FAC Explorer

Audit 351708

FY End
2024-06-30
Total Expended
$28.70M
Findings
16
Programs
15
Organization: Delaware County Community College (PA)
Year: 2024 Accepted: 2025-03-31
Auditor: Herbein and Company

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
547504 2024-004 Significant Deficiency Yes P
547505 2024-004 Significant Deficiency Yes P
547506 2024-004 Significant Deficiency Yes P
547507 2024-004 Significant Deficiency Yes P
547508 2024-005 Significant Deficiency Yes C
547509 2024-005 Significant Deficiency Yes C
547510 2024-005 Significant Deficiency Yes C
547511 2024-005 Significant Deficiency Yes C
1123946 2024-004 Significant Deficiency Yes P
1123947 2024-004 Significant Deficiency Yes P
1123948 2024-004 Significant Deficiency Yes P
1123949 2024-004 Significant Deficiency Yes P
1123950 2024-005 Significant Deficiency Yes C
1123951 2024-005 Significant Deficiency Yes C
1123952 2024-005 Significant Deficiency Yes C
1123953 2024-005 Significant Deficiency Yes C

Programs

ALN Program Spent Major Findings
84.063 Federal Pell Grant Program $14.37M Yes 2
84.268 Federal Direct Student Loans $12.07M Yes 2
84.031 Higher Education Institutional Aid $355,105 - 0
93.558 Temporary Assistance for Needy Families $268,625 - 0
84.033 Federal Work-Study Program $260,134 Yes 2
84.007 Federal Supplemental Educational Opportunity Grants $239,692 Yes 2
84.048 Career and Technical Education -- Basic Grants to States $204,952 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $196,572 - 0
17.278 Wioa Dislocated Worker Formula Grants $106,800 - 0
17.258 Wioa Adult Program $86,939 - 0
92.599 Chafee Education and Training Vouchers Program $42,500 - 0
93.859 Biomedical Research and Research Training $26,646 - 0
47.076 Stem Education (formerly Education and Human Resources) $25,891 - 0
84.425 Education Stabilization Fund $14,030 - 0
84.016 Undergraduate International Studies and Foreign Language Programs $-1,645 - 0

Contacts

Name Title Type
UQEFRLKYSEA3 Eric Leal Auditee
6103595104 Christopher Turtell 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 contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to the reimbursement. Negative amounts shown on the Schedule represent adjustment or credits made in the normal course of business amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The College did not elect to use the De Minimis rate for indirect costs. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards activity of 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 financial position, changes in net position, or cash flows of the College.
Title: STUDENT FINANCIAL ASSISTANCE LOAN PROGRAMS Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to the reimbursement. Negative amounts shown on the Schedule represent adjustment or credits made in the normal course of business amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The College did not elect to use the De Minimis rate for indirect costs. The College is only responsible for the performance of certain administrative duties and is not considered the lender with respect to the student loan programs, and accordingly, these loans are not included in the financial statements. The schedule of expenditures of federal awards reports the total loans granted under the Federal Direct Student Loan Program, which were not made by the College but were received by its students, totaling $12,074,713 for the year ended June 30, 2024.

Finding Details

Finding 2024-004
2024-004 PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (SEFA) - SIGNIFICANT DEFICIENCY Federal Program Student Financial Assistance Cluster (ALN 84.007, 84.033, 84.063, and 84.268) Criteria Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires the auditee to prepare a complete and accurate SEFA. Condition/Cause The College did not prepare an accurate SEFA. The College provided information relating to the federal programs including agreements and other supporting documentation. However, a complete and accurate SEFA was not prepared. Effect The College was not in compliance with the requirements of the Uniform Guidance. The SEFA was prepared through further inquiry and documentation of awards received. Questioned Costs None. Context The College had significant turnover within the accounting staff including the grant accountant. The College made significant progress in preparing a preliminary schedule of expenditures of federal awards. The schedule provided by the College did not agree to agreements and supporting documentation provided including the Fiscal Operations Report and Application to Participate (FISAP). Repeat Finding Yes. 2023-005. Recommendation We recommend the College designate an individual to be responsible for assembling the SEFA after reviewing grant activity to determine that a SEFA is required for the year. This individual should have the proper training on assembling the schedule and knowledge of the grant programs. The SEFA should be reviewed by management for accuracy and completeness after preparation before being sent to the auditors. Management Response See corrective action plan included in this report package.
