Audit 306394

FY End
2022-09-30
Total Expended
$24.34M
Findings
12
Programs
10
Organization: College of Micronesia - Fsm (FM)
Year: 2022 Accepted: 2024-05-15

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
396988 2022-006 Material Weakness - B
396989 2022-006 Material Weakness - B
396990 2022-006 Material Weakness - B
396991 2022-007 Significant Deficiency - I
396992 2022-007 Significant Deficiency - I
396993 2022-007 Significant Deficiency - I
973430 2022-006 Material Weakness - B
973431 2022-006 Material Weakness - B
973432 2022-006 Material Weakness - B
973433 2022-007 Significant Deficiency - I
973434 2022-007 Significant Deficiency - I
973435 2022-007 Significant Deficiency - I

Contacts

Name Title Type
W4RWX429DEX1 Roselle Togonon Auditee
6913202480 Rizalito G. Paglingayen Auditor
No contacts on file

Notes to SEFA

Title: 1. Scope of Audit Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, consistent with the manner in which the College maintains its accounting records. 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. All expenses and capital outlays are reported as expenditures when incurred. Pass-through entity identifying numbers are presented where available. The College of Micronesia-FSM does not elect to use the de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The College of Micronesia - FSM has a negotiated indirect cost rate agreement. College of Micronesia-FSM is a component unit of the FSM National Government established by Public Law 7-79 on September 25, 1992. Only the activities of College of Micronesia-FSM are included within the scope of the Single Audit.
Title: 2. Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, consistent with the manner in which the College maintains its accounting records. 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. All expenses and capital outlays are reported as expenditures when incurred. Pass-through entity identifying numbers are presented where available. The College of Micronesia-FSM does not elect to use the de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The College of Micronesia - FSM has a negotiated indirect cost rate agreement. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of College of Micronesia-FSM under programs of the federal government for the year ended September 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). Becuse the Schedule presents only a selected portion of the operations of the College of Micronesia-FSM, it is not intended to and does not present the net position, changes in net position or cash flows of the College of Micronesia-FSM.
Title: 3. Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, consistent with the manner in which the College maintains its accounting records. 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. All expenses and capital outlays are reported as expenditures when incurred. Pass-through entity identifying numbers are presented where available. The College of Micronesia-FSM does not elect to use the de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The College of Micronesia - FSM has a negotiated indirect cost rate agreement. Expenditures reported on the Schedule are reported on the accrual basis of accounting, consistent with the manner in which the College maintains its accounting records. 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. All expenses and capital outlays are reported as expenditures when incurred. Pass-through entity identifying numbers are presented where available. The College of Micronesia-FSM does not elect to use the de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Criteria: In accordance with applicable allowable costs/cost principles requirements, written approval of Federal awarding agency or pass-through entity must be obtained prior to incurring the capital expenditures, and costs must represent valid expenditures of the program. Condition: A. For 2 (or 6%) of 32 non-payroll transactions tested, aggregating $56K of $409K in total nonpayroll program costs, no written prior approval obtained prior to incurring capital expenditures. Program Details Effective Date Campus Code Division Code Transaction Description Session ID Amount Funding Source 1 5/31/2022 10 104 po22-01531 apn22-013 $ 1,670 SEG 2 6/27/2022 10 104 po22-02805;8931 api22-1083 22,650 SEG Total $ 24,320 B. In 1 (or 3%) of 32 non-payroll transactions tested, aggregating $56K of $409K in total nonpayroll program costs, stipend was paid to an individual who no longer participated in the program. Program Details Effective Date Campus Code Division Code Transaction Description Session ID Amount Funding Source 2/1/2022 10 104 Employee: 290786 Stipend api22-0429 $ 100 SEG No questioned cost was identified for this finding as the College subsequently obtained approval for the aforementioned capital expenditures. Cause: COM-FSM did not effectively monitor compliance with applicable allowable costs/cost principles requirements. Effect: COM-FSM is in noncompliance with applicable allowable costs/cost principles requirements. Recommendation: COM-FSM should effectively monitor program costs for compliance with allowable costs/cost principles requirements.
