FAC Explorer

Audit 348961

FY End
2024-06-30
Total Expended
$20.63M
Findings
4
Programs
10
Organization: Jackson College (MI)
Year: 2024 Accepted: 2025-03-27
Auditor: Rehmann Robson LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
537876 2024-002 Significant Deficiency Yes L
537877 2024-003 Significant Deficiency - B
1114318 2024-002 Significant Deficiency Yes L
1114319 2024-003 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
84.063 Federal Pell Grant Program $12.17M Yes 1
84.268 Federal Direct Student Loans $6.04M Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $633,022 Yes 1
84.116 Fund for the Improvement of Postsecondary Education $294,092 - 0
84.042 Trio Student Support Services $266,348 - 0
84.007 Federal Supplemental Educational Opportunity Grants $257,723 Yes 0
84.033 Federal Work-Study Program $231,205 Yes 0
84.425 Education Stabilization Fund $75,917 - 0
17.258 Wioa Adult Program $61,580 - 0
84.048 Career and Technical Education -- Basic Grants to States $9,200 - 0

Contacts

Name Title Type
HW4SP3KRET93 John Globoker Auditee
5177968439 Joshua Sullivan, CPA Auditor
No contacts on file

Notes to SEFA

Title: PASS-THROUGH ENTITIES Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Jackson College (the "College") under programs of the federal government for the year ended June 30, 2024. 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 (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the College, it is not intended to and does not present the net position, changes in net position, or cash flows of the College. Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note 1 to the College's financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance or other applicable guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: For purposes of charging indirect costs to federal awards, the College has not elected to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance. The College receives certain federal grants as subawards from non-federal entities. Pass-through entities, where applicable, have been identified in the Schedule with an abbreviation, defined as follows: "See the Notes to SEFA for chart/table"
Title: RECONCILIATION TO THE FINANCIAL STATEMENTS Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Jackson College (the "College") under programs of the federal government for the year ended June 30, 2024. 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 (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the College, it is not intended to and does not present the net position, changes in net position, or cash flows of the College. Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note 1 to the College's financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance or other applicable guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: For purposes of charging indirect costs to federal awards, the College has not elected to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance. A reconciliation of the amounts presented in the Schedule to the amounts presented in the financial statements is as follows: "See the Notes to SEFA for chart/table"

Finding Details

Finding 2024-002
2024-002 - Untimely Reporting of Student Disbursements. Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Reporting). Program. Student Financial Assistance Cluster; U.S. Department of Education; Assistance Listing Number 84.063; Award Number P063P231638. Criteria. According to 2 CFR § 200.328, recipients of federal awards must submit financial reports as required by the Federal award. For Title IV programs, the Department of Education mandates that disbursement records for Pell grants be submitted to the Common Origination and Disbursement system no later than 15 days after making the disbursement or becoming aware of the need to adjust a student's previously reported disbursement. Condition. One student of the forty students tested received a disbursement that was not reported to the federal government within the required timeframe. Cause. Due to system errors, the College was not able to timely file the report with the Common Origination and Disbursement timely. Effect. As a result of this condition, the College did not fully comply with the requirements to report disbursements within 15 days of disbursing funds. Questioned Costs. No costs were required to be questioned as a result of this finding, in as much of our testing did not reveal any unallowed costs. Repeat Finding. Yes, 2023-001 in prior year. Recommendation. We recommend that the College implement policies and procedures, including designating an individual to oversee this reporting requirement, to ensure information is submitted to the Common Origination and Disbursement in a timely manner. View of Responsible Officials. Management believes this was an isolated incident and has prepared a Corrective Action Plan.
Finding 2024-003
2024-002 Michigan Reconnect Expansion Refund Calculation Error Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Allowable Costs/Cost Principles). Program. Coronavirus State and Local Fiscal Recovery Funds; U.S. Department of Treasury; Assistance Listing Number 21.027; Award Number SLFRP0127. Criteria. As outlined in the Michigan Reconnect Expansion program guide, the Reconnect scholarship program is a last-dollar scholarship, which is equal to the difference between in-district tuition and fees (i.e., tuition, contact hours and mandatory fees) and any Pell Grant and any state tuition-restricted scholarships or awards that a student receives following the packaging order. Condition. We noted that two students out of a testing population of forty whose disbursement amounts were not calculated correctly. Cause. The College does not have a formal review process where a second individual looks over the disbursement calculations to ensure errors are caught before the disbursements are processed. Effect. As a result of this condition, two calculations for the grant were incorrect, resulting in an overpayment of $224. Questioned Costs. No costs were required to be questioned as a result of this finding insomuch as our testing did not reveal any unallowed costs over the $25,000 threshold. Repeat Finding. N/A Recommendation. We recommend that the College implement a review process to ensure that any disbursements are being reviewed for accuracy by an independent second individual prior to any disbursement. View of Responsible Officials. Management agrees with this finding and has prepared a Corrective Action Plan.
Finding 2024-002
2024-002 - Untimely Reporting of Student Disbursements. Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Reporting). Program. Student Financial Assistance Cluster; U.S. Department of Education; Assistance Listing Number 84.063; Award Number P063P231638. Criteria. According to 2 CFR § 200.328, recipients of federal awards must submit financial reports as required by the Federal award. For Title IV programs, the Department of Education mandates that disbursement records for Pell grants be submitted to the Common Origination and Disbursement system no later than 15 days after making the disbursement or becoming aware of the need to adjust a student's previously reported disbursement. Condition. One student of the forty students tested received a disbursement that was not reported to the federal government within the required timeframe. Cause. Due to system errors, the College was not able to timely file the report with the Common Origination and Disbursement timely. Effect. As a result of this condition, the College did not fully comply with the requirements to report disbursements within 15 days of disbursing funds. Questioned Costs. No costs were required to be questioned as a result of this finding, in as much of our testing did not reveal any unallowed costs. Repeat Finding. Yes, 2023-001 in prior year. Recommendation. We recommend that the College implement policies and procedures, including designating an individual to oversee this reporting requirement, to ensure information is submitted to the Common Origination and Disbursement in a timely manner. View of Responsible Officials. Management believes this was an isolated incident and has prepared a Corrective Action Plan.
Finding 2024-003
2024-002 Michigan Reconnect Expansion Refund Calculation Error Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Allowable Costs/Cost Principles). Program. Coronavirus State and Local Fiscal Recovery Funds; U.S. Department of Treasury; Assistance Listing Number 21.027; Award Number SLFRP0127. Criteria. As outlined in the Michigan Reconnect Expansion program guide, the Reconnect scholarship program is a last-dollar scholarship, which is equal to the difference between in-district tuition and fees (i.e., tuition, contact hours and mandatory fees) and any Pell Grant and any state tuition-restricted scholarships or awards that a student receives following the packaging order. Condition. We noted that two students out of a testing population of forty whose disbursement amounts were not calculated correctly. Cause. The College does not have a formal review process where a second individual looks over the disbursement calculations to ensure errors are caught before the disbursements are processed. Effect. As a result of this condition, two calculations for the grant were incorrect, resulting in an overpayment of $224. Questioned Costs. No costs were required to be questioned as a result of this finding insomuch as our testing did not reveal any unallowed costs over the $25,000 threshold. Repeat Finding. N/A Recommendation. We recommend that the College implement a review process to ensure that any disbursements are being reviewed for accuracy by an independent second individual prior to any disbursement. View of Responsible Officials. Management agrees with this finding and has prepared a Corrective Action Plan.