FAC Explorer

Audit 15661

FY End
2023-06-30
Total Expended
$12.77M
Findings
16
Programs
11
Organization: Texas College (TX)
Year: 2023 Accepted: 2024-02-05
Auditor: Murphy and Company PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
11834 2023-001 Significant Deficiency - L
11835 2023-001 Significant Deficiency - L
11836 2023-001 Significant Deficiency - L
11837 2023-001 Significant Deficiency - L
11838 2023-003 Significant Deficiency - L
11839 2023-003 Significant Deficiency - L
11840 2023-003 Significant Deficiency - L
11841 2023-002 Significant Deficiency - BL
588276 2023-001 Significant Deficiency - L
588277 2023-001 Significant Deficiency - L
588278 2023-001 Significant Deficiency - L
588279 2023-001 Significant Deficiency - L
588280 2023-003 Significant Deficiency - L
588281 2023-003 Significant Deficiency - L
588282 2023-003 Significant Deficiency - L
588283 2023-002 Significant Deficiency - BL

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $2.71M Yes 1
84.425 Education Stabilization Fund $2.63M Yes 1
84.063 Federal Pell Grant Program $2.61M Yes 1
84.031 Higher Education_institutional Aid $600,777 Yes 0
15.904 Historic Preservation Fund Grants-in-Aid $450,000 Yes 1
84.007 Federal Supplemental Educational Opportunity Grants $436,550 Yes 1
84.033 Federal Work-Study Program $130,594 Yes 1
47.074 Biological Sciences $32,619 - 0
11.028 Connecting Minority Communities Pilot Program $28,032 - 0
47.070 Computer and Information Science and Engineering $25,324 - 0
47.076 Education and Human Resources $15,583 - 0

Contacts

Name Title Type
H9QUXLM7UBJ9 Millicent L. Rickenbacker Auditee
9035938311 Donald K. Murphy Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The College participates in several programs sponsored by various government agencies as listed in the accompanying Schedule of Expenditures of Federal Awards. All programs are subject to audit by the various agencies and they have the authority to determine liabilities, limit or suspend the College's participation in the federal programs. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) is presented on an accrual basis of accounting consistent with the basis of accounting used by the College in the preparation of its financial statements with the exception of government loans and guarantees. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The Schedule includes all known federal and pass-through federal funds expended by the College for the year ended June 30, 2023. All grants/awards should be reviewed in detail to determine if they contain any special provisions (for example, some awards require they be treated as major programs, even though they might not otherwise qualify as such). If the grant/award contains federal funding, the organization will obtain the following: name of the federal agency, award period, Catalog of Federal Domestic Assistance (CFDA) number. The grant/award should also be researched to determine if it is part of a cluster (including research and development) or a federal loan program. If the grant/award is passed through to/from a sub-recipient, the organization will obtain the pass-through entity identifying number. Prior to the grant/award becoming operational, the organization should review the OMB Compliance Supplements Matrix of Compliance Requirements. For every federally funded grant/award, personnel should be assigned for each area of compliance. Expenditures must be tracked for each individual grant/award. The accounting system must be set up to capture this information, and individuals must be established to assign expenses to each grant/award. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The College has received a federally negotiated indirect cost rate and therefore has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Finding 2023-001 – U.S. Department of Education (USDE), Title IV Student Financial Aid Programs (Significant Deficiency): Information on the federal program: Federal Direct Student Loans, FAL No. 84.268, June 30, 2023; Federal Pell Grants Program, FAL No. 84.063, June 30, 2023; Federal Supplemental Educational Opportunity Grant, FAL No. 84.007, June 30, 2023; Federal Work-Study Program, FAL No. 84.033, June 30, 2023 Criteria – Federal regulations governing Title IV programs. Condition – Non-compliances were noted, as more fully described in the context below. Questioned Costs – As provided below. Context – We observed the following conditions in connection with our testing of the various U.S. Department of Education, Title IV, Student Financial Assistance Programs. ■ The College had differences in the following programs which were not reconciled to the general ledger: Federal Pell Grant and Federal Direct Student Loans. Cause – Oversight by responsible employees. Effect – The College’s participation in the Title IV programs could be subject to USDE sanctions as applicable. Repeat Finding – No. Auditor’s Recommendation – The College should implement corrective actions to ensure that the above findings are resolved and will not recur in future periods. Views of Responsible Officials – The College accepts the auditor’s recommendations and will establish procedures going forth to ensure that Financial Aid and Business Office staff identify and correct any differences between the programs and the general ledger.
