FAC Explorer

Audit 312232

FY End
2022-06-30
Total Expended
$21.81M
Findings
18
Programs
14
Organization: Hagerstown Community College (MD)
Year: 2022 Accepted: 2023-01-05
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
419456 2022-002 Significant Deficiency - B
419457 2022-002 Significant Deficiency - B
419458 2022-002 Significant Deficiency - B
419459 2022-002 Significant Deficiency - B
419460 2022-002 Significant Deficiency - B
419461 2022-002 Significant Deficiency - B
419462 2022-003 Significant Deficiency - L
419463 2022-003 Significant Deficiency - L
419464 2022-003 Significant Deficiency - L
995898 2022-002 Significant Deficiency - B
995899 2022-002 Significant Deficiency - B
995900 2022-002 Significant Deficiency - B
995901 2022-002 Significant Deficiency - B
995902 2022-002 Significant Deficiency - B
995903 2022-002 Significant Deficiency - B
995904 2022-003 Significant Deficiency - L
995905 2022-003 Significant Deficiency - L
995906 2022-003 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
84.063 Federal Pell Grant Program $4.87M - 0
84.425 Education Stabilization Fund $4.64M Yes 2
84.268 Federal Direct Student Loans $4.33M - 0
84.047 Trio_upward Bound $271,104 - 0
84.042 Trio_student Support Services $260,110 - 0
84.048 Career and Technical Education -- Basic Grants to States $165,017 - 0
84.007 Federal Supplemental Educational Opportunity Grants $113,850 - 0
84.033 Federal Work-Study Program $93,016 - 0
84.335 Child Care Access Means Parents in School $89,941 - 0
84.002 Adult Education - Basic Grants to States $71,967 - 0
93.575 Child Care and Development Block Grant $37,086 - 0
23.002 Appalachian Area Development $32,671 - 0
45.162 Promotion of the Humanities_teaching and Learning Resources and Curriculum Development $16,667 - 0
45.149 Promotion of the Humanities_division of Preservation and Access $8,698 - 0

Contacts

Name Title Type
Q7K8PNLA8WP1 David Bittorf Auditee
2405002266 Sean Walker Auditor
No contacts on file

Notes to SEFA

Title: Direct Loan Programs Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Hagerstown Community College (the College) for the year ended June 30, 2022.The information in this schedule is presented in accordance with requirements of 2 CFR Part200, 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, change in net position or cash flows of the College. A. Expenditures reported on the Schedule are reported 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 allowed or are limited as to reimbursements. B. Pass through entity identifying numbers are presented where available. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. During the year ended June 30, 2022, the College processed the following amount of new loans under the Federal Direct Lending Program. Since this program is administered by outside financial institutions, new loans made during the fiscal year relating to this program are considered current year expenditures in the schedule. CFDA Number - 84.268, Program Name - Federal Direct Lending, Loan Expenditures - $4,329,682
Title: Matching Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Hagerstown Community College (the College) for the year ended June 30, 2022.The information in this schedule is presented in accordance with requirements of 2 CFR Part200, 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, change in net position or cash flows of the College. A. Expenditures reported on the Schedule are reported 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 allowed or are limited as to reimbursements. B. Pass through entity identifying numbers are presented where available. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Colleges participate in the Work-Study Program and Supplemental Education Opportunity Grant Program normally are required to provide an institutional share under the program. However, the College qualified for and was granted a waiver of the institutional share requirements under 34 CFR 675.26D of the Work-Study regulations and under Title III or Title V of the Higher Education Act of 1965, as amended.

