Audit 338758

Criteria or Specific Requirements OMB Compliance Supplement, OMB No. 1845-0035 – Institutions are required to report enrollment information under the Pell grant and the Direct and FFEL loan programs via the National Student Loan Data System (NSLDS). Institutions must review, update, and verify student enrollment statuses, 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 institutions’ 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 Significant Deficiency in Internal Control over Compliance – The following deficiencies were noted:  2 of 60 students’ effective dates were not accurately reported in NSLDS (status per student accounts do not agree to status per NSLDS) for Mesa College.  1 of 60 students’ change in enrollment status was not reported in NSLDS for Mesa College. Questioned Costs There are no questioned costs associated with the condition identified. Context We tested a nonstatistical sample of 60 students of the approximately 1,159 students that required student enrollment and program enrollment reporting to NSLDS. Effect The District is not in compliance with the Federal enrollment reporting requirements described in the OMB Compliance Supplement. Cause The District did not report enrollment information for students under the Pell Grant and Direct Loan Programs via NSLDS accurately. The reporting extract from Campus Solutions was not properly reviewed and corrected before transmitting to the National Clearing House. Repeat Finding (Yes or No) Yes. See item 2023-002 in the Summary Schedule of Prior Audit Findings. Recommendation The District should implement a process to review, update, and verify student enrollment statuses, 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. View of Responsible Officials and Corrective Action Plan Processes will be implemented to review, update and verify data captured by NSLDS and ensure such data has been accurately reported in a timely manner.

Criteria or Specific Requirements OMB Compliance Supplement, OMB No. 1845-0035 – Institutions are required to report enrollment information under the Pell grant and the Direct and FFEL loan programs via the National Student Loan Data System (NSLDS). Institutions must review, update, and verify student enrollment statuses, 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 institutions’ 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 Significant Deficiency in Internal Control over Compliance – The following deficiencies were noted:  2 of 60 students’ effective dates were not accurately reported in NSLDS (status per student accounts do not agree to status per NSLDS) for Mesa College.  1 of 60 students’ change in enrollment status was not reported in NSLDS for Mesa College. Questioned Costs There are no questioned costs associated with the condition identified. Context We tested a nonstatistical sample of 60 students of the approximately 1,159 students that required student enrollment and program enrollment reporting to NSLDS. Effect The District is not in compliance with the Federal enrollment reporting requirements described in the OMB Compliance Supplement. Cause The District did not report enrollment information for students under the Pell Grant and Direct Loan Programs via NSLDS accurately. The reporting extract from Campus Solutions was not properly reviewed and corrected before transmitting to the National Clearing House. Repeat Finding (Yes or No) Yes. See item 2023-002 in the Summary Schedule of Prior Audit Findings. Recommendation The District should implement a process to review, update, and verify student enrollment statuses, 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. View of Responsible Officials and Corrective Action Plan Processes will be implemented to review, update and verify data captured by NSLDS and ensure such data has been accurately reported in a timely manner.

Criteria or Specific Requirements OMB Compliance Supplement, OMB No. 1845-0035 – Institutions are required to report enrollment information under the Pell grant and the Direct and FFEL loan programs via the National Student Loan Data System (NSLDS). Institutions must review, update, and verify student enrollment statuses, 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 institutions’ 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 Significant Deficiency in Internal Control over Compliance – The following deficiencies were noted:  2 of 60 students’ effective dates were not accurately reported in NSLDS (status per student accounts do not agree to status per NSLDS) for Mesa College.  1 of 60 students’ change in enrollment status was not reported in NSLDS for Mesa College. Questioned Costs There are no questioned costs associated with the condition identified. Context We tested a nonstatistical sample of 60 students of the approximately 1,159 students that required student enrollment and program enrollment reporting to NSLDS. Effect The District is not in compliance with the Federal enrollment reporting requirements described in the OMB Compliance Supplement. Cause The District did not report enrollment information for students under the Pell Grant and Direct Loan Programs via NSLDS accurately. The reporting extract from Campus Solutions was not properly reviewed and corrected before transmitting to the National Clearing House. Repeat Finding (Yes or No) Yes. See item 2023-002 in the Summary Schedule of Prior Audit Findings. Recommendation The District should implement a process to review, update, and verify student enrollment statuses, 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. View of Responsible Officials and Corrective Action Plan Processes will be implemented to review, update and verify data captured by NSLDS and ensure such data has been accurately reported in a timely manner.

Criteria or Specific Requirements OMB Compliance Supplement, OMB No. 1845-0035 – Institutions are required to report enrollment information under the Pell grant and the Direct and FFEL loan programs via the National Student Loan Data System (NSLDS). Institutions must review, update, and verify student enrollment statuses, 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 institutions’ 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 Significant Deficiency in Internal Control over Compliance – The following deficiencies were noted:  2 of 60 students’ effective dates were not accurately reported in NSLDS (status per student accounts do not agree to status per NSLDS) for Mesa College.  1 of 60 students’ change in enrollment status was not reported in NSLDS for Mesa College. Questioned Costs There are no questioned costs associated with the condition identified. Context We tested a nonstatistical sample of 60 students of the approximately 1,159 students that required student enrollment and program enrollment reporting to NSLDS. Effect The District is not in compliance with the Federal enrollment reporting requirements described in the OMB Compliance Supplement. Cause The District did not report enrollment information for students under the Pell Grant and Direct Loan Programs via NSLDS accurately. The reporting extract from Campus Solutions was not properly reviewed and corrected before transmitting to the National Clearing House. Repeat Finding (Yes or No) Yes. See item 2023-002 in the Summary Schedule of Prior Audit Findings. Recommendation The District should implement a process to review, update, and verify student enrollment statuses, 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. View of Responsible Officials and Corrective Action Plan Processes will be implemented to review, update and verify data captured by NSLDS and ensure such data has been accurately reported in a timely manner.