Finding 2023-001
Finding 2023-001 – U.S. Department of Education (USDE), Title IV Student Financial Aid Programs (Significant Deficiency): Information on the federal program: Federal Direct Student Loans, FAL No. 84.268, June 30, 2023; Federal Pell Grants Program, FAL No. 84.063, June 30, 2023; Federal Supplemental Educational Opportunity Grant, FAL No. 84.007, June 30, 2023; Federal Work-Study Program, FAL No. 84.033, June 30, 2023 Criteria – Federal regulations governing Title IV programs. Condition – Non-compliances were noted, as more fully described in the context below. Questioned Costs – As provided below. Context – We observed the following conditions in connection with our testing of the various U.S. Department of Education, Title IV, Student Financial Assistance Programs. ■ The College had differences in the following programs which were not reconciled to the general ledger: Federal Pell Grant and Federal Direct Student Loans. Cause – Oversight by responsible employees. Effect – The College’s participation in the Title IV programs could be subject to USDE sanctions as applicable. Repeat Finding – No. Auditor’s Recommendation – The College should implement corrective actions to ensure that the above findings are resolved and will not recur in future periods. Views of Responsible Officials – The College accepts the auditor’s recommendations and will establish procedures going forth to ensure that Financial Aid and Business Office staff identify and correct any differences between the programs and the general ledger.
Finding 2023-001
Finding 2023-001 – U.S. Department of Education (USDE), Title IV Student Financial Aid Programs (Significant Deficiency): Information on the federal program: Federal Direct Student Loans, FAL No. 84.268, June 30, 2023; Federal Pell Grants Program, FAL No. 84.063, June 30, 2023; Federal Supplemental Educational Opportunity Grant, FAL No. 84.007, June 30, 2023; Federal Work-Study Program, FAL No. 84.033, June 30, 2023 Criteria – Federal regulations governing Title IV programs. Condition – Non-compliances were noted, as more fully described in the context below. Questioned Costs – As provided below. Context – We observed the following conditions in connection with our testing of the various U.S. Department of Education, Title IV, Student Financial Assistance Programs. ■ The College had differences in the following programs which were not reconciled to the general ledger: Federal Pell Grant and Federal Direct Student Loans. Cause – Oversight by responsible employees. Effect – The College’s participation in the Title IV programs could be subject to USDE sanctions as applicable. Repeat Finding – No. Auditor’s Recommendation – The College should implement corrective actions to ensure that the above findings are resolved and will not recur in future periods. Views of Responsible Officials – The College accepts the auditor’s recommendations and will establish procedures going forth to ensure that Financial Aid and Business Office staff identify and correct any differences between the programs and the general ledger.
Finding 2023-001
Finding 2023-001 – U.S. Department of Education (USDE), Title IV Student Financial Aid Programs (Significant Deficiency): Information on the federal program: Federal Direct Student Loans, FAL No. 84.268, June 30, 2023; Federal Pell Grants Program, FAL No. 84.063, June 30, 2023; Federal Supplemental Educational Opportunity Grant, FAL No. 84.007, June 30, 2023; Federal Work-Study Program, FAL No. 84.033, June 30, 2023 Criteria – Federal regulations governing Title IV programs. Condition – Non-compliances were noted, as more fully described in the context below. Questioned Costs – As provided below. Context – We observed the following conditions in connection with our testing of the various U.S. Department of Education, Title IV, Student Financial Assistance Programs. ■ The College had differences in the following programs which were not reconciled to the general ledger: Federal Pell Grant and Federal Direct Student Loans. Cause – Oversight by responsible employees. Effect – The College’s participation in the Title IV programs could be subject to USDE sanctions as applicable. Repeat Finding – No. Auditor’s Recommendation – The College should implement corrective actions to ensure that the above findings are resolved and will not recur in future periods. Views of Responsible Officials – The College accepts the auditor’s recommendations and will establish procedures going forth to ensure that Financial Aid and Business Office staff identify and correct any differences between the programs and the general ledger.
Finding 2023-003
Finding 2023-003 – CARES Act Programs (Significant Deficiency): Information on the federal program: Student Aid Portion 18004(a)(1), FAL No. 84.425E, June 30, 2023; Institution Portion 18004(a)(1), FAL No. 84.425F, June 30, 2023; and Historical Black Colleges and Universities 18004(a)(2), FAL No. 84.425J, June 30, 2023 Criteria – Federal regulations governing Higher Education Emergency Relief Fund (HEERF). Condition – Non-compliance noted regarding untimely filing of quarterly and annual report. Questioned Costs – As provided below. Context – We noted the following in connection with our testing of compliance: ■ The quarterly report that was due on April 10, 2023 was not filed until April 21, 2023 indicating it was filed untimely. Cause – Oversight by responsible employees. Effect – Reporting deadlines were missed. Repeat Finding – No. Auditor’s Recommendation – All performance and financial reports should be filed timely. Views of Responsible Officials – The College accepts the auditors’ recommendation. The College will more closely adhere to reporting schedules.