Finding 2024-004
2024-004 PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (SEFA) - SIGNIFICANT DEFICIENCY Federal Program Student Financial Assistance Cluster (ALN 84.007, 84.033, 84.063, and 84.268) Criteria Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires the auditee to prepare a complete and accurate SEFA. Condition/Cause The College did not prepare an accurate SEFA. The College provided information relating to the federal programs including agreements and other supporting documentation. However, a complete and accurate SEFA was not prepared. Effect The College was not in compliance with the requirements of the Uniform Guidance. The SEFA was prepared through further inquiry and documentation of awards received. Questioned Costs None. Context The College had significant turnover within the accounting staff including the grant accountant. The College made significant progress in preparing a preliminary schedule of expenditures of federal awards. The schedule provided by the College did not agree to agreements and supporting documentation provided including the Fiscal Operations Report and Application to Participate (FISAP). Repeat Finding Yes. 2023-005. Recommendation We recommend the College designate an individual to be responsible for assembling the SEFA after reviewing grant activity to determine that a SEFA is required for the year. This individual should have the proper training on assembling the schedule and knowledge of the grant programs. The SEFA should be reviewed by management for accuracy and completeness after preparation before being sent to the auditors. Management Response See corrective action plan included in this report package.
Finding 2024-004
2024-004 PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (SEFA) - SIGNIFICANT DEFICIENCY Federal Program Student Financial Assistance Cluster (ALN 84.007, 84.033, 84.063, and 84.268) Criteria Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires the auditee to prepare a complete and accurate SEFA. Condition/Cause The College did not prepare an accurate SEFA. The College provided information relating to the federal programs including agreements and other supporting documentation. However, a complete and accurate SEFA was not prepared. Effect The College was not in compliance with the requirements of the Uniform Guidance. The SEFA was prepared through further inquiry and documentation of awards received. Questioned Costs None. Context The College had significant turnover within the accounting staff including the grant accountant. The College made significant progress in preparing a preliminary schedule of expenditures of federal awards. The schedule provided by the College did not agree to agreements and supporting documentation provided including the Fiscal Operations Report and Application to Participate (FISAP). Repeat Finding Yes. 2023-005. Recommendation We recommend the College designate an individual to be responsible for assembling the SEFA after reviewing grant activity to determine that a SEFA is required for the year. This individual should have the proper training on assembling the schedule and knowledge of the grant programs. The SEFA should be reviewed by management for accuracy and completeness after preparation before being sent to the auditors. Management Response See corrective action plan included in this report package.
Finding 2024-004
2024-004 PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (SEFA) - SIGNIFICANT DEFICIENCY Federal Program Student Financial Assistance Cluster (ALN 84.007, 84.033, 84.063, and 84.268) Criteria Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires the auditee to prepare a complete and accurate SEFA. Condition/Cause The College did not prepare an accurate SEFA. The College provided information relating to the federal programs including agreements and other supporting documentation. However, a complete and accurate SEFA was not prepared. Effect The College was not in compliance with the requirements of the Uniform Guidance. The SEFA was prepared through further inquiry and documentation of awards received. Questioned Costs None. Context The College had significant turnover within the accounting staff including the grant accountant. The College made significant progress in preparing a preliminary schedule of expenditures of federal awards. The schedule provided by the College did not agree to agreements and supporting documentation provided including the Fiscal Operations Report and Application to Participate (FISAP). Repeat Finding Yes. 2023-005. Recommendation We recommend the College designate an individual to be responsible for assembling the SEFA after reviewing grant activity to determine that a SEFA is required for the year. This individual should have the proper training on assembling the schedule and knowledge of the grant programs. The SEFA should be reviewed by management for accuracy and completeness after preparation before being sent to the auditors. Management Response See corrective action plan included in this report package.
