Audit 36033

FY End
2022-08-31
Total Expended
$1.63M
Findings
26
Programs
4
Organization: Gratz College (PA)
Year: 2022 Accepted: 2023-05-30
Auditor: Kreischer Miller

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
38121 2022-001 Material Weakness Yes L
38122 2022-002 - Yes L
38123 2022-003 - - A
38124 2022-004 Material Weakness - A
38125 2022-005 Significant Deficiency - C
38126 2022-006 - - C
38127 2022-001 Material Weakness Yes L
38128 2022-002 - Yes L
38129 2022-006 - - C
38130 2022-001 Material Weakness Yes L
38131 2022-002 - Yes L
38132 2022-005 Significant Deficiency - C
38133 2022-006 - - C
614563 2022-001 Material Weakness Yes L
614564 2022-002 - Yes L
614565 2022-003 - - A
614566 2022-004 Material Weakness - A
614567 2022-005 Significant Deficiency - C
614568 2022-006 - - C
614569 2022-001 Material Weakness Yes L
614570 2022-002 - Yes L
614571 2022-006 - - C
614572 2022-001 Material Weakness Yes L
614573 2022-002 - Yes L
614574 2022-005 Significant Deficiency - C
614575 2022-006 - - C

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $1.20M Yes 0
84.425 Covid 19 - Education Stabilization Fund $204,099 Yes 4
84.425 Covid-19 - Education Stabilization Fund $15,990 Yes 0
84.063 Federal Pell Grant Program $6,495 Yes 0

Contacts

Name Title Type
PHA8ECZ7E2E3 Thomas R. Cipriano, Jr. Auditee
2156357300 Elizabeth Pilacik 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Gratz College has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the College under programs of the federal government for the year ended August 31, 2022. 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 assets, or cash flows of the College.

Finding Details

Finding 2022-001 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E, 84.425F, and 84.425N Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Reporting Type of Finding: Internal Control over Compliance - Material Weakness Criteria: The College is required to establish and maintain effective internal control over the federal award that provides reasonable assurance that the College is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: The College was unable to provide documentation indicating the existence and implementation of internal controls over the Reporting compliance criteria and requirements for the Education Stabilization Fund (ESF) program. Cause: The College has written documentation to include the reporting requirements and related deadlines for the ESF program through December 31, 2021. However, internal controls over the preparation, reconciliation, and filing of the reports have not been designed and implemented. Effect: The internal control over the Reporting compliance requirement for the ESF program is likely to be ineffective in preventing or detecting noncompliance. Identification of a Repeat Finding: Finding 2021-002. Recommendation: We recommend that the College document the existence and implementation of internal controls over the Reporting compliance criteria for the ESF program.
Finding 2022-002 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E, 84.425F, and 84.425N Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Reporting Type of Finding: Noncompliance Criteria: The College must publicly post quarterly forms on its website for the specific subprograms of the federal award and submit an annual form to the ED reporting expenditures for the period ended December 31, 2021. Condition: The College posted quarterly reports to its website. However, the College was unable to provide data logs to support the timely posting of these reports. In addition, expenditures reported on the quarterly reports and in the annual reporting form for the period ended December 31, 2021 did not agree with the College's internal records. Cause: The College failed to develop procedures to perform the reporting requirements. Effect: The College is noncompliant with the ESF program requirements. Context: 2 out of 4 quarterly reports selected for testing; 1 annual report selected for testing Identification of a Repeat Finding: 2021-003. Recommendation: We recommend that the College develop procedures and related controls over the reporting requirements of the ESF program.
Finding 2022-003 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Activities Allowed/Unallowed Type of Finding: Noncompliance Criteria: The Student Aid Portion of the Higher Education Emergency Relief Fund (HEERF) is to provide awards to students. Condition: The College expended Student Aid funds on the purchase of audio-visual equipment. Cause: The College misapplied funds drawn under the Student Aid Portion. Effect: The College is noncompliant with the ESF program. Context: 1 sample selection ($15,044) out of total sample of 1 item tested from a population of 3 items ($17,920). Recommendation: We recommend that the College develop a process to reconcile amounts drawn under the ESF to ensure the proper allocation and use of funds.