Criteria or Specific Requirements OMB Compliance Supplement, OMB No. 1845-0035 – Institutions are required to report enrollment information under the Pell grant and the Direct and FFEL loan programs via the National Student Loan Data System (NSLDS). Institutions must review, update, and verify student enrollment statuses, 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 institutions’ 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 Significant Deficiency in Internal Control over Compliance – The following deficiencies were noted:  2 of 60 students’ effective dates were not accurately reported in NSLDS (status per student accounts do not agree to status per NSLDS) for Mesa College.  1 of 60 students’ change in enrollment status was not reported in NSLDS for Mesa College. Questioned Costs There are no questioned costs associated with the condition identified. Context We tested a nonstatistical sample of 60 students of the approximately 1,159 students that required student enrollment and program enrollment reporting to NSLDS. Effect The District is not in compliance with the Federal enrollment reporting requirements described in the OMB Compliance Supplement. Cause The District did not report enrollment information for students under the Pell Grant and Direct Loan Programs via NSLDS accurately. The reporting extract from Campus Solutions was not properly reviewed and corrected before transmitting to the National Clearing House. Repeat Finding (Yes or No) Yes. See item 2023-002 in the Summary Schedule of Prior Audit Findings. Recommendation The District should implement a process to review, update, and verify student enrollment statuses, 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. View of Responsible Officials and Corrective Action Plan Processes will be implemented to review, update and verify data captured by NSLDS and ensure such data has been accurately reported in a timely manner.

Criteria or Specific Requirements The Uniform Guidance states that allowable personnel costs charged to federal programs may include reasonable amounts for activities contributing and directly related to work under an agreement (2 CFR 200.430(i)(1)(i)). Charges to federal awards for salaries and wages must be based on records that accurate reflect the work performed (2 CFR 200.430(g)(1)). Condition Material Weakness in Internal Control over Compliance – Time-and-effort reporting, or another similar internal control activity to retroactively verify employee time spent on the program was not reviewed and approved or not performed for the year ending June 30, 2024. During testing over Activities Allowed or Unallowed and Allowable Cost requirements, the following deficiencies were noted:  For the Career and Technical Education program, 14 out of 14 employees selected for testing do not have time-and-effort record reflecting the distribution of the employee’s salary and wages for the federal program.  For the Title III and V programs, we noted the following – o 25 out of 30 employees selected for testing did not have time-and-effort record reflecting the distribution of the employee’s salary and wages for the federal program. o 5 out of 30 employees selected for testing had time-and-effort records, however, there were no evidence of review and approval. 2 of the 5 employees also had incomplete time-and-effort reports (i.e. only for half of the fiscal year, or a few months). Questioned Costs Career Technical Education – Basic Grants to States known questioned costs: $749,547. Higher Education Institutional Aid programs known questioned costs: $1,431,770. Context The Career Technical Education program reference above had a total of $2,355,332 in expenditures for the year ended June 30, 2024, of which $1,108,453 were associated with salaries and benefits. There was a total population of 66 employees charged to the program in the fiscal year ended June 30, 2024. The Title III and V programs referenced above had a total of $2,865,454 in expenditures for the year ended June 30, 2024, of which $2,248,191 associated with salaries and benefits. There was a total population of 148 employees charged to the program in the fiscal year ended June 30, 2024. Effect Without effective internal controls in place over personnel costs, the District risks noncompliance for program costs that could be material. Cause The District does not have policies and procedures in place to review personnel charges to identify the employee costs that should and should not be charged to the federal program referenced above. Repeat Finding (Yes or No) No Recommendation The District should monitor personnel costs charged to federal programs in accordance with the Uniform Guidance. The District should review personnel costs on a regular basis to ensure that costs charged are supported by allowable activities directly related to the program. Additionally, adequate supporting documentation should be retained for personnel costs charged to the federal programs. Views of Responsible Officials and Corrective Action Plan The District and campus staff will work together to develop processes to capture proper and relevant time and effort activities. This will ensure documentation can be provided regarding personnel expenses to identify employee costs charged to federal programs.

Criteria or Specific Requirements The Uniform Guidance states that allowable personnel costs charged to federal programs may include reasonable amounts for activities contributing and directly related to work under an agreement (2 CFR 200.430(i)(1)(i)). Charges to federal awards for salaries and wages must be based on records that accurate reflect the work performed (2 CFR 200.430(g)(1)). Condition Material Weakness in Internal Control over Compliance – Time-and-effort reporting, or another similar internal control activity to retroactively verify employee time spent on the program was not reviewed and approved or not performed for the year ending June 30, 2024. During testing over Activities Allowed or Unallowed and Allowable Cost requirements, the following deficiencies were noted:  For the Career and Technical Education program, 14 out of 14 employees selected for testing do not have time-and-effort record reflecting the distribution of the employee’s salary and wages for the federal program.  For the Title III and V programs, we noted the following – o 25 out of 30 employees selected for testing did not have time-and-effort record reflecting the distribution of the employee’s salary and wages for the federal program. o 5 out of 30 employees selected for testing had time-and-effort records, however, there were no evidence of review and approval. 2 of the 5 employees also had incomplete time-and-effort reports (i.e. only for half of the fiscal year, or a few months). Questioned Costs Career Technical Education – Basic Grants to States known questioned costs: $749,547. Higher Education Institutional Aid programs known questioned costs: $1,431,770. Context The Career Technical Education program reference above had a total of $2,355,332 in expenditures for the year ended June 30, 2024, of which $1,108,453 were associated with salaries and benefits. There was a total population of 66 employees charged to the program in the fiscal year ended June 30, 2024. The Title III and V programs referenced above had a total of $2,865,454 in expenditures for the year ended June 30, 2024, of which $2,248,191 associated with salaries and benefits. There was a total population of 148 employees charged to the program in the fiscal year ended June 30, 2024. Effect Without effective internal controls in place over personnel costs, the District risks noncompliance for program costs that could be material. Cause The District does not have policies and procedures in place to review personnel charges to identify the employee costs that should and should not be charged to the federal program referenced above. Repeat Finding (Yes or No) No Recommendation The District should monitor personnel costs charged to federal programs in accordance with the Uniform Guidance. The District should review personnel costs on a regular basis to ensure that costs charged are supported by allowable activities directly related to the program. Additionally, adequate supporting documentation should be retained for personnel costs charged to the federal programs. Views of Responsible Officials and Corrective Action Plan The District and campus staff will work together to develop processes to capture proper and relevant time and effort activities. This will ensure documentation can be provided regarding personnel expenses to identify employee costs charged to federal programs.

