FAC Explorer

Audit 327190

FY End
2024-06-30
Total Expended
$14.66M
Findings
10
Programs
11
Organization: Texas College (TX)
Year: 2024 Accepted: 2024-11-04
Auditor: Murphy and Company PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
504603 2024-001 - - ABGHL
504604 2024-002 - - ACELN
504605 2024-002 - - ACELN
504606 2024-002 - - ACELN
504607 2024-002 - - ACELN
1081045 2024-001 - - ABGHL
1081046 2024-002 - - ACELN
1081047 2024-002 - - ACELN
1081048 2024-002 - - ACELN
1081049 2024-002 - - ACELN

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $5.25M Yes 0
84.063 Federal Pell Grant Program $3.26M Yes 1
84.268 Federal Direct Student Loans $2.59M Yes 1
11.028 Connecting Minority Communities Pilot Program $516,268 Yes 1
84.031 Higher Education Institutional Aid $499,480 - 0
84.007 Federal Supplemental Educational Opportunity Grants $374,728 Yes 1
84.033 Federal Work-Study Program $147,112 Yes 1
47.074 Biological Sciences $41,258 - 0
84.120 Minority Science and Engineering Improvement $35,562 - 0
47.070 Computer and Information Science and Engineering $26,504 - 0
47.076 Stem Education (formerly Education and Human Resources) $18,253 - 0

