Audit 22948

FY End
2022-06-30
Total Expended
$1.05M
Findings
8
Programs
5
Year: 2022 Accepted: 2023-04-26

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
21009 2022-001 - - C
21010 2022-003 - - L
21011 2022-002 - - L
21012 2022-003 - - B
597451 2022-001 - - C
597452 2022-003 - - L
597453 2022-002 - - L
597454 2022-003 - - B

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $269,706 Yes 2
10.855 Distance Learning and Telemedicine Loans and Grants $211,269 Yes 0
84.268 Federal Direct Student Loans $198,300 - 0
84.048 Career and Technical Education -- Basic Grants to States $131,847 - 0
84.063 Federal Pell Grant Program $99,208 - 0

Contacts

Name Title Type
S7KKXWDFRTR4 Amy Windus Auditee
7163768200 Thomas Zuber Auditor
No contacts on file

Notes to SEFA

Title: 1. Basis of Presentation Accounting Policies: Expenditures reported on the schedule are reported on the GAAP basis of accounting. 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. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (the schedule) includes the federal award activity of the Board of Cooperative Educational Services of Cattaraugus, Allegany, Erie and Wyoming Counties, New York (the BOCES) under programs of the federal government for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the BOCES, it is not intended to and does not present the financial position or changes in net position.
Title: 4. Matching Costs Accounting Policies: Expenditures reported on the schedule are reported on the GAAP basis of accounting. 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. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Matching costs, i.e., the Board of Cooperative Educational Services of Cattaraugus, Allegany, Erie and Wyoming Counties, New Yorks share of certain program costs, are not included in the reported expenditures.
Title: 5. Subrecipients Accounting Policies: Expenditures reported on the schedule are reported on the GAAP basis of accounting. 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. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The BOCES did not pass through any awards to subrecipients during the fiscal year.

