Audit 26060

FY End
2022-06-30
Total Expended
$8.93M
Findings
2
Programs
15
Year: 2022 Accepted: 2023-03-30

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
30491 2022-001 Significant Deficiency Yes L
606933 2022-001 Significant Deficiency Yes L

Contacts

Name Title Type
JL1FRM3F4HG5 Jennifer Thome Auditee
4192675511 Kevin Vaughn Auditor
No contacts on file

Notes to SEFA

Title: FEDERAL DIRECT STUDENT LOANS Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) reports Northwest State Community Colleges (the College) federal award programs disbursements. 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). The schedule has been prepared on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-87, Cost Principles for State, Local and Indian Tribal Governments, or the cost principles contained in Title U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The College has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Pass-through Entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The College participates in the Federal Direct Student Loan Program. The dollar amounts listed in the schedule of federal awards expenditures represents new loans advanced during the current fiscal year. The College is a direct lender of these loan funds; however the College is not responsible for collecting these loans in future periods. ALN 84.268 program name Federal Subsidized Direct Loans $797,889; 84.268 Federal Unsubsidized Direct Loans $342,498; 84.268 Federal PLUS Loans #39,008; Total Federal Director Student Loans $1,179,395

Finding Details

Federal Program Information: COVID 19 HEERF Institutional Portion ALN 84.425F Criteria: 2 CFR 200.329 and the terms and conditions of the federal award requires the entity to submit reports quarterly and annual reports. Condition: The total expenditures on quarterly and annual reports was not correct. Questioned Costs: None Context: The testing of the reports showed that incorrect amounts were reported for expenditures on quarterly and annual reports. Cause/Effect: The College reported expenditures when reimbursed but should have reported when incurred. Repeat Finding from Prior Audit?: Yes, fiscal 2022 had already ended before the College received the prior year audit results. Recommendation: We recommend review of current practices and implement policies establishing monitoring procedures related to reports. Management Response: The College agrees with the finding and is implementing appropriate procedures.
Federal Program Information: COVID 19 HEERF Institutional Portion ALN 84.425F Criteria: 2 CFR 200.329 and the terms and conditions of the federal award requires the entity to submit reports quarterly and annual reports. Condition: The total expenditures on quarterly and annual reports was not correct. Questioned Costs: None Context: The testing of the reports showed that incorrect amounts were reported for expenditures on quarterly and annual reports. Cause/Effect: The College reported expenditures when reimbursed but should have reported when incurred. Repeat Finding from Prior Audit?: Yes, fiscal 2022 had already ended before the College received the prior year audit results. Recommendation: We recommend review of current practices and implement policies establishing monitoring procedures related to reports. Management Response: The College agrees with the finding and is implementing appropriate procedures.