FAC Explorer

Audit 18559

FY End
2022-06-30
Total Expended
$3.66M
Findings
4
Programs
8
Organization: Metro Technology Center (OK)
Year: 2022 Accepted: 2023-03-30
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
22986 2022-005 Material Weakness - L
22987 2022-006 Material Weakness - B
599428 2022-005 Material Weakness - L
599429 2022-006 Material Weakness - B

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $1.50M Yes 1
84.268 Federal Direct Student Loans $508,242 - 0
93.558 Temporary Assistance for Needy Families $199,100 Yes 1
84.048 Career and Technical Education -- Basic Grants to States $169,143 - 0
12.002 Procurement Technical Assistance for Business Firms $50,770 - 0
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $45,837 - 0
84.243 Tech Centers That Work $13,165 - 0
84.063 Federal Pell Grant Program $1,080 - 0

Contacts

Name Title Type
HS9JDWEFEMW8 Ronald Grant Auditee
4055954427 Vanessa Dutton Auditor
No contacts on file

Notes to SEFA

Title: Note A : Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on using the cash basis of accounting. Some amounts presented in the schedule may differ from amounts presented in or used in the preparation of the basic financial statements. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activityof Metro Technology Centers School District (the District) under programs of the federal government for theyear ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements ofTitle 2 U.S. Code of Federal Regulations Part 220, Uniform Administrative Requirements, Cost Principles andAudit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selectedportion of the operations of Metro Technology Center, District No. 22 it is not intended to and does not presentfinancial position or changes in financial position.
Title: Note D : Subrecipients Accounting Policies: Expenditures reported on the Schedule are reported on using the cash basis of accounting. Some amounts presented in the schedule may differ from amounts presented in or used in the preparation of the basic financial statements. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The District did not have any awards that have been passed through to subrecipients.
Title: Note E : Lost Revenue Accounting Policies: Expenditures reported on the Schedule are reported on using the cash basis of accounting. Some amounts presented in the schedule may differ from amounts presented in or used in the preparation of the basic financial statements. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Reimbursement for lost revenue is allowable for the Institutional Portion program for HEERF grant funds.Generally, lost revenue refers to those revenues an institution otherwise expected but were reduced oreliminated as a result of the novel coronavirus 2019 (COVID19) pandemic. The Districts Higher EducationEmergency Relief Fund (84.425F) has approximately $757,000 in estimated lost revenues recorded asexpenditures of federal awards for the year ended June 30, 2022.

