Audit 178560

FY End
2022-06-30
Total Expended
$2.74M
Findings
12
Programs
7
Organization: Southwestern Christian College (TX)
Year: 2022 Accepted: 2023-03-30

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
194806 2022-002 Material Weakness - CEH
194807 2022-002 Material Weakness - CEH
194808 2022-002 Material Weakness - CEH
194809 2022-003 Material Weakness - ABHI
194810 2022-003 Material Weakness - ABHI
194811 2022-003 Material Weakness - ABHI
771248 2022-002 Material Weakness - CEH
771249 2022-002 Material Weakness - CEH
771250 2022-002 Material Weakness - CEH
771251 2022-003 Material Weakness - ABHI
771252 2022-003 Material Weakness - ABHI
771253 2022-003 Material Weakness - ABHI

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $1.17M Yes 1
84.063 Federal Pell Grant Program $464,465 Yes 1
84.047 Trio_upward Bound $170,347 - 0
16.710 Public Safety Partnership and Community Policing Grants $109,730 - 0
84.007 Federal Supplemental Educational Opportunity Grants $104,678 Yes 1
84.033 Federal Work-Study Program $76,981 Yes 1
84.031 Higher Education_institutional Aid $10,728 Yes 0

Contacts

Name Title Type
W28CJHKVB1H5 Kenny Fox Auditee
2147321749 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 Expen-ditures of Federal Awards. All programs are subject to audit by the various agencies, and they have the authority to determine liabili-ties, limit or suspend the College's partici-pation 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. 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). Negative amounts reflected in the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Schedule includes all known federal pass-through federal expended by the College for the year ended June 30, 2022. 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: Y Rate Explanation: The auditee used the de minimis cost rate. The College does not have a federally nego-tiated indirect cost rate and has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2022-002 - U.S. Department of Education (USDE), Title IV Student Financial Aid Programs (material weakness}: Information on the federal program: Federal Pell Grants Program, AL No. 84.063, June 30, 2022; Federal Supplemental Educational Opportunity Grant, AL No. 84.007, June 30, 2022; Federal Work-Study Program, AL No. 84.033, June 30, 2022. 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. a) Two (2) out of six (6) Federal Work-Study students' files tested were missing identification cards with a questioned cost of $14,035. b) Two (2) out of 20 students tested had missing official transcripts with a questioned cost of $8,511. c) The College was unable to provide enrollment history in order to adequately test withdrawals and determine whether funds should have been returned to the government. 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 - Management will implement procedures to ensure Federal Work-Study students' files are reviewed and ensure that student files are properly completed and maintained, including inclusion of identification cards, official transcripts, and enrollment histories.
Finding 2022-002 - U.S. Department of Education (USDE), Title IV Student Financial Aid Programs (material weakness}: Information on the federal program: Federal Pell Grants Program, AL No. 84.063, June 30, 2022; Federal Supplemental Educational Opportunity Grant, AL No. 84.007, June 30, 2022; Federal Work-Study Program, AL No. 84.033, June 30, 2022. 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. a) Two (2) out of six (6) Federal Work-Study students' files tested were missing identification cards with a questioned cost of $14,035. b) Two (2) out of 20 students tested had missing official transcripts with a questioned cost of $8,511. c) The College was unable to provide enrollment history in order to adequately test withdrawals and determine whether funds should have been returned to the government. 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 - Management will implement procedures to ensure Federal Work-Study students' files are reviewed and ensure that student files are properly completed and maintained, including inclusion of identification cards, official transcripts, and enrollment histories.
Finding 2022-002 - U.S. Department of Education (USDE), Title IV Student Financial Aid Programs (material weakness}: Information on the federal program: Federal Pell Grants Program, AL No. 84.063, June 30, 2022; Federal Supplemental Educational Opportunity Grant, AL No. 84.007, June 30, 2022; Federal Work-Study Program, AL No. 84.033, June 30, 2022. 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. a) Two (2) out of six (6) Federal Work-Study students' files tested were missing identification cards with a questioned cost of $14,035. b) Two (2) out of 20 students tested had missing official transcripts with a questioned cost of $8,511. c) The College was unable to provide enrollment history in order to adequately test withdrawals and determine whether funds should have been returned to the government. 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 - Management will implement procedures to ensure Federal Work-Study students' files are reviewed and ensure that student files are properly completed and maintained, including inclusion of identification cards, official transcripts, and enrollment histories.