Finding Details

Finding 2022-002
Reference Number: 2022-002Federal Agency: U.S. Department of EducationFederal Program: Education Stabilization FundAssistance Listing Number: 84.425F, 84.425E, 84.425MAward Number and Period: P425M200011, May 5, 2020 ? June 30, 2023; P425F200021,May 4, 2020 ? June 30, 2023; P425E200504, April 22, 2020 ?May 11, 2022Compliance Requirement: Allowable Costs/Cost PrinciplesType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:Per HEERF III, FAQ Question 22 (Issued May 11, 2021), Higher Education Emergency Relief Funds (HEERF) grant funds must not be used for senior administrator or executive salaries, benefits, bonuses, contracts, incentives, stock buybacks, shareholder dividends, capital distributions, and stock options, or any other cash or other benefit for a senior administrator or executive.Condition:The College used HEERF grant funds to pay 3 executives a special payment for working in person through the pandemic.Context:As part of the review of HEERF grant funds paid to employees, CLA identified 3 executives that received a special payment.Cause:The College did not have controls in place to ensure payments made to senior administrator or executives were not funded with grants funds. Management was not aware of the specific requirement for senior administrator or executive compensation.Effect:The College made payments to executives that were not eligible to receive grant funds.Repeat Finding: NoQuestioned Costs:$23,016Recommendation:We recommend the College review current procedures to ensure all grant regulations are being followed prior to payments.Views of Responsible Officials:Management agrees with the finding.
Finding 2022-002
Reference Number: 2022-002Federal Agency: U.S. Department of EducationFederal Program: Education Stabilization FundAssistance Listing Number: 84.425F, 84.425E, 84.425MAward Number and Period: P425M200011, May 5, 2020 ? June 30, 2023; P425F200021,May 4, 2020 ? June 30, 2023; P425E200504, April 22, 2020 ?May 11, 2022Compliance Requirement: Allowable Costs/Cost PrinciplesType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:Per HEERF III, FAQ Question 22 (Issued May 11, 2021), Higher Education Emergency Relief Funds (HEERF) grant funds must not be used for senior administrator or executive salaries, benefits, bonuses, contracts, incentives, stock buybacks, shareholder dividends, capital distributions, and stock options, or any other cash or other benefit for a senior administrator or executive.Condition:The College used HEERF grant funds to pay 3 executives a special payment for working in person through the pandemic.Context:As part of the review of HEERF grant funds paid to employees, CLA identified 3 executives that received a special payment.Cause:The College did not have controls in place to ensure payments made to senior administrator or executives were not funded with grants funds. Management was not aware of the specific requirement for senior administrator or executive compensation.Effect:The College made payments to executives that were not eligible to receive grant funds.Repeat Finding: NoQuestioned Costs:$23,016Recommendation:We recommend the College review current procedures to ensure all grant regulations are being followed prior to payments.Views of Responsible Officials:Management agrees with the finding.
Finding 2022-002
Reference Number: 2022-002Federal Agency: U.S. Department of EducationFederal Program: Education Stabilization FundAssistance Listing Number: 84.425F, 84.425E, 84.425MAward Number and Period: P425M200011, May 5, 2020 ? June 30, 2023; P425F200021,May 4, 2020 ? June 30, 2023; P425E200504, April 22, 2020 ?May 11, 2022Compliance Requirement: Allowable Costs/Cost PrinciplesType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:Per HEERF III, FAQ Question 22 (Issued May 11, 2021), Higher Education Emergency Relief Funds (HEERF) grant funds must not be used for senior administrator or executive salaries, benefits, bonuses, contracts, incentives, stock buybacks, shareholder dividends, capital distributions, and stock options, or any other cash or other benefit for a senior administrator or executive.Condition:The College used HEERF grant funds to pay 3 executives a special payment for working in person through the pandemic.Context:As part of the review of HEERF grant funds paid to employees, CLA identified 3 executives that received a special payment.Cause:The College did not have controls in place to ensure payments made to senior administrator or executives were not funded with grants funds. Management was not aware of the specific requirement for senior administrator or executive compensation.Effect:The College made payments to executives that were not eligible to receive grant funds.Repeat Finding: NoQuestioned Costs:$23,016Recommendation:We recommend the College review current procedures to ensure all grant regulations are being followed prior to payments.Views of Responsible Officials:Management agrees with the finding.