Criteria or Specific Requirements The Uniform Guidance states that allowable personnel costs charged to federal programs may include reasonable amounts for activities contributing and directly related to work under an agreement (2 CFR 200.430(i)(1)(i)). Charges to federal awards for salaries and wages must be based on records that accurate reflect the work performed (2 CFR 200.430(g)(1)). Condition Material Weakness in Internal Control over Compliance – Time-and-effort reporting, or another similar internal control activity to retroactively verify employee time spent on the program was not reviewed and approved or not performed for the year ending June 30, 2024. During testing over Activities Allowed or Unallowed and Allowable Cost requirements, the following deficiencies were noted:  For the Career and Technical Education program, 14 out of 14 employees selected for testing do not have time-and-effort record reflecting the distribution of the employee’s salary and wages for the federal program.  For the Title III and V programs, we noted the following – o 25 out of 30 employees selected for testing did not have time-and-effort record reflecting the distribution of the employee’s salary and wages for the federal program. o 5 out of 30 employees selected for testing had time-and-effort records, however, there were no evidence of review and approval. 2 of the 5 employees also had incomplete time-and-effort reports (i.e. only for half of the fiscal year, or a few months). Questioned Costs Career Technical Education – Basic Grants to States known questioned costs: $749,547. Higher Education Institutional Aid programs known questioned costs: $1,431,770. Context The Career Technical Education program reference above had a total of $2,355,332 in expenditures for the year ended June 30, 2024, of which $1,108,453 were associated with salaries and benefits. There was a total population of 66 employees charged to the program in the fiscal year ended June 30, 2024. The Title III and V programs referenced above had a total of $2,865,454 in expenditures for the year ended June 30, 2024, of which $2,248,191 associated with salaries and benefits. There was a total population of 148 employees charged to the program in the fiscal year ended June 30, 2024. Effect Without effective internal controls in place over personnel costs, the District risks noncompliance for program costs that could be material. Cause The District does not have policies and procedures in place to review personnel charges to identify the employee costs that should and should not be charged to the federal program referenced above. Repeat Finding (Yes or No) No Recommendation The District should monitor personnel costs charged to federal programs in accordance with the Uniform Guidance. The District should review personnel costs on a regular basis to ensure that costs charged are supported by allowable activities directly related to the program. Additionally, adequate supporting documentation should be retained for personnel costs charged to the federal programs. Views of Responsible Officials and Corrective Action Plan The District and campus staff will work together to develop processes to capture proper and relevant time and effort activities. This will ensure documentation can be provided regarding personnel expenses to identify employee costs charged to federal programs.

Criteria or Specific Requirements The Uniform Guidance states that allowable personnel costs charged to federal programs may include reasonable amounts for activities contributing and directly related to work under an agreement (2 CFR 200.430(i)(1)(i)). Charges to federal awards for salaries and wages must be based on records that accurate reflect the work performed (2 CFR 200.430(g)(1)). Condition Material Weakness in Internal Control over Compliance – Time-and-effort reporting, or another similar internal control activity to retroactively verify employee time spent on the program was not reviewed and approved or not performed for the year ending June 30, 2024. During testing over Activities Allowed or Unallowed and Allowable Cost requirements, the following deficiencies were noted:  For the Career and Technical Education program, 14 out of 14 employees selected for testing do not have time-and-effort record reflecting the distribution of the employee’s salary and wages for the federal program.  For the Title III and V programs, we noted the following – o 25 out of 30 employees selected for testing did not have time-and-effort record reflecting the distribution of the employee’s salary and wages for the federal program. o 5 out of 30 employees selected for testing had time-and-effort records, however, there were no evidence of review and approval. 2 of the 5 employees also had incomplete time-and-effort reports (i.e. only for half of the fiscal year, or a few months). Questioned Costs Career Technical Education – Basic Grants to States known questioned costs: $749,547. Higher Education Institutional Aid programs known questioned costs: $1,431,770. Context The Career Technical Education program reference above had a total of $2,355,332 in expenditures for the year ended June 30, 2024, of which $1,108,453 were associated with salaries and benefits. There was a total population of 66 employees charged to the program in the fiscal year ended June 30, 2024. The Title III and V programs referenced above had a total of $2,865,454 in expenditures for the year ended June 30, 2024, of which $2,248,191 associated with salaries and benefits. There was a total population of 148 employees charged to the program in the fiscal year ended June 30, 2024. Effect Without effective internal controls in place over personnel costs, the District risks noncompliance for program costs that could be material. Cause The District does not have policies and procedures in place to review personnel charges to identify the employee costs that should and should not be charged to the federal program referenced above. Repeat Finding (Yes or No) No Recommendation The District should monitor personnel costs charged to federal programs in accordance with the Uniform Guidance. The District should review personnel costs on a regular basis to ensure that costs charged are supported by allowable activities directly related to the program. Additionally, adequate supporting documentation should be retained for personnel costs charged to the federal programs. Views of Responsible Officials and Corrective Action Plan The District and campus staff will work together to develop processes to capture proper and relevant time and effort activities. This will ensure documentation can be provided regarding personnel expenses to identify employee costs charged to federal programs.

Criteria or Specific Requirements The Uniform Guidance states that allowable personnel costs charged to federal programs may include reasonable amounts for activities contributing and directly related to work under an agreement (2 CFR 200.430(i)(1)(i)). Charges to federal awards for salaries and wages must be based on records that accurate reflect the work performed (2 CFR 200.430(g)(1)). Condition Material Weakness in Internal Control over Compliance – Time-and-effort reporting, or another similar internal control activity to retroactively verify employee time spent on the program was not reviewed and approved or not performed for the year ending June 30, 2024. During testing over Activities Allowed or Unallowed and Allowable Cost requirements, the following deficiencies were noted:  For the Career and Technical Education program, 14 out of 14 employees selected for testing do not have time-and-effort record reflecting the distribution of the employee’s salary and wages for the federal program.  For the Title III and V programs, we noted the following – o 25 out of 30 employees selected for testing did not have time-and-effort record reflecting the distribution of the employee’s salary and wages for the federal program. o 5 out of 30 employees selected for testing had time-and-effort records, however, there were no evidence of review and approval. 2 of the 5 employees also had incomplete time-and-effort reports (i.e. only for half of the fiscal year, or a few months). Questioned Costs Career Technical Education – Basic Grants to States known questioned costs: $749,547. Higher Education Institutional Aid programs known questioned costs: $1,431,770. Context The Career Technical Education program reference above had a total of $2,355,332 in expenditures for the year ended June 30, 2024, of which $1,108,453 were associated with salaries and benefits. There was a total population of 66 employees charged to the program in the fiscal year ended June 30, 2024. The Title III and V programs referenced above had a total of $2,865,454 in expenditures for the year ended June 30, 2024, of which $2,248,191 associated with salaries and benefits. There was a total population of 148 employees charged to the program in the fiscal year ended June 30, 2024. Effect Without effective internal controls in place over personnel costs, the District risks noncompliance for program costs that could be material. Cause The District does not have policies and procedures in place to review personnel charges to identify the employee costs that should and should not be charged to the federal program referenced above. Repeat Finding (Yes or No) No Recommendation The District should monitor personnel costs charged to federal programs in accordance with the Uniform Guidance. The District should review personnel costs on a regular basis to ensure that costs charged are supported by allowable activities directly related to the program. Additionally, adequate supporting documentation should be retained for personnel costs charged to the federal programs. Views of Responsible Officials and Corrective Action Plan The District and campus staff will work together to develop processes to capture proper and relevant time and effort activities. This will ensure documentation can be provided regarding personnel expenses to identify employee costs charged to federal programs.