Finding 2022-004 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Activities Allowed/Unallowed Type of Finding: Material Noncompliance Criteria: Disbursements of student awards under the Student Aid Portion of HEERF are to provide the student with the option to receive the award directly or to apply the award to the student's outstanding tuition balance. Condition: The College did not provide students with the option to receive the award directly. All awards were directed to the student's outstanding tuition balance. Cause: The College utilized the wrong form when administering grants to students. Effect: Students were prevented from receiving the awards directly. The College is noncompliant with the ESF program. Questioned Costs: $40,801 Context: 2 sample selections ($4,801) out of a total sample of 2 items tested from a population of 14 items ($40,801) resulted in errors. The full population of student awards was disbursed on a single date. The College acknowledged that all student awards disbursed on that single date utilized the form that directed the award to the student's tuition balance. Recommendation: We recommend that the College develop and implement procedures to ensure that federal funds are administered in accordance with program compliance requirements.
Finding 2022-005 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E and 84.425N Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Cash Management Type of Finding: Internal Control over Compliance ? Significant Deficiency; Noncompliance Criteria: Entities must minimize the time elapsing between the transfer of funds from the federal awarding agency and the disbursement of funds by the entity. Disbursements of student awards under the Student Aid Portion of HEERF should be disbursed within 15 calendar days of the drawdown form Department of Education's G5 grants system. Disbursements of funds from the Fund for the Improvement of Postsecondary Education (FIPSE) Formula Grant should be disbursed within 3 calendar days of the drawdown from G5. Condition: The College withdrew the funds and did not disburse the funds until 119 days later (Student Aid Portion), 35 days later (FIPSE - Institutional), and 15 days later (FIPSE ? Student Aid). Cause: The College withdrew funds under the Student Aid Portion (misapplied funds ? see Finding 2022-003) and under FIPSE to pay for the purchase of audio-visual equipment. Delivery of equipment and presentation of invoice were delayed, and therefore, the funds should have been returned to the G5 grants system. The College withdrew funds under FIPSE for student awards and applied the disbursement guidelines under the Student Aid Portion of HEERF rather than the disbursement guidelines under FIPSE. Effect: The College is noncompliant with the requirements under Cash Management. Context: 4 sample selections ($8,400) out of a sample of 7 items from a population of 68 items ($159,999) were tested. The portion of the population of student awards that was disbursed 15 days after the draw from G5 was 46 items ($95,800). Recommendation: We recommend that the College develop and implement procedures to ensure that federal funds are administered in accordance with program compliance requirements.
Finding 2022-006 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E, 84.425F, and 84.425N Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Cash Management Type of Finding: Noncompliance Criteria: Entities must minimize the time elapsing between the transfer of funds from the federal awarding agency and the disbursement of funds by the entity. Condition: The College withdrew all funds remaining in the G5 grants system and did not disburse the funds. Cause: The College withdrew all funds remaining under each award as of December 21, 2021 with the understanding that the funds were expiring as of December 31, 2021. Effect: The College is noncompliant with the requirements under Cash Management. Recommendation: We recommend that the College develop and implement procedures to ensure that federal funds are administered in accordance with program compliance requirements.
Finding 2022-001 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E, 84.425F, and 84.425N Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Reporting Type of Finding: Internal Control over Compliance - Material Weakness Criteria: The College is required to establish and maintain effective internal control over the federal award that provides reasonable assurance that the College is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: The College was unable to provide documentation indicating the existence and implementation of internal controls over the Reporting compliance criteria and requirements for the Education Stabilization Fund (ESF) program. Cause: The College has written documentation to include the reporting requirements and related deadlines for the ESF program through December 31, 2021. However, internal controls over the preparation, reconciliation, and filing of the reports have not been designed and implemented. Effect: The internal control over the Reporting compliance requirement for the ESF program is likely to be ineffective in preventing or detecting noncompliance. Identification of a Repeat Finding: Finding 2021-002. Recommendation: We recommend that the College document the existence and implementation of internal controls over the Reporting compliance criteria for the ESF program.