Finding 2022-002
Reference Number: 2022-002Federal Agency: U.S. Department of EducationFederal Program: Education Stabilization FundAssistance Listing Number: 84.425F, 84.425E, 84.425MAward Number and Period: P425M200011, May 5, 2020 ? June 30, 2023; P425F200021,May 4, 2020 ? June 30, 2023; P425E200504, April 22, 2020 ?May 11, 2022Compliance Requirement: Allowable Costs/Cost PrinciplesType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:Per HEERF III, FAQ Question 22 (Issued May 11, 2021), Higher Education Emergency Relief Funds (HEERF) grant funds must not be used for senior administrator or executive salaries, benefits, bonuses, contracts, incentives, stock buybacks, shareholder dividends, capital distributions, and stock options, or any other cash or other benefit for a senior administrator or executive.Condition:The College used HEERF grant funds to pay 3 executives a special payment for working in person through the pandemic.Context:As part of the review of HEERF grant funds paid to employees, CLA identified 3 executives that received a special payment.Cause:The College did not have controls in place to ensure payments made to senior administrator or executives were not funded with grants funds. Management was not aware of the specific requirement for senior administrator or executive compensation.Effect:The College made payments to executives that were not eligible to receive grant funds.Repeat Finding: NoQuestioned Costs:$23,016Recommendation:We recommend the College review current procedures to ensure all grant regulations are being followed prior to payments.Views of Responsible Officials:Management agrees with the finding.
Finding 2022-002
Reference Number: 2022-002Federal Agency: U.S. Department of EducationFederal Program: Education Stabilization FundAssistance Listing Number: 84.425F, 84.425E, 84.425MAward Number and Period: P425M200011, May 5, 2020 ? June 30, 2023; P425F200021,May 4, 2020 ? June 30, 2023; P425E200504, April 22, 2020 ?May 11, 2022Compliance Requirement: Allowable Costs/Cost PrinciplesType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:Per HEERF III, FAQ Question 22 (Issued May 11, 2021), Higher Education Emergency Relief Funds (HEERF) grant funds must not be used for senior administrator or executive salaries, benefits, bonuses, contracts, incentives, stock buybacks, shareholder dividends, capital distributions, and stock options, or any other cash or other benefit for a senior administrator or executive.Condition:The College used HEERF grant funds to pay 3 executives a special payment for working in person through the pandemic.Context:As part of the review of HEERF grant funds paid to employees, CLA identified 3 executives that received a special payment.Cause:The College did not have controls in place to ensure payments made to senior administrator or executives were not funded with grants funds. Management was not aware of the specific requirement for senior administrator or executive compensation.Effect:The College made payments to executives that were not eligible to receive grant funds.Repeat Finding: NoQuestioned Costs:$23,016Recommendation:We recommend the College review current procedures to ensure all grant regulations are being followed prior to payments.Views of Responsible Officials:Management agrees with the finding.
Finding 2022-002
Reference Number: 2022-002Federal Agency: U.S. Department of EducationFederal Program: Education Stabilization FundAssistance Listing Number: 84.425F, 84.425E, 84.425MAward Number and Period: P425M200011, May 5, 2020 ? June 30, 2023; P425F200021,May 4, 2020 ? June 30, 2023; P425E200504, April 22, 2020 ?May 11, 2022Compliance Requirement: Allowable Costs/Cost PrinciplesType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:Per HEERF III, FAQ Question 22 (Issued May 11, 2021), Higher Education Emergency Relief Funds (HEERF) grant funds must not be used for senior administrator or executive salaries, benefits, bonuses, contracts, incentives, stock buybacks, shareholder dividends, capital distributions, and stock options, or any other cash or other benefit for a senior administrator or executive.Condition:The College used HEERF grant funds to pay 3 executives a special payment for working in person through the pandemic.Context:As part of the review of HEERF grant funds paid to employees, CLA identified 3 executives that received a special payment.Cause:The College did not have controls in place to ensure payments made to senior administrator or executives were not funded with grants funds. Management was not aware of the specific requirement for senior administrator or executive compensation.Effect:The College made payments to executives that were not eligible to receive grant funds.Repeat Finding: NoQuestioned Costs:$23,016Recommendation:We recommend the College review current procedures to ensure all grant regulations are being followed prior to payments.Views of Responsible Officials:Management agrees with the finding.
