Audit 30452

FY End
2022-06-30
Total Expended
$12.86M
Findings
18
Programs
6
Organization: Rust College, INC (MS)
Year: 2022 Accepted: 2023-03-29

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
34142 2022-001 Significant Deficiency - P
34143 2022-002 Significant Deficiency - P
34144 2022-001 Significant Deficiency - P
34145 2022-002 Significant Deficiency - P
34146 2022-001 Significant Deficiency - P
34147 2022-002 Significant Deficiency - P
34148 2022-002 Significant Deficiency - P
34149 2022-001 Significant Deficiency - P
34150 2022-002 Significant Deficiency - P
610584 2022-001 Significant Deficiency - P
610585 2022-002 Significant Deficiency - P
610586 2022-001 Significant Deficiency - P
610587 2022-002 Significant Deficiency - P
610588 2022-001 Significant Deficiency - P
610589 2022-002 Significant Deficiency - P
610590 2022-002 Significant Deficiency - P
610591 2022-001 Significant Deficiency - P
610592 2022-002 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
84.031 Higher Education_institutional Aid $2.86M Yes 1
84.268 Federal Direct Student Loans $2.29M Yes 1
84.063 Federal Pell Grant Program $2.11M Yes 1
84.007 Federal Supplemental Educational Opportunity Grants $543,742 Yes 1
84.033 Federal Work-Study Program $147,522 Yes 1
84.425 Education Stabilization Fund $40,545 Yes 1

Contacts

Name Title Type
GN85GH5ZLGE9 Willie M. Hughey Auditee
6622528000 Booker Camper Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The schedule of expenditures of federal awards includes the federal awards activity of Rust College, Inc. under the program of the federal government for the year ended June 30, 2022. The information in the Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The Summary of Significant Accounting Policies is that the expenditures which are reported on the Schedule are on the accrual 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 the amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Condition: Cash reconciliations were not prepared on a regular basis to complete the accounting cycle during the year and Voucher payable system was not posted to the General Ledger on a timely basis during the year. Criteria: Code of Federal Regulations PART 200, Subpart F. Green Book, GAO.gov, Compliance Supplements, July 2021. Effect: General Ledger accounts are not properly stated on a monthly basis. Cause: Accounting system was compromised due to power outage that resulted in data loss. Recommendations: New accounting system should be backed up daily to eliminate the possibility of data loss. Views of the Responsible Officials: Management concurs with finding 2202-001 and will mandate adherence to best practices as it relates to system back-up.
Conditions: The new accounting system did not provide accounting for comparison of the grant/contract budgeted amount with the actual expenditures on a monthly basis, comparison of various actual line expenses to budgeted line items and comparison of total expenses with total grant awards; also the new system did not correlate the grant contract numbers with the general ledger accounts. Criteria: Code of Federal Regulations, Part 200, Subpart F., Green Book at GAO.gov and applicable regulations per Compliance Supplements. Effect: Condition reduces objectivity and efficiency of monitoring activities. Cause: Installation of new system and upgrade. Questioned Costs: None. Recommendations: The Accounting department will maintain grant accounting system for all federal funds in accordance with the Green Book, GAO.gov and Code of Federal Regulations, Part 200, subpart F. Views of the Responsible Official: Management concurs with 2022-002 and will mandate adherence to the GAO's standards and Code of Federal Regulations, Part 200, subpart F and make adjustments on a current basis.
Condition: Cash reconciliations were not prepared on a regular basis to complete the accounting cycle during the year and Voucher payable system was not posted to the General Ledger on a timely basis during the year. Criteria: Code of Federal Regulations PART 200, Subpart F. Green Book, GAO.gov, Compliance Supplements, July 2021. Effect: General Ledger accounts are not properly stated on a monthly basis. Cause: Accounting system was compromised due to power outage that resulted in data loss. Recommendations: New accounting system should be backed up daily to eliminate the possibility of data loss. Views of the Responsible Officials: Management concurs with finding 2202-001 and will mandate adherence to best practices as it relates to system back-up.
