Audit 340025

FY End
2024-09-30
Total Expended
$21.84M
Findings
14
Programs
15
Year: 2024 Accepted: 2025-01-27

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
520291 2024-002 Significant Deficiency - AB
520292 2024-002 Significant Deficiency - AB
520293 2024-003 Significant Deficiency - AB
520294 2024-003 Significant Deficiency - AB
520295 2024-002 Significant Deficiency - AB
520296 2024-003 Significant Deficiency - AB
520297 2024-001 Significant Deficiency - I
1096733 2024-002 Significant Deficiency - AB
1096734 2024-002 Significant Deficiency - AB
1096735 2024-003 Significant Deficiency - AB
1096736 2024-003 Significant Deficiency - AB
1096737 2024-002 Significant Deficiency - AB
1096738 2024-003 Significant Deficiency - AB
1096739 2024-001 Significant Deficiency - I

Contacts

Name Title Type
MNM8WLBH5DZ5 Leon Dowe Auditee
2059296350 Jeri S Groce Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Lawson 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: The College did not elect to charge a de minimis rate of 10% for all federal awards.

Finding Details

Finding 2024-002 – Allowable Costs & Activities (Significant Deficiency and Noncompliance) Information on the Federal Program: U.S. Department of Education, Assistance listing # 84.031 Higher Education Institutional Aid and U.S. Department of Education, Trio Cluster 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.Condition: We selected a sample of 25 non-payroll disbursements each for Title III and Trio programs and three indirect costs for the Trio program. Of the 25 non-payroll disbursements for Title III, two expenses were allocated but the portion charged to the grant did not tie back to the invoice, two expenses were incurred in the prior fiscal year but recorded as current year expenses, and two types of expenses were not in the applicable budgets. Of the 25 non-payroll disbursements for the Trio Cluster, one type of expense exceeded the budget amount and of the three indirect cost calculations, one was not calculated correctly. Cause: On Title III, the College charged a portion of invoices to the grant but the amount could not be recalculated based on the invoice; meals and subscriptions were charged to the grant but the type of expense was not in the budget; and services were performed or orders were placed in the prior year but recognized as current year expenses. On the Trio Cluster, and equipment expenses were charged to the Trio grant but exceeded the grant budget. The indirect cost calculation included previously recorded indirect costs in the base used to recognize and request reimbursement for allowed percentage. Effect: The College did not comply with the exceptions noted for allowable cost and activity requirements. Questioned Costs: Title III $10,261 and Trio Cluster $4,810. Recommendation: We recommend the College strengthen its policies and procedures surrounding non-payroll grant disbursements to ensure disbursements are approved, allowable, and calculations supported. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-002 – Allowable Costs & Activities (Significant Deficiency and Noncompliance) Information on the Federal Program: U.S. Department of Education, Assistance listing # 84.031 Higher Education Institutional Aid and U.S. Department of Education, Trio Cluster 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.Condition: We selected a sample of 25 non-payroll disbursements each for Title III and Trio programs and three indirect costs for the Trio program. Of the 25 non-payroll disbursements for Title III, two expenses were allocated but the portion charged to the grant did not tie back to the invoice, two expenses were incurred in the prior fiscal year but recorded as current year expenses, and two types of expenses were not in the applicable budgets. Of the 25 non-payroll disbursements for the Trio Cluster, one type of expense exceeded the budget amount and of the three indirect cost calculations, one was not calculated correctly. Cause: On Title III, the College charged a portion of invoices to the grant but the amount could not be recalculated based on the invoice; meals and subscriptions were charged to the grant but the type of expense was not in the budget; and services were performed or orders were placed in the prior year but recognized as current year expenses. On the Trio Cluster, and equipment expenses were charged to the Trio grant but exceeded the grant budget. The indirect cost calculation included previously recorded indirect costs in the base used to recognize and request reimbursement for allowed percentage. Effect: The College did not comply with the exceptions noted for allowable cost and activity requirements. Questioned Costs: Title III $10,261 and Trio Cluster $4,810. Recommendation: We recommend the College strengthen its policies and procedures surrounding non-payroll grant disbursements to ensure disbursements are approved, allowable, and calculations supported. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-003 – Allowable Costs & Activities (Significant Deficiency and Noncompliance) Information on the Federal Program: U.S. Department of Education, Assistance listing # 84.031 Higher Education Institutional Aid and U.S. Department of Education, Trio Cluster 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. Condition: We selected a sample of six payroll disbursements for Title III and eleven payroll disbursements for the Trio programs. Of the six payroll disbursements for Title III, four exceptions were noted related to approved pay rate documentation. In one instance the position was not in the grant budget and in three instances, the approved pay rate did not agree to the actual paycheck amount. Of the eleven payroll disbursements for the Trio Cluster, thirty-two employees were included. Of these thirty-two, twenty-one exceptions were noted for lack of proper support. Nineteen exceptions were noted in which the actual pay rate did not agree to the budgeted pay rate; two employees’ job descriptions did not fall under an allowable position in the grant budget; one journal entry reclassified payroll costs but the support for pay rate and time charged were not provided; and one employee received additional pay over the approved letter of appointment, and there was no support for the percent charged to the program. Cause: Payroll costs charged to the grants were not properly documented. Effect: The College did not comply with all allowable cost and activity requirements. The College did not comply with the exceptions noted for allowable cost and activity requirements. Questioned Costs: Title III $4,119 and Trio Cluster $25,655. Recommendation: We recommend the College strengthen its policies and procedures surrounding payroll grant disbursements to ensure expenses are properly approved and allowable under the specific grant budget. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-003 – Allowable Costs & Activities (Significant Deficiency and Noncompliance) Information on the Federal Program: U.S. Department of Education, Assistance listing # 84.031 Higher Education Institutional Aid and U.S. Department of Education, Trio Cluster 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. Condition: We selected a sample of six payroll disbursements for Title III and eleven payroll disbursements for the Trio programs. Of the six payroll disbursements for Title III, four exceptions were noted related to approved pay rate documentation. In one instance the position was not in the grant budget and in three instances, the approved pay rate did not agree to the actual paycheck amount. Of the eleven payroll disbursements for the Trio Cluster, thirty-two employees were included. Of these thirty-two, twenty-one exceptions were noted for lack of proper support. Nineteen exceptions were noted in which the actual pay rate did not agree to the budgeted pay rate; two employees’ job descriptions did not fall under an allowable position in the grant budget; one journal entry reclassified payroll costs but the support for pay rate and time charged were not provided; and one employee received additional pay over the approved letter of appointment, and there was no support for the percent charged to the program. Cause: Payroll costs charged to the grants were not properly documented. Effect: The College did not comply with all allowable cost and activity requirements. The College did not comply with the exceptions noted for allowable cost and activity requirements. Questioned Costs: Title III $4,119 and Trio Cluster $25,655. Recommendation: We recommend the College strengthen its policies and procedures surrounding payroll grant disbursements to ensure expenses are properly approved and allowable under the specific grant budget. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-002 – Allowable Costs & Activities (Significant Deficiency and Noncompliance) Information on the Federal Program: U.S. Department of Education, Assistance listing # 84.031 Higher Education Institutional Aid and U.S. Department of Education, Trio Cluster 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.Condition: We selected a sample of 25 non-payroll disbursements each for Title III and Trio programs and three indirect costs for the Trio program. Of the 25 non-payroll disbursements for Title III, two expenses were allocated but the portion charged to the grant did not tie back to the invoice, two expenses were incurred in the prior fiscal year but recorded as current year expenses, and two types of expenses were not in the applicable budgets. Of the 25 non-payroll disbursements for the Trio Cluster, one type of expense exceeded the budget amount and of the three indirect cost calculations, one was not calculated correctly. Cause: On Title III, the College charged a portion of invoices to the grant but the amount could not be recalculated based on the invoice; meals and subscriptions were charged to the grant but the type of expense was not in the budget; and services were performed or orders were placed in the prior year but recognized as current year expenses. On the Trio Cluster, and equipment expenses were charged to the Trio grant but exceeded the grant budget. The indirect cost calculation included previously recorded indirect costs in the base used to recognize and request reimbursement for allowed percentage. Effect: The College did not comply with the exceptions noted for allowable cost and activity requirements. Questioned Costs: Title III $10,261 and Trio Cluster $4,810. Recommendation: We recommend the College strengthen its policies and procedures surrounding non-payroll grant disbursements to ensure disbursements are approved, allowable, and calculations supported. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-003 – Allowable Costs & Activities (Significant Deficiency and Noncompliance) Information on the Federal Program: U.S. Department of Education, Assistance listing # 84.031 Higher Education Institutional Aid and U.S. Department of Education, Trio Cluster 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. Condition: We selected a sample of six payroll disbursements for Title III and eleven payroll disbursements for the Trio programs. Of the six payroll disbursements for Title III, four exceptions were noted related to approved pay rate documentation. In one instance the position was not in the grant budget and in three instances, the approved pay rate did not agree to the actual paycheck amount. Of the eleven payroll disbursements for the Trio Cluster, thirty-two employees were included. Of these thirty-two, twenty-one exceptions were noted for lack of proper support. Nineteen exceptions were noted in which the actual pay rate did not agree to the budgeted pay rate; two employees’ job descriptions did not fall under an allowable position in the grant budget; one journal entry reclassified payroll costs but the support for pay rate and time charged were not provided; and one employee received additional pay over the approved letter of appointment, and there was no support for the percent charged to the program. Cause: Payroll costs charged to the grants were not properly documented. Effect: The College did not comply with all allowable cost and activity requirements. The College did not comply with the exceptions noted for allowable cost and activity requirements. Questioned Costs: Title III $4,119 and Trio Cluster $25,655. Recommendation: We recommend the College strengthen its policies and procedures surrounding payroll grant disbursements to ensure expenses are properly approved and allowable under the specific grant budget. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-001 – Procurement (Significant Deficiency and Noncompliance) Information on the Federal Program: U.S. Department of Education, Assistance listing # 84.031 Higher Education Institutional Aid 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: Of ten vendors tested, one vendor’s services was not properly bid and one vendor was paid over the micro-purchase threshold and therefore should have obtained price or rate quotes. Cause: The College contracted with a vendor for consulting and then retained them for on-going services. These services were not bid. The other vendor was paid more than the micro-purchase threshold during the year, but price or rate quotes were not obtained for purchases. Effect: The College did not comply with federal procurement requirements for these two exceptions. Questioned Costs: $856,476 Recommendation: We recommend the College strengthen its policies and procedures over procurement to ensure vendors are properly procured. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-002 – Allowable Costs & Activities (Significant Deficiency and Noncompliance) Information on the Federal Program: U.S. Department of Education, Assistance listing # 84.031 Higher Education Institutional Aid and U.S. Department of Education, Trio Cluster 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.Condition: We selected a sample of 25 non-payroll disbursements each for Title III and Trio programs and three indirect costs for the Trio program. Of the 25 non-payroll disbursements for Title III, two expenses were allocated but the portion charged to the grant did not tie back to the invoice, two expenses were incurred in the prior fiscal year but recorded as current year expenses, and two types of expenses were not in the applicable budgets. Of the 25 non-payroll disbursements for the Trio Cluster, one type of expense exceeded the budget amount and of the three indirect cost calculations, one was not calculated correctly. Cause: On Title III, the College charged a portion of invoices to the grant but the amount could not be recalculated based on the invoice; meals and subscriptions were charged to the grant but the type of expense was not in the budget; and services were performed or orders were placed in the prior year but recognized as current year expenses. On the Trio Cluster, and equipment expenses were charged to the Trio grant but exceeded the grant budget. The indirect cost calculation included previously recorded indirect costs in the base used to recognize and request reimbursement for allowed percentage. Effect: The College did not comply with the exceptions noted for allowable cost and activity requirements. Questioned Costs: Title III $10,261 and Trio Cluster $4,810. Recommendation: We recommend the College strengthen its policies and procedures surrounding non-payroll grant disbursements to ensure disbursements are approved, allowable, and calculations supported. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-002 – Allowable Costs & Activities (Significant Deficiency and Noncompliance) Information on the Federal Program: U.S. Department of Education, Assistance listing # 84.031 Higher Education Institutional Aid and U.S. Department of Education, Trio Cluster 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.Condition: We selected a sample of 25 non-payroll disbursements each for Title III and Trio programs and three indirect costs for the Trio program. Of the 25 non-payroll disbursements for Title III, two expenses were allocated but the portion charged to the grant did not tie back to the invoice, two expenses were incurred in the prior fiscal year but recorded as current year expenses, and two types of expenses were not in the applicable budgets. Of the 25 non-payroll disbursements for the Trio Cluster, one type of expense exceeded the budget amount and of the three indirect cost calculations, one was not calculated correctly. Cause: On Title III, the College charged a portion of invoices to the grant but the amount could not be recalculated based on the invoice; meals and subscriptions were charged to the grant but the type of expense was not in the budget; and services were performed or orders were placed in the prior year but recognized as current year expenses. On the Trio Cluster, and equipment expenses were charged to the Trio grant but exceeded the grant budget. The indirect cost calculation included previously recorded indirect costs in the base used to recognize and request reimbursement for allowed percentage. Effect: The College did not comply with the exceptions noted for allowable cost and activity requirements. Questioned Costs: Title III $10,261 and Trio Cluster $4,810. Recommendation: We recommend the College strengthen its policies and procedures surrounding non-payroll grant disbursements to ensure disbursements are approved, allowable, and calculations supported. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-003 – Allowable Costs & Activities (Significant Deficiency and Noncompliance) Information on the Federal Program: U.S. Department of Education, Assistance listing # 84.031 Higher Education Institutional Aid and U.S. Department of Education, Trio Cluster 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. Condition: We selected a sample of six payroll disbursements for Title III and eleven payroll disbursements for the Trio programs. Of the six payroll disbursements for Title III, four exceptions were noted related to approved pay rate documentation. In one instance the position was not in the grant budget and in three instances, the approved pay rate did not agree to the actual paycheck amount. Of the eleven payroll disbursements for the Trio Cluster, thirty-two employees were included. Of these thirty-two, twenty-one exceptions were noted for lack of proper support. Nineteen exceptions were noted in which the actual pay rate did not agree to the budgeted pay rate; two employees’ job descriptions did not fall under an allowable position in the grant budget; one journal entry reclassified payroll costs but the support for pay rate and time charged were not provided; and one employee received additional pay over the approved letter of appointment, and there was no support for the percent charged to the program. Cause: Payroll costs charged to the grants were not properly documented. Effect: The College did not comply with all allowable cost and activity requirements. The College did not comply with the exceptions noted for allowable cost and activity requirements. Questioned Costs: Title III $4,119 and Trio Cluster $25,655. Recommendation: We recommend the College strengthen its policies and procedures surrounding payroll grant disbursements to ensure expenses are properly approved and allowable under the specific grant budget. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-003 – Allowable Costs & Activities (Significant Deficiency and Noncompliance) Information on the Federal Program: U.S. Department of Education, Assistance listing # 84.031 Higher Education Institutional Aid and U.S. Department of Education, Trio Cluster 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. Condition: We selected a sample of six payroll disbursements for Title III and eleven payroll disbursements for the Trio programs. Of the six payroll disbursements for Title III, four exceptions were noted related to approved pay rate documentation. In one instance the position was not in the grant budget and in three instances, the approved pay rate did not agree to the actual paycheck amount. Of the eleven payroll disbursements for the Trio Cluster, thirty-two employees were included. Of these thirty-two, twenty-one exceptions were noted for lack of proper support. Nineteen exceptions were noted in which the actual pay rate did not agree to the budgeted pay rate; two employees’ job descriptions did not fall under an allowable position in the grant budget; one journal entry reclassified payroll costs but the support for pay rate and time charged were not provided; and one employee received additional pay over the approved letter of appointment, and there was no support for the percent charged to the program. Cause: Payroll costs charged to the grants were not properly documented. Effect: The College did not comply with all allowable cost and activity requirements. The College did not comply with the exceptions noted for allowable cost and activity requirements. Questioned Costs: Title III $4,119 and Trio Cluster $25,655. Recommendation: We recommend the College strengthen its policies and procedures surrounding payroll grant disbursements to ensure expenses are properly approved and allowable under the specific grant budget. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-002 – Allowable Costs & Activities (Significant Deficiency and Noncompliance) Information on the Federal Program: U.S. Department of Education, Assistance listing # 84.031 Higher Education Institutional Aid and U.S. Department of Education, Trio Cluster 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.Condition: We selected a sample of 25 non-payroll disbursements each for Title III and Trio programs and three indirect costs for the Trio program. Of the 25 non-payroll disbursements for Title III, two expenses were allocated but the portion charged to the grant did not tie back to the invoice, two expenses were incurred in the prior fiscal year but recorded as current year expenses, and two types of expenses were not in the applicable budgets. Of the 25 non-payroll disbursements for the Trio Cluster, one type of expense exceeded the budget amount and of the three indirect cost calculations, one was not calculated correctly. Cause: On Title III, the College charged a portion of invoices to the grant but the amount could not be recalculated based on the invoice; meals and subscriptions were charged to the grant but the type of expense was not in the budget; and services were performed or orders were placed in the prior year but recognized as current year expenses. On the Trio Cluster, and equipment expenses were charged to the Trio grant but exceeded the grant budget. The indirect cost calculation included previously recorded indirect costs in the base used to recognize and request reimbursement for allowed percentage. Effect: The College did not comply with the exceptions noted for allowable cost and activity requirements. Questioned Costs: Title III $10,261 and Trio Cluster $4,810. Recommendation: We recommend the College strengthen its policies and procedures surrounding non-payroll grant disbursements to ensure disbursements are approved, allowable, and calculations supported. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-003 – Allowable Costs & Activities (Significant Deficiency and Noncompliance) Information on the Federal Program: U.S. Department of Education, Assistance listing # 84.031 Higher Education Institutional Aid and U.S. Department of Education, Trio Cluster 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. Condition: We selected a sample of six payroll disbursements for Title III and eleven payroll disbursements for the Trio programs. Of the six payroll disbursements for Title III, four exceptions were noted related to approved pay rate documentation. In one instance the position was not in the grant budget and in three instances, the approved pay rate did not agree to the actual paycheck amount. Of the eleven payroll disbursements for the Trio Cluster, thirty-two employees were included. Of these thirty-two, twenty-one exceptions were noted for lack of proper support. Nineteen exceptions were noted in which the actual pay rate did not agree to the budgeted pay rate; two employees’ job descriptions did not fall under an allowable position in the grant budget; one journal entry reclassified payroll costs but the support for pay rate and time charged were not provided; and one employee received additional pay over the approved letter of appointment, and there was no support for the percent charged to the program. Cause: Payroll costs charged to the grants were not properly documented. Effect: The College did not comply with all allowable cost and activity requirements. The College did not comply with the exceptions noted for allowable cost and activity requirements. Questioned Costs: Title III $4,119 and Trio Cluster $25,655. Recommendation: We recommend the College strengthen its policies and procedures surrounding payroll grant disbursements to ensure expenses are properly approved and allowable under the specific grant budget. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-001 – Procurement (Significant Deficiency and Noncompliance) Information on the Federal Program: U.S. Department of Education, Assistance listing # 84.031 Higher Education Institutional Aid 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: Of ten vendors tested, one vendor’s services was not properly bid and one vendor was paid over the micro-purchase threshold and therefore should have obtained price or rate quotes. Cause: The College contracted with a vendor for consulting and then retained them for on-going services. These services were not bid. The other vendor was paid more than the micro-purchase threshold during the year, but price or rate quotes were not obtained for purchases. Effect: The College did not comply with federal procurement requirements for these two exceptions. Questioned Costs: $856,476 Recommendation: We recommend the College strengthen its policies and procedures over procurement to ensure vendors are properly procured. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.