Contacts

Name Title Type
H9QUXLM7UBJ9 Millicent L. Rickenbacker Auditee
9035938311 Donald K. Murphy Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The College participates in several programs sponsored by various government agencies as listed in the accompanying Schedule of Expenditures of Federal Awards. All programs are subject to audit by the various agencies and they have the authority to determine liabilities, limit or suspend the College's participation in the federal programs. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) is presented on an accrual basis of accounting consistent with the basis of accounting used by the College in the preparation of its financial statements with the exception of government loans and guarantees. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The Schedule includes all known federal and pass-through federal funds expended by the College for the year ended June 30, 2024. All grants/awards should be reviewed in detail to determine if they contain any special provisions (for example, some awards require they be treated as major programs, even though they might not otherwise qualify as such). If the grant/award contains federal funding, the organization will obtain the following: name of the federal agency, award period, Federal Assistance Listinng (FAL) number. The grant/award should also be researched to determine if it is part of a cluster (including research and development) or a federal loan program. If the grant/award is passed through to/from a sub-recipient, the organization will obtain the pass-through entity identifying number. Prior to the grant/award becoming operational, the organization should review the OMB Compliance Supplements Matrix of Compliance Requirements. For every federally funded grant/award, personnel should be assigned for each area of compliance. Expenditures must be tracked for each individual grant/award. The accounting system must be set up to capture this information, and individuals must be established to assign expenses to each grant/award. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The College has received a federally negotiated indirect cost rate and therefore has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2024-001
Finding 2024-001 – U.S. Department of Commerce (significant deficiency): Information on the federal program: Connecting Minority Communities (CMC) in Smith County, FAL No. 11.028, June 30, 2024 Criteria – Federal regulations governing Connecting Minority Communities programs. Condition – Noncompliances were noted, as more fully described in the context below. Questioned Costs – $13,309 Context – We noted the following in connection with our compliance testing of time and effort reports: a) We noticed that nine (9) of 18 time and effort reports tested had incomplete and/or inaccurate percentage calculations. b) Personnel Action Forms provided for six (6) of 18 time and effort reports did not specify pay allocations for employee salaries to the grant. c) The employee signature on three (3) time and effort reports provided for one (1) employee did not appear authentic. d) Three (3) time and effort reports provided for one (1) employee were not approved by a supervisor. e) One (1) time and effort report and corresponding payroll register specified salaries chargeable to a different grant but the expense was charged to the Connecting Minority Communities (CMC) grant. Cause – Oversight by responsible employees. Effect – Unallowable cost could have been charged to the grant. Repeat Finding – No. Auditor’s Recommendation – The College should implement corrective actions to ensure that the above findings are resolved and will not recur in future periods.
Finding 2024-002
Finding 2024-002 – U.S. Department of Education (USDE), Title IV Student Financial Aid Programs: Information on the federal program: Federal Direct Student Loans, FAL No. 84.268, June 30, 2024; Federal Pell Grants Program, FAL No. 84.063, June 30, 2024; Federal Supplemental Educational Opportunity Grant, FAL No. 84.007, June 30, 2024; Federal Work-Study Program, FAL No. 84.033, June 30, 2024 Criteria – Federal regulations governing Title IV programs. Condition – Noncompliances were noted, as more fully described in the context below. Questioned Costs – As provided below. Context – We observed the following conditions in connection with our testing of the various U.S. Department of Education, Title IV, Student Financial Assistance Programs. a) The College had a difference in the Federal Work-Study program which was not reconciled to the general ledger. b) One (1) out of sixty (60) students tested for verification was missing their parent’s tax return. The College subsequently submitted the tax return. Total questioned cost was $3,698. Cause – Oversight by responsible employees. Effect – The College’s participation in the Title IV programs could be subject to USDE sanctions as applicable. Repeat Finding – No. Auditor’s Recommendation – The College should implement corrective actions to ensure that the above findings are resolved and will not recur in future periods.
Finding 2024-002
Finding 2024-002 – U.S. Department of Education (USDE), Title IV Student Financial Aid Programs: Information on the federal program: Federal Direct Student Loans, FAL No. 84.268, June 30, 2024; Federal Pell Grants Program, FAL No. 84.063, June 30, 2024; Federal Supplemental Educational Opportunity Grant, FAL No. 84.007, June 30, 2024; Federal Work-Study Program, FAL No. 84.033, June 30, 2024 Criteria – Federal regulations governing Title IV programs. Condition – Noncompliances were noted, as more fully described in the context below. Questioned Costs – As provided below. Context – We observed the following conditions in connection with our testing of the various U.S. Department of Education, Title IV, Student Financial Assistance Programs. a) The College had a difference in the Federal Work-Study program which was not reconciled to the general ledger. b) One (1) out of sixty (60) students tested for verification was missing their parent’s tax return. The College subsequently submitted the tax return. Total questioned cost was $3,698. Cause – Oversight by responsible employees. Effect – The College’s participation in the Title IV programs could be subject to USDE sanctions as applicable. Repeat Finding – No. Auditor’s Recommendation – The College should implement corrective actions to ensure that the above findings are resolved and will not recur in future periods.
Finding 2024-002
Finding 2024-002 – U.S. Department of Education (USDE), Title IV Student Financial Aid Programs: Information on the federal program: Federal Direct Student Loans, FAL No. 84.268, June 30, 2024; Federal Pell Grants Program, FAL No. 84.063, June 30, 2024; Federal Supplemental Educational Opportunity Grant, FAL No. 84.007, June 30, 2024; Federal Work-Study Program, FAL No. 84.033, June 30, 2024 Criteria – Federal regulations governing Title IV programs. Condition – Noncompliances were noted, as more fully described in the context below. Questioned Costs – As provided below. Context – We observed the following conditions in connection with our testing of the various U.S. Department of Education, Title IV, Student Financial Assistance Programs. a) The College had a difference in the Federal Work-Study program which was not reconciled to the general ledger. b) One (1) out of sixty (60) students tested for verification was missing their parent’s tax return. The College subsequently submitted the tax return. Total questioned cost was $3,698. Cause – Oversight by responsible employees. Effect – The College’s participation in the Title IV programs could be subject to USDE sanctions as applicable. Repeat Finding – No. Auditor’s Recommendation – The College should implement corrective actions to ensure that the above findings are resolved and will not recur in future periods.
Finding 2024-002
