Audit 26807

FY End
2022-09-30
Total Expended
$27.58M
Findings
2
Programs
11
Organization: Bishop State Community College (AL)
Year: 2022 Accepted: 2023-04-10
Auditor: Kassouf & CO PC

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
35510 2022-002 Significant Deficiency Yes L
611952 2022-002 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $15.14M Yes 1
84.063 Federal Pell Grant Program $6.11M Yes 0
84.031 Higher Education_institutional Aid $3.22M - 0
17.268 H-1b Job Training Grants $1.23M - 0
84.007 Federal Supplemental Educational Opportunity Grants $277,067 Yes 0
84.042 Trio_student Support Services $269,880 - 0
84.048 Career and Technical Education -- Basic Grants to States $244,651 - 0
17.259 Wia Youth Activities $185,659 - 0
84.033 Federal Work-Study Program $77,161 Yes 0
20.205 Highway Planning and Construction $42,627 - 0
84.002 Adult Education - Basic Grants to States $19,334 - 0

Contacts

Name Title Type
WTDAUMTURGC5 Jessica Davis Auditee
2054057295 William P. Bach Auditor
No contacts on file

Notes to SEFA

Title: Relationship to the Schedule to Program Financial Reports Accounting Policies: Basis of AccountingThis Schedule of Expenditures of Federal Awards (the schedule) was prepared onthe accrual basis of accounting. Revenues are recorded when earned and expenses arerecorded when a liability is incurred, regardless of the timing of the related cash flows.Grants and similar items are recognized as revenue as soon as all eligibility requirementsimposed by the provider have been met.De MinimisThe College has elected to not used the 10% de Minimis indirect cost rate. Basis of PresentationThe accompanying schedule summarizes the federal expenditures of the College underprograms of the federal government for the year ended September 30, 2022. The amountreported as federal expenditures were obtained from the Colleges general ledger. Becausethe schedule presents only a selected portion of the operations of the College, it is notintended to and does not present the financial position, changes in net margins and cashflows of the College.For purposes of the schedule, federal awards include all grants, contracts, and similaragreements entered into directly with the federal government and other pass throughentities. Payments received for goods or services provided as a vendor do no constitutefederal awards for purposes of the schedule. The College has obtained Assistance ListingNumbers (ALN) to ensure that all programs have been identified in the Schedule. ALNshave been appropriately listed by applicable programs. Federal programs with differentALNs that are closely related because they share common compliance requirements aredefined as a cluster by the Uniform Guidance. One cluster was identified in the scheduleas follows:Student Financial Aid Cluster This cluster includes awards that assistagencies in providing financial assistance to eligible students attendingeligible institutions of postsecondary education. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Relationship of the Schedule to Program Financial ReportsThe 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 bereported 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: Federal Pass-Through Funds Accounting Policies: Basis of AccountingThis Schedule of Expenditures of Federal Awards (the schedule) was prepared onthe accrual basis of accounting. Revenues are recorded when earned and expenses arerecorded when a liability is incurred, regardless of the timing of the related cash flows.Grants and similar items are recognized as revenue as soon as all eligibility requirementsimposed by the provider have been met.De MinimisThe College has elected to not used the 10% de Minimis indirect cost rate. Basis of PresentationThe accompanying schedule summarizes the federal expenditures of the College underprograms of the federal government for the year ended September 30, 2022. The amountreported as federal expenditures were obtained from the Colleges general ledger. Becausethe schedule presents only a selected portion of the operations of the College, it is notintended to and does not present the financial position, changes in net margins and cashflows of the College.For purposes of the schedule, federal awards include all grants, contracts, and similaragreements entered into directly with the federal government and other pass throughentities. Payments received for goods or services provided as a vendor do no constitutefederal awards for purposes of the schedule. The College has obtained Assistance ListingNumbers (ALN) to ensure that all programs have been identified in the Schedule. ALNshave been appropriately listed by applicable programs. Federal programs with differentALNs that are closely related because they share common compliance requirements aredefined as a cluster by the Uniform Guidance. One cluster was identified in the scheduleas follows:Student Financial Aid Cluster This cluster includes awards that assistagencies in providing financial assistance to eligible students attendingeligible institutions of postsecondary education. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The College is the sub-recipient 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: Contingencies Accounting Policies: Basis of AccountingThis Schedule of Expenditures of Federal Awards (the schedule) was prepared onthe accrual basis of accounting. Revenues are recorded when earned and expenses arerecorded when a liability is incurred, regardless of the timing of the related cash flows.Grants and similar items are recognized as revenue as soon as all eligibility requirementsimposed by the provider have been met.De MinimisThe College has elected to not used the 10% de Minimis indirect cost rate. Basis of PresentationThe accompanying schedule summarizes the federal expenditures of the College underprograms of the federal government for the year ended September 30, 2022. The amountreported as federal expenditures were obtained from the Colleges general ledger. Becausethe schedule presents only a selected portion of the operations of the College, it is notintended to and does not present the financial position, changes in net margins and cashflows of the College.For purposes of the schedule, federal awards include all grants, contracts, and similaragreements entered into directly with the federal government and other pass throughentities. Payments received for goods or services provided as a vendor do no constitutefederal awards for purposes of the schedule. The College has obtained Assistance ListingNumbers (ALN) to ensure that all programs have been identified in the Schedule. ALNshave been appropriately listed by applicable programs. Federal programs with differentALNs that are closely related because they share common compliance requirements aredefined as a cluster by the Uniform Guidance. One cluster was identified in the scheduleas follows:Student Financial Aid Cluster This cluster includes awards that assistagencies in providing financial assistance to eligible students attendingeligible institutions of postsecondary education. 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 aresubject to review by the grantor agencies. Such audits may result in requests forreimbursement due to disallowed expenditures. Based upon experience, the College doesnot believe that such disallowance, if any, would have a material effect on the financialposition of the College. As of September 30, 2022, there were no known materialquestioned or disallowed costs as a result of grant audits in process or completed.
