210475, P047A220386 Federal Award Year ‐ 2022 Criteria – As specified in 2 CFR section 200.303 the non‐Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non‐ Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Adequate controls must be in place to ensure that expenditures are properly authorized and allowable under program guidelines and are reported in the applicable reporting periods. Condition – The College’s internal control over compliance with allowable costs and activities requires that the terms of employment in the program be documented in an executed contract which details the terms of the employment. This control was not consistently adhered to for all employees. Cause – We noted three instances in a sample of sixteen employees in which an executed employment contract was not obtained to document the terms and approval of the employment under the program. Effect – Failure to follow the College’s policy of obtaining an executed contract for each employee under the program could result in disallowed costs. Questioned Costs – Not determinable. Recommendation – We recommend that the College strictly adhere to its policy of obtaining executed contracts for all employed under the program to ensure there is evidence of review and approval of employee contracts prior to payment. Management’s Response – The College will put into place controls that will provide assurance of proper review and approval of contracts for employees payroll disbursements prior to payment. The Dean of Business Affairs will be responsible for this corrective action and anticipates completion of corrective action will be taken before February 29, 2024.
Finding 2023-001
TRIO Cluster ‐ Assistance Listing # 84.042, 84.044, 84.047 U.S. Department of Education Federal Assistance Identification Number – P042A2A200272, P044A210475, P047A220386 Federal Award Year ‐ 2022 Criteria – As specified in 2 CFR section 200.303 the non‐Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non‐ Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Adequate controls must be in place to ensure that expenditures are properly authorized and allowable under program guidelines and are reported in the applicable reporting periods. Condition – The College’s internal control over compliance with allowable costs and activities requires that the terms of employment in the program be documented in an executed contract which details the terms of the employment. This control was not consistently adhered to for all employees. Cause – We noted three instances in a sample of sixteen employees in which an executed employment contract was not obtained to document the terms and approval of the employment under the program. Effect – Failure to follow the College’s policy of obtaining an executed contract for each employee under the program could result in disallowed costs. Questioned Costs – Not determinable. Recommendation – We recommend that the College strictly adhere to its policy of obtaining executed contracts for all employed under the program to ensure there is evidence of review and approval of employee contracts prior to payment. Management’s Response – The College will put into place controls that will provide assurance of proper review and approval of contracts for employees payroll disbursements prior to payment. The Dean of Business Affairs will be responsible for this corrective action and anticipates completion of corrective action will be taken before February 29, 2024.
Finding 2023-001
TRIO Cluster ‐ Assistance Listing # 84.042, 84.044, 84.047 U.S. Department of Education Federal Assistance Identification Number – P042A2A200272, P044A210475, P047A220386 Federal Award Year ‐ 2022 Criteria – As specified in 2 CFR section 200.303 the non‐Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non‐ Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Adequate controls must be in place to ensure that expenditures are properly authorized and allowable under program guidelines and are reported in the applicable reporting periods. Condition – The College’s internal control over compliance with allowable costs and activities requires that the terms of employment in the program be documented in an executed contract which details the terms of the employment. This control was not consistently adhered to for all employees. Cause – We noted three instances in a sample of sixteen employees in which an executed employment contract was not obtained to document the terms and approval of the employment under the program. Effect – Failure to follow the College’s policy of obtaining an executed contract for each employee under the program could result in disallowed costs. Questioned Costs – Not determinable. Recommendation – We recommend that the College strictly adhere to its policy of obtaining executed contracts for all employed under the program to ensure there is evidence of review and approval of employee contracts prior to payment. Management’s Response – The College will put into place controls that will provide assurance of proper review and approval of contracts for employees payroll disbursements prior to payment. The Dean of Business Affairs will be responsible for this corrective action and anticipates completion of corrective action will be taken before February 29, 2024.