Audit 35403

FY End
2022-08-31
Total Expended
$5.98M
Findings
6
Programs
6
Year: 2022 Accepted: 2023-04-02
Auditor: Rbt CPAS

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
34708 2022-005 Significant Deficiency - C
34709 2022-006 - - A
34710 2022-007 Significant Deficiency - A
611150 2022-005 Significant Deficiency - C
611151 2022-006 - - A
611152 2022-007 Significant Deficiency - A

Programs

ALN Program Spent Major Findings
84.063 Federal Pell Grant Program $2.06M - 0
84.425 Education Stabilization Fund $1.52M Yes 3
84.268 Federal Direct Student Loans $1.34M - 0
84.048 Career and Technical Education -- Basic Grants to States $61,719 - 0
84.033 Federal Work-Study Program $46,052 - 0
84.007 Federal Supplemental Educational Opportunity Grants $45,364 - 0

Contacts

Name Title Type
EDWMLFDEJC44 Kelly Baker Auditee
8454345750 Donna Crowley Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: 1.BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Sullivan County Community College (the College), under programs of the federal government for the year ended August 31, 2022. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a 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 for the College as a whole.2.BASIS OF ACCOUNTINGThe Schedule is presented using generally accepted accounting principles, as described in the Colleges financial statements. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. FEDERAL DIRECT STUDENT LOANS (84.268) - Balances outstanding at the end of the audit period were 500.
Title: 4 Matching Costs Accounting Policies: 1.BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Sullivan County Community College (the College), under programs of the federal government for the year ended August 31, 2022. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a 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 for the College as a whole.2.BASIS OF ACCOUNTINGThe Schedule is presented using generally accepted accounting principles, as described in the Colleges financial statements. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Matching costs, i.e., the Colleges share of certain program costs, are not included in the reported expenditures.
Title: 5 Subrecipients Accounting Policies: 1.BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Sullivan County Community College (the College), under programs of the federal government for the year ended August 31, 2022. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a 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 for the College as a whole.2.BASIS OF ACCOUNTINGThe Schedule is presented using generally accepted accounting principles, as described in the Colleges financial statements. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. No amounts were provided to subrecipients.
Title: 6 Student Loan Programs Accounting Policies: 1.BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Sullivan County Community College (the College), under programs of the federal government for the year ended August 31, 2022. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a 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 for the College as a whole.2.BASIS OF ACCOUNTINGThe Schedule is presented using generally accepted accounting principles, as described in the Colleges financial statements. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. 6.STUDENT LOAN PROGRAMSFederal Direct Student Loan Program (Federal Assistance Listing #84.268)During the year ended August 31, 2022, the College processed $1,343,484 of new loans under the Federal Direct Student Loan Program (which includes subsidized and unsubsidized Direct Loans and Direct Parents Loans for Undergraduate Students). With respect to the Federal Direct Student Loan Program, the College is only responsible for the performance of certain administrative duties; therefore, the Colleges financial statements do not include any amounts relative to these loans. The cumulative amount of total loans guaranteed and outstanding at August 31, 2022 is undeterminable.
Title: 7 Reconciliation to Financial Statements Accounting Policies: 1.BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Sullivan County Community College (the College), under programs of the federal government for the year ended August 31, 2022. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a 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 for the College as a whole.2.BASIS OF ACCOUNTINGThe Schedule is presented using generally accepted accounting principles, as described in the Colleges financial statements. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. For tables/charts see notes to the SEFA

Finding Details

Compliance and Internal Control Finding 2022-005 Education Stabilization Fund 84.425 Condition: The College did not make timely disbursement of grant funds. Criteria: The compliance supplement states funds must be disbursed between 3 and 15 days after receipt for the Institutional and Student Aid funding. Cause: The College was unaware of the requirement. Effect: The College did not fully adhere to the cash management compliance requirement. Recommendation: RBT recommends that the management familiarize themselves with all of the federal requirements for all federal funding.
Compliance Finding 2022-006 Education Stabilization Fund 84.425 Condition: The College utilized grant funds to pay for student expenditures prior to the March 13, 2020 enrollment date. Criteria: The compliance supplement states funds can only be disbursed for expenditures for students enrolled on or after March 13, 2020. Cause: The students had small leftover amounts due from prior enrollments. Effect: The College did not fully adhere to the activities allowed compliance requirement. Recommendation: RBT recommends that the College not use federal funds for ineligible expenses.
Internal Control Finding 2022-007 Education Stabilization Fund 84.425 Condition: The College does not have an established control to approve grant use. Criteria: The College used grant funds to apply against Student accounts and for administrative costs and could not provide anything indicating the amounts or students were approved. Cause: The College's internal controls and internal control documentation need improvement. Effect: Grant funding that was applied may not have been approved to be used. Recommendation: RBT suggests that the College develop and document detailed controls over approvals for grant use.
Compliance and Internal Control Finding 2022-005 Education Stabilization Fund 84.425 Condition: The College did not make timely disbursement of grant funds. Criteria: The compliance supplement states funds must be disbursed between 3 and 15 days after receipt for the Institutional and Student Aid funding. Cause: The College was unaware of the requirement. Effect: The College did not fully adhere to the cash management compliance requirement. Recommendation: RBT recommends that the management familiarize themselves with all of the federal requirements for all federal funding.
Compliance Finding 2022-006 Education Stabilization Fund 84.425 Condition: The College utilized grant funds to pay for student expenditures prior to the March 13, 2020 enrollment date. Criteria: The compliance supplement states funds can only be disbursed for expenditures for students enrolled on or after March 13, 2020. Cause: The students had small leftover amounts due from prior enrollments. Effect: The College did not fully adhere to the activities allowed compliance requirement. Recommendation: RBT recommends that the College not use federal funds for ineligible expenses.
Internal Control Finding 2022-007 Education Stabilization Fund 84.425 Condition: The College does not have an established control to approve grant use. Criteria: The College used grant funds to apply against Student accounts and for administrative costs and could not provide anything indicating the amounts or students were approved. Cause: The College's internal controls and internal control documentation need improvement. Effect: Grant funding that was applied may not have been approved to be used. Recommendation: RBT suggests that the College develop and document detailed controls over approvals for grant use.