FAC Explorer

Audit 20716

FY End
2022-09-30
Total Expended
$10.89M
Findings
8
Programs
10
Organization: Lurleen B. Wallace Community College (AL)
Year: 2022 Accepted: 2023-03-09
Auditor: Carr Riggs & Ingram LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
22100 2022-001 Material Weakness - I
22101 2022-001 Material Weakness - I
22102 2022-001 Material Weakness - I
22103 2022-001 Material Weakness - I
598542 2022-001 Material Weakness - I
598543 2022-001 Material Weakness - I
598544 2022-001 Material Weakness - I
598545 2022-001 Material Weakness - I

Programs

ALN Program Spent Major Findings
84.063 Federal Pell Grant Program $3.66M - 0
17.280 Workforce Investment Act (wia) Dislocated Worker National Reserve Demonstration Grants $1.16M Yes 1
84.425 Covid-19, Education Stabilization Fund $198,006 Yes 1
84.007 Federal Supplemental Educational Opportunity Grants $127,002 - 0
84.048 Career and Technical Education -- Basic Grants to States $122,639 - 0
17.259 Wia Youth Activities $85,935 - 0
84.033 Federal Work-Study Program $66,281 - 0
17.258 Wia Adult Program $44,882 - 0
84.002 Adult Education - Basic Grants to States $6,883 - 0
10.699 Partnership Agreements $5,006 - 0

Contacts

Name Title Type
NHKJF3AVCA36 Lisa Carnley Auditee
3348812216 Melissa Barnes Auditor
No contacts on file

Notes to SEFA

Title: Note 9: 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 Lurleen B. Wallace Community Colleges (the College) federal grants. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The College did not have any loans or loan guarantee programs required to be reported on the schedule.
Title: Note 10: 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 Lurleen B. Wallace Community Colleges (the College) federal grants. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The College did not have any federally funded insurance required to be reported on the schedule for the fiscal year ending September 30, 2022.
Title: Note 3: 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 Lurleen B. Wallace Community Colleges (the College) federal grants. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule summarizes the federal expenditures of the College under programs of the federal government for the year ended September 30, 2022. The amount reported as federal expenditures were obtained from the Colleges 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.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: Note 4: 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 Lurleen B. Wallace Community Colleges (the College) federal grants. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The amounts reflected in the financial reports submitted to the awarding federal and/or passthrough agency and the schedule may differ. Some of the factors that may account for any difference include the following:- The Colleges fiscal year end may differ from the programs 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 Colleges financial statements and as expenditures in the program financial reports.
Title: Note 5: 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 Lurleen B. Wallace Community Colleges (the College) federal grants. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The College is the subrecipient of federal funds that have been subjected to testing and are reported as expenditures and listed as federal passthrough funds. Federal awards other than those indicated as passthrough are considered direct and will be designated accordingly.
Title: Note 6: 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 Lurleen B. Wallace Community Colleges (the College) federal grants. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. 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, 2022, there were no known material questioned or disallowed costs as a result of grant audits in process or completed.
Title: Note 7: 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 Lurleen B. Wallace Community Colleges (the College) federal grants. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The College did not receive any federal noncash assistance for the fiscal year ended September 30, 2022.
Title: Note 8: 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 Lurleen B. Wallace Community Colleges (the College) federal grants. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The College did not provide federal funds to subrecipients for the fiscal year ended September 30, 2022.

