Audit 331307

FY End
2024-06-30
Total Expended
$22.22M
Findings
4
Programs
15
Year: 2024 Accepted: 2024-12-06

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
513458 2024-001 Significant Deficiency - N
513459 2024-001 Significant Deficiency - N
1089900 2024-001 Significant Deficiency - N
1089901 2024-001 Significant Deficiency - N

Contacts

Name Title Type
R16WQ1KVHG17 Sharon Johnson Auditee
2625643164 Jordan Boehm Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Revenues and expenditures in these schedules are presented in accordance with the modified basis of accounting and are generally in agreement with revenues and expenditures reporting in the District’s 2023-2024 fund financial statements. Such expenditures are recognized following the cost principles or U.S. Treasury requirements contained in the Uniform Guidance and the Wisconsin State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Accrued revenue at year-end consists of federal and state programs that exceed recorded District expenditures. Because of subsequent program adjustments, these amounts may differ from the prior year’s ending balances. De Minimis Rate Used: Y Rate Explanation: The District has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance and the State Single Audit Guidelines. The accompanying Schedules of Expenditures of Federal and State Awards include the federal grant and state grant activity of Gateway Technical College District (the “District”) and are presented on the accrual basis of accounting. The information in these schedules 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) and the Wisconsin State Single Audit Guidelines issued by the Wisconsin Department of Administration. The Schedules of Expenditures of Federal and State Awards include all federal and state awards of the District. Because the schedules present only a selected portion of the operations of the District, it is not intended to and does not present the financial position, changes in net position, or cash flows of the District.
Title: OVERSIGHT AND COGNIZANT AGENCIES Accounting Policies: Revenues and expenditures in these schedules are presented in accordance with the modified basis of accounting and are generally in agreement with revenues and expenditures reporting in the District’s 2023-2024 fund financial statements. Such expenditures are recognized following the cost principles or U.S. Treasury requirements contained in the Uniform Guidance and the Wisconsin State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Accrued revenue at year-end consists of federal and state programs that exceed recorded District expenditures. Because of subsequent program adjustments, these amounts may differ from the prior year’s ending balances. De Minimis Rate Used: Y Rate Explanation: The District has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance and the State Single Audit Guidelines. The District's federal oversight agency for audit is the U.S. Department of Education. The District's state cognizant agency is the Wisconsin Technical College System. Grant monies received and disbursed by the District are for specific purposes and are subject to review and audit by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based upon prior experience, the District does not believe that such disallowances, if any, would have a material effect on the financial position of the District. As of June 30, 2024 management was not aware of any material questioned or disallowed costs as a result of grant audits in process or completed.
Title: STUDENT FINANCIAL AID PROGRAMS Accounting Policies: Revenues and expenditures in these schedules are presented in accordance with the modified basis of accounting and are generally in agreement with revenues and expenditures reporting in the District’s 2023-2024 fund financial statements. Such expenditures are recognized following the cost principles or U.S. Treasury requirements contained in the Uniform Guidance and the Wisconsin State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Accrued revenue at year-end consists of federal and state programs that exceed recorded District expenditures. Because of subsequent program adjustments, these amounts may differ from the prior year’s ending balances. De Minimis Rate Used: Y Rate Explanation: The District has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance and the State Single Audit Guidelines. All programs under the Student Financial Aid Program Cluster heading in the Schedule of Expenditures of Federal Awards are considered Student Financial Aid Programs and expenditures are added together to determine if they meet the major program criteria.