Finding 2024-002 – U.S. Department of Education (USDE), Title IV Student Financial Aid Programs: Information on the federal program: Federal Direct Student Loans, FAL No. 84.268, June 30, 2024; Federal Pell Grants Program, FAL No. 84.063, June 30, 2024; Federal Supplemental Educational Opportunity Grant, FAL No. 84.007, June 30, 2024; Federal Work-Study Program, FAL No. 84.033, June 30, 2024 Criteria – Federal regulations governing Title IV programs. Condition – Noncompliances were noted, as more fully described in the context below. Questioned Costs – As provided below. Context – We observed the following conditions in connection with our testing of the various U.S. Department of Education, Title IV, Student Financial Assistance Programs. a) The College had a difference in the Federal Work-Study program which was not reconciled to the general ledger. b) One (1) out of sixty (60) students tested for verification was missing their parent’s tax return. The College subsequently submitted the tax return. Total questioned cost was $3,698. Cause – Oversight by responsible employees. Effect – The College’s participation in the Title IV programs could be subject to USDE sanctions as applicable. Repeat Finding – No. Auditor’s Recommendation – The College should implement corrective actions to ensure that the above findings are resolved and will not recur in future periods.
Finding 2024-001
Finding 2024-001 – U.S. Department of Commerce (significant deficiency): Information on the federal program: Connecting Minority Communities (CMC) in Smith County, FAL No. 11.028, June 30, 2024 Criteria – Federal regulations governing Connecting Minority Communities programs. Condition – Noncompliances were noted, as more fully described in the context below. Questioned Costs – $13,309 Context – We noted the following in connection with our compliance testing of time and effort reports: a) We noticed that nine (9) of 18 time and effort reports tested had incomplete and/or inaccurate percentage calculations. b) Personnel Action Forms provided for six (6) of 18 time and effort reports did not specify pay allocations for employee salaries to the grant. c) The employee signature on three (3) time and effort reports provided for one (1) employee did not appear authentic. d) Three (3) time and effort reports provided for one (1) employee were not approved by a supervisor. e) One (1) time and effort report and corresponding payroll register specified salaries chargeable to a different grant but the expense was charged to the Connecting Minority Communities (CMC) grant. Cause – Oversight by responsible employees. Effect – Unallowable cost could have been charged to the grant. Repeat Finding – No. Auditor’s Recommendation – The College should implement corrective actions to ensure that the above findings are resolved and will not recur in future periods.
Finding 2024-002
Finding 2024-002 – U.S. Department of Education (USDE), Title IV Student Financial Aid Programs: Information on the federal program: Federal Direct Student Loans, FAL No. 84.268, June 30, 2024; Federal Pell Grants Program, FAL No. 84.063, June 30, 2024; Federal Supplemental Educational Opportunity Grant, FAL No. 84.007, June 30, 2024; Federal Work-Study Program, FAL No. 84.033, June 30, 2024 Criteria – Federal regulations governing Title IV programs. Condition – Noncompliances were noted, as more fully described in the context below. Questioned Costs – As provided below. Context – We observed the following conditions in connection with our testing of the various U.S. Department of Education, Title IV, Student Financial Assistance Programs. a) The College had a difference in the Federal Work-Study program which was not reconciled to the general ledger. b) One (1) out of sixty (60) students tested for verification was missing their parent’s tax return. The College subsequently submitted the tax return. Total questioned cost was $3,698. Cause – Oversight by responsible employees. Effect – The College’s participation in the Title IV programs could be subject to USDE sanctions as applicable. Repeat Finding – No. Auditor’s Recommendation – The College should implement corrective actions to ensure that the above findings are resolved and will not recur in future periods.
Finding 2024-002
Finding 2024-002 – U.S. Department of Education (USDE), Title IV Student Financial Aid Programs: Information on the federal program: Federal Direct Student Loans, FAL No. 84.268, June 30, 2024; Federal Pell Grants Program, FAL No. 84.063, June 30, 2024; Federal Supplemental Educational Opportunity Grant, FAL No. 84.007, June 30, 2024; Federal Work-Study Program, FAL No. 84.033, June 30, 2024 Criteria – Federal regulations governing Title IV programs. Condition – Noncompliances were noted, as more fully described in the context below. Questioned Costs – As provided below. Context – We observed the following conditions in connection with our testing of the various U.S. Department of Education, Title IV, Student Financial Assistance Programs. a) The College had a difference in the Federal Work-Study program which was not reconciled to the general ledger. b) One (1) out of sixty (60) students tested for verification was missing their parent’s tax return. The College subsequently submitted the tax return. Total questioned cost was $3,698. Cause – Oversight by responsible employees. Effect – The College’s participation in the Title IV programs could be subject to USDE sanctions as applicable. Repeat Finding – No. Auditor’s Recommendation – The College should implement corrective actions to ensure that the above findings are resolved and will not recur in future periods.
Finding 2024-002
Finding 2024-002 – U.S. Department of Education (USDE), Title IV Student Financial Aid Programs: Information on the federal program: Federal Direct Student Loans, FAL No. 84.268, June 30, 2024; Federal Pell Grants Program, FAL No. 84.063, June 30, 2024; Federal Supplemental Educational Opportunity Grant, FAL No. 84.007, June 30, 2024; Federal Work-Study Program, FAL No. 84.033, June 30, 2024 Criteria – Federal regulations governing Title IV programs. Condition – Noncompliances were noted, as more fully described in the context below. Questioned Costs – As provided below. Context – We observed the following conditions in connection with our testing of the various U.S. Department of Education, Title IV, Student Financial Assistance Programs. a) The College had a difference in the Federal Work-Study program which was not reconciled to the general ledger. b) One (1) out of sixty (60) students tested for verification was missing their parent’s tax return. The College subsequently submitted the tax return. Total questioned cost was $3,698. Cause – Oversight by responsible employees. Effect – The College’s participation in the Title IV programs could be subject to USDE sanctions as applicable. Repeat Finding – No. Auditor’s Recommendation – The College should implement corrective actions to ensure that the above findings are resolved and will not recur in future periods.
Finding 2024-002
Finding 2024-002 – U.S. Department of Education (USDE), Title IV Student Financial Aid Programs: Information on the federal program: Federal Direct Student Loans, FAL No. 84.268, June 30, 2024; Federal Pell Grants Program, FAL No. 84.063, June 30, 2024; Federal Supplemental Educational Opportunity Grant, FAL No. 84.007, June 30, 2024; Federal Work-Study Program, FAL No. 84.033, June 30, 2024 Criteria – Federal regulations governing Title IV programs. Condition – Noncompliances were noted, as more fully described in the context below. Questioned Costs – As provided below. Context – We observed the following conditions in connection with our testing of the various U.S. Department of Education, Title IV, Student Financial Assistance Programs. a) The College had a difference in the Federal Work-Study program which was not reconciled to the general ledger. b) One (1) out of sixty (60) students tested for verification was missing their parent’s tax return. The College subsequently submitted the tax return. Total questioned cost was $3,698. Cause – Oversight by responsible employees. Effect – The College’s participation in the Title IV programs could be subject to USDE sanctions as applicable. Repeat Finding – No. Auditor’s Recommendation – The College should implement corrective actions to ensure that the above findings are resolved and will not recur in future periods.