Finding Details

Finding 2022-001
Item 2022-001 ? Suspension and Debarment Higher Education Emergency Relief Fund (HEERF) ? ALN # 84.425E, 84.425F, & 84.425M U.S. Department of Education WIA/WIOA Dislocated Worker National Reserve Demonstration Grants ? ALN # 17.280 U.S. Department of Labor Criteria ? 2 CFR 200.303 requires the non-Federal entity to ?(a) establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award.? Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include those procurement contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All nonprocurement transactions entered into by a recipient (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. Condition ? Adequate controls were not in place to provide for proper review of covered transactions for suspension and debarment. Covered transactions, over $25,000 paid with grant funding were not reviewed for suspension and debarment prior to payment being made. Cause ? The College lacked sufficient controls to ensure evidence of compliance with suspension and debarment. Questioned Costs ? Not determinable Effect ? Failure to properly verify that a party has not been suspended or debarred prior to expenditure being made could result in unallowable expenditures and disallowed costs. Recommendation ? We recommend that controls should be put into place to better monitor and document the compliance of vendors for suspension and debarment.
Finding 2022-001
Item 2022-001 ? Suspension and Debarment Higher Education Emergency Relief Fund (HEERF) ? ALN # 84.425E, 84.425F, & 84.425M U.S. Department of Education WIA/WIOA Dislocated Worker National Reserve Demonstration Grants ? ALN # 17.280 U.S. Department of Labor Criteria ? 2 CFR 200.303 requires the non-Federal entity to ?(a) establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award.? Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include those procurement contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All nonprocurement transactions entered into by a recipient (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. Condition ? Adequate controls were not in place to provide for proper review of covered transactions for suspension and debarment. Covered transactions, over $25,000 paid with grant funding were not reviewed for suspension and debarment prior to payment being made. Cause ? The College lacked sufficient controls to ensure evidence of compliance with suspension and debarment. Questioned Costs ? Not determinable Effect ? Failure to properly verify that a party has not been suspended or debarred prior to expenditure being made could result in unallowable expenditures and disallowed costs. Recommendation ? We recommend that controls should be put into place to better monitor and document the compliance of vendors for suspension and debarment.
Finding 2022-001
Item 2022-001 ? Suspension and Debarment Higher Education Emergency Relief Fund (HEERF) ? ALN # 84.425E, 84.425F, & 84.425M U.S. Department of Education WIA/WIOA Dislocated Worker National Reserve Demonstration Grants ? ALN # 17.280 U.S. Department of Labor Criteria ? 2 CFR 200.303 requires the non-Federal entity to ?(a) establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award.? Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include those procurement contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All nonprocurement transactions entered into by a recipient (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. Condition ? Adequate controls were not in place to provide for proper review of covered transactions for suspension and debarment. Covered transactions, over $25,000 paid with grant funding were not reviewed for suspension and debarment prior to payment being made. Cause ? The College lacked sufficient controls to ensure evidence of compliance with suspension and debarment. Questioned Costs ? Not determinable Effect ? Failure to properly verify that a party has not been suspended or debarred prior to expenditure being made could result in unallowable expenditures and disallowed costs. Recommendation ? We recommend that controls should be put into place to better monitor and document the compliance of vendors for suspension and debarment.
Finding 2022-001
Item 2022-001 ? Suspension and Debarment Higher Education Emergency Relief Fund (HEERF) ? ALN # 84.425E, 84.425F, & 84.425M U.S. Department of Education WIA/WIOA Dislocated Worker National Reserve Demonstration Grants ? ALN # 17.280 U.S. Department of Labor Criteria ? 2 CFR 200.303 requires the non-Federal entity to ?(a) establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award.? Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include those procurement contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All nonprocurement transactions entered into by a recipient (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. Condition ? Adequate controls were not in place to provide for proper review of covered transactions for suspension and debarment. Covered transactions, over $25,000 paid with grant funding were not reviewed for suspension and debarment prior to payment being made. Cause ? The College lacked sufficient controls to ensure evidence of compliance with suspension and debarment. Questioned Costs ? Not determinable Effect ? Failure to properly verify that a party has not been suspended or debarred prior to expenditure being made could result in unallowable expenditures and disallowed costs. Recommendation ? We recommend that controls should be put into place to better monitor and document the compliance of vendors for suspension and debarment.