Criteria: In accordance with applicable allowable costs/cost principles requirements, written approval of Federal awarding agency or pass-through entity must be obtained prior to incurring the capital expenditures, and costs must represent valid expenditures of the program. Condition: A. For 2 (or 6%) of 32 non-payroll transactions tested, aggregating $56K of $409K in total nonpayroll program costs, no written prior approval obtained prior to incurring capital expenditures. Program Details Effective Date Campus Code Division Code Transaction Description Session ID Amount Funding Source 1 5/31/2022 10 104 po22-01531 apn22-013 $ 1,670 SEG 2 6/27/2022 10 104 po22-02805;8931 api22-1083 22,650 SEG Total $ 24,320 B. In 1 (or 3%) of 32 non-payroll transactions tested, aggregating $56K of $409K in total nonpayroll program costs, stipend was paid to an individual who no longer participated in the program. Program Details Effective Date Campus Code Division Code Transaction Description Session ID Amount Funding Source 2/1/2022 10 104 Employee: 290786 Stipend api22-0429 $ 100 SEG No questioned cost was identified for this finding as the College subsequently obtained approval for the aforementioned capital expenditures. Cause: COM-FSM did not effectively monitor compliance with applicable allowable costs/cost principles requirements. Effect: COM-FSM is in noncompliance with applicable allowable costs/cost principles requirements. Recommendation: COM-FSM should effectively monitor program costs for compliance with allowable costs/cost principles requirements.
Criteria: In accordance with applicable allowable costs/cost principles requirements, written approval of Federal awarding agency or pass-through entity must be obtained prior to incurring the capital expenditures, and costs must represent valid expenditures of the program. Condition: A. For 2 (or 6%) of 32 non-payroll transactions tested, aggregating $56K of $409K in total nonpayroll program costs, no written prior approval obtained prior to incurring capital expenditures. Program Details Effective Date Campus Code Division Code Transaction Description Session ID Amount Funding Source 1 5/31/2022 10 104 po22-01531 apn22-013 $ 1,670 SEG 2 6/27/2022 10 104 po22-02805;8931 api22-1083 22,650 SEG Total $ 24,320 B. In 1 (or 3%) of 32 non-payroll transactions tested, aggregating $56K of $409K in total nonpayroll program costs, stipend was paid to an individual who no longer participated in the program. Program Details Effective Date Campus Code Division Code Transaction Description Session ID Amount Funding Source 2/1/2022 10 104 Employee: 290786 Stipend api22-0429 $ 100 SEG No questioned cost was identified for this finding as the College subsequently obtained approval for the aforementioned capital expenditures. Cause: COM-FSM did not effectively monitor compliance with applicable allowable costs/cost principles requirements. Effect: COM-FSM is in noncompliance with applicable allowable costs/cost principles requirements. Recommendation: COM-FSM should effectively monitor program costs for compliance with allowable costs/cost principles requirements.
Criteria: In accordance with 2 CFR 200.319, all procurement transactions for the acquisition of property or services required under a Federal award must be conducted in a manner providing full and open competition. A situation considered to be restrictive of competition includes specifying only a “brand name” product instead of allowing an equal product to be offered and describing the performance or other relevant requirements of the procurement. Condition: For 2 (or 40%) of 5 procurement transactions tested, aggregating $24K of $63K in total procurement costs, procurement records specified brand name in solicitations and bid, therefore limiting open competition as required by Federal requirements. Per Program Details Effective Date Campus Code Division Code Transaction Description Session ID Amount Funding Source 1 5/31/2022 10 104 po22-01531 apn22-013 $1,670 SEG 2 6/27/2022 10 104 po22-02805;8931 api22-1083 22,650 SEG Total $24,320 Cause: COM-FSM did not effectively monitor compliance with applicable procurement requirements. Effect: COM-FSM is in noncompliance with applicable procurement requirements. Recommendation: COM-FSM should effectively monitor procurement procedures to ensure that full and open competition is performed.
Criteria: In accordance with 2 CFR 200.319, all procurement transactions for the acquisition of property or services required under a Federal award must be conducted in a manner providing full and open competition. A situation considered to be restrictive of competition includes specifying only a “brand name” product instead of allowing an equal product to be offered and describing the performance or other relevant requirements of the procurement. Condition: For 2 (or 40%) of 5 procurement transactions tested, aggregating $24K of $63K in total procurement costs, procurement records specified brand name in solicitations and bid, therefore limiting open competition as required by Federal requirements. Per Program Details Effective Date Campus Code Division Code Transaction Description Session ID Amount Funding Source 1 5/31/2022 10 104 po22-01531 apn22-013 $1,670 SEG 2 6/27/2022 10 104 po22-02805;8931 api22-1083 22,650 SEG Total $24,320 Cause: COM-FSM did not effectively monitor compliance with applicable procurement requirements. Effect: COM-FSM is in noncompliance with applicable procurement requirements. Recommendation: COM-FSM should effectively monitor procurement procedures to ensure that full and open competition is performed.