Criteria or Specific Requirements The Uniform Guidance states that allowable personnel costs charged to federal programs may include reasonable amounts for activities contributing and directly related to work under an agreement (2 CFR 200.430(i)(1)(i)). Charges to federal awards for salaries and wages must be based on records that accurate reflect the work performed (2 CFR 200.430(g)(1)). Condition Material Weakness in Internal Control over Compliance – Time-and-effort reporting, or another similar internal control activity to retroactively verify employee time spent on the program was not reviewed and approved or not performed for the year ending June 30, 2024. During testing over Activities Allowed or Unallowed and Allowable Cost requirements, the following deficiencies were noted:  For the Career and Technical Education program, 14 out of 14 employees selected for testing do not have time-and-effort record reflecting the distribution of the employee’s salary and wages for the federal program.  For the Title III and V programs, we noted the following – o 25 out of 30 employees selected for testing did not have time-and-effort record reflecting the distribution of the employee’s salary and wages for the federal program. o 5 out of 30 employees selected for testing had time-and-effort records, however, there were no evidence of review and approval. 2 of the 5 employees also had incomplete time-and-effort reports (i.e. only for half of the fiscal year, or a few months). Questioned Costs Career Technical Education – Basic Grants to States known questioned costs: $749,547. Higher Education Institutional Aid programs known questioned costs: $1,431,770. Context The Career Technical Education program reference above had a total of $2,355,332 in expenditures for the year ended June 30, 2024, of which $1,108,453 were associated with salaries and benefits. There was a total population of 66 employees charged to the program in the fiscal year ended June 30, 2024. The Title III and V programs referenced above had a total of $2,865,454 in expenditures for the year ended June 30, 2024, of which $2,248,191 associated with salaries and benefits. There was a total population of 148 employees charged to the program in the fiscal year ended June 30, 2024. Effect Without effective internal controls in place over personnel costs, the District risks noncompliance for program costs that could be material. Cause The District does not have policies and procedures in place to review personnel charges to identify the employee costs that should and should not be charged to the federal program referenced above. Repeat Finding (Yes or No) No Recommendation The District should monitor personnel costs charged to federal programs in accordance with the Uniform Guidance. The District should review personnel costs on a regular basis to ensure that costs charged are supported by allowable activities directly related to the program. Additionally, adequate supporting documentation should be retained for personnel costs charged to the federal programs. Views of Responsible Officials and Corrective Action Plan The District and campus staff will work together to develop processes to capture proper and relevant time and effort activities. This will ensure documentation can be provided regarding personnel expenses to identify employee costs charged to federal programs.

Criteria or Specific Requirements The Uniform Guidance states that allowable personnel costs charged to federal programs may include reasonable amounts for activities contributing and directly related to work under an agreement (2 CFR 200.430(i)(1)(i)). Charges to federal awards for salaries and wages must be based on records that accurate reflect the work performed (2 CFR 200.430(g)(1)). Condition Material Weakness in Internal Control over Compliance – Time-and-effort reporting, or another similar internal control activity to retroactively verify employee time spent on the program was not reviewed and approved or not performed for the year ending June 30, 2024. During testing over Activities Allowed or Unallowed and Allowable Cost requirements, the following deficiencies were noted:  For the Career and Technical Education program, 14 out of 14 employees selected for testing do not have time-and-effort record reflecting the distribution of the employee’s salary and wages for the federal program.  For the Title III and V programs, we noted the following – o 25 out of 30 employees selected for testing did not have time-and-effort record reflecting the distribution of the employee’s salary and wages for the federal program. o 5 out of 30 employees selected for testing had time-and-effort records, however, there were no evidence of review and approval. 2 of the 5 employees also had incomplete time-and-effort reports (i.e. only for half of the fiscal year, or a few months). Questioned Costs Career Technical Education – Basic Grants to States known questioned costs: $749,547. Higher Education Institutional Aid programs known questioned costs: $1,431,770. Context The Career Technical Education program reference above had a total of $2,355,332 in expenditures for the year ended June 30, 2024, of which $1,108,453 were associated with salaries and benefits. There was a total population of 66 employees charged to the program in the fiscal year ended June 30, 2024. The Title III and V programs referenced above had a total of $2,865,454 in expenditures for the year ended June 30, 2024, of which $2,248,191 associated with salaries and benefits. There was a total population of 148 employees charged to the program in the fiscal year ended June 30, 2024. Effect Without effective internal controls in place over personnel costs, the District risks noncompliance for program costs that could be material. Cause The District does not have policies and procedures in place to review personnel charges to identify the employee costs that should and should not be charged to the federal program referenced above. Repeat Finding (Yes or No) No Recommendation The District should monitor personnel costs charged to federal programs in accordance with the Uniform Guidance. The District should review personnel costs on a regular basis to ensure that costs charged are supported by allowable activities directly related to the program. Additionally, adequate supporting documentation should be retained for personnel costs charged to the federal programs. Views of Responsible Officials and Corrective Action Plan The District and campus staff will work together to develop processes to capture proper and relevant time and effort activities. This will ensure documentation can be provided regarding personnel expenses to identify employee costs charged to federal programs.