Finding 2022-003
Reference Number: 2022-003Federal Agency: U.S. Department of EducationFederal Program: Education Stabilization FundAssistance Listing Number: 84.425FAward Number and Period: P425F200021; May 4, 2020 ? June 30, 2023Compliance Requirement: ReportingType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:2 CFR, Part 200, Section 200.328 requires that unless otherwise approved by OMB, the Federal awarding agency must solicit only the OMB-approved governmentwide data elements for collection of financial information (at time of publication the Federal Financial Report or such future, OMB-approved, governmentwide data elements available from the OMB-designated standards lead. This information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. The Federal awarding agency must use OMB-approved common information collections, as applicable, when providing financial and performance reporting information.Condition:The College was unable to provide supporting documentation that agreed to the quarterly and annual reports submitted for the grant.Context:As part of the testing of the reporting requirement, CLA identified 2 errors in the quarterly reports out of the 4 tested, and an error in the annual report.Cause:The College did not have appropriate controls to ensure documentation for the quarterly and annual reporting was properly maintained.Effect:The College annual reporting may not be accurate and supported.Repeat Finding: NoQuestioned Costs:NoneRecommendation:We recommend the College review current procedures to ensure documentation is maintained to support the amounts submitted on quarterly and annual reports.Views of Responsible Officials:Management agrees with the finding.
Finding 2022-003
Reference Number: 2022-003Federal Agency: U.S. Department of EducationFederal Program: Education Stabilization FundAssistance Listing Number: 84.425FAward Number and Period: P425F200021; May 4, 2020 ? June 30, 2023Compliance Requirement: ReportingType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:2 CFR, Part 200, Section 200.328 requires that unless otherwise approved by OMB, the Federal awarding agency must solicit only the OMB-approved governmentwide data elements for collection of financial information (at time of publication the Federal Financial Report or such future, OMB-approved, governmentwide data elements available from the OMB-designated standards lead. This information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. The Federal awarding agency must use OMB-approved common information collections, as applicable, when providing financial and performance reporting information.Condition:The College was unable to provide supporting documentation that agreed to the quarterly and annual reports submitted for the grant.Context:As part of the testing of the reporting requirement, CLA identified 2 errors in the quarterly reports out of the 4 tested, and an error in the annual report.Cause:The College did not have appropriate controls to ensure documentation for the quarterly and annual reporting was properly maintained.Effect:The College annual reporting may not be accurate and supported.Repeat Finding: NoQuestioned Costs:NoneRecommendation:We recommend the College review current procedures to ensure documentation is maintained to support the amounts submitted on quarterly and annual reports.Views of Responsible Officials:Management agrees with the finding.
Finding 2022-003
Reference Number: 2022-003Federal Agency: U.S. Department of EducationFederal Program: Education Stabilization FundAssistance Listing Number: 84.425FAward Number and Period: P425F200021; May 4, 2020 ? June 30, 2023Compliance Requirement: ReportingType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:2 CFR, Part 200, Section 200.328 requires that unless otherwise approved by OMB, the Federal awarding agency must solicit only the OMB-approved governmentwide data elements for collection of financial information (at time of publication the Federal Financial Report or such future, OMB-approved, governmentwide data elements available from the OMB-designated standards lead. This information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. The Federal awarding agency must use OMB-approved common information collections, as applicable, when providing financial and performance reporting information.Condition:The College was unable to provide supporting documentation that agreed to the quarterly and annual reports submitted for the grant.Context:As part of the testing of the reporting requirement, CLA identified 2 errors in the quarterly reports out of the 4 tested, and an error in the annual report.Cause:The College did not have appropriate controls to ensure documentation for the quarterly and annual reporting was properly maintained.Effect:The College annual reporting may not be accurate and supported.Repeat Finding: NoQuestioned Costs:NoneRecommendation:We recommend the College review current procedures to ensure documentation is maintained to support the amounts submitted on quarterly and annual reports.Views of Responsible Officials:Management agrees with the finding.