Criteria: In accordance with 2 CFR 200.319, all procurement transactions for the acquisition of property or services required under a Federal award must be conducted in a manner providing full and open competition. A situation considered to be restrictive of competition includes specifying only a “brand name” product instead of allowing an equal product to be offered and describing the performance or other relevant requirements of the procurement. Condition: For 2 (or 40%) of 5 procurement transactions tested, aggregating $24K of $63K in total procurement costs, procurement records specified brand name in solicitations and bid, therefore limiting open competition as required by Federal requirements. Per Program Details Effective Date Campus Code Division Code Transaction Description Session ID Amount Funding Source 1 5/31/2022 10 104 po22-01531 apn22-013 $1,670 SEG 2 6/27/2022 10 104 po22-02805;8931 api22-1083 22,650 SEG Total $24,320 Cause: COM-FSM did not effectively monitor compliance with applicable procurement requirements. Effect: COM-FSM is in noncompliance with applicable procurement requirements. Recommendation: COM-FSM should effectively monitor procurement procedures to ensure that full and open competition is performed.
Criteria: In accordance with applicable allowable costs/cost principles requirements, written approval of Federal awarding agency or pass-through entity must be obtained prior to incurring the capital expenditures, and costs must represent valid expenditures of the program. Condition: A. For 2 (or 6%) of 32 non-payroll transactions tested, aggregating $56K of $409K in total nonpayroll program costs, no written prior approval obtained prior to incurring capital expenditures. Program Details Effective Date Campus Code Division Code Transaction Description Session ID Amount Funding Source 1 5/31/2022 10 104 po22-01531 apn22-013 $ 1,670 SEG 2 6/27/2022 10 104 po22-02805;8931 api22-1083 22,650 SEG Total $ 24,320 B. In 1 (or 3%) of 32 non-payroll transactions tested, aggregating $56K of $409K in total nonpayroll program costs, stipend was paid to an individual who no longer participated in the program. Program Details Effective Date Campus Code Division Code Transaction Description Session ID Amount Funding Source 2/1/2022 10 104 Employee: 290786 Stipend api22-0429 $ 100 SEG No questioned cost was identified for this finding as the College subsequently obtained approval for the aforementioned capital expenditures. Cause: COM-FSM did not effectively monitor compliance with applicable allowable costs/cost principles requirements. Effect: COM-FSM is in noncompliance with applicable allowable costs/cost principles requirements. Recommendation: COM-FSM should effectively monitor program costs for compliance with allowable costs/cost principles requirements.
Criteria: In accordance with applicable allowable costs/cost principles requirements, written approval of Federal awarding agency or pass-through entity must be obtained prior to incurring the capital expenditures, and costs must represent valid expenditures of the program. Condition: A. For 2 (or 6%) of 32 non-payroll transactions tested, aggregating $56K of $409K in total nonpayroll program costs, no written prior approval obtained prior to incurring capital expenditures. Program Details Effective Date Campus Code Division Code Transaction Description Session ID Amount Funding Source 1 5/31/2022 10 104 po22-01531 apn22-013 $ 1,670 SEG 2 6/27/2022 10 104 po22-02805;8931 api22-1083 22,650 SEG Total $ 24,320 B. In 1 (or 3%) of 32 non-payroll transactions tested, aggregating $56K of $409K in total nonpayroll program costs, stipend was paid to an individual who no longer participated in the program. Program Details Effective Date Campus Code Division Code Transaction Description Session ID Amount Funding Source 2/1/2022 10 104 Employee: 290786 Stipend api22-0429 $ 100 SEG No questioned cost was identified for this finding as the College subsequently obtained approval for the aforementioned capital expenditures. Cause: COM-FSM did not effectively monitor compliance with applicable allowable costs/cost principles requirements. Effect: COM-FSM is in noncompliance with applicable allowable costs/cost principles requirements. Recommendation: COM-FSM should effectively monitor program costs for compliance with allowable costs/cost principles requirements.