Finding 2022-003 - U.S. Department of Education (USDE), Education Stabilization Fund (ESF) Higher Education Emergency Relief Fund (HEERF) (Material Weakness): Information on the federal program - HEERF Student Aid Portion, AL No. 84.425E, June 30, 2022; HEERF Institutional Portion, AL No. 84.425F, June 30, 2022; HEERF Historically Black Colleges and University's (HBCUs), AL No. 84.425J, June 30, 2022 Criteria - Federal regulations governing HEERF funding. Condition - We noted material weaknesses in the testing of expenditures under the HEERF funding received by the College. Questioned Costs - $73,115. Context- We observed the following during our testing of compliance with HEERF expenditures: Four (4) employees were paid bonuses totaling $21,000 which are unallowable costs under the HEERF program. Two (2) expenditures totaling $43,265 were missing the competitive bidding or explanation of selection for the contractor. One (1) disbursement package totaling $1,300 was not provided. The College erroneously recorded $7,550 in expenditures to HEERF that were for operations and another grant. College proposed an entry to reclass the expenditures; however, these amounts were included in the drawdown requests made during the year. Cause - It appears the above instance resulted in staff not properly following through with its procurement policies and following the guidelines of allowable activities and cost governing the Institutional and HBCU portions for the HEERF funding. Effect - Instances of noncompliance of the above regulations may result in sanctions being imposed or repayment for unallowable costs. Repeat Finding - No. Auditor's Recommendation - We recommend that the College review the HEERF funding requirements and ensure all staff members are familiar with the requirements to avoid incurring a liability to the U.S. Department of Education for non-compliance. Measures should be taken to specifically remedy the above findings. Views of Responsible Officials - Management will implement procedures to properly review HEERF expenditures and ensure proper compliance for exclusion on unallowable costs, presence of proper documentation of expenditures, including inclusion of com- petitive bids. Management will also implement procedures to ensure proper entry and review of the classification of grant expenditures.
Finding 2022-003 - U.S. Department of Education (USDE), Education Stabilization Fund (ESF) Higher Education Emergency Relief Fund (HEERF) (Material Weakness): Information on the federal program - HEERF Student Aid Portion, AL No. 84.425E, June 30, 2022; HEERF Institutional Portion, AL No. 84.425F, June 30, 2022; HEERF Historically Black Colleges and University's (HBCUs), AL No. 84.425J, June 30, 2022 Criteria - Federal regulations governing HEERF funding. Condition - We noted material weaknesses in the testing of expenditures under the HEERF funding received by the College. Questioned Costs - $73,115. Context- We observed the following during our testing of compliance with HEERF expenditures: Four (4) employees were paid bonuses totaling $21,000 which are unallowable costs under the HEERF program. Two (2) expenditures totaling $43,265 were missing the competitive bidding or explanation of selection for the contractor. One (1) disbursement package totaling $1,300 was not provided. The College erroneously recorded $7,550 in expenditures to HEERF that were for operations and another grant. College proposed an entry to reclass the expenditures; however, these amounts were included in the drawdown requests made during the year. Cause - It appears the above instance resulted in staff not properly following through with its procurement policies and following the guidelines of allowable activities and cost governing the Institutional and HBCU portions for the HEERF funding. Effect - Instances of noncompliance of the above regulations may result in sanctions being imposed or repayment for unallowable costs. Repeat Finding - No. Auditor's Recommendation - We recommend that the College review the HEERF funding requirements and ensure all staff members are familiar with the requirements to avoid incurring a liability to the U.S. Department of Education for non-compliance. Measures should be taken to specifically remedy the above findings. Views of Responsible Officials - Management will implement procedures to properly review HEERF expenditures and ensure proper compliance for exclusion on unallowable costs, presence of proper documentation of expenditures, including inclusion of com- petitive bids. Management will also implement procedures to ensure proper entry and review of the classification of grant expenditures.
Finding 2022-003 - U.S. Department of Education (USDE), Education Stabilization Fund (ESF) Higher Education Emergency Relief Fund (HEERF) (Material Weakness): Information on the federal program - HEERF Student Aid Portion, AL No. 84.425E, June 30, 2022; HEERF Institutional Portion, AL No. 84.425F, June 30, 2022; HEERF Historically Black Colleges and University's (HBCUs), AL No. 84.425J, June 30, 2022 Criteria - Federal regulations governing HEERF funding. Condition - We noted material weaknesses in the testing of expenditures under the HEERF funding received by the College. Questioned Costs - $73,115. Context- We observed the following during our testing of compliance with HEERF expenditures: Four (4) employees were paid bonuses totaling $21,000 which are unallowable costs under the HEERF program. Two (2) expenditures totaling $43,265 were missing the competitive bidding or explanation of selection for the contractor. One (1) disbursement package totaling $1,300 was not provided. The College erroneously recorded $7,550 in expenditures to HEERF that were for operations and another grant. College proposed an entry to reclass the expenditures; however, these amounts were included in the drawdown requests made during the year. Cause - It appears the above instance resulted in staff not properly following through with its procurement policies and following the guidelines of allowable activities and cost governing the Institutional and HBCU portions for the HEERF funding. Effect - Instances of noncompliance of the above regulations may result in sanctions being imposed or repayment for unallowable costs. Repeat Finding - No. Auditor's Recommendation - We recommend that the College review the HEERF funding requirements and ensure all staff members are familiar with the requirements to avoid incurring a liability to the U.S. Department of Education for non-compliance. Measures should be taken to specifically remedy the above findings. Views of Responsible Officials - Management will implement procedures to properly review HEERF expenditures and ensure proper compliance for exclusion on unallowable costs, presence of proper documentation of expenditures, including inclusion of com- petitive bids. Management will also implement procedures to ensure proper entry and review of the classification of grant expenditures.