Finding 2022-001
Item 2022-001 ? Suspension and Debarment Higher Education Emergency Relief Fund (HEERF) ? ALN # 84.425E, 84.425F, & 84.425M U.S. Department of Education WIA/WIOA Dislocated Worker National Reserve Demonstration Grants ? ALN # 17.280 U.S. Department of Labor Criteria ? 2 CFR 200.303 requires the non-Federal entity to ?(a) establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award.? Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include those procurement contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All nonprocurement transactions entered into by a recipient (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. Condition ? Adequate controls were not in place to provide for proper review of covered transactions for suspension and debarment. Covered transactions, over $25,000 paid with grant funding were not reviewed for suspension and debarment prior to payment being made. Cause ? The College lacked sufficient controls to ensure evidence of compliance with suspension and debarment. Questioned Costs ? Not determinable Effect ? Failure to properly verify that a party has not been suspended or debarred prior to expenditure being made could result in unallowable expenditures and disallowed costs. Recommendation ? We recommend that controls should be put into place to better monitor and document the compliance of vendors for suspension and debarment.
Finding 2022-001
Item 2022-001 ? Suspension and Debarment Higher Education Emergency Relief Fund (HEERF) ? ALN # 84.425E, 84.425F, & 84.425M U.S. Department of Education WIA/WIOA Dislocated Worker National Reserve Demonstration Grants ? ALN # 17.280 U.S. Department of Labor Criteria ? 2 CFR 200.303 requires the non-Federal entity to ?(a) establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award.? Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include those procurement contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All nonprocurement transactions entered into by a recipient (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. Condition ? Adequate controls were not in place to provide for proper review of covered transactions for suspension and debarment. Covered transactions, over $25,000 paid with grant funding were not reviewed for suspension and debarment prior to payment being made. Cause ? The College lacked sufficient controls to ensure evidence of compliance with suspension and debarment. Questioned Costs ? Not determinable Effect ? Failure to properly verify that a party has not been suspended or debarred prior to expenditure being made could result in unallowable expenditures and disallowed costs. Recommendation ? We recommend that controls should be put into place to better monitor and document the compliance of vendors for suspension and debarment.
Finding 2022-001
Item 2022-001 ? Suspension and Debarment Higher Education Emergency Relief Fund (HEERF) ? ALN # 84.425E, 84.425F, & 84.425M U.S. Department of Education WIA/WIOA Dislocated Worker National Reserve Demonstration Grants ? ALN # 17.280 U.S. Department of Labor Criteria ? 2 CFR 200.303 requires the non-Federal entity to ?(a) establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award.? Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include those procurement contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All nonprocurement transactions entered into by a recipient (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. Condition ? Adequate controls were not in place to provide for proper review of covered transactions for suspension and debarment. Covered transactions, over $25,000 paid with grant funding were not reviewed for suspension and debarment prior to payment being made. Cause ? The College lacked sufficient controls to ensure evidence of compliance with suspension and debarment. Questioned Costs ? Not determinable Effect ? Failure to properly verify that a party has not been suspended or debarred prior to expenditure being made could result in unallowable expenditures and disallowed costs. Recommendation ? We recommend that controls should be put into place to better monitor and document the compliance of vendors for suspension and debarment.
Finding 2022-001
Item 2022-001 ? Suspension and Debarment Higher Education Emergency Relief Fund (HEERF) ? ALN # 84.425E, 84.425F, & 84.425M U.S. Department of Education WIA/WIOA Dislocated Worker National Reserve Demonstration Grants ? ALN # 17.280 U.S. Department of Labor Criteria ? 2 CFR 200.303 requires the non-Federal entity to ?(a) establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award.? Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include those procurement contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All nonprocurement transactions entered into by a recipient (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. Condition ? Adequate controls were not in place to provide for proper review of covered transactions for suspension and debarment. Covered transactions, over $25,000 paid with grant funding were not reviewed for suspension and debarment prior to payment being made. Cause ? The College lacked sufficient controls to ensure evidence of compliance with suspension and debarment. Questioned Costs ? Not determinable Effect ? Failure to properly verify that a party has not been suspended or debarred prior to expenditure being made could result in unallowable expenditures and disallowed costs. Recommendation ? We recommend that controls should be put into place to better monitor and document the compliance of vendors for suspension and debarment.