Audit 348223

FY End

2024-06-30

Total Expended

$1.39M

Findings

4

Programs

2

Organization: Collegiate Edu-Nation (TX)

Year: 2024 Accepted: 2025-03-25

Auditor: Sutton Frost Cary LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
530126	2024-001	Material Weakness	-	AB
530127	2024-002	Significant Deficiency	-	AB
1106568	2024-001	Material Weakness	-	AB
1106569	2024-002	Significant Deficiency	-	AB

ALN	Program	Spent	Major	Findings
94.006	Americorps State and National 94.006	$628,936	-	0
93.558	Temporary Assistance for Needy Families	$133,283	Yes	1

Contacts

Name	Title	Type
JCSLZYJ457R1	Kendall Guynes	Auditee
3252074236	Kim Crawford	Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of Collegiate Edu‐Nation (Organization). The information in this Schedule is presented in accordance with the requirements of Title U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization.

Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2024-001

Finding 2024-001: Allowable costs and activities – material weakness in internal controls over compliance and compliance finding. Criteria: The Organization’s internal control procedures over compliance specify that all expenses be reviewed and approved prior to charging to the grant. Condition: During allowable costs and activities testing for the grant, 28 out of 40 expenses tested did not have documented approval. Cause: Prior to the implementation of Ramp, the Organization’s internal policy did not require separate documented approval for budgeted expenses before they were charged to the grant. Since all expenses tested were part of the TWC Robotics grant and aligned with the approved grant budget, purchases were processed without additional approval documentation. This practice resulted in a lack of formal approval records for these transactions, leading to the identified finding. Effect: The Organization’s approval of grant expenses were not fully documented in accordance with the internal control over compliance procedures. Questioned Costs: None Recommendation: Management should ensure amounts charged to the grant are formally approved before the request for reimbursement is submitted. Management’s Response: See corrective action plan.

Finding 2024-002

Finding 2024-002: Allowable costs and activities – significant deficiency in internal controls over compliance. Criteria: The Organization’s internal control procedures over compliance specify that all expenses charged to the grant are supported by an itemized receipt. Condition: During allowable costs and activities testing for the grant, 1 out of 40 expenses tested did not have an itemized receipt. Cause: The expense in question was verbally confirmed as allowable; however, no formal documentation, such as an itemized receipt or written verification, was created or maintained. As a result, the expense should not have been charged to the grant in accordance with the Organization’s internal control procedures. Effect: The Organization’s documentation of grant expenses was not fully obtained in accordance with the internal control over compliance procedures. Questioned Costs: None.Recommendation: Management should ensure amounts charged to the grant adhere to all documentation requirements before the request for reimbursement is submitted. Management’s Response: See corrective action plan.

Finding 2024-001

Finding 2024-001: Allowable costs and activities – material weakness in internal controls over compliance and compliance finding. Criteria: The Organization’s internal control procedures over compliance specify that all expenses be reviewed and approved prior to charging to the grant. Condition: During allowable costs and activities testing for the grant, 28 out of 40 expenses tested did not have documented approval. Cause: Prior to the implementation of Ramp, the Organization’s internal policy did not require separate documented approval for budgeted expenses before they were charged to the grant. Since all expenses tested were part of the TWC Robotics grant and aligned with the approved grant budget, purchases were processed without additional approval documentation. This practice resulted in a lack of formal approval records for these transactions, leading to the identified finding. Effect: The Organization’s approval of grant expenses were not fully documented in accordance with the internal control over compliance procedures. Questioned Costs: None Recommendation: Management should ensure amounts charged to the grant are formally approved before the request for reimbursement is submitted. Management’s Response: See corrective action plan.

Finding 2024-002

Finding 2024-002: Allowable costs and activities – significant deficiency in internal controls over compliance. Criteria: The Organization’s internal control procedures over compliance specify that all expenses charged to the grant are supported by an itemized receipt. Condition: During allowable costs and activities testing for the grant, 1 out of 40 expenses tested did not have an itemized receipt. Cause: The expense in question was verbally confirmed as allowable; however, no formal documentation, such as an itemized receipt or written verification, was created or maintained. As a result, the expense should not have been charged to the grant in accordance with the Organization’s internal control procedures. Effect: The Organization’s documentation of grant expenses was not fully obtained in accordance with the internal control over compliance procedures. Questioned Costs: None.Recommendation: Management should ensure amounts charged to the grant adhere to all documentation requirements before the request for reimbursement is submitted. Management’s Response: See corrective action plan.