Finding 2022-002 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E, 84.425F, and 84.425N Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Reporting Type of Finding: Noncompliance Criteria: The College must publicly post quarterly forms on its website for the specific subprograms of the federal award and submit an annual form to the ED reporting expenditures for the period ended December 31, 2021. Condition: The College posted quarterly reports to its website. However, the College was unable to provide data logs to support the timely posting of these reports. In addition, expenditures reported on the quarterly reports and in the annual reporting form for the period ended December 31, 2021 did not agree with the College's internal records. Cause: The College failed to develop procedures to perform the reporting requirements. Effect: The College is noncompliant with the ESF program requirements. Context: 2 out of 4 quarterly reports selected for testing; 1 annual report selected for testing Identification of a Repeat Finding: 2021-003. Recommendation: We recommend that the College develop procedures and related controls over the reporting requirements of the ESF program.
Finding 2022-006 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E, 84.425F, and 84.425N Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Cash Management Type of Finding: Noncompliance Criteria: Entities must minimize the time elapsing between the transfer of funds from the federal awarding agency and the disbursement of funds by the entity. Condition: The College withdrew all funds remaining in the G5 grants system and did not disburse the funds. Cause: The College withdrew all funds remaining under each award as of December 21, 2021 with the understanding that the funds were expiring as of December 31, 2021. Effect: The College is noncompliant with the requirements under Cash Management. Recommendation: We recommend that the College develop and implement procedures to ensure that federal funds are administered in accordance with program compliance requirements.
Finding 2022-001 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E, 84.425F, and 84.425N Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Reporting Type of Finding: Internal Control over Compliance - Material Weakness Criteria: The College is required to establish and maintain effective internal control over the federal award that provides reasonable assurance that the College is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: The College was unable to provide documentation indicating the existence and implementation of internal controls over the Reporting compliance criteria and requirements for the Education Stabilization Fund (ESF) program. Cause: The College has written documentation to include the reporting requirements and related deadlines for the ESF program through December 31, 2021. However, internal controls over the preparation, reconciliation, and filing of the reports have not been designed and implemented. Effect: The internal control over the Reporting compliance requirement for the ESF program is likely to be ineffective in preventing or detecting noncompliance. Identification of a Repeat Finding: Finding 2021-002. Recommendation: We recommend that the College document the existence and implementation of internal controls over the Reporting compliance criteria for the ESF program.
Finding 2022-002 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E, 84.425F, and 84.425N Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Reporting Type of Finding: Noncompliance Criteria: The College must publicly post quarterly forms on its website for the specific subprograms of the federal award and submit an annual form to the ED reporting expenditures for the period ended December 31, 2021. Condition: The College posted quarterly reports to its website. However, the College was unable to provide data logs to support the timely posting of these reports. In addition, expenditures reported on the quarterly reports and in the annual reporting form for the period ended December 31, 2021 did not agree with the College's internal records. Cause: The College failed to develop procedures to perform the reporting requirements. Effect: The College is noncompliant with the ESF program requirements. Context: 2 out of 4 quarterly reports selected for testing; 1 annual report selected for testing Identification of a Repeat Finding: 2021-003. Recommendation: We recommend that the College develop procedures and related controls over the reporting requirements of the ESF program.
Finding 2022-005 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E and 84.425N Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Cash Management Type of Finding: Internal Control over Compliance ? Significant Deficiency; Noncompliance Criteria: Entities must minimize the time elapsing between the transfer of funds from the federal awarding agency and the disbursement of funds by the entity. Disbursements of student awards under the Student Aid Portion of HEERF should be disbursed within 15 calendar days of the drawdown form Department of Education's G5 grants system. Disbursements of funds from the Fund for the Improvement of Postsecondary Education (FIPSE) Formula Grant should be disbursed within 3 calendar days of the drawdown from G5. Condition: The College withdrew the funds and did not disburse the funds until 119 days later (Student Aid Portion), 35 days later (FIPSE - Institutional), and 15 days later (FIPSE ? Student Aid). Cause: The College withdrew funds under the Student Aid Portion (misapplied funds ? see Finding 2022-003) and under FIPSE to pay for the purchase of audio-visual equipment. Delivery of equipment and presentation of invoice were delayed, and therefore, the funds should have been returned to the G5 grants system. The College withdrew funds under FIPSE for student awards and applied the disbursement guidelines under the Student Aid Portion of HEERF rather than the disbursement guidelines under FIPSE. Effect: The College is noncompliant with the requirements under Cash Management. Context: 4 sample selections ($8,400) out of a sample of 7 items from a population of 68 items ($159,999) were tested. The portion of the population of student awards that was disbursed 15 days after the draw from G5 was 46 items ($95,800). Recommendation: We recommend that the College develop and implement procedures to ensure that federal funds are administered in accordance with program compliance requirements.