Finding Details

(#2022-001) Cash Management ? CFDA No. 84.425E ? COVID-19 HEERF-Student Aid Portion Year Ended ? June 30, 2022 Direct Program Federal Agency ? U.S. Department of Education Criteria ?For CRRSAA HEERF II and ARP HEERF III, the Certification and Agreements and /or Supplemental Agreements require that Student Aid Portion (ALN 84.425E) should be disbursed within 15 calendar days of the drawdown from United States Department of Education?s G5 grants system. Condition ?Funds drawn down by BOCES during its fiscal year ended June 30, 2022, for emergency financial aid grants to students were not disbursed within 15 calendar days. Cause ?Draw downs were prepared and submitted to G5 when the amounts needed were determined by the Continuing Ed department, but disbursements were not processed until after the maximum number of days allowed under the grant. Effect ? BOCES did not disburse funds within the time frame required by the supplemental agreements for CRRSAA HEERF II funds. Questioned Costs ? There were no questioned costs for this finding. Context ? This finding was identified during our testing of cash draw downs and the related disbursements. We examined a sample drawdowns related to HEERF grants including 100% of those related to the Student Aid Portion. The remaining draws related to the FIPSE portion of grants were made on strictly a reimbursement basis, and as such the findings noted were consider isolated to the Student Aid Portion and no further estimating for the prevalence of this error was deemed necessary. Recommendation ? We recommend that draw down requests be provided to the Treasurer for submission on the G5 system when it is reasonably certain that the disbursements of those funds will occur within the required time frames established by the grant agreements. In addition, the Treasurer should verify with the department providing the draw down that disbursement will occur within the required time frame prior to submission to the granting agency. BOCES? Response ? BOCES will ensure that conditions for draw down are met by referencing grant compliance materials and verifying timelines with the department prior to any action.
(#2022-003) Allowable Costs? CFDA No. 84.425N ? COVID-19 HEERF-FIPSE Formula Grant Year Ended ? June 30, 2022 Direct Program Federal Agency ? U.S. Department of Education Criteria ?Institutions must follow the documentation requirements under 2 CFR ? 200.334 to retain financial records, supporting documents, statistical records, and all other institutional records pertinent to lost revenue and the administration of the HEERF grant programs generally for a period of three years from the date of submission of the final expenditure report. Condition ? Documentation to support the estimates for lost revenue was not provided to management timely for review and approval. Cause ?Adequate documentation was not maintained to support the lost revenue estimate. Effect ?Documentation supporting lost revenue estimates was not properly maintained prior to the submission of drawdowns of grant funds. Questioned Costs ? There were no questioned costs noted related to this finding. Context ?This finding was identified during our testing of lost revenues reported as allowable costs. BOCES was able to provide their calculation and method for estimating lost revenue for the program, however, management was not able to provide support for the enrollment numbers used in the estimate. Subsequent to our original request, the Continuing Education Department was able to provide enrollment documentation which supported the estimates selected for testing. Recommendation ? Documentation used in developing the estimates should be maintained in accordance with grant terms, and provided to management for their review and approval prior to the submission of drawdowns. BOCES? Response ? BOCES will ensure that clear and appropriate supporting documentation is in line with grant terms and is provided by the department and reviewed with the Finance Office prior to any submission for grant disbursement.
(#2022-002) Reporting ? CFDA No. 84.425E ? COVID-19 HEERF-Student Aid Portion CFDA No. 84.425N ? COVID-19 HEERF-FIPSE Formula Grant Year Ended ? June 30, 2022 Direct Program Federal Agency ? U.S. Department of Education Criteria ?the CARES Act 18004(e) and CRRSAA 314(e) requires an institution receiving funds under HEERF I and HEERF II to submit a report to the secretary, at such time in such a manner as the secretary may require. Institutions must complete the Quarterly Budget and Expenditure Reporting form (OMB Control Number 1840-0849 V.1.1) for its Institutional Portion and any subprograms, including FIPSE. In addition, quarterly reporting of certain information related to the Student Aid Portion award is required. The Quarterly Reporting form and Student Aid Portion information must be conspicuously posted in the institution?s primary website and on the same page and are due 10 days after the end of each reporting period. The Quarterly Reporting Form is required to be completed and posted regardless of whether the institution has drawn down or disbursed any funds for the quarter. Condition ?BOCES did not prepare or upload to its website required Quarterly Reporting Forms or Student Aid Portion information timely. Cause ? Production of required reporting was not completed until after the end of the fiscal year. Effect ? Quarterly reporting forms and student aid portion information was not uploaded to BOCES?s website within the required 10 days after the end of each reporting period. Questioned Costs ? There were no questioned costs noted related to this finding. Context ?We discussed the internal controls over the preparation and publishing of required reporting with BOCES management and were informed that the reports had not been prepared and uploaded to the website as required. Management subsequently produced all required reporting and we were able to observe and test the completed reports on BOCES?s website. Recommendation ? We recommend that an individual, other than the preparer, who is familiar with grant reporting requirements be assigned to review and approve required reports for accuracy and timeliness. We also recommend that a calendar of reporting dates be developed to more effectively track timely completion of required reporting. BOCES? Response ? At the outset of grant implementation, tasks associated with grant reporting including preparation, review, and submission will be clearly identified and assigned to appropriate personnel. A shared calendar of deadlines will be created and maintained.
(#2022-003) Allowable Costs? CFDA No. 84.425N ? COVID-19 HEERF-FIPSE Formula Grant Year Ended ? June 30, 2022 Direct Program Federal Agency ? U.S. Department of Education Criteria ?Institutions must follow the documentation requirements under 2 CFR ? 200.334 to retain financial records, supporting documents, statistical records, and all other institutional records pertinent to lost revenue and the administration of the HEERF grant programs generally for a period of three years from the date of submission of the final expenditure report. Condition ? Documentation to support the estimates for lost revenue was not provided to management timely for review and approval. Cause ?Adequate documentation was not maintained to support the lost revenue estimate. Effect ?Documentation supporting lost revenue estimates was not properly maintained prior to the submission of drawdowns of grant funds. Questioned Costs ? There were no questioned costs noted related to this finding. Context ?This finding was identified during our testing of lost revenues reported as allowable costs. BOCES was able to provide their calculation and method for estimating lost revenue for the program, however, management was not able to provide support for the enrollment numbers used in the estimate. Subsequent to our original request, the Continuing Education Department was able to provide enrollment documentation which supported the estimates selected for testing. Recommendation ? Documentation used in developing the estimates should be maintained in accordance with grant terms, and provided to management for their review and approval prior to the submission of drawdowns. BOCES? Response ? BOCES will ensure that clear and appropriate supporting documentation is in line with grant terms and is provided by the department and reviewed with the Finance Office prior to any submission for grant disbursement.
(#2022-001) Cash Management ? CFDA No. 84.425E ? COVID-19 HEERF-Student Aid Portion Year Ended ? June 30, 2022 Direct Program Federal Agency ? U.S. Department of Education Criteria ?For CRRSAA HEERF II and ARP HEERF III, the Certification and Agreements and /or Supplemental Agreements require that Student Aid Portion (ALN 84.425E) should be disbursed within 15 calendar days of the drawdown from United States Department of Education?s G5 grants system. Condition ?Funds drawn down by BOCES during its fiscal year ended June 30, 2022, for emergency financial aid grants to students were not disbursed within 15 calendar days. Cause ?Draw downs were prepared and submitted to G5 when the amounts needed were determined by the Continuing Ed department, but disbursements were not processed until after the maximum number of days allowed under the grant. Effect ? BOCES did not disburse funds within the time frame required by the supplemental agreements for CRRSAA HEERF II funds. Questioned Costs ? There were no questioned costs for this finding. Context ? This finding was identified during our testing of cash draw downs and the related disbursements. We examined a sample drawdowns related to HEERF grants including 100% of those related to the Student Aid Portion. The remaining draws related to the FIPSE portion of grants were made on strictly a reimbursement basis, and as such the findings noted were consider isolated to the Student Aid Portion and no further estimating for the prevalence of this error was deemed necessary. Recommendation ? We recommend that draw down requests be provided to the Treasurer for submission on the G5 system when it is reasonably certain that the disbursements of those funds will occur within the required time frames established by the grant agreements. In addition, the Treasurer should verify with the department providing the draw down that disbursement will occur within the required time frame prior to submission to the granting agency. BOCES? Response ? BOCES will ensure that conditions for draw down are met by referencing grant compliance materials and verifying timelines with the department prior to any action.