Criteria or Specific Requirements OMB Compliance Supplement, OMB No. 1845-0035 – Institutions are required to report enrollment information under the Pell grant and the Direct and FFEL loan programs via the National Student Loan Data System (NSLDS). Institutions must review, update, and verify student enrollment statuses, 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 institutions’ 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 Significant Deficiency in Internal Control over Compliance – The following deficiencies were noted:  2 of 60 students’ effective dates were not accurately reported in NSLDS (status per student accounts do not agree to status per NSLDS) for Mesa College.  1 of 60 students’ change in enrollment status was not reported in NSLDS for Mesa College. Questioned Costs There are no questioned costs associated with the condition identified. Context We tested a nonstatistical sample of 60 students of the approximately 1,159 students that required student enrollment and program enrollment reporting to NSLDS. Effect The District is not in compliance with the Federal enrollment reporting requirements described in the OMB Compliance Supplement. Cause The District did not report enrollment information for students under the Pell Grant and Direct Loan Programs via NSLDS accurately. The reporting extract from Campus Solutions was not properly reviewed and corrected before transmitting to the National Clearing House. Repeat Finding (Yes or No) Yes. See item 2023-002 in the Summary Schedule of Prior Audit Findings. Recommendation The District should implement a process to review, update, and verify student enrollment statuses, 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. View of Responsible Officials and Corrective Action Plan Processes will be implemented to review, update and verify data captured by NSLDS and ensure such data has been accurately reported in a timely manner.

Criteria or Specific Requirements OMB Compliance Supplement, OMB No. 1845-0035 – Institutions are required to report enrollment information under the Pell grant and the Direct and FFEL loan programs via the National Student Loan Data System (NSLDS). Institutions must review, update, and verify student enrollment statuses, 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 institutions’ 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 Significant Deficiency in Internal Control over Compliance – The following deficiencies were noted:  2 of 60 students’ effective dates were not accurately reported in NSLDS (status per student accounts do not agree to status per NSLDS) for Mesa College.  1 of 60 students’ change in enrollment status was not reported in NSLDS for Mesa College. Questioned Costs There are no questioned costs associated with the condition identified. Context We tested a nonstatistical sample of 60 students of the approximately 1,159 students that required student enrollment and program enrollment reporting to NSLDS. Effect The District is not in compliance with the Federal enrollment reporting requirements described in the OMB Compliance Supplement. Cause The District did not report enrollment information for students under the Pell Grant and Direct Loan Programs via NSLDS accurately. The reporting extract from Campus Solutions was not properly reviewed and corrected before transmitting to the National Clearing House. Repeat Finding (Yes or No) Yes. See item 2023-002 in the Summary Schedule of Prior Audit Findings. Recommendation The District should implement a process to review, update, and verify student enrollment statuses, 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. View of Responsible Officials and Corrective Action Plan Processes will be implemented to review, update and verify data captured by NSLDS and ensure such data has been accurately reported in a timely manner.

Criteria or Specific Requirements OMB Compliance Supplement, OMB No. 1845-0035 – Institutions are required to report enrollment information under the Pell grant and the Direct and FFEL loan programs via the National Student Loan Data System (NSLDS). Institutions must review, update, and verify student enrollment statuses, 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 institutions’ 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 Significant Deficiency in Internal Control over Compliance – The following deficiencies were noted:  2 of 60 students’ effective dates were not accurately reported in NSLDS (status per student accounts do not agree to status per NSLDS) for Mesa College.  1 of 60 students’ change in enrollment status was not reported in NSLDS for Mesa College. Questioned Costs There are no questioned costs associated with the condition identified. Context We tested a nonstatistical sample of 60 students of the approximately 1,159 students that required student enrollment and program enrollment reporting to NSLDS. Effect The District is not in compliance with the Federal enrollment reporting requirements described in the OMB Compliance Supplement. Cause The District did not report enrollment information for students under the Pell Grant and Direct Loan Programs via NSLDS accurately. The reporting extract from Campus Solutions was not properly reviewed and corrected before transmitting to the National Clearing House. Repeat Finding (Yes or No) Yes. See item 2023-002 in the Summary Schedule of Prior Audit Findings. Recommendation The District should implement a process to review, update, and verify student enrollment statuses, 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. View of Responsible Officials and Corrective Action Plan Processes will be implemented to review, update and verify data captured by NSLDS and ensure such data has been accurately reported in a timely manner.

Criteria or Specific Requirements OMB Compliance Supplement, OMB No. 1845-0035 – Institutions are required to report enrollment information under the Pell grant and the Direct and FFEL loan programs via the National Student Loan Data System (NSLDS). Institutions must review, update, and verify student enrollment statuses, 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 institutions’ 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 Significant Deficiency in Internal Control over Compliance – The following deficiencies were noted:  2 of 60 students’ effective dates were not accurately reported in NSLDS (status per student accounts do not agree to status per NSLDS) for Mesa College.  1 of 60 students’ change in enrollment status was not reported in NSLDS for Mesa College. Questioned Costs There are no questioned costs associated with the condition identified. Context We tested a nonstatistical sample of 60 students of the approximately 1,159 students that required student enrollment and program enrollment reporting to NSLDS. Effect The District is not in compliance with the Federal enrollment reporting requirements described in the OMB Compliance Supplement. Cause The District did not report enrollment information for students under the Pell Grant and Direct Loan Programs via NSLDS accurately. The reporting extract from Campus Solutions was not properly reviewed and corrected before transmitting to the National Clearing House. Repeat Finding (Yes or No) Yes. See item 2023-002 in the Summary Schedule of Prior Audit Findings. Recommendation The District should implement a process to review, update, and verify student enrollment statuses, 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. View of Responsible Officials and Corrective Action Plan Processes will be implemented to review, update and verify data captured by NSLDS and ensure such data has been accurately reported in a timely manner.