Finding 2022-002 - U.S. Department of Education (USDE), Title IV Student Financial Aid Programs (material weakness}: Information on the federal program: Federal Pell Grants Program, AL No. 84.063, June 30, 2022; Federal Supplemental Educational Opportunity Grant, AL No. 84.007, June 30, 2022; Federal Work-Study Program, AL No. 84.033, June 30, 2022. 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. a) Two (2) out of six (6) Federal Work-Study students' files tested were missing identification cards with a questioned cost of $14,035. b) Two (2) out of 20 students tested had missing official transcripts with a questioned cost of $8,511. c) The College was unable to provide enrollment history in order to adequately test withdrawals and determine whether funds should have been returned to the government. 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 - Management will implement procedures to ensure Federal Work-Study students' files are reviewed and ensure that student files are properly completed and maintained, including inclusion of identification cards, official transcripts, and enrollment histories.
Finding 2022-002 - U.S. Department of Education (USDE), Title IV Student Financial Aid Programs (material weakness}: Information on the federal program: Federal Pell Grants Program, AL No. 84.063, June 30, 2022; Federal Supplemental Educational Opportunity Grant, AL No. 84.007, June 30, 2022; Federal Work-Study Program, AL No. 84.033, June 30, 2022. 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. a) Two (2) out of six (6) Federal Work-Study students' files tested were missing identification cards with a questioned cost of $14,035. b) Two (2) out of 20 students tested had missing official transcripts with a questioned cost of $8,511. c) The College was unable to provide enrollment history in order to adequately test withdrawals and determine whether funds should have been returned to the government. 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 - Management will implement procedures to ensure Federal Work-Study students' files are reviewed and ensure that student files are properly completed and maintained, including inclusion of identification cards, official transcripts, and enrollment histories.
Finding 2022-002 - U.S. Department of Education (USDE), Title IV Student Financial Aid Programs (material weakness}: Information on the federal program: Federal Pell Grants Program, AL No. 84.063, June 30, 2022; Federal Supplemental Educational Opportunity Grant, AL No. 84.007, June 30, 2022; Federal Work-Study Program, AL No. 84.033, June 30, 2022. 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. a) Two (2) out of six (6) Federal Work-Study students' files tested were missing identification cards with a questioned cost of $14,035. b) Two (2) out of 20 students tested had missing official transcripts with a questioned cost of $8,511. c) The College was unable to provide enrollment history in order to adequately test withdrawals and determine whether funds should have been returned to the government. 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 - Management will implement procedures to ensure Federal Work-Study students' files are reviewed and ensure that student files are properly completed and maintained, including inclusion of identification cards, official transcripts, and enrollment histories.
Finding 2022-003 - U.S. Department of Education (USDE), Education Stabilization Fund (ESF) Higher Education Emergency Relief Fund (HEERF) (Material Weakness): Information on the federal program - HEERF Student Aid Portion, AL No. 84.425E, June 30, 2022; HEERF Institutional Portion, AL No. 84.425F, June 30, 2022; HEERF Historically Black Colleges and University's (HBCUs), AL No. 84.425J, June 30, 2022 Criteria - Federal regulations governing HEERF funding. Condition - We noted material weaknesses in the testing of expenditures under the HEERF funding received by the College. Questioned Costs - $73,115. Context- We observed the following during our testing of compliance with HEERF expenditures: Four (4) employees were paid bonuses totaling $21,000 which are unallowable costs under the HEERF program. Two (2) expenditures totaling $43,265 were missing the competitive bidding or explanation of selection for the contractor. One (1) disbursement package totaling $1,300 was not provided. The College erroneously recorded $7,550 in expenditures to HEERF that were for operations and another grant. College proposed an entry to reclass the expenditures; however, these amounts were included in the drawdown requests made during the year. Cause - It appears the above instance resulted in staff not properly following through with its procurement policies and following the guidelines of allowable activities and cost governing the Institutional and HBCU portions for the HEERF funding. Effect - Instances of noncompliance of the above regulations may result in sanctions being imposed or repayment for unallowable costs. Repeat Finding - No. Auditor's Recommendation - We recommend that the College review the HEERF funding requirements and ensure all staff members are familiar with the requirements to avoid incurring a liability to the U.S. Department of Education for non-compliance. Measures should be taken to specifically remedy the above findings. Views of Responsible Officials - Management will implement procedures to properly review HEERF expenditures and ensure proper compliance for exclusion on unallowable costs, presence of proper documentation of expenditures, including inclusion of com- petitive bids. Management will also implement procedures to ensure proper entry and review of the classification of grant expenditures.