Conditions: The new accounting system did not provide accounting for comparison of the grant/contract budgeted amount with the actual expenditures on a monthly basis, comparison of various actual line expenses to budgeted line items and comparison of total expenses with total grant awards; also the new system did not correlate the grant contract numbers with the general ledger accounts. Criteria: Code of Federal Regulations, Part 200, Subpart F., Green Book at GAO.gov and applicable regulations per Compliance Supplements. Effect: Condition reduces objectivity and efficiency of monitoring activities. Cause: Installation of new system and upgrade. Questioned Costs: None. Recommendations: The Accounting department will maintain grant accounting system for all federal funds in accordance with the Green Book, GAO.gov and Code of Federal Regulations, Part 200, subpart F. Views of the Responsible Official: Management concurs with 2022-002 and will mandate adherence to the GAO's standards and Code of Federal Regulations, Part 200, subpart F and make adjustments on a current basis.
Condition: Cash reconciliations were not prepared on a regular basis to complete the accounting cycle during the year and Voucher payable system was not posted to the General Ledger on a timely basis during the year. Criteria: Code of Federal Regulations PART 200, Subpart F. Green Book, GAO.gov, Compliance Supplements, July 2021. Effect: General Ledger accounts are not properly stated on a monthly basis. Cause: Accounting system was compromised due to power outage that resulted in data loss. Recommendations: New accounting system should be backed up daily to eliminate the possibility of data loss. Views of the Responsible Officials: Management concurs with finding 2202-001 and will mandate adherence to best practices as it relates to system back-up.
Conditions: The new accounting system did not provide accounting for comparison of the grant/contract budgeted amount with the actual expenditures on a monthly basis, comparison of various actual line expenses to budgeted line items and comparison of total expenses with total grant awards; also the new system did not correlate the grant contract numbers with the general ledger accounts. Criteria: Code of Federal Regulations, Part 200, Subpart F., Green Book at GAO.gov and applicable regulations per Compliance Supplements. Effect: Condition reduces objectivity and efficiency of monitoring activities. Cause: Installation of new system and upgrade. Questioned Costs: None. Recommendations: The Accounting department will maintain grant accounting system for all federal funds in accordance with the Green Book, GAO.gov and Code of Federal Regulations, Part 200, subpart F. Views of the Responsible Official: Management concurs with 2022-002 and will mandate adherence to the GAO's standards and Code of Federal Regulations, Part 200, subpart F and make adjustments on a current basis.
Conditions: The new accounting system did not provide accounting for comparison of the grant/contract budgeted amount with the actual expenditures on a monthly basis, comparison of various actual line expenses to budgeted line items and comparison of total expenses with total grant awards; also the new system did not correlate the grant contract numbers with the general ledger accounts. Criteria: Code of Federal Regulations, Part 200, Subpart F., Green Book at GAO.gov and applicable regulations per Compliance Supplements. Effect: Condition reduces objectivity and efficiency of monitoring activities. Cause: Installation of new system and upgrade. Questioned Costs: None. Recommendations: The Accounting department will maintain grant accounting system for all federal funds in accordance with the Green Book, GAO.gov and Code of Federal Regulations, Part 200, subpart F. Views of the Responsible Official: Management concurs with 2022-002 and will mandate adherence to the GAO's standards and Code of Federal Regulations, Part 200, subpart F and make adjustments on a current basis.
Condition: Cash reconciliations were not prepared on a regular basis to complete the accounting cycle during the year and Voucher payable system was not posted to the General Ledger on a timely basis during the year. Criteria: Code of Federal Regulations PART 200, Subpart F. Green Book, GAO.gov, Compliance Supplements, July 2021. Effect: General Ledger accounts are not properly stated on a monthly basis. Cause: Accounting system was compromised due to power outage that resulted in data loss. Recommendations: New accounting system should be backed up daily to eliminate the possibility of data loss. Views of the Responsible Officials: Management concurs with finding 2202-001 and will mandate adherence to best practices as it relates to system back-up.