Finding 2024-005
2024-005 CASH MANAGEMENT - SIGNIFICANT DEFICIENCY Federal Program Student Financial Assistance Cluster (ALN 84.007, 84.033, 84.063, and 84.268) Criteria The Code of Federal Regulations, 2 CFR 200.303, non-Federal entities receiving Federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations and program compliance requirements. Condition Evidence of approval to drawdown funds from the G5 system were not located by management. Cause Turnover within the accounting office and lack of proper oversight from management led to the lack of evidence to support the timing of drawdowns reported to be located and provided to the auditor. Effect The College’s lack of evidence to support drawdowns did not allow the auditor to test the cash management internal control over compliance requirement for the College. Questioned Costs None. Context There was significant turnover within the accounting office during the 2024 and 2023 fiscal year. The current staff was unable to locate the approval to draw funds from the grant website. It was noted and reviewed that the financial aid staff is performing a reconciliation of loans and awards issued to the applicable federal database. Repeat Finding Yes. 2023-007. Recommendation The College should revisit its internal control procedures to ensure that direct and material compliance requirements are being followed. This would include controls implemented to ensure processes are followed and assign accountability for completion. It is important to include a segregation of duties for the drawdown of grant funding and the reporting of the transaction. These procedures should be documented to allow new employees an understanding of the grant requirements and how they are fulfilled. Management Response See corrective action plan included in this report package.
Finding 2024-005
2024-005 CASH MANAGEMENT - SIGNIFICANT DEFICIENCY Federal Program Student Financial Assistance Cluster (ALN 84.007, 84.033, 84.063, and 84.268) Criteria The Code of Federal Regulations, 2 CFR 200.303, non-Federal entities receiving Federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations and program compliance requirements. Condition Evidence of approval to drawdown funds from the G5 system were not located by management. Cause Turnover within the accounting office and lack of proper oversight from management led to the lack of evidence to support the timing of drawdowns reported to be located and provided to the auditor. Effect The College’s lack of evidence to support drawdowns did not allow the auditor to test the cash management internal control over compliance requirement for the College. Questioned Costs None. Context There was significant turnover within the accounting office during the 2024 and 2023 fiscal year. The current staff was unable to locate the approval to draw funds from the grant website. It was noted and reviewed that the financial aid staff is performing a reconciliation of loans and awards issued to the applicable federal database. Repeat Finding Yes. 2023-007. Recommendation The College should revisit its internal control procedures to ensure that direct and material compliance requirements are being followed. This would include controls implemented to ensure processes are followed and assign accountability for completion. It is important to include a segregation of duties for the drawdown of grant funding and the reporting of the transaction. These procedures should be documented to allow new employees an understanding of the grant requirements and how they are fulfilled. Management Response See corrective action plan included in this report package.
Finding 2024-005
2024-005 CASH MANAGEMENT - SIGNIFICANT DEFICIENCY Federal Program Student Financial Assistance Cluster (ALN 84.007, 84.033, 84.063, and 84.268) Criteria The Code of Federal Regulations, 2 CFR 200.303, non-Federal entities receiving Federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations and program compliance requirements. Condition Evidence of approval to drawdown funds from the G5 system were not located by management. Cause Turnover within the accounting office and lack of proper oversight from management led to the lack of evidence to support the timing of drawdowns reported to be located and provided to the auditor. Effect The College’s lack of evidence to support drawdowns did not allow the auditor to test the cash management internal control over compliance requirement for the College. Questioned Costs None. Context There was significant turnover within the accounting office during the 2024 and 2023 fiscal year. The current staff was unable to locate the approval to draw funds from the grant website. It was noted and reviewed that the financial aid staff is performing a reconciliation of loans and awards issued to the applicable federal database. Repeat Finding Yes. 2023-007. Recommendation The College should revisit its internal control procedures to ensure that direct and material compliance requirements are being followed. This would include controls implemented to ensure processes are followed and assign accountability for completion. It is important to include a segregation of duties for the drawdown of grant funding and the reporting of the transaction. These procedures should be documented to allow new employees an understanding of the grant requirements and how they are fulfilled. Management Response See corrective action plan included in this report package.
