FAC Explorer

Audit 337812

FY End
2024-08-31
Total Expended
$14.15M
Findings
4
Programs
9
Organization: Coastal Bend College (TX)
Year: 2024 Accepted: 2025-01-14
Auditor: Carr Riggs & Ingram LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
519190 2024-008 Significant Deficiency Yes C
519191 2024-009 Significant Deficiency - I
1095632 2024-008 Significant Deficiency Yes C
1095633 2024-009 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
84.063 Pell Grant Program $5.73M Yes 0
84.425F Covid-19: Education Stabilization Fund: Heerf-Institutional Portion $4.72M Yes 2
84.268 Direct Student Loans $1.41M Yes 0
84.044A Trio Educational Talent Search $682,804 - 0
84.047 Trio Upward Bound $630,511 - 0
84.031A Higher Education Institutional Aid $376,904 - 0
84.048A Career and Technical Education-Basic Grants to States $371,989 - 0
84.007 Supplemental Educational Opportunity Grants $120,028 Yes 0
84.033 Work-Study Program $101,272 Yes 0

Contacts

Name Title Type
ECTHFH5XYMN3 Dixie Lytle Auditee
3613542201 Matthew Montemayor Auditor
No contacts on file

Notes to SEFA

Title: Federal Assistance Reconciliation Accounting Policies: The schedule of expenditures of Federal awards presents the activity of Federal financial assistance programs of the College for the year ended August 31, 2024. Expenditure reports to funding agencies are prepared on the award period basis. The expenditures reported present funds which have been expended by the College for the purposes of the award and may not have been reimbursed by the funding agencies as of the end of the fiscal year. Seperate accounts are maintained for the different awards to aid in the observance of limitations and restrictions imposed by the funding agencies. The College has followed all applicable guidelines issued by various entities in the preparation of the schedules. Expenditures presented on the schedule of expenditures of Federal awards are recognized following the cost principles as found in the Uniform Guidance. The College has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance. The College did not receive any federal noncash assistance for the year ended August 31, 2024. De Minimis Rate Used: N Rate Explanation: The College has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The information in this schedule of expenditures of Federal awards 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). Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the College's financial statements. See reconciliation below: Additional Operating Revenues - Federal Grants and Contracts Per Schedule A: $ 6,886,667 Add: Non-Operating Revenues - Title IV Per Schedule C: 5,845,596 Total Federal Revenues Per Schedule A and Schedule C: 12,732,263 Reconciling Items: Add: Direct Student Loans 1,414,425 Total Federal Revenues Per Schedule of Expenditures of Federal Awards: $ 14,146,688
Title: Relationship to Federal Reports Accounting Policies: The schedule of expenditures of Federal awards presents the activity of Federal financial assistance programs of the College for the year ended August 31, 2024. Expenditure reports to funding agencies are prepared on the award period basis. The expenditures reported present funds which have been expended by the College for the purposes of the award and may not have been reimbursed by the funding agencies as of the end of the fiscal year. Seperate accounts are maintained for the different awards to aid in the observance of limitations and restrictions imposed by the funding agencies. The College has followed all applicable guidelines issued by various entities in the preparation of the schedules. Expenditures presented on the schedule of expenditures of Federal awards are recognized following the cost principles as found in the Uniform Guidance. The College has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance. The College did not receive any federal noncash assistance for the year ended August 31, 2024. De Minimis Rate Used: N Rate Explanation: The College has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Differences between amounts reflected in the financial reports filed with grantor agencies for the programs and in the schedule of expenditures of Federal awards are due to different program year ends and accruals that will be reflected in the next report filed with the agencies.