Criteria or Specific Requirements OMB Compliance Supplement, OMB No. 1845-0035 – Institutions are required to report enrollment information under the Pell grant and the Direct and FFEL loan programs via the National Student Loan Data System (NSLDS). Institutions must review, update, and verify student enrollment statuses, 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 institutions’ 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 Significant Deficiency in Internal Control over Compliance – The following deficiencies were noted:  2 of 60 students’ effective dates were not accurately reported in NSLDS (status per student accounts do not agree to status per NSLDS) for Mesa College.  1 of 60 students’ change in enrollment status was not reported in NSLDS for Mesa College. Questioned Costs There are no questioned costs associated with the condition identified. Context We tested a nonstatistical sample of 60 students of the approximately 1,159 students that required student enrollment and program enrollment reporting to NSLDS. Effect The District is not in compliance with the Federal enrollment reporting requirements described in the OMB Compliance Supplement. Cause The District did not report enrollment information for students under the Pell Grant and Direct Loan Programs via NSLDS accurately. The reporting extract from Campus Solutions was not properly reviewed and corrected before transmitting to the National Clearing House. Repeat Finding (Yes or No) Yes. See item 2023-002 in the Summary Schedule of Prior Audit Findings. Recommendation The District should implement a process to review, update, and verify student enrollment statuses, 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. View of Responsible Officials and Corrective Action Plan Processes will be implemented to review, update and verify data captured by NSLDS and ensure such data has been accurately reported in a timely manner.

Criteria or Specific Requirements The Uniform Guidance states that allowable personnel costs charged to federal programs may include reasonable amounts for activities contributing and directly related to work under an agreement (2 CFR 200.430(i)(1)(i)). Charges to federal awards for salaries and wages must be based on records that accurate reflect the work performed (2 CFR 200.430(g)(1)). Condition Material Weakness in Internal Control over Compliance – Time-and-effort reporting, or another similar internal control activity to retroactively verify employee time spent on the program was not reviewed and approved or not performed for the year ending June 30, 2024. During testing over Activities Allowed or Unallowed and Allowable Cost requirements, the following deficiencies were noted:  For the Career and Technical Education program, 14 out of 14 employees selected for testing do not have time-and-effort record reflecting the distribution of the employee’s salary and wages for the federal program.  For the Title III and V programs, we noted the following – o 25 out of 30 employees selected for testing did not have time-and-effort record reflecting the distribution of the employee’s salary and wages for the federal program. o 5 out of 30 employees selected for testing had time-and-effort records, however, there were no evidence of review and approval. 2 of the 5 employees also had incomplete time-and-effort reports (i.e. only for half of the fiscal year, or a few months). Questioned Costs Career Technical Education – Basic Grants to States known questioned costs: $749,547. Higher Education Institutional Aid programs known questioned costs: $1,431,770. Context The Career Technical Education program reference above had a total of $2,355,332 in expenditures for the year ended June 30, 2024, of which $1,108,453 were associated with salaries and benefits. There was a total population of 66 employees charged to the program in the fiscal year ended June 30, 2024. The Title III and V programs referenced above had a total of $2,865,454 in expenditures for the year ended June 30, 2024, of which $2,248,191 associated with salaries and benefits. There was a total population of 148 employees charged to the program in the fiscal year ended June 30, 2024. Effect Without effective internal controls in place over personnel costs, the District risks noncompliance for program costs that could be material. Cause The District does not have policies and procedures in place to review personnel charges to identify the employee costs that should and should not be charged to the federal program referenced above. Repeat Finding (Yes or No) No Recommendation The District should monitor personnel costs charged to federal programs in accordance with the Uniform Guidance. The District should review personnel costs on a regular basis to ensure that costs charged are supported by allowable activities directly related to the program. Additionally, adequate supporting documentation should be retained for personnel costs charged to the federal programs. Views of Responsible Officials and Corrective Action Plan The District and campus staff will work together to develop processes to capture proper and relevant time and effort activities. This will ensure documentation can be provided regarding personnel expenses to identify employee costs charged to federal programs.

Criteria or Specific Requirements The Uniform Guidance states that allowable personnel costs charged to federal programs may include reasonable amounts for activities contributing and directly related to work under an agreement (2 CFR 200.430(i)(1)(i)). Charges to federal awards for salaries and wages must be based on records that accurate reflect the work performed (2 CFR 200.430(g)(1)). Condition Material Weakness in Internal Control over Compliance – Time-and-effort reporting, or another similar internal control activity to retroactively verify employee time spent on the program was not reviewed and approved or not performed for the year ending June 30, 2024. During testing over Activities Allowed or Unallowed and Allowable Cost requirements, the following deficiencies were noted:  For the Career and Technical Education program, 14 out of 14 employees selected for testing do not have time-and-effort record reflecting the distribution of the employee’s salary and wages for the federal program.  For the Title III and V programs, we noted the following – o 25 out of 30 employees selected for testing did not have time-and-effort record reflecting the distribution of the employee’s salary and wages for the federal program. o 5 out of 30 employees selected for testing had time-and-effort records, however, there were no evidence of review and approval. 2 of the 5 employees also had incomplete time-and-effort reports (i.e. only for half of the fiscal year, or a few months). Questioned Costs Career Technical Education – Basic Grants to States known questioned costs: $749,547. Higher Education Institutional Aid programs known questioned costs: $1,431,770. Context The Career Technical Education program reference above had a total of $2,355,332 in expenditures for the year ended June 30, 2024, of which $1,108,453 were associated with salaries and benefits. There was a total population of 66 employees charged to the program in the fiscal year ended June 30, 2024. The Title III and V programs referenced above had a total of $2,865,454 in expenditures for the year ended June 30, 2024, of which $2,248,191 associated with salaries and benefits. There was a total population of 148 employees charged to the program in the fiscal year ended June 30, 2024. Effect Without effective internal controls in place over personnel costs, the District risks noncompliance for program costs that could be material. Cause The District does not have policies and procedures in place to review personnel charges to identify the employee costs that should and should not be charged to the federal program referenced above. Repeat Finding (Yes or No) No Recommendation The District should monitor personnel costs charged to federal programs in accordance with the Uniform Guidance. The District should review personnel costs on a regular basis to ensure that costs charged are supported by allowable activities directly related to the program. Additionally, adequate supporting documentation should be retained for personnel costs charged to the federal programs. Views of Responsible Officials and Corrective Action Plan The District and campus staff will work together to develop processes to capture proper and relevant time and effort activities. This will ensure documentation can be provided regarding personnel expenses to identify employee costs charged to federal programs.