Finding 2022-002
Reference Number: 2022-002Federal Agency: U.S. Department of EducationFederal Program: Education Stabilization FundAssistance Listing Number: 84.425F, 84.425E, 84.425MAward Number and Period: P425M200011, May 5, 2020 ? June 30, 2023; P425F200021,May 4, 2020 ? June 30, 2023; P425E200504, April 22, 2020 ?May 11, 2022Compliance Requirement: Allowable Costs/Cost PrinciplesType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:Per HEERF III, FAQ Question 22 (Issued May 11, 2021), Higher Education Emergency Relief Funds (HEERF) grant funds must not be used for senior administrator or executive salaries, benefits, bonuses, contracts, incentives, stock buybacks, shareholder dividends, capital distributions, and stock options, or any other cash or other benefit for a senior administrator or executive.Condition:The College used HEERF grant funds to pay 3 executives a special payment for working in person through the pandemic.Context:As part of the review of HEERF grant funds paid to employees, CLA identified 3 executives that received a special payment.Cause:The College did not have controls in place to ensure payments made to senior administrator or executives were not funded with grants funds. Management was not aware of the specific requirement for senior administrator or executive compensation.Effect:The College made payments to executives that were not eligible to receive grant funds.Repeat Finding: NoQuestioned Costs:$23,016Recommendation:We recommend the College review current procedures to ensure all grant regulations are being followed prior to payments.Views of Responsible Officials:Management agrees with the finding.
Finding 2022-002
Reference Number: 2022-002Federal Agency: U.S. Department of EducationFederal Program: Education Stabilization FundAssistance Listing Number: 84.425F, 84.425E, 84.425MAward Number and Period: P425M200011, May 5, 2020 ? June 30, 2023; P425F200021,May 4, 2020 ? June 30, 2023; P425E200504, April 22, 2020 ?May 11, 2022Compliance Requirement: Allowable Costs/Cost PrinciplesType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:Per HEERF III, FAQ Question 22 (Issued May 11, 2021), Higher Education Emergency Relief Funds (HEERF) grant funds must not be used for senior administrator or executive salaries, benefits, bonuses, contracts, incentives, stock buybacks, shareholder dividends, capital distributions, and stock options, or any other cash or other benefit for a senior administrator or executive.Condition:The College used HEERF grant funds to pay 3 executives a special payment for working in person through the pandemic.Context:As part of the review of HEERF grant funds paid to employees, CLA identified 3 executives that received a special payment.Cause:The College did not have controls in place to ensure payments made to senior administrator or executives were not funded with grants funds. Management was not aware of the specific requirement for senior administrator or executive compensation.Effect:The College made payments to executives that were not eligible to receive grant funds.Repeat Finding: NoQuestioned Costs:$23,016Recommendation:We recommend the College review current procedures to ensure all grant regulations are being followed prior to payments.Views of Responsible Officials:Management agrees with the finding.
Finding 2022-002
Reference Number: 2022-002Federal Agency: U.S. Department of EducationFederal Program: Education Stabilization FundAssistance Listing Number: 84.425F, 84.425E, 84.425MAward Number and Period: P425M200011, May 5, 2020 ? June 30, 2023; P425F200021,May 4, 2020 ? June 30, 2023; P425E200504, April 22, 2020 ?May 11, 2022Compliance Requirement: Allowable Costs/Cost PrinciplesType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:Per HEERF III, FAQ Question 22 (Issued May 11, 2021), Higher Education Emergency Relief Funds (HEERF) grant funds must not be used for senior administrator or executive salaries, benefits, bonuses, contracts, incentives, stock buybacks, shareholder dividends, capital distributions, and stock options, or any other cash or other benefit for a senior administrator or executive.Condition:The College used HEERF grant funds to pay 3 executives a special payment for working in person through the pandemic.Context:As part of the review of HEERF grant funds paid to employees, CLA identified 3 executives that received a special payment.Cause:The College did not have controls in place to ensure payments made to senior administrator or executives were not funded with grants funds. Management was not aware of the specific requirement for senior administrator or executive compensation.Effect:The College made payments to executives that were not eligible to receive grant funds.Repeat Finding: NoQuestioned Costs:$23,016Recommendation:We recommend the College review current procedures to ensure all grant regulations are being followed prior to payments.Views of Responsible Officials:Management agrees with the finding.