Finding 2022-006 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E, 84.425F, and 84.425N Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Cash Management Type of Finding: Noncompliance Criteria: Entities must minimize the time elapsing between the transfer of funds from the federal awarding agency and the disbursement of funds by the entity. Condition: The College withdrew all funds remaining in the G5 grants system and did not disburse the funds. Cause: The College withdrew all funds remaining under each award as of December 21, 2021 with the understanding that the funds were expiring as of December 31, 2021. Effect: The College is noncompliant with the requirements under Cash Management. Recommendation: We recommend that the College develop and implement procedures to ensure that federal funds are administered in accordance with program compliance requirements.
Finding 2022-001 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E, 84.425F, and 84.425N Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Reporting Type of Finding: Internal Control over Compliance - Material Weakness Criteria: The College is required to establish and maintain effective internal control over the federal award that provides reasonable assurance that the College is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: The College was unable to provide documentation indicating the existence and implementation of internal controls over the Reporting compliance criteria and requirements for the Education Stabilization Fund (ESF) program. Cause: The College has written documentation to include the reporting requirements and related deadlines for the ESF program through December 31, 2021. However, internal controls over the preparation, reconciliation, and filing of the reports have not been designed and implemented. Effect: The internal control over the Reporting compliance requirement for the ESF program is likely to be ineffective in preventing or detecting noncompliance. Identification of a Repeat Finding: Finding 2021-002. Recommendation: We recommend that the College document the existence and implementation of internal controls over the Reporting compliance criteria for the ESF program.
Finding 2022-002 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E, 84.425F, and 84.425N Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Reporting Type of Finding: Noncompliance Criteria: The College must publicly post quarterly forms on its website for the specific subprograms of the federal award and submit an annual form to the ED reporting expenditures for the period ended December 31, 2021. Condition: The College posted quarterly reports to its website. However, the College was unable to provide data logs to support the timely posting of these reports. In addition, expenditures reported on the quarterly reports and in the annual reporting form for the period ended December 31, 2021 did not agree with the College's internal records. Cause: The College failed to develop procedures to perform the reporting requirements. Effect: The College is noncompliant with the ESF program requirements. Context: 2 out of 4 quarterly reports selected for testing; 1 annual report selected for testing Identification of a Repeat Finding: 2021-003. Recommendation: We recommend that the College develop procedures and related controls over the reporting requirements of the ESF program.
Finding 2022-003 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Activities Allowed/Unallowed Type of Finding: Noncompliance Criteria: The Student Aid Portion of the Higher Education Emergency Relief Fund (HEERF) is to provide awards to students. Condition: The College expended Student Aid funds on the purchase of audio-visual equipment. Cause: The College misapplied funds drawn under the Student Aid Portion. Effect: The College is noncompliant with the ESF program. Context: 1 sample selection ($15,044) out of total sample of 1 item tested from a population of 3 items ($17,920). Recommendation: We recommend that the College develop a process to reconcile amounts drawn under the ESF to ensure the proper allocation and use of funds.
Finding 2022-004 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Activities Allowed/Unallowed Type of Finding: Material Noncompliance Criteria: Disbursements of student awards under the Student Aid Portion of HEERF are to provide the student with the option to receive the award directly or to apply the award to the student's outstanding tuition balance. Condition: The College did not provide students with the option to receive the award directly. All awards were directed to the student's outstanding tuition balance. Cause: The College utilized the wrong form when administering grants to students. Effect: Students were prevented from receiving the awards directly. The College is noncompliant with the ESF program. Questioned Costs: $40,801 Context: 2 sample selections ($4,801) out of a total sample of 2 items tested from a population of 14 items ($40,801) resulted in errors. The full population of student awards was disbursed on a single date. The College acknowledged that all student awards disbursed on that single date utilized the form that directed the award to the student's tuition balance. Recommendation: We recommend that the College develop and implement procedures to ensure that federal funds are administered in accordance with program compliance requirements.