Title: Noncash Assistance Accounting Policies: Basis of AccountingThis Schedule of Expenditures of Federal Awards (the schedule) was prepared onthe accrual basis of accounting. Revenues are recorded when earned and expenses arerecorded when a liability is incurred, regardless of the timing of the related cash flows.Grants and similar items are recognized as revenue as soon as all eligibility requirementsimposed by the provider have been met.De MinimisThe College has elected to not used the 10% de Minimis indirect cost rate. Basis of PresentationThe accompanying schedule summarizes the federal expenditures of the College underprograms of the federal government for the year ended September 30, 2022. The amountreported as federal expenditures were obtained from the Colleges general ledger. Becausethe schedule presents only a selected portion of the operations of the College, it is notintended to and does not present the financial position, changes in net margins and cashflows of the College.For purposes of the schedule, federal awards include all grants, contracts, and similaragreements entered into directly with the federal government and other pass throughentities. Payments received for goods or services provided as a vendor do no constitutefederal awards for purposes of the schedule. The College has obtained Assistance ListingNumbers (ALN) to ensure that all programs have been identified in the Schedule. ALNshave been appropriately listed by applicable programs. Federal programs with differentALNs that are closely related because they share common compliance requirements aredefined as a cluster by the Uniform Guidance. One cluster was identified in the scheduleas follows:Student Financial Aid Cluster This cluster includes awards that assistagencies in providing financial assistance to eligible students attendingeligible institutions of postsecondary education. 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: Subrecipients Accounting Policies: Basis of AccountingThis Schedule of Expenditures of Federal Awards (the schedule) was prepared onthe accrual basis of accounting. Revenues are recorded when earned and expenses arerecorded when a liability is incurred, regardless of the timing of the related cash flows.Grants and similar items are recognized as revenue as soon as all eligibility requirementsimposed by the provider have been met.De MinimisThe College has elected to not used the 10% de Minimis indirect cost rate. Basis of PresentationThe accompanying schedule summarizes the federal expenditures of the College underprograms of the federal government for the year ended September 30, 2022. The amountreported as federal expenditures were obtained from the Colleges general ledger. Becausethe schedule presents only a selected portion of the operations of the College, it is notintended to and does not present the financial position, changes in net margins and cashflows of the College.For purposes of the schedule, federal awards include all grants, contracts, and similaragreements entered into directly with the federal government and other pass throughentities. Payments received for goods or services provided as a vendor do no constitutefederal awards for purposes of the schedule. The College has obtained Assistance ListingNumbers (ALN) to ensure that all programs have been identified in the Schedule. ALNshave been appropriately listed by applicable programs. Federal programs with differentALNs that are closely related because they share common compliance requirements aredefined as a cluster by the Uniform Guidance. One cluster was identified in the scheduleas follows:Student Financial Aid Cluster This cluster includes awards that assistagencies in providing financial assistance to eligible students attendingeligible institutions of postsecondary education. 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.
Title: Loans and Loan Guarantees Accounting Policies: Basis of AccountingThis Schedule of Expenditures of Federal Awards (the schedule) was prepared onthe accrual basis of accounting. Revenues are recorded when earned and expenses arerecorded when a liability is incurred, regardless of the timing of the related cash flows.Grants and similar items are recognized as revenue as soon as all eligibility requirementsimposed by the provider have been met.De MinimisThe College has elected to not used the 10% de Minimis indirect cost rate. Basis of PresentationThe accompanying schedule summarizes the federal expenditures of the College underprograms of the federal government for the year ended September 30, 2022. The amountreported as federal expenditures were obtained from the Colleges general ledger. Becausethe schedule presents only a selected portion of the operations of the College, it is notintended to and does not present the financial position, changes in net margins and cashflows of the College.For purposes of the schedule, federal awards include all grants, contracts, and similaragreements entered into directly with the federal government and other pass throughentities. Payments received for goods or services provided as a vendor do no constitutefederal awards for purposes of the schedule. The College has obtained Assistance ListingNumbers (ALN) to ensure that all programs have been identified in the Schedule. ALNshave been appropriately listed by applicable programs. Federal programs with differentALNs that are closely related because they share common compliance requirements aredefined as a cluster by the Uniform Guidance. One cluster was identified in the scheduleas follows:Student Financial Aid Cluster This cluster includes awards that assistagencies in providing financial assistance to eligible students attendingeligible institutions of postsecondary education. 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: Federally Funded Insurance Accounting Policies: Basis of AccountingThis Schedule of Expenditures of Federal Awards (the schedule) was prepared onthe accrual basis of accounting. Revenues are recorded when earned and expenses arerecorded when a liability is incurred, regardless of the timing of the related cash flows.Grants and similar items are recognized as revenue as soon as all eligibility requirementsimposed by the provider have been met.De MinimisThe College has elected to not used the 10% de Minimis indirect cost rate. Basis of PresentationThe accompanying schedule summarizes the federal expenditures of the College underprograms of the federal government for the year ended September 30, 2022. The amountreported as federal expenditures were obtained from the Colleges general ledger. Becausethe schedule presents only a selected portion of the operations of the College, it is notintended to and does not present the financial position, changes in net margins and cashflows of the College.For purposes of the schedule, federal awards include all grants, contracts, and similaragreements entered into directly with the federal government and other pass throughentities. Payments received for goods or services provided as a vendor do no constitutefederal awards for purposes of the schedule. The College has obtained Assistance ListingNumbers (ALN) to ensure that all programs have been identified in the Schedule. ALNshave been appropriately listed by applicable programs. Federal programs with differentALNs that are closely related because they share common compliance requirements aredefined as a cluster by the Uniform Guidance. One cluster was identified in the scheduleas follows:Student Financial Aid Cluster This cluster includes awards that assistagencies in providing financial assistance to eligible students attendingeligible institutions of postsecondary education. 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.