Finding 2022-002
Reference Number: 2022-002Federal Agency: U.S. Department of EducationFederal Program: Education Stabilization FundAssistance Listing Number: 84.425F, 84.425E, 84.425MAward Number and Period: P425M200011, May 5, 2020 ? June 30, 2023; P425F200021,May 4, 2020 ? June 30, 2023; P425E200504, April 22, 2020 ?May 11, 2022Compliance Requirement: Allowable Costs/Cost PrinciplesType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:Per HEERF III, FAQ Question 22 (Issued May 11, 2021), Higher Education Emergency Relief Funds (HEERF) grant funds must not be used for senior administrator or executive salaries, benefits, bonuses, contracts, incentives, stock buybacks, shareholder dividends, capital distributions, and stock options, or any other cash or other benefit for a senior administrator or executive.Condition:The College used HEERF grant funds to pay 3 executives a special payment for working in person through the pandemic.Context:As part of the review of HEERF grant funds paid to employees, CLA identified 3 executives that received a special payment.Cause:The College did not have controls in place to ensure payments made to senior administrator or executives were not funded with grants funds. Management was not aware of the specific requirement for senior administrator or executive compensation.Effect:The College made payments to executives that were not eligible to receive grant funds.Repeat Finding: NoQuestioned Costs:$23,016Recommendation:We recommend the College review current procedures to ensure all grant regulations are being followed prior to payments.Views of Responsible Officials:Management agrees with the finding.
Finding 2022-002
Reference Number: 2022-002Federal Agency: U.S. Department of EducationFederal Program: Education Stabilization FundAssistance Listing Number: 84.425F, 84.425E, 84.425MAward Number and Period: P425M200011, May 5, 2020 ? June 30, 2023; P425F200021,May 4, 2020 ? June 30, 2023; P425E200504, April 22, 2020 ?May 11, 2022Compliance Requirement: Allowable Costs/Cost PrinciplesType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:Per HEERF III, FAQ Question 22 (Issued May 11, 2021), Higher Education Emergency Relief Funds (HEERF) grant funds must not be used for senior administrator or executive salaries, benefits, bonuses, contracts, incentives, stock buybacks, shareholder dividends, capital distributions, and stock options, or any other cash or other benefit for a senior administrator or executive.Condition:The College used HEERF grant funds to pay 3 executives a special payment for working in person through the pandemic.Context:As part of the review of HEERF grant funds paid to employees, CLA identified 3 executives that received a special payment.Cause:The College did not have controls in place to ensure payments made to senior administrator or executives were not funded with grants funds. Management was not aware of the specific requirement for senior administrator or executive compensation.Effect:The College made payments to executives that were not eligible to receive grant funds.Repeat Finding: NoQuestioned Costs:$23,016Recommendation:We recommend the College review current procedures to ensure all grant regulations are being followed prior to payments.Views of Responsible Officials:Management agrees with the finding.
Finding 2022-002
Reference Number: 2022-002Federal Agency: U.S. Department of EducationFederal Program: Education Stabilization FundAssistance Listing Number: 84.425F, 84.425E, 84.425MAward Number and Period: P425M200011, May 5, 2020 ? June 30, 2023; P425F200021,May 4, 2020 ? June 30, 2023; P425E200504, April 22, 2020 ?May 11, 2022Compliance Requirement: Allowable Costs/Cost PrinciplesType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:Per HEERF III, FAQ Question 22 (Issued May 11, 2021), Higher Education Emergency Relief Funds (HEERF) grant funds must not be used for senior administrator or executive salaries, benefits, bonuses, contracts, incentives, stock buybacks, shareholder dividends, capital distributions, and stock options, or any other cash or other benefit for a senior administrator or executive.Condition:The College used HEERF grant funds to pay 3 executives a special payment for working in person through the pandemic.Context:As part of the review of HEERF grant funds paid to employees, CLA identified 3 executives that received a special payment.Cause:The College did not have controls in place to ensure payments made to senior administrator or executives were not funded with grants funds. Management was not aware of the specific requirement for senior administrator or executive compensation.Effect:The College made payments to executives that were not eligible to receive grant funds.Repeat Finding: NoQuestioned Costs:$23,016Recommendation:We recommend the College review current procedures to ensure all grant regulations are being followed prior to payments.Views of Responsible Officials:Management agrees with the finding.