Criteria or Specific Requirements The Uniform Guidance states that allowable personnel costs charged to federal programs may include reasonable amounts for activities contributing and directly related to work under an agreement (2 CFR 200.430(i)(1)(i)). Charges to federal awards for salaries and wages must be based on records that accurate reflect the work performed (2 CFR 200.430(g)(1)). Condition Material Weakness in Internal Control over Compliance – Time-and-effort reporting, or another similar internal control activity to retroactively verify employee time spent on the program was not reviewed and approved or not performed for the year ending June 30, 2024. During testing over Activities Allowed or Unallowed and Allowable Cost requirements, the following deficiencies were noted:  For the Career and Technical Education program, 14 out of 14 employees selected for testing do not have time-and-effort record reflecting the distribution of the employee’s salary and wages for the federal program.  For the Title III and V programs, we noted the following – o 25 out of 30 employees selected for testing did not have time-and-effort record reflecting the distribution of the employee’s salary and wages for the federal program. o 5 out of 30 employees selected for testing had time-and-effort records, however, there were no evidence of review and approval. 2 of the 5 employees also had incomplete time-and-effort reports (i.e. only for half of the fiscal year, or a few months). Questioned Costs Career Technical Education – Basic Grants to States known questioned costs: $749,547. Higher Education Institutional Aid programs known questioned costs: $1,431,770. Context The Career Technical Education program reference above had a total of $2,355,332 in expenditures for the year ended June 30, 2024, of which $1,108,453 were associated with salaries and benefits. There was a total population of 66 employees charged to the program in the fiscal year ended June 30, 2024. The Title III and V programs referenced above had a total of $2,865,454 in expenditures for the year ended June 30, 2024, of which $2,248,191 associated with salaries and benefits. There was a total population of 148 employees charged to the program in the fiscal year ended June 30, 2024. Effect Without effective internal controls in place over personnel costs, the District risks noncompliance for program costs that could be material. Cause The District does not have policies and procedures in place to review personnel charges to identify the employee costs that should and should not be charged to the federal program referenced above. Repeat Finding (Yes or No) No Recommendation The District should monitor personnel costs charged to federal programs in accordance with the Uniform Guidance. The District should review personnel costs on a regular basis to ensure that costs charged are supported by allowable activities directly related to the program. Additionally, adequate supporting documentation should be retained for personnel costs charged to the federal programs. Views of Responsible Officials and Corrective Action Plan The District and campus staff will work together to develop processes to capture proper and relevant time and effort activities. This will ensure documentation can be provided regarding personnel expenses to identify employee costs charged to federal programs.

Criteria or Specific Requirements The Uniform Guidance states that allowable personnel costs charged to federal programs may include reasonable amounts for activities contributing and directly related to work under an agreement (2 CFR 200.430(i)(1)(i)). Charges to federal awards for salaries and wages must be based on records that accurate reflect the work performed (2 CFR 200.430(g)(1)). Condition Material Weakness in Internal Control over Compliance – Time-and-effort reporting, or another similar internal control activity to retroactively verify employee time spent on the program was not reviewed and approved or not performed for the year ending June 30, 2024. During testing over Activities Allowed or Unallowed and Allowable Cost requirements, the following deficiencies were noted:  For the Career and Technical Education program, 14 out of 14 employees selected for testing do not have time-and-effort record reflecting the distribution of the employee’s salary and wages for the federal program.  For the Title III and V programs, we noted the following – o 25 out of 30 employees selected for testing did not have time-and-effort record reflecting the distribution of the employee’s salary and wages for the federal program. o 5 out of 30 employees selected for testing had time-and-effort records, however, there were no evidence of review and approval. 2 of the 5 employees also had incomplete time-and-effort reports (i.e. only for half of the fiscal year, or a few months). Questioned Costs Career Technical Education – Basic Grants to States known questioned costs: $749,547. Higher Education Institutional Aid programs known questioned costs: $1,431,770. Context The Career Technical Education program reference above had a total of $2,355,332 in expenditures for the year ended June 30, 2024, of which $1,108,453 were associated with salaries and benefits. There was a total population of 66 employees charged to the program in the fiscal year ended June 30, 2024. The Title III and V programs referenced above had a total of $2,865,454 in expenditures for the year ended June 30, 2024, of which $2,248,191 associated with salaries and benefits. There was a total population of 148 employees charged to the program in the fiscal year ended June 30, 2024. Effect Without effective internal controls in place over personnel costs, the District risks noncompliance for program costs that could be material. Cause The District does not have policies and procedures in place to review personnel charges to identify the employee costs that should and should not be charged to the federal program referenced above. Repeat Finding (Yes or No) No Recommendation The District should monitor personnel costs charged to federal programs in accordance with the Uniform Guidance. The District should review personnel costs on a regular basis to ensure that costs charged are supported by allowable activities directly related to the program. Additionally, adequate supporting documentation should be retained for personnel costs charged to the federal programs. Views of Responsible Officials and Corrective Action Plan The District and campus staff will work together to develop processes to capture proper and relevant time and effort activities. This will ensure documentation can be provided regarding personnel expenses to identify employee costs charged to federal programs.

Criteria or Specific Requirements The Uniform Guidance states that allowable personnel costs charged to federal programs may include reasonable amounts for activities contributing and directly related to work under an agreement (2 CFR 200.430(i)(1)(i)). Charges to federal awards for salaries and wages must be based on records that accurate reflect the work performed (2 CFR 200.430(g)(1)). Condition Material Weakness in Internal Control over Compliance – Time-and-effort reporting, or another similar internal control activity to retroactively verify employee time spent on the program was not reviewed and approved or not performed for the year ending June 30, 2024. During testing over Activities Allowed or Unallowed and Allowable Cost requirements, the following deficiencies were noted:  For the Career and Technical Education program, 14 out of 14 employees selected for testing do not have time-and-effort record reflecting the distribution of the employee’s salary and wages for the federal program.  For the Title III and V programs, we noted the following – o 25 out of 30 employees selected for testing did not have time-and-effort record reflecting the distribution of the employee’s salary and wages for the federal program. o 5 out of 30 employees selected for testing had time-and-effort records, however, there were no evidence of review and approval. 2 of the 5 employees also had incomplete time-and-effort reports (i.e. only for half of the fiscal year, or a few months). Questioned Costs Career Technical Education – Basic Grants to States known questioned costs: $749,547. Higher Education Institutional Aid programs known questioned costs: $1,431,770. Context The Career Technical Education program reference above had a total of $2,355,332 in expenditures for the year ended June 30, 2024, of which $1,108,453 were associated with salaries and benefits. There was a total population of 66 employees charged to the program in the fiscal year ended June 30, 2024. The Title III and V programs referenced above had a total of $2,865,454 in expenditures for the year ended June 30, 2024, of which $2,248,191 associated with salaries and benefits. There was a total population of 148 employees charged to the program in the fiscal year ended June 30, 2024. Effect Without effective internal controls in place over personnel costs, the District risks noncompliance for program costs that could be material. Cause The District does not have policies and procedures in place to review personnel charges to identify the employee costs that should and should not be charged to the federal program referenced above. Repeat Finding (Yes or No) No Recommendation The District should monitor personnel costs charged to federal programs in accordance with the Uniform Guidance. The District should review personnel costs on a regular basis to ensure that costs charged are supported by allowable activities directly related to the program. Additionally, adequate supporting documentation should be retained for personnel costs charged to the federal programs. Views of Responsible Officials and Corrective Action Plan The District and campus staff will work together to develop processes to capture proper and relevant time and effort activities. This will ensure documentation can be provided regarding personnel expenses to identify employee costs charged to federal programs.