Conditions: The new accounting system did not provide accounting for comparison of the grant/contract budgeted amount with the actual expenditures on a monthly basis, comparison of various actual line expenses to budgeted line items and comparison of total expenses with total grant awards; also the new system did not correlate the grant contract numbers with the general ledger accounts. Criteria: Code of Federal Regulations, Part 200, Subpart F., Green Book at GAO.gov and applicable regulations per Compliance Supplements. Effect: Condition reduces objectivity and efficiency of monitoring activities. Cause: Installation of new system and upgrade. Questioned Costs: None. Recommendations: The Accounting department will maintain grant accounting system for all federal funds in accordance with the Green Book, GAO.gov and Code of Federal Regulations, Part 200, subpart F. Views of the Responsible Official: Management concurs with 2022-002 and will mandate adherence to the GAO's standards and Code of Federal Regulations, Part 200, subpart F and make adjustments on a current basis.
Condition: Cash reconciliations were not prepared on a regular basis to complete the accounting cycle during the year and Voucher payable system was not posted to the General Ledger on a timely basis during the year. Criteria: Code of Federal Regulations PART 200, Subpart F. Green Book, GAO.gov, Compliance Supplements, July 2021. Effect: General Ledger accounts are not properly stated on a monthly basis. Cause: Accounting system was compromised due to power outage that resulted in data loss. Recommendations: New accounting system should be backed up daily to eliminate the possibility of data loss. Views of the Responsible Officials: Management concurs with finding 2202-001 and will mandate adherence to best practices as it relates to system back-up.
Conditions: The new accounting system did not provide accounting for comparison of the grant/contract budgeted amount with the actual expenditures on a monthly basis, comparison of various actual line expenses to budgeted line items and comparison of total expenses with total grant awards; also the new system did not correlate the grant contract numbers with the general ledger accounts. Criteria: Code of Federal Regulations, Part 200, Subpart F., Green Book at GAO.gov and applicable regulations per Compliance Supplements. Effect: Condition reduces objectivity and efficiency of monitoring activities. Cause: Installation of new system and upgrade. Questioned Costs: None. Recommendations: The Accounting department will maintain grant accounting system for all federal funds in accordance with the Green Book, GAO.gov and Code of Federal Regulations, Part 200, subpart F. Views of the Responsible Official: Management concurs with 2022-002 and will mandate adherence to the GAO's standards and Code of Federal Regulations, Part 200, subpart F and make adjustments on a current basis.
Condition: Cash reconciliations were not prepared on a regular basis to complete the accounting cycle during the year and Voucher payable system was not posted to the General Ledger on a timely basis during the year. Criteria: Code of Federal Regulations PART 200, Subpart F. Green Book, GAO.gov, Compliance Supplements, July 2021. Effect: General Ledger accounts are not properly stated on a monthly basis. Cause: Accounting system was compromised due to power outage that resulted in data loss. Recommendations: New accounting system should be backed up daily to eliminate the possibility of data loss. Views of the Responsible Officials: Management concurs with finding 2202-001 and will mandate adherence to best practices as it relates to system back-up.
Conditions: The new accounting system did not provide accounting for comparison of the grant/contract budgeted amount with the actual expenditures on a monthly basis, comparison of various actual line expenses to budgeted line items and comparison of total expenses with total grant awards; also the new system did not correlate the grant contract numbers with the general ledger accounts. Criteria: Code of Federal Regulations, Part 200, Subpart F., Green Book at GAO.gov and applicable regulations per Compliance Supplements. Effect: Condition reduces objectivity and efficiency of monitoring activities. Cause: Installation of new system and upgrade. Questioned Costs: None. Recommendations: The Accounting department will maintain grant accounting system for all federal funds in accordance with the Green Book, GAO.gov and Code of Federal Regulations, Part 200, subpart F. Views of the Responsible Official: Management concurs with 2022-002 and will mandate adherence to the GAO's standards and Code of Federal Regulations, Part 200, subpart F and make adjustments on a current basis.
