Audit 338909

FY End
2024-09-30
Total Expended
$31.38M
Findings
16
Programs
11
Organization: Bishop State Community College (AL)
Year: 2024 Accepted: 2025-01-20

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
519769 2024-012 Significant Deficiency - N
519770 2024-012 Significant Deficiency - N
519771 2024-012 Significant Deficiency - N
519772 2024-007 Material Weakness - B
519773 2024-008 Material Weakness - C
519774 2024-009 Significant Deficiency - L
519775 2024-010 Significant Deficiency - I
519776 2024-011 Significant Deficiency - E
1096211 2024-012 Significant Deficiency - N
1096212 2024-012 Significant Deficiency - N
1096213 2024-012 Significant Deficiency - N
1096214 2024-007 Material Weakness - B
1096215 2024-008 Material Weakness - C
1096216 2024-009 Significant Deficiency - L
1096217 2024-010 Significant Deficiency - I
1096218 2024-011 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $14.47M - 0
84.063 Federal Pell Grant Program $9.46M Yes 1
84.031 Higher Education Institutional Aid $5.53M Yes 5
84.002 Adult Education - Basic Grants to States $587,268 - 0
84.048 Career and Technical Education -- Basic Grants to States $465,323 - 0
84.042 Trio Student Support Services $249,285 - 0
84.007 Federal Supplemental Educational Opportunity Grants $209,274 Yes 1
17.268 H-1b Job Training Grants $166,381 - 0
17.259 Wioa Youth Activities $127,540 - 0
84.033 Federal Work-Study Program $95,025 Yes 1
20.205 Highway Planning and Construction $21,836 - 0

Contacts

Name Title Type
WTDAUMTURGC5 Kelly Little Auditee
2514057059 Jeri S Groce Auditor
No contacts on file

Notes to SEFA

Title: Note 3. Subrecipients Accounting Policies: Note 1. Basis of Accounting The Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Bishop State Community College (the College) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). De Minimis Rate Used: N Rate Explanation: Note 2. Indirect Cost Rate The College did not elect to charge a de minimis rate of 10% for all federal awards. The College did not provide federal awards to any subrecipients during the year ended September 30, 2024.