Finding Details

Reference Number: 2022-002 Compliance Requirement: Reporting Type of Finding: Internal Control and Compliance Internal Control Impact: Significant Deficiency Compliance Impact: Nonmaterial Noncompliance Assistance Listing Number(s) and Title: 84.425 ? Higher Education Emergency Relief Fund(HEERF) Federal Awarding Agency: U.S. Department of Education As specified in 2 CFR section 200.303 the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Adequate controls must be in place to ensure proper expenditures are reported in the applicable reporting periods. Adequate controls were not in place to review and approve grant reports for accuracy and completeness of the report prior to their submission to the grantor. Appropriate supporting documentation was not retained in order to reconcile the amounts reported on the HEERF I, II, & III Annual Performance Report Form to the College?s books of record. The College also failed to submit quarterly reports on a timely basis for the quarters ending December 31, 2021, March 31, 2022 and June 30, 2022. Lack of sufficient controls over the review and approval of grant reports to ensure the accuracy and completeness of the report being submitted to the grantor can result in improper reporting which could lead to disallowed costs and late reporting submissions. However, our audit disclosed no instances of unallowable costs. Lack of sufficient controls can result in improper reporting which could lead to late reporting submissions. Recommendation We recommend the strengthening of controls to ensure the quarterly grant reports are reviewed and approved for accuracy and completeness prior to submission to the grantor. The College should design and implement internal controls to ensure compliance with the federal reporting requirements. Views of Responsible Officials of the Auditee The College agrees with Finding 2022-002.
Reference Number: 2022-002 Compliance Requirement: Reporting Type of Finding: Internal Control and Compliance Internal Control Impact: Significant Deficiency Compliance Impact: Nonmaterial Noncompliance Assistance Listing Number(s) and Title: 84.425 ? Higher Education Emergency Relief Fund(HEERF) Federal Awarding Agency: U.S. Department of Education As specified in 2 CFR section 200.303 the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Adequate controls must be in place to ensure proper expenditures are reported in the applicable reporting periods. Adequate controls were not in place to review and approve grant reports for accuracy and completeness of the report prior to their submission to the grantor. Appropriate supporting documentation was not retained in order to reconcile the amounts reported on the HEERF I, II, & III Annual Performance Report Form to the College?s books of record. The College also failed to submit quarterly reports on a timely basis for the quarters ending December 31, 2021, March 31, 2022 and June 30, 2022. Lack of sufficient controls over the review and approval of grant reports to ensure the accuracy and completeness of the report being submitted to the grantor can result in improper reporting which could lead to disallowed costs and late reporting submissions. However, our audit disclosed no instances of unallowable costs. Lack of sufficient controls can result in improper reporting which could lead to late reporting submissions. Recommendation We recommend the strengthening of controls to ensure the quarterly grant reports are reviewed and approved for accuracy and completeness prior to submission to the grantor. The College should design and implement internal controls to ensure compliance with the federal reporting requirements. Views of Responsible Officials of the Auditee The College agrees with Finding 2022-002.