Audit 31442

FY End

2022-06-30

Total Expended

$9.06M

Findings

2

Programs

6

Organization: Cazenovia College (NY)

Year: 2022 Accepted: 2023-04-28

Auditor: Bonadio & CO LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
32019	2022-001	Significant Deficiency	-	C
608461	2022-001	Significant Deficiency	-	C

ALN	Program	Spent	Major	Findings
84.268	Federal Direct Student Loans	$4.46M	Yes	0
84.063	Federal Pell Grant Program	$1.65M	Yes	0
84.425	Education Stabilization Fund	$755,201	Yes	1
84.042	Trio_student Support Services	$350,568	-	0
84.033	Federal Work-Study Program	$87,702	Yes	0
84.007	Federal Supplemental Educational Opportunity Grants	$85,998	Yes	0

Contacts

Name	Title	Type
JHJ4TTHC3J88	William Veit	Auditee
3156557195	Timothy Hammond	Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) presents the activity of all federal award programs of Cazenovia College (the College) under programs of the federal government for the year ended June 30, 2022 and has been prepared in accordance with accounting principles generally accepted in the United States. 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). 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 assets, or cash flows of the College. For the purposes of the schedule, federal awards include all grants, contracts, and similar agreements entered into directly between the College and agencies and departments of the federal government as well as federal awards passed through other agencies. Student financial aid includes certain awards to provide financial assistance to students, primarily under the Federal Work-Study, Pell Grant and Supplemental Educational Opportunity Grant programs of the Department of Education. The College receives awards to make loans to eligible students under certain federal student loan programs and federally guaranteed loans are issued to students of the College by the Federal government. These loans are considered for the purposes of determining whether student financial aid is a major or nonmajor program. 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 allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The College has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2022-001

Finding 2022-001 ? 84.425 COVID-19 Education Stabilization Fund Federal Agency ? U.S. Department of Education Grant Period ? Year ended June 30, 2022 Criteria ? A requirement of and accepting the Higher Education Emergency Relief Fund (HEERF) grant is the compliance with cash management requirements which state that Institutional funds will be disbursed within three calendar days of the drawdown from G5. Condition ? Per review of the G5 draw detail, it was noted that the funding awarded through round three American Rescue Plan (ARP) was all drawn at one time prior to expenditures being incurred. Cause ? The prior Controller was not familiar with the cash management requirement and informed the Bursar to draw all the Institutional funds when they were posted as available. Effect ? The College drew the full $1,465,767 in June 2021 and expenditure of approximately $571,000 was not incurred until March 31, 2022, which was well beyond the three day cash management requirement. Recommendation ? The College needs to ensure they are familiar with specific funding requirements for all grants received to ensure compliance with the funder. View of Responsible Officials ? The College agrees with the auditor?s recommendation, however, the HEERF funding has been fully expended and the College is scheduled to cease academic operations and close permanently after the spring 2023 semester.

Finding 2022-001

Finding 2022-001 ? 84.425 COVID-19 Education Stabilization Fund Federal Agency ? U.S. Department of Education Grant Period ? Year ended June 30, 2022 Criteria ? A requirement of and accepting the Higher Education Emergency Relief Fund (HEERF) grant is the compliance with cash management requirements which state that Institutional funds will be disbursed within three calendar days of the drawdown from G5. Condition ? Per review of the G5 draw detail, it was noted that the funding awarded through round three American Rescue Plan (ARP) was all drawn at one time prior to expenditures being incurred. Cause ? The prior Controller was not familiar with the cash management requirement and informed the Bursar to draw all the Institutional funds when they were posted as available. Effect ? The College drew the full $1,465,767 in June 2021 and expenditure of approximately $571,000 was not incurred until March 31, 2022, which was well beyond the three day cash management requirement. Recommendation ? The College needs to ensure they are familiar with specific funding requirements for all grants received to ensure compliance with the funder. View of Responsible Officials ? The College agrees with the auditor?s recommendation, however, the HEERF funding has been fully expended and the College is scheduled to cease academic operations and close permanently after the spring 2023 semester.