Finding 2023-003
Finding 2023-003 – CARES Act Programs (Significant Deficiency): Information on the federal program: Student Aid Portion 18004(a)(1), FAL No. 84.425E, June 30, 2023; Institution Portion 18004(a)(1), FAL No. 84.425F, June 30, 2023; and Historical Black Colleges and Universities 18004(a)(2), FAL No. 84.425J, June 30, 2023 Criteria – Federal regulations governing Higher Education Emergency Relief Fund (HEERF). Condition – Non-compliance noted regarding untimely filing of quarterly and annual report. Questioned Costs – As provided below. Context – We noted the following in connection with our testing of compliance: ■ The quarterly report that was due on April 10, 2023 was not filed until April 21, 2023 indicating it was filed untimely. Cause – Oversight by responsible employees. Effect – Reporting deadlines were missed. Repeat Finding – No. Auditor’s Recommendation – All performance and financial reports should be filed timely. Views of Responsible Officials – The College accepts the auditors’ recommendation. The College will more closely adhere to reporting schedules.
Finding 2023-003
Finding 2023-003 – CARES Act Programs (Significant Deficiency): Information on the federal program: Student Aid Portion 18004(a)(1), FAL No. 84.425E, June 30, 2023; Institution Portion 18004(a)(1), FAL No. 84.425F, June 30, 2023; and Historical Black Colleges and Universities 18004(a)(2), FAL No. 84.425J, June 30, 2023 Criteria – Federal regulations governing Higher Education Emergency Relief Fund (HEERF). Condition – Non-compliance noted regarding untimely filing of quarterly and annual report. Questioned Costs – As provided below. Context – We noted the following in connection with our testing of compliance: ■ The quarterly report that was due on April 10, 2023 was not filed until April 21, 2023 indicating it was filed untimely. Cause – Oversight by responsible employees. Effect – Reporting deadlines were missed. Repeat Finding – No. Auditor’s Recommendation – All performance and financial reports should be filed timely. Views of Responsible Officials – The College accepts the auditors’ recommendation. The College will more closely adhere to reporting schedules.
Finding 2023-002
Finding 2023-002 – National Park Service (Significant Deficiency): Information on the federal program: Rehabilitation of D.R. Glass Library, FAL No. 15.904, June 30, 2023 Criteria – Federal regulations governing historic preservation. Condition – Non-compliance noted regarding verification of all expenses under the grant and untimely filing of interim report. Questioned Costs – As provided below. Context – We noted the following in connection with our testing of compliance: ■ Concerning the D. R. Glass Library renovation project, the architect certified roughly two-thirds of the $450,000 spent under the grant. The College paid out approximately $131,000 to the construction company without formal certification of incurred expenses. The construction company used AIA Document G702 for payment requests, which includes a certification section. Only three of 11 payment requests had appropriate certifications by the architect or the College before payment was made. ■ The interim report that was due on September 30, 2022 was dated October 31, 2022 and not filed until November 4, 2022 indicating it was filed untimely. Cause – Oversight by responsible employees. Effect – Unallowable costs could have been incurred by the construction company. Reporting deadline was missed. Repeat Finding – No. Auditor’s Recommendation – To ensure compliance and the appropriateness of expenses, all payment requests should be certified either by the architect or the College's designated, qualified person overseeing the project. All performance and financial reports should be filed timely. Views of Responsible Officials – The College accepts the auditors’ recommendations. The College is comfortable that no unallowable cost payments were made in connection with this project; however, it understands that it needs to establish stricter guidelines when it comes to certifications of contractual payments. The College will more closely adhere to program reporting schedules.
Finding 2023-001
Finding 2023-001 – U.S. Department of Education (USDE), Title IV Student Financial Aid Programs (Significant Deficiency): Information on the federal program: Federal Direct Student Loans, FAL No. 84.268, June 30, 2023; Federal Pell Grants Program, FAL No. 84.063, June 30, 2023; Federal Supplemental Educational Opportunity Grant, FAL No. 84.007, June 30, 2023; Federal Work-Study Program, FAL No. 84.033, June 30, 2023 Criteria – Federal regulations governing Title IV programs. Condition – Non-compliances were noted, as more fully described in the context below. Questioned Costs – As provided below. Context – We observed the following conditions in connection with our testing of the various U.S. Department of Education, Title IV, Student Financial Assistance Programs. ■ The College had differences in the following programs which were not reconciled to the general ledger: Federal Pell Grant and Federal Direct Student Loans. Cause – Oversight by responsible employees. Effect – The College’s participation in the Title IV programs could be subject to USDE sanctions as applicable. Repeat Finding – No. Auditor’s Recommendation – The College should implement corrective actions to ensure that the above findings are resolved and will not recur in future periods. Views of Responsible Officials – The College accepts the auditor’s recommendations and will establish procedures going forth to ensure that Financial Aid and Business Office staff identify and correct any differences between the programs and the general ledger.