Criteria: In accordance with applicable allowable costs/cost principles requirements, written approval of Federal awarding agency or pass-through entity must be obtained prior to incurring the capital expenditures, and costs must represent valid expenditures of the program. Condition: A. For 2 (or 6%) of 32 non-payroll transactions tested, aggregating $56K of $409K in total nonpayroll program costs, no written prior approval obtained prior to incurring capital expenditures. Program Details Effective Date Campus Code Division Code Transaction Description Session ID Amount Funding Source 1 5/31/2022 10 104 po22-01531 apn22-013 $ 1,670 SEG 2 6/27/2022 10 104 po22-02805;8931 api22-1083 22,650 SEG Total $ 24,320 B. In 1 (or 3%) of 32 non-payroll transactions tested, aggregating $56K of $409K in total nonpayroll program costs, stipend was paid to an individual who no longer participated in the program. Program Details Effective Date Campus Code Division Code Transaction Description Session ID Amount Funding Source 2/1/2022 10 104 Employee: 290786 Stipend api22-0429 $ 100 SEG No questioned cost was identified for this finding as the College subsequently obtained approval for the aforementioned capital expenditures. Cause: COM-FSM did not effectively monitor compliance with applicable allowable costs/cost principles requirements. Effect: COM-FSM is in noncompliance with applicable allowable costs/cost principles requirements. Recommendation: COM-FSM should effectively monitor program costs for compliance with allowable costs/cost principles requirements.
Criteria: In accordance with 2 CFR 200.319, all procurement transactions for the acquisition of property or services required under a Federal award must be conducted in a manner providing full and open competition. A situation considered to be restrictive of competition includes specifying only a “brand name” product instead of allowing an equal product to be offered and describing the performance or other relevant requirements of the procurement. Condition: For 2 (or 40%) of 5 procurement transactions tested, aggregating $24K of $63K in total procurement costs, procurement records specified brand name in solicitations and bid, therefore limiting open competition as required by Federal requirements. Per Program Details Effective Date Campus Code Division Code Transaction Description Session ID Amount Funding Source 1 5/31/2022 10 104 po22-01531 apn22-013 $1,670 SEG 2 6/27/2022 10 104 po22-02805;8931 api22-1083 22,650 SEG Total $24,320 Cause: COM-FSM did not effectively monitor compliance with applicable procurement requirements. Effect: COM-FSM is in noncompliance with applicable procurement requirements. Recommendation: COM-FSM should effectively monitor procurement procedures to ensure that full and open competition is performed.
Criteria: In accordance with 2 CFR 200.319, all procurement transactions for the acquisition of property or services required under a Federal award must be conducted in a manner providing full and open competition. A situation considered to be restrictive of competition includes specifying only a “brand name” product instead of allowing an equal product to be offered and describing the performance or other relevant requirements of the procurement. Condition: For 2 (or 40%) of 5 procurement transactions tested, aggregating $24K of $63K in total procurement costs, procurement records specified brand name in solicitations and bid, therefore limiting open competition as required by Federal requirements. Per Program Details Effective Date Campus Code Division Code Transaction Description Session ID Amount Funding Source 1 5/31/2022 10 104 po22-01531 apn22-013 $1,670 SEG 2 6/27/2022 10 104 po22-02805;8931 api22-1083 22,650 SEG Total $24,320 Cause: COM-FSM did not effectively monitor compliance with applicable procurement requirements. Effect: COM-FSM is in noncompliance with applicable procurement requirements. Recommendation: COM-FSM should effectively monitor procurement procedures to ensure that full and open competition is performed.
Criteria: In accordance with 2 CFR 200.319, all procurement transactions for the acquisition of property or services required under a Federal award must be conducted in a manner providing full and open competition. A situation considered to be restrictive of competition includes specifying only a “brand name” product instead of allowing an equal product to be offered and describing the performance or other relevant requirements of the procurement. Condition: For 2 (or 40%) of 5 procurement transactions tested, aggregating $24K of $63K in total procurement costs, procurement records specified brand name in solicitations and bid, therefore limiting open competition as required by Federal requirements. Per Program Details Effective Date Campus Code Division Code Transaction Description Session ID Amount Funding Source 1 5/31/2022 10 104 po22-01531 apn22-013 $1,670 SEG 2 6/27/2022 10 104 po22-02805;8931 api22-1083 22,650 SEG Total $24,320 Cause: COM-FSM did not effectively monitor compliance with applicable procurement requirements. Effect: COM-FSM is in noncompliance with applicable procurement requirements. Recommendation: COM-FSM should effectively monitor procurement procedures to ensure that full and open competition is performed.