Finding 2022-003 - U.S. Department of Education (USDE), Education Stabilization Fund (ESF) Higher Education Emergency Relief Fund (HEERF) (Material Weakness): Information on the federal program - HEERF Student Aid Portion, AL No. 84.425E, June 30, 2022; HEERF Institutional Portion, AL No. 84.425F, June 30, 2022; HEERF Historically Black Colleges and University's (HBCUs), AL No. 84.425J, June 30, 2022 Criteria - Federal regulations governing HEERF funding. Condition - We noted material weaknesses in the testing of expenditures under the HEERF funding received by the College. Questioned Costs - $73,115. Context- We observed the following during our testing of compliance with HEERF expenditures: Four (4) employees were paid bonuses totaling $21,000 which are unallowable costs under the HEERF program. Two (2) expenditures totaling $43,265 were missing the competitive bidding or explanation of selection for the contractor. One (1) disbursement package totaling $1,300 was not provided. The College erroneously recorded $7,550 in expenditures to HEERF that were for operations and another grant. College proposed an entry to reclass the expenditures; however, these amounts were included in the drawdown requests made during the year. Cause - It appears the above instance resulted in staff not properly following through with its procurement policies and following the guidelines of allowable activities and cost governing the Institutional and HBCU portions for the HEERF funding. Effect - Instances of noncompliance of the above regulations may result in sanctions being imposed or repayment for unallowable costs. Repeat Finding - No. Auditor's Recommendation - We recommend that the College review the HEERF funding requirements and ensure all staff members are familiar with the requirements to avoid incurring a liability to the U.S. Department of Education for non-compliance. Measures should be taken to specifically remedy the above findings. Views of Responsible Officials - Management will implement procedures to properly review HEERF expenditures and ensure proper compliance for exclusion on unallowable costs, presence of proper documentation of expenditures, including inclusion of com- petitive bids. Management will also implement procedures to ensure proper entry and review of the classification of grant expenditures.
Finding 2022-003 - U.S. Department of Education (USDE), Education Stabilization Fund (ESF) Higher Education Emergency Relief Fund (HEERF) (Material Weakness): Information on the federal program - HEERF Student Aid Portion, AL No. 84.425E, June 30, 2022; HEERF Institutional Portion, AL No. 84.425F, June 30, 2022; HEERF Historically Black Colleges and University's (HBCUs), AL No. 84.425J, June 30, 2022 Criteria - Federal regulations governing HEERF funding. Condition - We noted material weaknesses in the testing of expenditures under the HEERF funding received by the College. Questioned Costs - $73,115. Context- We observed the following during our testing of compliance with HEERF expenditures: Four (4) employees were paid bonuses totaling $21,000 which are unallowable costs under the HEERF program. Two (2) expenditures totaling $43,265 were missing the competitive bidding or explanation of selection for the contractor. One (1) disbursement package totaling $1,300 was not provided. The College erroneously recorded $7,550 in expenditures to HEERF that were for operations and another grant. College proposed an entry to reclass the expenditures; however, these amounts were included in the drawdown requests made during the year. Cause - It appears the above instance resulted in staff not properly following through with its procurement policies and following the guidelines of allowable activities and cost governing the Institutional and HBCU portions for the HEERF funding. Effect - Instances of noncompliance of the above regulations may result in sanctions being imposed or repayment for unallowable costs. Repeat Finding - No. Auditor's Recommendation - We recommend that the College review the HEERF funding requirements and ensure all staff members are familiar with the requirements to avoid incurring a liability to the U.S. Department of Education for non-compliance. Measures should be taken to specifically remedy the above findings. Views of Responsible Officials - Management will implement procedures to properly review HEERF expenditures and ensure proper compliance for exclusion on unallowable costs, presence of proper documentation of expenditures, including inclusion of com- petitive bids. Management will also implement procedures to ensure proper entry and review of the classification of grant expenditures.