FAC Explorer

Audit 291639

FY End
2023-06-30
Total Expended
$25.64M
Findings
2
Programs
15
Organization: Reading Area Community College (PA)
Year: 2023 Accepted: 2024-02-22
Auditor: Herbein + Company INC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
370123 2023-001 Significant Deficiency - N
946565 2023-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $1.30M Yes 0
84.063 Federal Pell Grant Program $1.17M Yes 0
14.218 Community Development Block Grants/entitlement Grants $800,000 - 0
84.048 Career and Technical Education -- Basic Grants to States $718,264 - 0
84.031 Higher Education_institutional Aid $646,966 - 0
84.002 Adult Education - Basic Grants to States $552,656 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $541,334 - 0
84.042 Trio_student Support Services $390,161 - 0
84.268 Federal Direct Student Loans $328,508 Yes 0
93.137 Community Programs to Improve Minority Health Grant Program $327,268 Yes 0
93.558 Temporary Assistance for Needy Families $276,355 - 0
84.007 Federal Supplemental Educational Opportunity Grants $112,293 Yes 0
84.047 Trio_upward Bound $104,760 - 0
84.033 Federal Work-Study Program $9,941 Yes 0
84.063 Pell Administrative Allowance $1,095 Yes 0

Contacts

Name Title Type
P2K8J7DD4JV9 Dolores Peterson Auditee
6103724721 Linda Himeback Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to the reimbursement. Negative amounts shown on the Schedule represent adjustment or credits made in the normal course of business amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The College did not elect to use the de minimis rate for indirect costs. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the College under programs of the federal government for the year ended June 30, 2023. 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 College, it is not intended to and does not present the financial position, changes in net position, or cash flows of the College.
Title: STUDENT FINANCIAL ASSISTANCE LOAN PROGRAMS Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to the reimbursement. Negative amounts shown on the Schedule represent adjustment or credits made in the normal course of business amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The College did not elect to use the de minimis rate for indirect costs. The total loans granted under the Federal Direct Student Loan Program, which were not made by the College but were received by its students, were $5,875,932 for the year ended June 30, 2023.

Finding Details

Finding 2023-001
Federal Program Federal Pell Grant Program ALN 84.063, Contract #P063P223333 Criteria According to the Code of Federal Regulations (CFR) Title 34, Section 668.22(c), the withdrawal date for a student who ceases attendance at an institution that is not required to take attendance is the date, as determined by the institution, that the student began the withdrawal process prescribed by the institution or the date, as determined by the institution, that the student otherwise provided official notification to the institution. Condition/Cause Out of a sample of 25 students who withdrew or did not maintain attendance during a semester within the audit period, there was one instance where an incorrect withdrawal date was used. Effect An R2T4 calculation was performed using an incorrect withdrawal date of October 3, 2022 which required the student to return $453 of Pell funds. The correct withdrawal date is September 28, 2022. Using September 28, 2022 as the withdrawal date, the student would have been required to return $487 of Pell funds. Questioned Costs None. Context A sample of 25 students who withdrew or did not maintain attendance during a semester within the audit period were selected to test the accuracy of return of Title IV fund calculations and if required, timely return to the Department of Education. Repeat Finding No. Recommendation We recommend that a process be put in place at the College to strengthen its controls to ensure that it performs accurate return of Title IV calculations. Management Response See corrective action plan included in this report package.
Finding 2023-001
Federal Program Federal Pell Grant Program ALN 84.063, Contract #P063P223333 Criteria According to the Code of Federal Regulations (CFR) Title 34, Section 668.22(c), the withdrawal date for a student who ceases attendance at an institution that is not required to take attendance is the date, as determined by the institution, that the student began the withdrawal process prescribed by the institution or the date, as determined by the institution, that the student otherwise provided official notification to the institution. Condition/Cause Out of a sample of 25 students who withdrew or did not maintain attendance during a semester within the audit period, there was one instance where an incorrect withdrawal date was used. Effect An R2T4 calculation was performed using an incorrect withdrawal date of October 3, 2022 which required the student to return $453 of Pell funds. The correct withdrawal date is September 28, 2022. Using September 28, 2022 as the withdrawal date, the student would have been required to return $487 of Pell funds. Questioned Costs None. Context A sample of 25 students who withdrew or did not maintain attendance during a semester within the audit period were selected to test the accuracy of return of Title IV fund calculations and if required, timely return to the Department of Education. Repeat Finding No. Recommendation We recommend that a process be put in place at the College to strengthen its controls to ensure that it performs accurate return of Title IV calculations. Management Response See corrective action plan included in this report package.