Title: FEDERAL DIRECT STUDENT LOAN PROGRAM (DIRECT LOANS) Accounting Policies: Revenues and expenditures in these schedules are presented in accordance with the modified basis of accounting and are generally in agreement with revenues and expenditures reporting in the District’s 2023-2024 fund financial statements. Such expenditures are recognized following the cost principles or U.S. Treasury requirements contained in the Uniform Guidance and the Wisconsin State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Accrued revenue at year-end consists of federal and state programs that exceed recorded District expenditures. Because of subsequent program adjustments, these amounts may differ from the prior year’s ending balances. De Minimis Rate Used: Y Rate Explanation: The District has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance and the State Single Audit Guidelines. The Direct Loans (Federal Assistance Listing Number 84.268) is comprised of the following types of loans: Subsidized Stafford Loans $ 3,786,333 Unsubsidized Stafford Loans 4,370,733 Total Direct Loans $ 8,201,034
Title: RECONCILIATION OF FEDERAL REVENUES TO BASIC FINANCIAL STATEMENTS Accounting Policies: Revenues and expenditures in these schedules are presented in accordance with the modified basis of accounting and are generally in agreement with revenues and expenditures reporting in the District’s 2023-2024 fund financial statements. Such expenditures are recognized following the cost principles or U.S. Treasury requirements contained in the Uniform Guidance and the Wisconsin State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Accrued revenue at year-end consists of federal and state programs that exceed recorded District expenditures. Because of subsequent program adjustments, these amounts may differ from the prior year’s ending balances. De Minimis Rate Used: Y Rate Explanation: The District has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance and the State Single Audit Guidelines. The following is a reconciliation of federal revenues per the schedule of expenditures of federal awards to the federal revenues per the District basic financial statements. Revenues per schedule of expenditures of federal awards $22,220,851 Add other federal funding 91,543 Revenues per basic financial statements $ 22,312,394 Revenues per basic financial statements Operating revenue – federal grants $ 12,841,758 Nonoperating revenue – federal grants 9,407,511 Nonoperating revenue – federal capital grants 63,125 Total $ 22,312,394
Title: RECONCILIATION OF STATE REVENUES TO BASIC FINANCIAL STATEMENTS Accounting Policies: Revenues and expenditures in these schedules are presented in accordance with the modified basis of accounting and are generally in agreement with revenues and expenditures reporting in the District’s 2023-2024 fund financial statements. Such expenditures are recognized following the cost principles or U.S. Treasury requirements contained in the Uniform Guidance and the Wisconsin State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Accrued revenue at year-end consists of federal and state programs that exceed recorded District expenditures. Because of subsequent program adjustments, these amounts may differ from the prior year’s ending balances. De Minimis Rate Used: Y Rate Explanation: The District has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance and the State Single Audit Guidelines. The following is a reconciliation of state revenues per the schedule of expenditures of state award to the state revenues per the District’s basic financial statements. Revenues per schedule of expenditures of state awards $47,188,759 Other adjustments: Radio grant 30,000 Adjustments from the prior year (23,358) Revenues per basic financial statements $ 47,195,401 Revenues per basic financial statements Operating revenue – state grants $ 3,636,127 Nonoperating revenue – state grants 43,491,609 Nonoperating revenue – state capital grants 67,665 Total $ 47,195,401
Title: PROGRAMS NOT SUBJECT TO SINGLE AUDIT Accounting Policies: Revenues and expenditures in these schedules are presented in accordance with the modified basis of accounting and are generally in agreement with revenues and expenditures reporting in the District’s 2023-2024 fund financial statements. Such expenditures are recognized following the cost principles or U.S. Treasury requirements contained in the Uniform Guidance and the Wisconsin State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Accrued revenue at year-end consists of federal and state programs that exceed recorded District expenditures. Because of subsequent program adjustments, these amounts may differ from the prior year’s ending balances. De Minimis Rate Used: Y Rate Explanation: The District has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance and the State Single Audit Guidelines. The following programs are included on the Schedule of Expenditures of State Awards but are not subject to the Single Audit Act. ID Number Funding Agency Name of Program Amount 835.103 Wisconsin Department of Revenue State Aid – Personal Property $222,862
Title: STUDENT FINANCIAL AID INSTITUTIONAL AND PROGRAM ELIGIBILITY METRICS Accounting Policies: Revenues and expenditures in these schedules are presented in accordance with the modified basis of accounting and are generally in agreement with revenues and expenditures reporting in the District’s 2023-2024 fund financial statements. Such expenditures are recognized following the cost principles or U.S. Treasury requirements contained in the Uniform Guidance and the Wisconsin State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Accrued revenue at year-end consists of federal and state programs that exceed recorded District expenditures. Because of subsequent program adjustments, these amounts may differ from the prior year’s ending balances. De Minimis Rate Used: Y Rate Explanation: The District has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance and the State Single Audit Guidelines. The District is in compliance with the following institutional and program eligibility requirements under the Higher Education Act of 1965 and Federal regulations under 34 CFR 668.23:  Correspondence courses the institution offers under 34 CFR 600.7(b) and (g)  Regular students that enroll in correspondence courses under 34 CFR 600.7(b) and (g)  Institution’s regular students that are incarcerated under 34 CFR 600.7(c) and (g)  Completion rates for confined or incarcerated individuals enrolled in non-degree programs at nonprofit institutions under 34 CFR 600.7(c)(3)(ii) and (g)  Institution’s regular students that lack a high school diploma or its equivalent under 34 CFR 600.7(d) and (g)  Completion rates for short-term programs under 34 CFR 668.8(f) and (g)  Placement rates for short-term programs under 34 CFR 668.8(e)(2)
Title: INDIRECT COSTS Accounting Policies: Revenues and expenditures in these schedules are presented in accordance with the modified basis of accounting and are generally in agreement with revenues and expenditures reporting in the District’s 2023-2024 fund financial statements. Such expenditures are recognized following the cost principles or U.S. Treasury requirements contained in the Uniform Guidance and the Wisconsin State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Accrued revenue at year-end consists of federal and state programs that exceed recorded District expenditures. Because of subsequent program adjustments, these amounts may differ from the prior year’s ending balances. De Minimis Rate Used: Y Rate Explanation: The District has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance and the State Single Audit Guidelines. The District has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance and the State Single Audit Guidelines.