Title: Expenditures Not Subject to Federal Single Audit Accounting Policies: The schedule of expenditures of Federal awards presents the activity of Federal financial assistance programs of the College for the year ended August 31, 2024. Expenditure reports to funding agencies are prepared on the award period basis. The expenditures reported present funds which have been expended by the College for the purposes of the award and may not have been reimbursed by the funding agencies as of the end of the fiscal year. Seperate accounts are maintained for the different awards to aid in the observance of limitations and restrictions imposed by the funding agencies. The College has followed all applicable guidelines issued by various entities in the preparation of the schedules. Expenditures presented on the schedule of expenditures of Federal awards are recognized following the cost principles as found in the Uniform Guidance. The College has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance. The College did not receive any federal noncash assistance for the year ended August 31, 2024. De Minimis Rate Used: N Rate Explanation: The College has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. None
Title: Student Loans Processed and Administrative Costs Recovered Accounting Policies: The schedule of expenditures of Federal awards presents the activity of Federal financial assistance programs of the College for the year ended August 31, 2024. Expenditure reports to funding agencies are prepared on the award period basis. The expenditures reported present funds which have been expended by the College for the purposes of the award and may not have been reimbursed by the funding agencies as of the end of the fiscal year. Seperate accounts are maintained for the different awards to aid in the observance of limitations and restrictions imposed by the funding agencies. The College has followed all applicable guidelines issued by various entities in the preparation of the schedules. Expenditures presented on the schedule of expenditures of Federal awards are recognized following the cost principles as found in the Uniform Guidance. The College has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance. The College did not receive any federal noncash assistance for the year ended August 31, 2024. De Minimis Rate Used: N Rate Explanation: The College has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. None
Title: Non-Monetary Federal Assistance Accounting Policies: The schedule of expenditures of Federal awards presents the activity of Federal financial assistance programs of the College for the year ended August 31, 2024. Expenditure reports to funding agencies are prepared on the award period basis. The expenditures reported present funds which have been expended by the College for the purposes of the award and may not have been reimbursed by the funding agencies as of the end of the fiscal year. Seperate accounts are maintained for the different awards to aid in the observance of limitations and restrictions imposed by the funding agencies. The College has followed all applicable guidelines issued by various entities in the preparation of the schedules. Expenditures presented on the schedule of expenditures of Federal awards are recognized following the cost principles as found in the Uniform Guidance. The College has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance. The College did not receive any federal noncash assistance for the year ended August 31, 2024. De Minimis Rate Used: N Rate Explanation: The College has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. None
Title: Amounts Passed Through by The College Accounting Policies: The schedule of expenditures of Federal awards presents the activity of Federal financial assistance programs of the College for the year ended August 31, 2024. Expenditure reports to funding agencies are prepared on the award period basis. The expenditures reported present funds which have been expended by the College for the purposes of the award and may not have been reimbursed by the funding agencies as of the end of the fiscal year. Seperate accounts are maintained for the different awards to aid in the observance of limitations and restrictions imposed by the funding agencies. The College has followed all applicable guidelines issued by various entities in the preparation of the schedules. Expenditures presented on the schedule of expenditures of Federal awards are recognized following the cost principles as found in the Uniform Guidance. The College has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance. The College did not receive any federal noncash assistance for the year ended August 31, 2024. De Minimis Rate Used: N Rate Explanation: The College has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. None