Finding 2023-001
Finding 2023-001 – U.S. Department of Education (USDE), Title IV Student Financial Aid Programs (Significant Deficiency): Information on the federal program: Federal Direct Student Loans, FAL No. 84.268, June 30, 2023; Federal Pell Grants Program, FAL No. 84.063, June 30, 2023; Federal Supplemental Educational Opportunity Grant, FAL No. 84.007, June 30, 2023; Federal Work-Study Program, FAL No. 84.033, June 30, 2023 Criteria – Federal regulations governing Title IV programs. Condition – Non-compliances were noted, as more fully described in the context below. Questioned Costs – As provided below. Context – We observed the following conditions in connection with our testing of the various U.S. Department of Education, Title IV, Student Financial Assistance Programs. ■ The College had differences in the following programs which were not reconciled to the general ledger: Federal Pell Grant and Federal Direct Student Loans. Cause – Oversight by responsible employees. Effect – The College’s participation in the Title IV programs could be subject to USDE sanctions as applicable. Repeat Finding – No. Auditor’s Recommendation – The College should implement corrective actions to ensure that the above findings are resolved and will not recur in future periods. Views of Responsible Officials – The College accepts the auditor’s recommendations and will establish procedures going forth to ensure that Financial Aid and Business Office staff identify and correct any differences between the programs and the general ledger.
Finding 2023-001
Finding 2023-001 – U.S. Department of Education (USDE), Title IV Student Financial Aid Programs (Significant Deficiency): Information on the federal program: Federal Direct Student Loans, FAL No. 84.268, June 30, 2023; Federal Pell Grants Program, FAL No. 84.063, June 30, 2023; Federal Supplemental Educational Opportunity Grant, FAL No. 84.007, June 30, 2023; Federal Work-Study Program, FAL No. 84.033, June 30, 2023 Criteria – Federal regulations governing Title IV programs. Condition – Non-compliances were noted, as more fully described in the context below. Questioned Costs – As provided below. Context – We observed the following conditions in connection with our testing of the various U.S. Department of Education, Title IV, Student Financial Assistance Programs. ■ The College had differences in the following programs which were not reconciled to the general ledger: Federal Pell Grant and Federal Direct Student Loans. Cause – Oversight by responsible employees. Effect – The College’s participation in the Title IV programs could be subject to USDE sanctions as applicable. Repeat Finding – No. Auditor’s Recommendation – The College should implement corrective actions to ensure that the above findings are resolved and will not recur in future periods. Views of Responsible Officials – The College accepts the auditor’s recommendations and will establish procedures going forth to ensure that Financial Aid and Business Office staff identify and correct any differences between the programs and the general ledger.
Finding 2023-001
Finding 2023-001 – U.S. Department of Education (USDE), Title IV Student Financial Aid Programs (Significant Deficiency): Information on the federal program: Federal Direct Student Loans, FAL No. 84.268, June 30, 2023; Federal Pell Grants Program, FAL No. 84.063, June 30, 2023; Federal Supplemental Educational Opportunity Grant, FAL No. 84.007, June 30, 2023; Federal Work-Study Program, FAL No. 84.033, June 30, 2023 Criteria – Federal regulations governing Title IV programs. Condition – Non-compliances were noted, as more fully described in the context below. Questioned Costs – As provided below. Context – We observed the following conditions in connection with our testing of the various U.S. Department of Education, Title IV, Student Financial Assistance Programs. ■ The College had differences in the following programs which were not reconciled to the general ledger: Federal Pell Grant and Federal Direct Student Loans. Cause – Oversight by responsible employees. Effect – The College’s participation in the Title IV programs could be subject to USDE sanctions as applicable. Repeat Finding – No. Auditor’s Recommendation – The College should implement corrective actions to ensure that the above findings are resolved and will not recur in future periods. Views of Responsible Officials – The College accepts the auditor’s recommendations and will establish procedures going forth to ensure that Financial Aid and Business Office staff identify and correct any differences between the programs and the general ledger.