Title: SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Revenues and expenditures in these schedules are presented in accordance with the modified basis of accounting and are generally in agreement with revenues and expenditures reporting in the District’s 2023-2024 fund financial statements. Such expenditures are recognized following the cost principles or U.S. Treasury requirements contained in the Uniform Guidance and the Wisconsin State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Accrued revenue at year-end consists of federal and state programs that exceed recorded District expenditures. Because of subsequent program adjustments, these amounts may differ from the prior year’s ending balances. De Minimis Rate Used: Y Rate Explanation: The District has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance and the State Single Audit Guidelines. Revenues and expenditures in these schedules are presented in accordance with the modified basis of accounting and are generally in agreement with revenues and expenditures reporting in the District’s 2023-2024 fund financial statements. Such expenditures are recognized following the cost principles or U.S. Treasury requirements contained in the Uniform Guidance and the Wisconsin State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Accrued revenue at year-end consists of federal and state programs that exceed recorded District expenditures. Because of subsequent program adjustments, these amounts may differ from the prior year’s ending balances.

Finding Details

Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Aid Cluster Assistance Listing Number: 84.063 and 84.268 Federal Award Identification Number and Year: P063P232671-2024 (84.063) P268K242671-2024 (84.268) Award Period: July 1, 2023 to June 30, 2024 Type of Finding:  Significant Deficiency in Internal Control over Compliance  Other Matters Criteria or specific requirement: Institutions are required to report enrollment information under the Pell grant and Direct and FFEL loan programs via the NSLDS (OMB No. 1845-0035), although FFEL loans are no longer made or a part of the SFA Cluster, a student may have a FFEL loan for previous years that would require enrollment reporting for that student (Pell, 34 CFR 690.83(b)(2); FFEL, 34 CFR 682.610; Direct Loan, 34 CFR 685.309). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update, and verify student enrollment statutes, program information, and effective dates that appear on the Enrollment Reporting Roster file or on the Enrollment Maintenance page of the NSLDS Professional Access (NSLDSFAP) website which the financial aid administrator can access for the auditor. The data on the institution’s Enrollment Reporting Roster, or Enrollment Maintenance page, is what NSLDS has as the most recently certified enrollment information. There are two categories of enrollment information, “Campus Level” and “Program Level,” both of which need to be reported accurately and have separate record types. The NSLDS Enrollment Reporting Guide provides the requirements and guidance for reporting enrollment details using the NSLDS Enrollment Reporting Process. Condition: The District processes failed to accurately report the appropriate status for a student to NSLDS. Questioned costs: None Context: We noted (1) out of forty (40) students selected for testing, where the program enrollment status reported to NSLDS was not consistent with the District records. Cause: The District's internal control failed to detect an error in which the District reported a student as half-time when the student had actually graduated.Effect: The District has not complied with the stated criteria for this exception. Repeat Finding: No Recommendation: We recommend that the District review its processes and internal controls designed to mitigate the risk of noncompliance with the stated criteria to ensure the information reported to NSLDS is consistent with District records. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Aid Cluster Assistance Listing Number: 84.063 and 84.268 Federal Award Identification Number and Year: P063P232671-2024 (84.063) P268K242671-2024 (84.268) Award Period: July 1, 2023 to June 30, 2024 Type of Finding:  Significant Deficiency in Internal Control over Compliance  Other Matters Criteria or specific requirement: Institutions are required to report enrollment information under the Pell grant and Direct and FFEL loan programs via the NSLDS (OMB No. 1845-0035), although FFEL loans are no longer made or a part of the SFA Cluster, a student may have a FFEL loan for previous years that would require enrollment reporting for that student (Pell, 34 CFR 690.83(b)(2); FFEL, 34 CFR 682.610; Direct Loan, 34 CFR 685.309). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update, and verify student enrollment statutes, program information, and effective dates that appear on the Enrollment Reporting Roster file or on the Enrollment Maintenance page of the NSLDS Professional Access (NSLDSFAP) website which the financial aid administrator can access for the auditor. The data on the institution’s Enrollment Reporting Roster, or Enrollment Maintenance page, is what NSLDS has as the most recently certified enrollment information. There are two categories of enrollment information, “Campus Level” and “Program Level,” both of which need to be reported accurately and have separate record types. The NSLDS Enrollment Reporting Guide provides the requirements and guidance for reporting enrollment details using the NSLDS Enrollment Reporting Process. Condition: The District processes failed to accurately report the appropriate status for a student to NSLDS. Questioned costs: None Context: We noted (1) out of forty (40) students selected for testing, where the program enrollment status reported to NSLDS was not consistent with the District records. Cause: The District's internal control failed to detect an error in which the District reported a student as half-time when the student had actually graduated.Effect: The District has not complied with the stated criteria for this exception. Repeat Finding: No Recommendation: We recommend that the District review its processes and internal controls designed to mitigate the risk of noncompliance with the stated criteria to ensure the information reported to NSLDS is consistent with District records. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Aid Cluster Assistance Listing Number: 84.063 and 84.268 Federal Award Identification Number and Year: P063P232671-2024 (84.063) P268K242671-2024 (84.268) Award Period: July 1, 2023 to June 30, 2024 Type of Finding:  Significant Deficiency in Internal Control over Compliance  Other Matters Criteria or specific requirement: Institutions are required to report enrollment information under the Pell grant and Direct and FFEL loan programs via the NSLDS (OMB No. 1845-0035), although FFEL loans are no longer made or a part of the SFA Cluster, a student may have a FFEL loan for previous years that would require enrollment reporting for that student (Pell, 34 CFR 690.83(b)(2); FFEL, 34 CFR 682.610; Direct Loan, 34 CFR 685.309). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update, and verify student enrollment statutes, program information, and effective dates that appear on the Enrollment Reporting Roster file or on the Enrollment Maintenance page of the NSLDS Professional Access (NSLDSFAP) website which the financial aid administrator can access for the auditor. The data on the institution’s Enrollment Reporting Roster, or Enrollment Maintenance page, is what NSLDS has as the most recently certified enrollment information. There are two categories of enrollment information, “Campus Level” and “Program Level,” both of which need to be reported accurately and have separate record types. The NSLDS Enrollment Reporting Guide provides the requirements and guidance for reporting enrollment details using the NSLDS Enrollment Reporting Process. Condition: The District processes failed to accurately report the appropriate status for a student to NSLDS. Questioned costs: None Context: We noted (1) out of forty (40) students selected for testing, where the program enrollment status reported to NSLDS was not consistent with the District records. Cause: The District's internal control failed to detect an error in which the District reported a student as half-time when the student had actually graduated.Effect: The District has not complied with the stated criteria for this exception. Repeat Finding: No Recommendation: We recommend that the District review its processes and internal controls designed to mitigate the risk of noncompliance with the stated criteria to ensure the information reported to NSLDS is consistent with District records. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Aid Cluster Assistance Listing Number: 84.063 and 84.268 Federal Award Identification Number and Year: P063P232671-2024 (84.063) P268K242671-2024 (84.268) Award Period: July 1, 2023 to June 30, 2024 Type of Finding:  Significant Deficiency in Internal Control over Compliance  Other Matters Criteria or specific requirement: Institutions are required to report enrollment information under the Pell grant and Direct and FFEL loan programs via the NSLDS (OMB No. 1845-0035), although FFEL loans are no longer made or a part of the SFA Cluster, a student may have a FFEL loan for previous years that would require enrollment reporting for that student (Pell, 34 CFR 690.83(b)(2); FFEL, 34 CFR 682.610; Direct Loan, 34 CFR 685.309). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update, and verify student enrollment statutes, program information, and effective dates that appear on the Enrollment Reporting Roster file or on the Enrollment Maintenance page of the NSLDS Professional Access (NSLDSFAP) website which the financial aid administrator can access for the auditor. The data on the institution’s Enrollment Reporting Roster, or Enrollment Maintenance page, is what NSLDS has as the most recently certified enrollment information. There are two categories of enrollment information, “Campus Level” and “Program Level,” both of which need to be reported accurately and have separate record types. The NSLDS Enrollment Reporting Guide provides the requirements and guidance for reporting enrollment details using the NSLDS Enrollment Reporting Process. Condition: The District processes failed to accurately report the appropriate status for a student to NSLDS. Questioned costs: None Context: We noted (1) out of forty (40) students selected for testing, where the program enrollment status reported to NSLDS was not consistent with the District records. Cause: The District's internal control failed to detect an error in which the District reported a student as half-time when the student had actually graduated.Effect: The District has not complied with the stated criteria for this exception. Repeat Finding: No Recommendation: We recommend that the District review its processes and internal controls designed to mitigate the risk of noncompliance with the stated criteria to ensure the information reported to NSLDS is consistent with District records. Views of responsible officials: There is no disagreement with the audit finding.