Finding 2024-005
2024-005 CASH MANAGEMENT - SIGNIFICANT DEFICIENCY Federal Program Student Financial Assistance Cluster (ALN 84.007, 84.033, 84.063, and 84.268) Criteria The Code of Federal Regulations, 2 CFR 200.303, non-Federal entities receiving Federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations and program compliance requirements. Condition Evidence of approval to drawdown funds from the G5 system were not located by management. Cause Turnover within the accounting office and lack of proper oversight from management led to the lack of evidence to support the timing of drawdowns reported to be located and provided to the auditor. Effect The College’s lack of evidence to support drawdowns did not allow the auditor to test the cash management internal control over compliance requirement for the College. Questioned Costs None. Context There was significant turnover within the accounting office during the 2024 and 2023 fiscal year. The current staff was unable to locate the approval to draw funds from the grant website. It was noted and reviewed that the financial aid staff is performing a reconciliation of loans and awards issued to the applicable federal database. Repeat Finding Yes. 2023-007. Recommendation The College should revisit its internal control procedures to ensure that direct and material compliance requirements are being followed. This would include controls implemented to ensure processes are followed and assign accountability for completion. It is important to include a segregation of duties for the drawdown of grant funding and the reporting of the transaction. These procedures should be documented to allow new employees an understanding of the grant requirements and how they are fulfilled. Management Response See corrective action plan included in this report package.
Finding 2024-004
2024-004 PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (SEFA) - SIGNIFICANT DEFICIENCY Federal Program Student Financial Assistance Cluster (ALN 84.007, 84.033, 84.063, and 84.268) Criteria Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires the auditee to prepare a complete and accurate SEFA. Condition/Cause The College did not prepare an accurate SEFA. The College provided information relating to the federal programs including agreements and other supporting documentation. However, a complete and accurate SEFA was not prepared. Effect The College was not in compliance with the requirements of the Uniform Guidance. The SEFA was prepared through further inquiry and documentation of awards received. Questioned Costs None. Context The College had significant turnover within the accounting staff including the grant accountant. The College made significant progress in preparing a preliminary schedule of expenditures of federal awards. The schedule provided by the College did not agree to agreements and supporting documentation provided including the Fiscal Operations Report and Application to Participate (FISAP). Repeat Finding Yes. 2023-005. Recommendation We recommend the College designate an individual to be responsible for assembling the SEFA after reviewing grant activity to determine that a SEFA is required for the year. This individual should have the proper training on assembling the schedule and knowledge of the grant programs. The SEFA should be reviewed by management for accuracy and completeness after preparation before being sent to the auditors. Management Response See corrective action plan included in this report package.
Finding 2024-004
2024-004 PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (SEFA) - SIGNIFICANT DEFICIENCY Federal Program Student Financial Assistance Cluster (ALN 84.007, 84.033, 84.063, and 84.268) Criteria Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires the auditee to prepare a complete and accurate SEFA. Condition/Cause The College did not prepare an accurate SEFA. The College provided information relating to the federal programs including agreements and other supporting documentation. However, a complete and accurate SEFA was not prepared. Effect The College was not in compliance with the requirements of the Uniform Guidance. The SEFA was prepared through further inquiry and documentation of awards received. Questioned Costs None. Context The College had significant turnover within the accounting staff including the grant accountant. The College made significant progress in preparing a preliminary schedule of expenditures of federal awards. The schedule provided by the College did not agree to agreements and supporting documentation provided including the Fiscal Operations Report and Application to Participate (FISAP). Repeat Finding Yes. 2023-005. Recommendation We recommend the College designate an individual to be responsible for assembling the SEFA after reviewing grant activity to determine that a SEFA is required for the year. This individual should have the proper training on assembling the schedule and knowledge of the grant programs. The SEFA should be reviewed by management for accuracy and completeness after preparation before being sent to the auditors. Management Response See corrective action plan included in this report package.