Finding Details

Finding 2022-005
2022-005 U.S. Department of Education Higher Education Emergency Relief Fund (HEERF) (FAL #84.425E, 84.425F) Reporting Material Weakness in Internal Controls over Compliance and Material Noncompliance Criteria: Per the Compliance Supplement for HEERF: ED [the Department of Education] will be collecting an annual report for HEERF grantees in April 2022. ED will share more information regarding this annual report, which will require institutions to report on their uses of HEERF I CARES Act funds, HEERF II CRRSAA funds, and HEERF III ARP funds in advance of the ARP annual reporting deadline. Note: Auditors are reminded that they must use the framework outlined in Part 1 of this Compliance Supplement to perform reasonable procedures to ensure that the compliance requirements identified as subject to audit are current and to determine whether there are any additional provisions of federal awards relevant to the compliance requirements subject to the audit that should be covered Condition: The District could not provide the annual report to the audit team in order for the audit team to perform the reasonable procedures. Cause: The reporting was performed by personnel that are no longer with the District and access to the required reporting could not be obtained. Context/Sampling: No annual reports could be obtained from the District. Questioned Costs: None as this relates to reporting. Effect: The Department is at risk for noncompliance with reporting requirements. Repeat Finding from prior year: No Recommendation: Certain controls should be put in place to ensure that annual reports are retained by the District. Furthermore, the District should ensure that proper personnel have access to all required federal reporting tools as required by the Federal standards. View of Responsible Officials: Management agrees with the finding.
Finding 2022-006
2022-006 U.S. Department of Health and Human Services Temporary Assistance for Needy Families (TANF) Allowable Costs ? Payroll Time and Effort Material Weakness in Internal Controls over Compliance Criteria: Per Uniform Guidance (2 CFR Section 200.430(i)) as it relates to federal grants: Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity; (iii) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities (for IHE, this per the IHE's definition of IBS); (iv) Encompass federally-assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity's written policy; (v) Comply with the established accounting policies and practices of the non- Federal entity; and (vi) [Reserved](vii) Support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: The District did not have proper timing keeping for employees that worked on TANF. Thus, evidence of actual time worked on programs was not accurately reflected in the federal grant requests. Cause: Actual personnel time that worked on federal programs are not reconciled to the amounts charged to the federal programs on a regular basis. Context/Sampling: Time reporting controls were not in effect at the District. All employees funded under TANF in FY22 were selected and one employee?s time and effort was not provided. Questioned Costs: None reported. Effect: The District is at risk for noncompliance with allowable costs requirements. Repeat Finding from prior year: No Recommendation: Certain controls should be put in place to ensure that reconciliation and certification of actual time charged to federal programs are consistent with the grant reimbursement for those employees? time. Such reconciliations can be done quarterly, bi-annually, or annually. View of Responsible Officials: Management agrees with the finding.
Finding 2022-005
2022-005 U.S. Department of Education Higher Education Emergency Relief Fund (HEERF) (FAL #84.425E, 84.425F) Reporting Material Weakness in Internal Controls over Compliance and Material Noncompliance Criteria: Per the Compliance Supplement for HEERF: ED [the Department of Education] will be collecting an annual report for HEERF grantees in April 2022. ED will share more information regarding this annual report, which will require institutions to report on their uses of HEERF I CARES Act funds, HEERF II CRRSAA funds, and HEERF III ARP funds in advance of the ARP annual reporting deadline. Note: Auditors are reminded that they must use the framework outlined in Part 1 of this Compliance Supplement to perform reasonable procedures to ensure that the compliance requirements identified as subject to audit are current and to determine whether there are any additional provisions of federal awards relevant to the compliance requirements subject to the audit that should be covered Condition: The District could not provide the annual report to the audit team in order for the audit team to perform the reasonable procedures. Cause: The reporting was performed by personnel that are no longer with the District and access to the required reporting could not be obtained. Context/Sampling: No annual reports could be obtained from the District. Questioned Costs: None as this relates to reporting. Effect: The Department is at risk for noncompliance with reporting requirements. Repeat Finding from prior year: No Recommendation: Certain controls should be put in place to ensure that annual reports are retained by the District. Furthermore, the District should ensure that proper personnel have access to all required federal reporting tools as required by the Federal standards. View of Responsible Officials: Management agrees with the finding.
Finding 2022-006
2022-006 U.S. Department of Health and Human Services Temporary Assistance for Needy Families (TANF) Allowable Costs ? Payroll Time and Effort Material Weakness in Internal Controls over Compliance Criteria: Per Uniform Guidance (2 CFR Section 200.430(i)) as it relates to federal grants: Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity; (iii) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities (for IHE, this per the IHE's definition of IBS); (iv) Encompass federally-assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity's written policy; (v) Comply with the established accounting policies and practices of the non- Federal entity; and (vi) [Reserved](vii) Support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: The District did not have proper timing keeping for employees that worked on TANF. Thus, evidence of actual time worked on programs was not accurately reflected in the federal grant requests. Cause: Actual personnel time that worked on federal programs are not reconciled to the amounts charged to the federal programs on a regular basis. Context/Sampling: Time reporting controls were not in effect at the District. All employees funded under TANF in FY22 were selected and one employee?s time and effort was not provided. Questioned Costs: None reported. Effect: The District is at risk for noncompliance with allowable costs requirements. Repeat Finding from prior year: No Recommendation: Certain controls should be put in place to ensure that reconciliation and certification of actual time charged to federal programs are consistent with the grant reimbursement for those employees? time. Such reconciliations can be done quarterly, bi-annually, or annually. View of Responsible Officials: Management agrees with the finding.