Finding 2023-003
Finding 2023-003 – CARES Act Programs (Significant Deficiency): Information on the federal program: Student Aid Portion 18004(a)(1), FAL No. 84.425E, June 30, 2023; Institution Portion 18004(a)(1), FAL No. 84.425F, June 30, 2023; and Historical Black Colleges and Universities 18004(a)(2), FAL No. 84.425J, June 30, 2023 Criteria – Federal regulations governing Higher Education Emergency Relief Fund (HEERF). Condition – Non-compliance noted regarding untimely filing of quarterly and annual report. Questioned Costs – As provided below. Context – We noted the following in connection with our testing of compliance: ■ The quarterly report that was due on April 10, 2023 was not filed until April 21, 2023 indicating it was filed untimely. Cause – Oversight by responsible employees. Effect – Reporting deadlines were missed. Repeat Finding – No. Auditor’s Recommendation – All performance and financial reports should be filed timely. Views of Responsible Officials – The College accepts the auditors’ recommendation. The College will more closely adhere to reporting schedules.
Finding 2023-003
Finding 2023-003 – CARES Act Programs (Significant Deficiency): Information on the federal program: Student Aid Portion 18004(a)(1), FAL No. 84.425E, June 30, 2023; Institution Portion 18004(a)(1), FAL No. 84.425F, June 30, 2023; and Historical Black Colleges and Universities 18004(a)(2), FAL No. 84.425J, June 30, 2023 Criteria – Federal regulations governing Higher Education Emergency Relief Fund (HEERF). Condition – Non-compliance noted regarding untimely filing of quarterly and annual report. Questioned Costs – As provided below. Context – We noted the following in connection with our testing of compliance: ■ The quarterly report that was due on April 10, 2023 was not filed until April 21, 2023 indicating it was filed untimely. Cause – Oversight by responsible employees. Effect – Reporting deadlines were missed. Repeat Finding – No. Auditor’s Recommendation – All performance and financial reports should be filed timely. Views of Responsible Officials – The College accepts the auditors’ recommendation. The College will more closely adhere to reporting schedules.
Finding 2023-003
Finding 2023-003 – CARES Act Programs (Significant Deficiency): Information on the federal program: Student Aid Portion 18004(a)(1), FAL No. 84.425E, June 30, 2023; Institution Portion 18004(a)(1), FAL No. 84.425F, June 30, 2023; and Historical Black Colleges and Universities 18004(a)(2), FAL No. 84.425J, June 30, 2023 Criteria – Federal regulations governing Higher Education Emergency Relief Fund (HEERF). Condition – Non-compliance noted regarding untimely filing of quarterly and annual report. Questioned Costs – As provided below. Context – We noted the following in connection with our testing of compliance: ■ The quarterly report that was due on April 10, 2023 was not filed until April 21, 2023 indicating it was filed untimely. Cause – Oversight by responsible employees. Effect – Reporting deadlines were missed. Repeat Finding – No. Auditor’s Recommendation – All performance and financial reports should be filed timely. Views of Responsible Officials – The College accepts the auditors’ recommendation. The College will more closely adhere to reporting schedules.
Finding 2023-002
Finding 2023-002 – National Park Service (Significant Deficiency): Information on the federal program: Rehabilitation of D.R. Glass Library, FAL No. 15.904, June 30, 2023 Criteria – Federal regulations governing historic preservation. Condition – Non-compliance noted regarding verification of all expenses under the grant and untimely filing of interim report. Questioned Costs – As provided below. Context – We noted the following in connection with our testing of compliance: ■ Concerning the D. R. Glass Library renovation project, the architect certified roughly two-thirds of the $450,000 spent under the grant. The College paid out approximately $131,000 to the construction company without formal certification of incurred expenses. The construction company used AIA Document G702 for payment requests, which includes a certification section. Only three of 11 payment requests had appropriate certifications by the architect or the College before payment was made. ■ The interim report that was due on September 30, 2022 was dated October 31, 2022 and not filed until November 4, 2022 indicating it was filed untimely. Cause – Oversight by responsible employees. Effect – Unallowable costs could have been incurred by the construction company. Reporting deadline was missed. Repeat Finding – No. Auditor’s Recommendation – To ensure compliance and the appropriateness of expenses, all payment requests should be certified either by the architect or the College's designated, qualified person overseeing the project. All performance and financial reports should be filed timely. Views of Responsible Officials – The College accepts the auditors’ recommendations. The College is comfortable that no unallowable cost payments were made in connection with this project; however, it understands that it needs to establish stricter guidelines when it comes to certifications of contractual payments. The College will more closely adhere to program reporting schedules.