FAC Explorer

Audit 30795

FY End
2022-09-30
Total Expended
$20.66M
Findings
2
Programs
26
Organization: Northern Marianas College (MP)
Year: 2022 Accepted: 2023-06-29
Auditor: Bcm LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
32195 2022-003 Significant Deficiency Yes B
608637 2022-003 Significant Deficiency Yes B

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $5.27M Yes 0
84.063 Federal Pell Grant Program $5.14M Yes 0
10.500 Cooperative Extension Service $1.37M Yes 1
10.203 Payments to Agricultural Experiment Stations Under the Hatch Act $1.23M Yes 0
97.U97 Usdhs-Commonwealth Worker Fund $800,000 Yes 0
84.938 Disaster Recovery Assistance for Education $745,796 Yes 0
84.031 Higher Education_institutional Aid $329,167 Yes 0
84.002 Adult Education - Basic Grants to States $282,695 Yes 0
93.107 Area Health Education Centers Point of Service Maintenance and Enhancement Awards $127,976 - 0
15.875 Economic, Social, and Political Development of the Territories $113,022 - 0
93.632 University Centers for Excellence in Developmental Disabilities Education, Research, and Service $104,600 - 0
10.767 Intermediary Relending Program $80,985 - 0
84.007 Federal Supplemental Educational Opportunity Grants $78,800 - 0
59.037 Small Business Development Centers $72,670 - 0
17.285 Apprenticeship USA Grants $72,445 - 0
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $64,598 Yes 0
10.310 Agriculture and Food Research Initiative (afri) $55,870 - 0
84.033 Federal Work-Study Program $52,800 - 0
10.200 Grants for Agricultural Research, Special Research Grants $51,525 - 0
93.310 Trans-Nih Research Support $48,035 - 0
10.303 National Science Foundation, Islands of Opportunity Alliance $28,018 - 0
10.215 Sustainable Agriculture Research and Education $14,781 - 0
84.206 Javits Gifted and Talented Students Education $14,336 - 0
47.076 Education and Human Resources $9,230 - 0
84.408 Postsecondary Education Scholarships for Veteran's Dependents $6,124 Yes 0
84.425 Education Stabilization Fund $3,700 - 0

Contacts

Name Title Type
D9H8LRADZSL3 David Attao Auditee
6702345498 David J Burger Auditor
No contacts on file

Notes to SEFA

Accounting Policies: (1)Scope of AuditThe Northern Marianas College (the College) was created as an autonomous public agency of the Commonwealth of the Northern Mariana Islands (CNMI) pursuant to Title 3, Division 1, Chapter 3, Article 1 of the Commonwealth Code. The College's existence is to be perpetual and it shall have all the rights and privileges of a corporation. The purpose of the College is to provide secondary educational opportunities to the people of the CNMI. Only the financial statements of the College are included within the scope of the Uniform Guidance audit (the Single Audit).Programs Subject to Single Audit The Schedule of Expenditures of Federal Awards presents each Federal program related to the following agencies:? U.S. Department of Agriculture? U.S. Department of the Interior? U.S. Department of Education? U.S. Department of Health and Human Services? U.S. Department of Homeland Security? U.S. Department of Labor? National Science Foundation(2)Summary of Significant Accounting PoliciesBasis of AccountingThe accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the College and is presented on the accrual basis of accounting, consistent with the manner in which the College maintains its accounting records. The information in this schedule is presented in accordance with the audit 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). Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. All program award amounts represent the total allotment or grant award received. All expenses and capital outlays are reported as expenditures.Cost AllocationThe College is currently allocating administrative costs to program awards based upon criteria prescribed in those program awards. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. For fiscal year 2022, the College has an approved indirect cost rate of 21% for all grant programs, except for U.S. Department of Education programs, for which the rate is 8%.

Finding Details

Finding 2022-003
Criteria: The Code of Federal Regulations (CFR) Subpart E ? Cost Principles, ?200.430(i), allowable costs must be adequately documented. ?200.430(i)(1) states ?Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated?? Further, according to 29CFR ?516.5(b) records such as employment contracts or agreements must be retained by employers for at least three years from their last effective date. Condition: For 3 of 115 items tested, or 3% of the sample, we noted that the contract form was signed after the effective date of the renewal of employment. Cause: NMC staff who are responsible for monitoring contract form renewals did not review these personnel files in a timely manner. Effect: NMC did not comply with federal regulations requirements in which contract forms should be signed prior to renewal of employment. With this situation, the employee is working without properly documented approval from authorized personnel. Recommendation: NMC should ensure that human resources personnel adhere to the internal control policies and procedures relevant to renewal of employment. Ample time to process employment documents should be available to ensure that the required approvals are obtained prior to renewal of employment. Views of Responsible Officials See corrective action plan immediately following this schedule of findings and questioned costs.
Finding 2022-003
Criteria: The Code of Federal Regulations (CFR) Subpart E ? Cost Principles, ?200.430(i), allowable costs must be adequately documented. ?200.430(i)(1) states ?Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated?? Further, according to 29CFR ?516.5(b) records such as employment contracts or agreements must be retained by employers for at least three years from their last effective date. Condition: For 3 of 115 items tested, or 3% of the sample, we noted that the contract form was signed after the effective date of the renewal of employment. Cause: NMC staff who are responsible for monitoring contract form renewals did not review these personnel files in a timely manner. Effect: NMC did not comply with federal regulations requirements in which contract forms should be signed prior to renewal of employment. With this situation, the employee is working without properly documented approval from authorized personnel. Recommendation: NMC should ensure that human resources personnel adhere to the internal control policies and procedures relevant to renewal of employment. Ample time to process employment documents should be available to ensure that the required approvals are obtained prior to renewal of employment. Views of Responsible Officials See corrective action plan immediately following this schedule of findings and questioned costs.