Condition: Cash reconciliations were not prepared on a regular basis to complete the accounting cycle during the year and Voucher payable system was not posted to the General Ledger on a timely basis during the year. Criteria: Code of Federal Regulations PART 200, Subpart F. Green Book, GAO.gov, Compliance Supplements, July 2021. Effect: General Ledger accounts are not properly stated on a monthly basis. Cause: Accounting system was compromised due to power outage that resulted in data loss. Recommendations: New accounting system should be backed up daily to eliminate the possibility of data loss. Views of the Responsible Officials: Management concurs with finding 2202-001 and will mandate adherence to best practices as it relates to system back-up.
Conditions: The new accounting system did not provide accounting for comparison of the grant/contract budgeted amount with the actual expenditures on a monthly basis, comparison of various actual line expenses to budgeted line items and comparison of total expenses with total grant awards; also the new system did not correlate the grant contract numbers with the general ledger accounts. Criteria: Code of Federal Regulations, Part 200, Subpart F., Green Book at GAO.gov and applicable regulations per Compliance Supplements. Effect: Condition reduces objectivity and efficiency of monitoring activities. Cause: Installation of new system and upgrade. Questioned Costs: None. Recommendations: The Accounting department will maintain grant accounting system for all federal funds in accordance with the Green Book, GAO.gov and Code of Federal Regulations, Part 200, subpart F. Views of the Responsible Official: Management concurs with 2022-002 and will mandate adherence to the GAO's standards and Code of Federal Regulations, Part 200, subpart F and make adjustments on a current basis.
Conditions: The new accounting system did not provide accounting for comparison of the grant/contract budgeted amount with the actual expenditures on a monthly basis, comparison of various actual line expenses to budgeted line items and comparison of total expenses with total grant awards; also the new system did not correlate the grant contract numbers with the general ledger accounts. Criteria: Code of Federal Regulations, Part 200, Subpart F., Green Book at GAO.gov and applicable regulations per Compliance Supplements. Effect: Condition reduces objectivity and efficiency of monitoring activities. Cause: Installation of new system and upgrade. Questioned Costs: None. Recommendations: The Accounting department will maintain grant accounting system for all federal funds in accordance with the Green Book, GAO.gov and Code of Federal Regulations, Part 200, subpart F. Views of the Responsible Official: Management concurs with 2022-002 and will mandate adherence to the GAO's standards and Code of Federal Regulations, Part 200, subpart F and make adjustments on a current basis.
Condition: Cash reconciliations were not prepared on a regular basis to complete the accounting cycle during the year and Voucher payable system was not posted to the General Ledger on a timely basis during the year. Criteria: Code of Federal Regulations PART 200, Subpart F. Green Book, GAO.gov, Compliance Supplements, July 2021. Effect: General Ledger accounts are not properly stated on a monthly basis. Cause: Accounting system was compromised due to power outage that resulted in data loss. Recommendations: New accounting system should be backed up daily to eliminate the possibility of data loss. Views of the Responsible Officials: Management concurs with finding 2202-001 and will mandate adherence to best practices as it relates to system back-up.
Conditions: The new accounting system did not provide accounting for comparison of the grant/contract budgeted amount with the actual expenditures on a monthly basis, comparison of various actual line expenses to budgeted line items and comparison of total expenses with total grant awards; also the new system did not correlate the grant contract numbers with the general ledger accounts. Criteria: Code of Federal Regulations, Part 200, Subpart F., Green Book at GAO.gov and applicable regulations per Compliance Supplements. Effect: Condition reduces objectivity and efficiency of monitoring activities. Cause: Installation of new system and upgrade. Questioned Costs: None. Recommendations: The Accounting department will maintain grant accounting system for all federal funds in accordance with the Green Book, GAO.gov and Code of Federal Regulations, Part 200, subpart F. Views of the Responsible Official: Management concurs with 2022-002 and will mandate adherence to the GAO's standards and Code of Federal Regulations, Part 200, subpart F and make adjustments on a current basis.