Finding Details

Finding 2024-008
2024-008 – Non-Compliance and Significant Deficiency in Internal Control over Compliance - CARES Institutional (HEERF) Federal Awards Assistance Listing Number: 84.425F Program Name: COVID-19 Education Stabilization Fund: HEERF – Institutional Portion Pass Through Identifying Number: N/A Award Year: 2023-2024 Federal Agency: U.S. Department of Education Criteria: In accordance with 2 CFR § 200.305(b) of the Uniform Guidance, which applies to the HEERF grants, grantees must seek to minimize the time between drawing down funds from the G5 system and applying those funds to support a grant award’s activities. Consistent with this requirement, grantees must maintain grant funds in interest-bearing accounts, and any interest earned on grant funds above $500 per year must be remitted to the Federal government. In accordance with 2 CFR.303(a) of the Uniform Guidance, which applies to the HEERF grants, non-Federal entities are required to establish and maintain effective internal controls over federal awards. Condition: No internal controls were identified in regards to appropriate cash management for the Higher Education Emergency Relief Fund Institutional Aid. Cause: Only one person prepared, reviewed, and submitted the cash drawdown requests. In addition, the College did not appropriately monitor the cash deposits for interest earned. Effect: The college earned interest on the funds drawn from the G5 system that were in excess of $500 and did not comply with requirement to return funds. As a result, the college may be required to return the excess funds. Questioned costs: $31,057. Recommendation: It is recommended that the client establish controls in order to ensure that federal awards are prepared and reviewed by multiple personnel before processing. CRI will recommend controls be in place to ensure that there is a minimum period between grant drawdowns and grant expenditures. Views of Responsible Officials: Management agrees with the findings. See corrective action plan beginning on page 108.
Finding 2024-009
2024-009 – Internal controls over compliance - CARES Institutional (HEERF) Federal Awards Type of Finding: Significant Deficiency Assistance Listing Number: 84.425F Program Name: COVID-19 Education Stabilization Fund: HEERF – Institutional Portion Pass Through Identifying Number: N/A Award Year: 2023-2024 Federal Agency: U.S. Department of Education Criteria: In accordance with 2 CFR.303(a) of the Uniform Guidance, which applies to the HEERF grants, non-Federal entities are required to establish and maintain effective internal controls over federal awards. Specifically, internal controls should be established to ensure the non-federal entity appropriately documents review for suspension and debarment before entering into covered transactions. In addition, 2 CFR 180 Subpart C prohibits participants in Federal awards from entering into covered transactions with suspended or debarred parties. Condition: The College did not frequently review the vendors and did not maintain documentation that the vendors were checked against the sam.gov website for suspension or debarment. Cause: The College did not frequently review the vendors and did not maintain documentation that the vendors were checked against the sam.gov website for suspension or debarment due to oversight by personnel. Effect: The college could potentially enter into transactions with parties that are suspended or debarred. Questioned costs: N/A. Recommendation: It is recommended that the client establish controls in order to ensure that vendors are reviewed and documentation is maintained through sam.gov or similar to verify that they are not suspended or debarred. Views of Responsible Officials: Management agrees with the findings. See corrective action plan beginning on page 108.
Finding 2024-008
2024-008 – Non-Compliance and Significant Deficiency in Internal Control over Compliance - CARES Institutional (HEERF) Federal Awards Assistance Listing Number: 84.425F Program Name: COVID-19 Education Stabilization Fund: HEERF – Institutional Portion Pass Through Identifying Number: N/A Award Year: 2023-2024 Federal Agency: U.S. Department of Education Criteria: In accordance with 2 CFR § 200.305(b) of the Uniform Guidance, which applies to the HEERF grants, grantees must seek to minimize the time between drawing down funds from the G5 system and applying those funds to support a grant award’s activities. Consistent with this requirement, grantees must maintain grant funds in interest-bearing accounts, and any interest earned on grant funds above $500 per year must be remitted to the Federal government. In accordance with 2 CFR.303(a) of the Uniform Guidance, which applies to the HEERF grants, non-Federal entities are required to establish and maintain effective internal controls over federal awards. Condition: No internal controls were identified in regards to appropriate cash management for the Higher Education Emergency Relief Fund Institutional Aid. Cause: Only one person prepared, reviewed, and submitted the cash drawdown requests. In addition, the College did not appropriately monitor the cash deposits for interest earned. Effect: The college earned interest on the funds drawn from the G5 system that were in excess of $500 and did not comply with requirement to return funds. As a result, the college may be required to return the excess funds. Questioned costs: $31,057. Recommendation: It is recommended that the client establish controls in order to ensure that federal awards are prepared and reviewed by multiple personnel before processing. CRI will recommend controls be in place to ensure that there is a minimum period between grant drawdowns and grant expenditures. Views of Responsible Officials: Management agrees with the findings. See corrective action plan beginning on page 108.
Finding 2024-009
2024-009 – Internal controls over compliance - CARES Institutional (HEERF) Federal Awards Type of Finding: Significant Deficiency Assistance Listing Number: 84.425F Program Name: COVID-19 Education Stabilization Fund: HEERF – Institutional Portion Pass Through Identifying Number: N/A Award Year: 2023-2024 Federal Agency: U.S. Department of Education Criteria: In accordance with 2 CFR.303(a) of the Uniform Guidance, which applies to the HEERF grants, non-Federal entities are required to establish and maintain effective internal controls over federal awards. Specifically, internal controls should be established to ensure the non-federal entity appropriately documents review for suspension and debarment before entering into covered transactions. In addition, 2 CFR 180 Subpart C prohibits participants in Federal awards from entering into covered transactions with suspended or debarred parties. Condition: The College did not frequently review the vendors and did not maintain documentation that the vendors were checked against the sam.gov website for suspension or debarment. Cause: The College did not frequently review the vendors and did not maintain documentation that the vendors were checked against the sam.gov website for suspension or debarment due to oversight by personnel. Effect: The college could potentially enter into transactions with parties that are suspended or debarred. Questioned costs: N/A. Recommendation: It is recommended that the client establish controls in order to ensure that vendors are reviewed and documentation is maintained through sam.gov or similar to verify that they are not suspended or debarred. Views of Responsible Officials: Management agrees with the findings. See corrective action plan beginning on page 108.