Finding 2024-004
2024-004 PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (SEFA) - SIGNIFICANT DEFICIENCY Federal Program Student Financial Assistance Cluster (ALN 84.007, 84.033, 84.063, and 84.268) Criteria Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires the auditee to prepare a complete and accurate SEFA. Condition/Cause The College did not prepare an accurate SEFA. The College provided information relating to the federal programs including agreements and other supporting documentation. However, a complete and accurate SEFA was not prepared. Effect The College was not in compliance with the requirements of the Uniform Guidance. The SEFA was prepared through further inquiry and documentation of awards received. Questioned Costs None. Context The College had significant turnover within the accounting staff including the grant accountant. The College made significant progress in preparing a preliminary schedule of expenditures of federal awards. The schedule provided by the College did not agree to agreements and supporting documentation provided including the Fiscal Operations Report and Application to Participate (FISAP). Repeat Finding Yes. 2023-005. Recommendation We recommend the College designate an individual to be responsible for assembling the SEFA after reviewing grant activity to determine that a SEFA is required for the year. This individual should have the proper training on assembling the schedule and knowledge of the grant programs. The SEFA should be reviewed by management for accuracy and completeness after preparation before being sent to the auditors. Management Response See corrective action plan included in this report package.
Finding 2024-004
2024-004 PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (SEFA) - SIGNIFICANT DEFICIENCY Federal Program Student Financial Assistance Cluster (ALN 84.007, 84.033, 84.063, and 84.268) Criteria Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires the auditee to prepare a complete and accurate SEFA. Condition/Cause The College did not prepare an accurate SEFA. The College provided information relating to the federal programs including agreements and other supporting documentation. However, a complete and accurate SEFA was not prepared. Effect The College was not in compliance with the requirements of the Uniform Guidance. The SEFA was prepared through further inquiry and documentation of awards received. Questioned Costs None. Context The College had significant turnover within the accounting staff including the grant accountant. The College made significant progress in preparing a preliminary schedule of expenditures of federal awards. The schedule provided by the College did not agree to agreements and supporting documentation provided including the Fiscal Operations Report and Application to Participate (FISAP). Repeat Finding Yes. 2023-005. Recommendation We recommend the College designate an individual to be responsible for assembling the SEFA after reviewing grant activity to determine that a SEFA is required for the year. This individual should have the proper training on assembling the schedule and knowledge of the grant programs. The SEFA should be reviewed by management for accuracy and completeness after preparation before being sent to the auditors. Management Response See corrective action plan included in this report package.
Finding 2024-005
2024-005 CASH MANAGEMENT - SIGNIFICANT DEFICIENCY Federal Program Student Financial Assistance Cluster (ALN 84.007, 84.033, 84.063, and 84.268) Criteria The Code of Federal Regulations, 2 CFR 200.303, non-Federal entities receiving Federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations and program compliance requirements. Condition Evidence of approval to drawdown funds from the G5 system were not located by management. Cause Turnover within the accounting office and lack of proper oversight from management led to the lack of evidence to support the timing of drawdowns reported to be located and provided to the auditor. Effect The College’s lack of evidence to support drawdowns did not allow the auditor to test the cash management internal control over compliance requirement for the College. Questioned Costs None. Context There was significant turnover within the accounting office during the 2024 and 2023 fiscal year. The current staff was unable to locate the approval to draw funds from the grant website. It was noted and reviewed that the financial aid staff is performing a reconciliation of loans and awards issued to the applicable federal database. Repeat Finding Yes. 2023-007. Recommendation The College should revisit its internal control procedures to ensure that direct and material compliance requirements are being followed. This would include controls implemented to ensure processes are followed and assign accountability for completion. It is important to include a segregation of duties for the drawdown of grant funding and the reporting of the transaction. These procedures should be documented to allow new employees an understanding of the grant requirements and how they are fulfilled. Management Response See corrective action plan included in this report package.