(#2022-003) Allowable Costs? CFDA No. 84.425N ? COVID-19 HEERF-FIPSE Formula Grant Year Ended ? June 30, 2022 Direct Program Federal Agency ? U.S. Department of Education Criteria ?Institutions must follow the documentation requirements under 2 CFR ? 200.334 to retain financial records, supporting documents, statistical records, and all other institutional records pertinent to lost revenue and the administration of the HEERF grant programs generally for a period of three years from the date of submission of the final expenditure report. Condition ? Documentation to support the estimates for lost revenue was not provided to management timely for review and approval. Cause ?Adequate documentation was not maintained to support the lost revenue estimate. Effect ?Documentation supporting lost revenue estimates was not properly maintained prior to the submission of drawdowns of grant funds. Questioned Costs ? There were no questioned costs noted related to this finding. Context ?This finding was identified during our testing of lost revenues reported as allowable costs. BOCES was able to provide their calculation and method for estimating lost revenue for the program, however, management was not able to provide support for the enrollment numbers used in the estimate. Subsequent to our original request, the Continuing Education Department was able to provide enrollment documentation which supported the estimates selected for testing. Recommendation ? Documentation used in developing the estimates should be maintained in accordance with grant terms, and provided to management for their review and approval prior to the submission of drawdowns. BOCES? Response ? BOCES will ensure that clear and appropriate supporting documentation is in line with grant terms and is provided by the department and reviewed with the Finance Office prior to any submission for grant disbursement.
(#2022-002) Reporting ? CFDA No. 84.425E ? COVID-19 HEERF-Student Aid Portion CFDA No. 84.425N ? COVID-19 HEERF-FIPSE Formula Grant Year Ended ? June 30, 2022 Direct Program Federal Agency ? U.S. Department of Education Criteria ?the CARES Act 18004(e) and CRRSAA 314(e) requires an institution receiving funds under HEERF I and HEERF II to submit a report to the secretary, at such time in such a manner as the secretary may require. Institutions must complete the Quarterly Budget and Expenditure Reporting form (OMB Control Number 1840-0849 V.1.1) for its Institutional Portion and any subprograms, including FIPSE. In addition, quarterly reporting of certain information related to the Student Aid Portion award is required. The Quarterly Reporting form and Student Aid Portion information must be conspicuously posted in the institution?s primary website and on the same page and are due 10 days after the end of each reporting period. The Quarterly Reporting Form is required to be completed and posted regardless of whether the institution has drawn down or disbursed any funds for the quarter. Condition ?BOCES did not prepare or upload to its website required Quarterly Reporting Forms or Student Aid Portion information timely. Cause ? Production of required reporting was not completed until after the end of the fiscal year. Effect ? Quarterly reporting forms and student aid portion information was not uploaded to BOCES?s website within the required 10 days after the end of each reporting period. Questioned Costs ? There were no questioned costs noted related to this finding. Context ?We discussed the internal controls over the preparation and publishing of required reporting with BOCES management and were informed that the reports had not been prepared and uploaded to the website as required. Management subsequently produced all required reporting and we were able to observe and test the completed reports on BOCES?s website. Recommendation ? We recommend that an individual, other than the preparer, who is familiar with grant reporting requirements be assigned to review and approve required reports for accuracy and timeliness. We also recommend that a calendar of reporting dates be developed to more effectively track timely completion of required reporting. BOCES? Response ? At the outset of grant implementation, tasks associated with grant reporting including preparation, review, and submission will be clearly identified and assigned to appropriate personnel. A shared calendar of deadlines will be created and maintained.
(#2022-003) Allowable Costs? CFDA No. 84.425N ? COVID-19 HEERF-FIPSE Formula Grant Year Ended ? June 30, 2022 Direct Program Federal Agency ? U.S. Department of Education Criteria ?Institutions must follow the documentation requirements under 2 CFR ? 200.334 to retain financial records, supporting documents, statistical records, and all other institutional records pertinent to lost revenue and the administration of the HEERF grant programs generally for a period of three years from the date of submission of the final expenditure report. Condition ? Documentation to support the estimates for lost revenue was not provided to management timely for review and approval. Cause ?Adequate documentation was not maintained to support the lost revenue estimate. Effect ?Documentation supporting lost revenue estimates was not properly maintained prior to the submission of drawdowns of grant funds. Questioned Costs ? There were no questioned costs noted related to this finding. Context ?This finding was identified during our testing of lost revenues reported as allowable costs. BOCES was able to provide their calculation and method for estimating lost revenue for the program, however, management was not able to provide support for the enrollment numbers used in the estimate. Subsequent to our original request, the Continuing Education Department was able to provide enrollment documentation which supported the estimates selected for testing. Recommendation ? Documentation used in developing the estimates should be maintained in accordance with grant terms, and provided to management for their review and approval prior to the submission of drawdowns. BOCES? Response ? BOCES will ensure that clear and appropriate supporting documentation is in line with grant terms and is provided by the department and reviewed with the Finance Office prior to any submission for grant disbursement.