Finding 2022-003
Reference Number: 2022-003Federal Agency: U.S. Department of EducationFederal Program: Education Stabilization FundAssistance Listing Number: 84.425FAward Number and Period: P425F200021; May 4, 2020 ? June 30, 2023Compliance Requirement: ReportingType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:2 CFR, Part 200, Section 200.328 requires that unless otherwise approved by OMB, the Federal awarding agency must solicit only the OMB-approved governmentwide data elements for collection of financial information (at time of publication the Federal Financial Report or such future, OMB-approved, governmentwide data elements available from the OMB-designated standards lead. This information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. The Federal awarding agency must use OMB-approved common information collections, as applicable, when providing financial and performance reporting information.Condition:The College was unable to provide supporting documentation that agreed to the quarterly and annual reports submitted for the grant.Context:As part of the testing of the reporting requirement, CLA identified 2 errors in the quarterly reports out of the 4 tested, and an error in the annual report.Cause:The College did not have appropriate controls to ensure documentation for the quarterly and annual reporting was properly maintained.Effect:The College annual reporting may not be accurate and supported.Repeat Finding: NoQuestioned Costs:NoneRecommendation:We recommend the College review current procedures to ensure documentation is maintained to support the amounts submitted on quarterly and annual reports.Views of Responsible Officials:Management agrees with the finding.
Finding 2022-003
Reference Number: 2022-003Federal Agency: U.S. Department of EducationFederal Program: Education Stabilization FundAssistance Listing Number: 84.425FAward Number and Period: P425F200021; May 4, 2020 ? June 30, 2023Compliance Requirement: ReportingType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:2 CFR, Part 200, Section 200.328 requires that unless otherwise approved by OMB, the Federal awarding agency must solicit only the OMB-approved governmentwide data elements for collection of financial information (at time of publication the Federal Financial Report or such future, OMB-approved, governmentwide data elements available from the OMB-designated standards lead. This information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. The Federal awarding agency must use OMB-approved common information collections, as applicable, when providing financial and performance reporting information.Condition:The College was unable to provide supporting documentation that agreed to the quarterly and annual reports submitted for the grant.Context:As part of the testing of the reporting requirement, CLA identified 2 errors in the quarterly reports out of the 4 tested, and an error in the annual report.Cause:The College did not have appropriate controls to ensure documentation for the quarterly and annual reporting was properly maintained.Effect:The College annual reporting may not be accurate and supported.Repeat Finding: NoQuestioned Costs:NoneRecommendation:We recommend the College review current procedures to ensure documentation is maintained to support the amounts submitted on quarterly and annual reports.Views of Responsible Officials:Management agrees with the finding.
Finding 2022-003
Reference Number: 2022-003Federal Agency: U.S. Department of EducationFederal Program: Education Stabilization FundAssistance Listing Number: 84.425FAward Number and Period: P425F200021; May 4, 2020 ? June 30, 2023Compliance Requirement: ReportingType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:2 CFR, Part 200, Section 200.328 requires that unless otherwise approved by OMB, the Federal awarding agency must solicit only the OMB-approved governmentwide data elements for collection of financial information (at time of publication the Federal Financial Report or such future, OMB-approved, governmentwide data elements available from the OMB-designated standards lead. This information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. The Federal awarding agency must use OMB-approved common information collections, as applicable, when providing financial and performance reporting information.Condition:The College was unable to provide supporting documentation that agreed to the quarterly and annual reports submitted for the grant.Context:As part of the testing of the reporting requirement, CLA identified 2 errors in the quarterly reports out of the 4 tested, and an error in the annual report.Cause:The College did not have appropriate controls to ensure documentation for the quarterly and annual reporting was properly maintained.Effect:The College annual reporting may not be accurate and supported.Repeat Finding: NoQuestioned Costs:NoneRecommendation:We recommend the College review current procedures to ensure documentation is maintained to support the amounts submitted on quarterly and annual reports.Views of Responsible Officials:Management agrees with the finding.