Finding 2024-005
2024-005 CASH MANAGEMENT - SIGNIFICANT DEFICIENCY Federal Program Student Financial Assistance Cluster (ALN 84.007, 84.033, 84.063, and 84.268) Criteria The Code of Federal Regulations, 2 CFR 200.303, non-Federal entities receiving Federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations and program compliance requirements. Condition Evidence of approval to drawdown funds from the G5 system were not located by management. Cause Turnover within the accounting office and lack of proper oversight from management led to the lack of evidence to support the timing of drawdowns reported to be located and provided to the auditor. Effect The College’s lack of evidence to support drawdowns did not allow the auditor to test the cash management internal control over compliance requirement for the College. Questioned Costs None. Context There was significant turnover within the accounting office during the 2024 and 2023 fiscal year. The current staff was unable to locate the approval to draw funds from the grant website. It was noted and reviewed that the financial aid staff is performing a reconciliation of loans and awards issued to the applicable federal database. Repeat Finding Yes. 2023-007. Recommendation The College should revisit its internal control procedures to ensure that direct and material compliance requirements are being followed. This would include controls implemented to ensure processes are followed and assign accountability for completion. It is important to include a segregation of duties for the drawdown of grant funding and the reporting of the transaction. These procedures should be documented to allow new employees an understanding of the grant requirements and how they are fulfilled. Management Response See corrective action plan included in this report package.
Finding 2024-005
2024-005 CASH MANAGEMENT - SIGNIFICANT DEFICIENCY Federal Program Student Financial Assistance Cluster (ALN 84.007, 84.033, 84.063, and 84.268) Criteria The Code of Federal Regulations, 2 CFR 200.303, non-Federal entities receiving Federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations and program compliance requirements. Condition Evidence of approval to drawdown funds from the G5 system were not located by management. Cause Turnover within the accounting office and lack of proper oversight from management led to the lack of evidence to support the timing of drawdowns reported to be located and provided to the auditor. Effect The College’s lack of evidence to support drawdowns did not allow the auditor to test the cash management internal control over compliance requirement for the College. Questioned Costs None. Context There was significant turnover within the accounting office during the 2024 and 2023 fiscal year. The current staff was unable to locate the approval to draw funds from the grant website. It was noted and reviewed that the financial aid staff is performing a reconciliation of loans and awards issued to the applicable federal database. Repeat Finding Yes. 2023-007. Recommendation The College should revisit its internal control procedures to ensure that direct and material compliance requirements are being followed. This would include controls implemented to ensure processes are followed and assign accountability for completion. It is important to include a segregation of duties for the drawdown of grant funding and the reporting of the transaction. These procedures should be documented to allow new employees an understanding of the grant requirements and how they are fulfilled. Management Response See corrective action plan included in this report package.
Finding 2024-005
2024-005 CASH MANAGEMENT - SIGNIFICANT DEFICIENCY Federal Program Student Financial Assistance Cluster (ALN 84.007, 84.033, 84.063, and 84.268) Criteria The Code of Federal Regulations, 2 CFR 200.303, non-Federal entities receiving Federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations and program compliance requirements. Condition Evidence of approval to drawdown funds from the G5 system were not located by management. Cause Turnover within the accounting office and lack of proper oversight from management led to the lack of evidence to support the timing of drawdowns reported to be located and provided to the auditor. Effect The College’s lack of evidence to support drawdowns did not allow the auditor to test the cash management internal control over compliance requirement for the College. Questioned Costs None. Context There was significant turnover within the accounting office during the 2024 and 2023 fiscal year. The current staff was unable to locate the approval to draw funds from the grant website. It was noted and reviewed that the financial aid staff is performing a reconciliation of loans and awards issued to the applicable federal database. Repeat Finding Yes. 2023-007. Recommendation The College should revisit its internal control procedures to ensure that direct and material compliance requirements are being followed. This would include controls implemented to ensure processes are followed and assign accountability for completion. It is important to include a segregation of duties for the drawdown of grant funding and the reporting of the transaction. These procedures should be documented to allow new employees an understanding of the grant requirements and how they are fulfilled. Management Response See corrective action plan included in this report package.