Finding Details

Finding 2024-012 – Special Tests and Provisions- Enrollment Reporting (Significant Deficiency and Noncompliance) Information on the Federal Program: U.S. Department of Education Student Financial Aid Cluster Criteria: The NSLDS Enrollment Reporting Guide provides requirements and guidance for reporting enrollment details under the Pell grant and other programs. Institutions must update the Enrollment Reporting Roster for changes in student status, report the date the enrollment status was effective, enter the new anticipated completion date and submit the changes electronically through the batch method or the National Student Loan Data System (NSLDS) website. Institutions are responsible for timely reporting, whether they report directly or via a third-party servicer. These changes include reductions or increases in attendance levels, withdrawals, graduations or approved leaves-of-absence. Condition: We tested a sample of 25 withdrawn students. In 5 instances, the change in status was not reported within the required 60-day time frame. Cause: Unofficial withdraws from the College are not determined until after the end of the semester. Based on current procedures, these student status changes were not included in the last report of the semester and the next reporting submission was not submitted timely. Effect: The College did not report the student enrollment status change in a timely manner. Questioned Costs: None Recommendation: We recommend the College strengthen its policies and procedures related to enrollment reporting requirements to comply with the regulations. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-012 – Special Tests and Provisions- Enrollment Reporting (Significant Deficiency and Noncompliance) Information on the Federal Program: U.S. Department of Education Student Financial Aid Cluster Criteria: The NSLDS Enrollment Reporting Guide provides requirements and guidance for reporting enrollment details under the Pell grant and other programs. Institutions must update the Enrollment Reporting Roster for changes in student status, report the date the enrollment status was effective, enter the new anticipated completion date and submit the changes electronically through the batch method or the National Student Loan Data System (NSLDS) website. Institutions are responsible for timely reporting, whether they report directly or via a third-party servicer. These changes include reductions or increases in attendance levels, withdrawals, graduations or approved leaves-of-absence. Condition: We tested a sample of 25 withdrawn students. In 5 instances, the change in status was not reported within the required 60-day time frame. Cause: Unofficial withdraws from the College are not determined until after the end of the semester. Based on current procedures, these student status changes were not included in the last report of the semester and the next reporting submission was not submitted timely. Effect: The College did not report the student enrollment status change in a timely manner. Questioned Costs: None Recommendation: We recommend the College strengthen its policies and procedures related to enrollment reporting requirements to comply with the regulations. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-012 – Special Tests and Provisions- Enrollment Reporting (Significant Deficiency and Noncompliance) Information on the Federal Program: U.S. Department of Education Student Financial Aid Cluster Criteria: The NSLDS Enrollment Reporting Guide provides requirements and guidance for reporting enrollment details under the Pell grant and other programs. Institutions must update the Enrollment Reporting Roster for changes in student status, report the date the enrollment status was effective, enter the new anticipated completion date and submit the changes electronically through the batch method or the National Student Loan Data System (NSLDS) website. Institutions are responsible for timely reporting, whether they report directly or via a third-party servicer. These changes include reductions or increases in attendance levels, withdrawals, graduations or approved leaves-of-absence. Condition: We tested a sample of 25 withdrawn students. In 5 instances, the change in status was not reported within the required 60-day time frame. Cause: Unofficial withdraws from the College are not determined until after the end of the semester. Based on current procedures, these student status changes were not included in the last report of the semester and the next reporting submission was not submitted timely. Effect: The College did not report the student enrollment status change in a timely manner. Questioned Costs: None Recommendation: We recommend the College strengthen its policies and procedures related to enrollment reporting requirements to comply with the regulations. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-007 – Allowable Costs & Period of Performance (Material Weakness and Noncompliance) Information on the Federal Program: U.S. Department of Education, Higher Education- Institutional Aid (Title III), Assistance Listing No. 84.031 Criteria: 2 CFR Part 200 Subpart E establishes cost principles to apply in determining costs under federal awards. Non-federal entities are also required to establish controls over the disbursement process to ensure compliance with allowable cost requirements. In addition, a non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance and any costs incurred before the federal awarding agency or pass-through entity made the federal award that were authorized by the federal awarding agency or pass-through entity (2 CFR sections 200.308, 200.309, and 200.403(h)). Condition: We selected a sample of 25 non-payroll disbursements and 25 payroll disbursements charged to the grant. Of the 25 non-payroll, 4 were missing an approval by the Director of Title III Programs and 4 costs were not in the applicable budgets. In addition, 2 were charged to a fund code for a grant period that ended September 30, 2023. There were 44 pay checks tested in the sample of 25; of those 44, 31 exceptions were noted as having an issue around the approved pay rate documentation. In 9 instances, there was no documented approved pay rate, only support provided was a local salary schedule for multiple positions for 6 of the exceptions. In 15 instances, there was no approval for salary to be charged to the grant number and documentation showed unrestricted, a different account or offer letter had no Title III documentation. In 7 instances, the approved pay rate did not agree to actual paycheck report. Cause: The College did not obtain proper approval by the Director of the program, expenses did not fit into the grant budget line items, approved pay rates were not properly documented and the College continued to use funds after the grant period ended based on verbal instruction. Effect: The College’s grant disbursements were not properly approved. Questioned Costs: $35,461 Recommendation: We recommend the College strengthen its policies and procedures surrounding payroll and non-payroll grant disbursements to ensure controls are functioning and compliant with federal regulations Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-008 – Cash Management (Material Weakness and Noncompliance) Information on the Federal Program: U.S. Department of Education, Higher Education- Institutional Aid, Assistance Listing No. 84.031Criteria: 2 CFR Part 200.305 establishes the methods of receiving payment from the federal agency. The College uses the reimbursement method to receive Title III funds. The non-federal entity is also required to design and implement internal controls over the cash management process. Condition: We selected 5 drawdowns for reimbursement made during the year for testing. For 4 drawdowns, there was no documentation of a review of the calculation of the amount to draw or approval to draw down the funds. Cause: The College did not have a review and approval process in place for 9 months of the fiscal year. Effect: The College’s grant reimbursements were not properly approved. Questioned Costs: None reported Recommendation: We recommend the College strengthen its policies and procedures over cash management to ensure controls are properly implemented and working effectively. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-009 – Reporting (Significant Deficiency and Noncompliance) Information on the Federal Program: U.S. Department of Education, Higher Education- Institutional Aid, Assistance Listing No. 84.031 Criteria: 2 CFR Part 200.328 & 329 establish reporting requirements for non-federal entities that include timely and accurate reporting. Non-federal entities are also required to establish controls over the reporting process to ensure compliance with reporting requirements. Condition: We selected 2 annual reports submitted during the year to test for controls and compliance. No documentation of review or approval of the reports was available. Cause: The College did not retain documentation of a review and approval of Title III reports submitted. Effect: The College did not have appropriate documentation. Questioned Costs: None reported Recommendation: We recommend the College strengthen its policies and procedures over the grant reporting process to ensure controls are properly implemented and working effectively. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-010 – Procurement (Significant Deficiency and Noncompliance) Information on the Federal Program: U.S. Department of Education, Higher Education- Institutional Aid, Assistance Listing No. 84.031 Criteria: 2 CFR 200.317-327 establishes procurement standards for non-federal entities. This includes different requirements based on the amount of purchases made from the vendor during the year. Condition: We selected 7 vendors for procurement testing. Of those 7, it was noted that one vendor was paid over the micro-purchase threshold and therefore should have obtained price or rate quotes. Cause: The College did not obtain price or rate quotes for this vendor that had provided services for several years. Effect: The College did not have appropriate documentation. Questioned Costs: $24,250 Recommendation: We recommend the College strengthen its policies and procedures over procurement to ensure vendors in the small purchase category are properly procured. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-011 – Equipment Management (Significant Deficiency and Noncompliance) Information on the Federal Program: U.S. Department of Education, Higher Education- Institutional Aid, Assistance Listing No. 84.031 Criteria: 2 CFR Section 200.313(d)(2) establishes the requirement that a physical inventory of property must be taken and the results reconciled with the property records at least every 2 years. Condition: Documentation of a physical inventory performed college-wide was not available. Cause: The College did not perform a physical inventory of assets purchased with federal funds in the last 2 years. Effect: The College did not have appropriate documentation that a physical inventory was performed. Questioned Costs: None Recommendation: We recommend the College strengthen its policies and procedures over equipment management to ensure a physical inventory is performed every 2 years, at a minimum. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-012 – Special Tests and Provisions- Enrollment Reporting (Significant Deficiency and Noncompliance) Information on the Federal Program: U.S. Department of Education Student Financial Aid Cluster Criteria: The NSLDS Enrollment Reporting Guide provides requirements and guidance for reporting enrollment details under the Pell grant and other programs. Institutions must update the Enrollment Reporting Roster for changes in student status, report the date the enrollment status was effective, enter the new anticipated completion date and submit the changes electronically through the batch method or the National Student Loan Data System (NSLDS) website. Institutions are responsible for timely reporting, whether they report directly or via a third-party servicer. These changes include reductions or increases in attendance levels, withdrawals, graduations or approved leaves-of-absence. Condition: We tested a sample of 25 withdrawn students. In 5 instances, the change in status was not reported within the required 60-day time frame. Cause: Unofficial withdraws from the College are not determined until after the end of the semester. Based on current procedures, these student status changes were not included in the last report of the semester and the next reporting submission was not submitted timely. Effect: The College did not report the student enrollment status change in a timely manner. Questioned Costs: None Recommendation: We recommend the College strengthen its policies and procedures related to enrollment reporting requirements to comply with the regulations. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-012 – Special Tests and Provisions- Enrollment Reporting (Significant Deficiency and Noncompliance) Information on the Federal Program: U.S. Department of Education Student Financial Aid Cluster Criteria: The NSLDS Enrollment Reporting Guide provides requirements and guidance for reporting enrollment details under the Pell grant and other programs. Institutions must update the Enrollment Reporting Roster for changes in student status, report the date the enrollment status was effective, enter the new anticipated completion date and submit the changes electronically through the batch method or the National Student Loan Data System (NSLDS) website. Institutions are responsible for timely reporting, whether they report directly or via a third-party servicer. These changes include reductions or increases in attendance levels, withdrawals, graduations or approved leaves-of-absence. Condition: We tested a sample of 25 withdrawn students. In 5 instances, the change in status was not reported within the required 60-day time frame. Cause: Unofficial withdraws from the College are not determined until after the end of the semester. Based on current procedures, these student status changes were not included in the last report of the semester and the next reporting submission was not submitted timely. Effect: The College did not report the student enrollment status change in a timely manner. Questioned Costs: None Recommendation: We recommend the College strengthen its policies and procedures related to enrollment reporting requirements to comply with the regulations. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-012 – Special Tests and Provisions- Enrollment Reporting (Significant Deficiency and Noncompliance) Information on the Federal Program: U.S. Department of Education Student Financial Aid Cluster Criteria: The NSLDS Enrollment Reporting Guide provides requirements and guidance for reporting enrollment details under the Pell grant and other programs. Institutions must update the Enrollment Reporting Roster for changes in student status, report the date the enrollment status was effective, enter the new anticipated completion date and submit the changes electronically through the batch method or the National Student Loan Data System (NSLDS) website. Institutions are responsible for timely reporting, whether they report directly or via a third-party servicer. These changes include reductions or increases in attendance levels, withdrawals, graduations or approved leaves-of-absence. Condition: We tested a sample of 25 withdrawn students. In 5 instances, the change in status was not reported within the required 60-day time frame. Cause: Unofficial withdraws from the College are not determined until after the end of the semester. Based on current procedures, these student status changes were not included in the last report of the semester and the next reporting submission was not submitted timely. Effect: The College did not report the student enrollment status change in a timely manner. Questioned Costs: None Recommendation: We recommend the College strengthen its policies and procedures related to enrollment reporting requirements to comply with the regulations. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-007 – Allowable Costs & Period of Performance (Material Weakness and Noncompliance) Information on the Federal Program: U.S. Department of Education, Higher Education- Institutional Aid (Title III), Assistance Listing No. 84.031 Criteria: 2 CFR Part 200 Subpart E establishes cost principles to apply in determining costs under federal awards. Non-federal entities are also required to establish controls over the disbursement process to ensure compliance with allowable cost requirements. In addition, a non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance and any costs incurred before the federal awarding agency or pass-through entity made the federal award that were authorized by the federal awarding agency or pass-through entity (2 CFR sections 200.308, 200.309, and 200.403(h)). Condition: We selected a sample of 25 non-payroll disbursements and 25 payroll disbursements charged to the grant. Of the 25 non-payroll, 4 were missing an approval by the Director of Title III Programs and 4 costs were not in the applicable budgets. In addition, 2 were charged to a fund code for a grant period that ended September 30, 2023. There were 44 pay checks tested in the sample of 25; of those 44, 31 exceptions were noted as having an issue around the approved pay rate documentation. In 9 instances, there was no documented approved pay rate, only support provided was a local salary schedule for multiple positions for 6 of the exceptions. In 15 instances, there was no approval for salary to be charged to the grant number and documentation showed unrestricted, a different account or offer letter had no Title III documentation. In 7 instances, the approved pay rate did not agree to actual paycheck report. Cause: The College did not obtain proper approval by the Director of the program, expenses did not fit into the grant budget line items, approved pay rates were not properly documented and the College continued to use funds after the grant period ended based on verbal instruction. Effect: The College’s grant disbursements were not properly approved. Questioned Costs: $35,461 Recommendation: We recommend the College strengthen its policies and procedures surrounding payroll and non-payroll grant disbursements to ensure controls are functioning and compliant with federal regulations Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-008 – Cash Management (Material Weakness and Noncompliance) Information on the Federal Program: U.S. Department of Education, Higher Education- Institutional Aid, Assistance Listing No. 84.031Criteria: 2 CFR Part 200.305 establishes the methods of receiving payment from the federal agency. The College uses the reimbursement method to receive Title III funds. The non-federal entity is also required to design and implement internal controls over the cash management process. Condition: We selected 5 drawdowns for reimbursement made during the year for testing. For 4 drawdowns, there was no documentation of a review of the calculation of the amount to draw or approval to draw down the funds. Cause: The College did not have a review and approval process in place for 9 months of the fiscal year. Effect: The College’s grant reimbursements were not properly approved. Questioned Costs: None reported Recommendation: We recommend the College strengthen its policies and procedures over cash management to ensure controls are properly implemented and working effectively. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-009 – Reporting (Significant Deficiency and Noncompliance) Information on the Federal Program: U.S. Department of Education, Higher Education- Institutional Aid, Assistance Listing No. 84.031 Criteria: 2 CFR Part 200.328 & 329 establish reporting requirements for non-federal entities that include timely and accurate reporting. Non-federal entities are also required to establish controls over the reporting process to ensure compliance with reporting requirements. Condition: We selected 2 annual reports submitted during the year to test for controls and compliance. No documentation of review or approval of the reports was available. Cause: The College did not retain documentation of a review and approval of Title III reports submitted. Effect: The College did not have appropriate documentation. Questioned Costs: None reported Recommendation: We recommend the College strengthen its policies and procedures over the grant reporting process to ensure controls are properly implemented and working effectively. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-010 – Procurement (Significant Deficiency and Noncompliance) Information on the Federal Program: U.S. Department of Education, Higher Education- Institutional Aid, Assistance Listing No. 84.031 Criteria: 2 CFR 200.317-327 establishes procurement standards for non-federal entities. This includes different requirements based on the amount of purchases made from the vendor during the year. Condition: We selected 7 vendors for procurement testing. Of those 7, it was noted that one vendor was paid over the micro-purchase threshold and therefore should have obtained price or rate quotes. Cause: The College did not obtain price or rate quotes for this vendor that had provided services for several years. Effect: The College did not have appropriate documentation. Questioned Costs: $24,250 Recommendation: We recommend the College strengthen its policies and procedures over procurement to ensure vendors in the small purchase category are properly procured. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-011 – Equipment Management (Significant Deficiency and Noncompliance) Information on the Federal Program: U.S. Department of Education, Higher Education- Institutional Aid, Assistance Listing No. 84.031 Criteria: 2 CFR Section 200.313(d)(2) establishes the requirement that a physical inventory of property must be taken and the results reconciled with the property records at least every 2 years. Condition: Documentation of a physical inventory performed college-wide was not available. Cause: The College did not perform a physical inventory of assets purchased with federal funds in the last 2 years. Effect: The College did not have appropriate documentation that a physical inventory was performed. Questioned Costs: None Recommendation: We recommend the College strengthen its policies and procedures over equipment management to ensure a physical inventory is performed every 2 years, at a minimum. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.