Criteria or Specific Requirements The Uniform Guidance states that allowable personnel costs charged to federal programs may include reasonable amounts for activities contributing and directly related to work under an agreement (2 CFR 200.430(i)(1)(i)). Charges to federal awards for salaries and wages must be based on records that accurate reflect the work performed (2 CFR 200.430(g)(1)). Condition Material Weakness in Internal Control over Compliance – Time-and-effort reporting, or another similar internal control activity to retroactively verify employee time spent on the program was not reviewed and approved or not performed for the year ending June 30, 2024. During testing over Activities Allowed or Unallowed and Allowable Cost requirements, the following deficiencies were noted:  For the Career and Technical Education program, 14 out of 14 employees selected for testing do not have time-and-effort record reflecting the distribution of the employee’s salary and wages for the federal program.  For the Title III and V programs, we noted the following – o 25 out of 30 employees selected for testing did not have time-and-effort record reflecting the distribution of the employee’s salary and wages for the federal program. o 5 out of 30 employees selected for testing had time-and-effort records, however, there were no evidence of review and approval. 2 of the 5 employees also had incomplete time-and-effort reports (i.e. only for half of the fiscal year, or a few months). Questioned Costs Career Technical Education – Basic Grants to States known questioned costs: $749,547. Higher Education Institutional Aid programs known questioned costs: $1,431,770. Context The Career Technical Education program reference above had a total of $2,355,332 in expenditures for the year ended June 30, 2024, of which $1,108,453 were associated with salaries and benefits. There was a total population of 66 employees charged to the program in the fiscal year ended June 30, 2024. The Title III and V programs referenced above had a total of $2,865,454 in expenditures for the year ended June 30, 2024, of which $2,248,191 associated with salaries and benefits. There was a total population of 148 employees charged to the program in the fiscal year ended June 30, 2024. Effect Without effective internal controls in place over personnel costs, the District risks noncompliance for program costs that could be material. Cause The District does not have policies and procedures in place to review personnel charges to identify the employee costs that should and should not be charged to the federal program referenced above. Repeat Finding (Yes or No) No Recommendation The District should monitor personnel costs charged to federal programs in accordance with the Uniform Guidance. The District should review personnel costs on a regular basis to ensure that costs charged are supported by allowable activities directly related to the program. Additionally, adequate supporting documentation should be retained for personnel costs charged to the federal programs. Views of Responsible Officials and Corrective Action Plan The District and campus staff will work together to develop processes to capture proper and relevant time and effort activities. This will ensure documentation can be provided regarding personnel expenses to identify employee costs charged to federal programs.

Criteria or Specific Requirements The Uniform Guidance states that allowable personnel costs charged to federal programs may include reasonable amounts for activities contributing and directly related to work under an agreement (2 CFR 200.430(i)(1)(i)). Charges to federal awards for salaries and wages must be based on records that accurate reflect the work performed (2 CFR 200.430(g)(1)). Condition Material Weakness in Internal Control over Compliance – Time-and-effort reporting, or another similar internal control activity to retroactively verify employee time spent on the program was not reviewed and approved or not performed for the year ending June 30, 2024. During testing over Activities Allowed or Unallowed and Allowable Cost requirements, the following deficiencies were noted:  For the Career and Technical Education program, 14 out of 14 employees selected for testing do not have time-and-effort record reflecting the distribution of the employee’s salary and wages for the federal program.  For the Title III and V programs, we noted the following – o 25 out of 30 employees selected for testing did not have time-and-effort record reflecting the distribution of the employee’s salary and wages for the federal program. o 5 out of 30 employees selected for testing had time-and-effort records, however, there were no evidence of review and approval. 2 of the 5 employees also had incomplete time-and-effort reports (i.e. only for half of the fiscal year, or a few months). Questioned Costs Career Technical Education – Basic Grants to States known questioned costs: $749,547. Higher Education Institutional Aid programs known questioned costs: $1,431,770. Context The Career Technical Education program reference above had a total of $2,355,332 in expenditures for the year ended June 30, 2024, of which $1,108,453 were associated with salaries and benefits. There was a total population of 66 employees charged to the program in the fiscal year ended June 30, 2024. The Title III and V programs referenced above had a total of $2,865,454 in expenditures for the year ended June 30, 2024, of which $2,248,191 associated with salaries and benefits. There was a total population of 148 employees charged to the program in the fiscal year ended June 30, 2024. Effect Without effective internal controls in place over personnel costs, the District risks noncompliance for program costs that could be material. Cause The District does not have policies and procedures in place to review personnel charges to identify the employee costs that should and should not be charged to the federal program referenced above. Repeat Finding (Yes or No) No Recommendation The District should monitor personnel costs charged to federal programs in accordance with the Uniform Guidance. The District should review personnel costs on a regular basis to ensure that costs charged are supported by allowable activities directly related to the program. Additionally, adequate supporting documentation should be retained for personnel costs charged to the federal programs. Views of Responsible Officials and Corrective Action Plan The District and campus staff will work together to develop processes to capture proper and relevant time and effort activities. This will ensure documentation can be provided regarding personnel expenses to identify employee costs charged to federal programs.