Audit 31075

FY End
2022-06-30
Total Expended
$24.50M
Findings
4
Programs
18
Year: 2022 Accepted: 2022-11-10
Auditor: Sikich LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
36113 2022-001 - - A
36114 2022-002 - Yes L
612555 2022-001 - - A
612556 2022-002 - Yes L

Contacts

Name Title Type
YJA1B43JDNM1 Darla Essalih Auditee
6304662475 Ray Krouse Auditor
No contacts on file

Notes to SEFA

Title: FEDERAL LOAN PROGRAM Accounting Policies: The accompanying schedule of expenditures of federal awards has been prepared in accordance with accounting principles generally accepted in the United States of America as promulgated by the Governmental Accounting Standards Board (GASB). It is a summary of the activity of the Colleges federal awards program prepared on the accrual basis of accounting. Accordingly, expenditures are recognized when the liability has been incurred and revenues are recognized when the qualifying expenditure has been incurred. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. For the year ended June 30, 2022, the College acted as a pass-through agency for Federal Direct Loans (subsidized and unsubsidized) to students in the amount of $1,922,564.
Title: OTHER INFORMATION Accounting Policies: The accompanying schedule of expenditures of federal awards has been prepared in accordance with accounting principles generally accepted in the United States of America as promulgated by the Governmental Accounting Standards Board (GASB). It is a summary of the activity of the Colleges federal awards program prepared on the accrual basis of accounting. Accordingly, expenditures are recognized when the liability has been incurred and revenues are recognized when the qualifying expenditure has been incurred. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The College did not receive any federal insurance or federal noncash assistance and did not provide any amounts to sub-recipients.

Finding Details

2022-001 Federal Work Study - Student Financial Aid Cluster Assistance Listing Number 84.007, 84.033, 84.063, 84.268, Grant Period - Year Ended June 30, 2022 Criteria: The Code of Federal Regulations (34 CFR 675.19 (b)(2)) requires the institution to establish and maintain program and fiscal records that include a certification by the student?s supervisor, an official of the institution or off-campus agency, that each student has worked and earned the amount being paid. The certification must include or be supported by, for students paid on an hourly basis, a time record showing the hours each student worked in clock time sequence, or the total hours worked per day and include a payroll voucher containing sufficient information to support all payroll disbursements. Condition: During our Federal Work Study testing, we selected eleven students and noted that one student was paid for hours they did not work and was overpaid $357.50. The College did not review federal work study hours worked against class hours scheduled and timesheets to ensure the student was not working during a scheduled class and that they were paid for the correct number of hours. We consider this condition to be a instance of non-compliance to the Activities Allowed or Unallowed compliance requirement. Statistical sampling was not used in making sample selections. Questioned Costs: $357.50 Effect: The result is that the College did not review timesheets properly and a student received compensation for hours not worked in the amount of $357.50. Cause: The condition was an administrative oversight. Recommendation: We recommend the College increase controls over review of timesheets. Views of Responsible Officials: Management agrees with the Single Audit finding and a response is included in the Corrective Action Plan.
2022-002 HEERF Reporting - Higher Education Relief Funds Assistance Listing Number 84.425E, 84.425F, 84.425C, Grant Period - Year Ended June 30, 2022 Criteria: A College receiving funds under Section 18004 of the Act must submit, in a time and manner required by the Department of Education, a report to the Department of Education describing the use of funds distributed from Higher Education Emergency Relief Fund (HEERF) Grants. Further, Colleges that received HEERF I 18004(a)(1) Student Aid Portion award must publicly post the required seven reporting items on their website, as an initial report under Section 18004(e) of CARES Act, no later than thirty days after award, and update that information every forty-five days thereafter. On August 31, 2020, the Department of Education decreased the frequency of reporting after the initial thirty-day period from every forty-five days thereafter to ten days after the end of every calendar quarter. A College must publicly post Quarterly Budget and Expenditure Reporting forms within 10 days of every quarter to satisfy the quarterly Student and Institutional Portion reporting requirements. Condition: The College failed to post public records for the March 31, 2022 student quarterly reporting period in a timely manner. We consider this to be an instance of noncompliance relating to the Reporting Compliance Requirement. This is a repeat finding from prior year as 2021-001. Effect: The result is that the College did not post the required information to their website in a timely fashion. Cause: The condition was an administrative oversight. Recommendation: We recommend the College increase controls over reporting. Views of Responsible Officials: Management agrees with the Single Audit finding and a response is included in the Corrective Action Plan.
2022-001 Federal Work Study - Student Financial Aid Cluster Assistance Listing Number 84.007, 84.033, 84.063, 84.268, Grant Period - Year Ended June 30, 2022 Criteria: The Code of Federal Regulations (34 CFR 675.19 (b)(2)) requires the institution to establish and maintain program and fiscal records that include a certification by the student?s supervisor, an official of the institution or off-campus agency, that each student has worked and earned the amount being paid. The certification must include or be supported by, for students paid on an hourly basis, a time record showing the hours each student worked in clock time sequence, or the total hours worked per day and include a payroll voucher containing sufficient information to support all payroll disbursements. Condition: During our Federal Work Study testing, we selected eleven students and noted that one student was paid for hours they did not work and was overpaid $357.50. The College did not review federal work study hours worked against class hours scheduled and timesheets to ensure the student was not working during a scheduled class and that they were paid for the correct number of hours. We consider this condition to be a instance of non-compliance to the Activities Allowed or Unallowed compliance requirement. Statistical sampling was not used in making sample selections. Questioned Costs: $357.50 Effect: The result is that the College did not review timesheets properly and a student received compensation for hours not worked in the amount of $357.50. Cause: The condition was an administrative oversight. Recommendation: We recommend the College increase controls over review of timesheets. Views of Responsible Officials: Management agrees with the Single Audit finding and a response is included in the Corrective Action Plan.
2022-002 HEERF Reporting - Higher Education Relief Funds Assistance Listing Number 84.425E, 84.425F, 84.425C, Grant Period - Year Ended June 30, 2022 Criteria: A College receiving funds under Section 18004 of the Act must submit, in a time and manner required by the Department of Education, a report to the Department of Education describing the use of funds distributed from Higher Education Emergency Relief Fund (HEERF) Grants. Further, Colleges that received HEERF I 18004(a)(1) Student Aid Portion award must publicly post the required seven reporting items on their website, as an initial report under Section 18004(e) of CARES Act, no later than thirty days after award, and update that information every forty-five days thereafter. On August 31, 2020, the Department of Education decreased the frequency of reporting after the initial thirty-day period from every forty-five days thereafter to ten days after the end of every calendar quarter. A College must publicly post Quarterly Budget and Expenditure Reporting forms within 10 days of every quarter to satisfy the quarterly Student and Institutional Portion reporting requirements. Condition: The College failed to post public records for the March 31, 2022 student quarterly reporting period in a timely manner. We consider this to be an instance of noncompliance relating to the Reporting Compliance Requirement. This is a repeat finding from prior year as 2021-001. Effect: The result is that the College did not post the required information to their website in a timely fashion. Cause: The condition was an administrative oversight. Recommendation: We recommend the College increase controls over reporting. Views of Responsible Officials: Management agrees with the Single Audit finding and a response is included in the Corrective Action Plan.