Finding 2022-005 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E and 84.425N Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Cash Management Type of Finding: Internal Control over Compliance ? Significant Deficiency; Noncompliance Criteria: Entities must minimize the time elapsing between the transfer of funds from the federal awarding agency and the disbursement of funds by the entity. Disbursements of student awards under the Student Aid Portion of HEERF should be disbursed within 15 calendar days of the drawdown form Department of Education's G5 grants system. Disbursements of funds from the Fund for the Improvement of Postsecondary Education (FIPSE) Formula Grant should be disbursed within 3 calendar days of the drawdown from G5. Condition: The College withdrew the funds and did not disburse the funds until 119 days later (Student Aid Portion), 35 days later (FIPSE - Institutional), and 15 days later (FIPSE ? Student Aid). Cause: The College withdrew funds under the Student Aid Portion (misapplied funds ? see Finding 2022-003) and under FIPSE to pay for the purchase of audio-visual equipment. Delivery of equipment and presentation of invoice were delayed, and therefore, the funds should have been returned to the G5 grants system. The College withdrew funds under FIPSE for student awards and applied the disbursement guidelines under the Student Aid Portion of HEERF rather than the disbursement guidelines under FIPSE. Effect: The College is noncompliant with the requirements under Cash Management. Context: 4 sample selections ($8,400) out of a sample of 7 items from a population of 68 items ($159,999) were tested. The portion of the population of student awards that was disbursed 15 days after the draw from G5 was 46 items ($95,800). Recommendation: We recommend that the College develop and implement procedures to ensure that federal funds are administered in accordance with program compliance requirements.
Finding 2022-006 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E, 84.425F, and 84.425N Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Cash Management Type of Finding: Noncompliance Criteria: Entities must minimize the time elapsing between the transfer of funds from the federal awarding agency and the disbursement of funds by the entity. Condition: The College withdrew all funds remaining in the G5 grants system and did not disburse the funds. Cause: The College withdrew all funds remaining under each award as of December 21, 2021 with the understanding that the funds were expiring as of December 31, 2021. Effect: The College is noncompliant with the requirements under Cash Management. Recommendation: We recommend that the College develop and implement procedures to ensure that federal funds are administered in accordance with program compliance requirements.
Finding 2022-001 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E, 84.425F, and 84.425N Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Reporting Type of Finding: Internal Control over Compliance - Material Weakness Criteria: The College is required to establish and maintain effective internal control over the federal award that provides reasonable assurance that the College is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: The College was unable to provide documentation indicating the existence and implementation of internal controls over the Reporting compliance criteria and requirements for the Education Stabilization Fund (ESF) program. Cause: The College has written documentation to include the reporting requirements and related deadlines for the ESF program through December 31, 2021. However, internal controls over the preparation, reconciliation, and filing of the reports have not been designed and implemented. Effect: The internal control over the Reporting compliance requirement for the ESF program is likely to be ineffective in preventing or detecting noncompliance. Identification of a Repeat Finding: Finding 2021-002. Recommendation: We recommend that the College document the existence and implementation of internal controls over the Reporting compliance criteria for the ESF program.
Finding 2022-002 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E, 84.425F, and 84.425N Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Reporting Type of Finding: Noncompliance Criteria: The College must publicly post quarterly forms on its website for the specific subprograms of the federal award and submit an annual form to the ED reporting expenditures for the period ended December 31, 2021. Condition: The College posted quarterly reports to its website. However, the College was unable to provide data logs to support the timely posting of these reports. In addition, expenditures reported on the quarterly reports and in the annual reporting form for the period ended December 31, 2021 did not agree with the College's internal records. Cause: The College failed to develop procedures to perform the reporting requirements. Effect: The College is noncompliant with the ESF program requirements. Context: 2 out of 4 quarterly reports selected for testing; 1 annual report selected for testing Identification of a Repeat Finding: 2021-003. Recommendation: We recommend that the College develop procedures and related controls over the reporting requirements of the ESF program.
Finding 2022-006 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E, 84.425F, and 84.425N Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Cash Management Type of Finding: Noncompliance Criteria: Entities must minimize the time elapsing between the transfer of funds from the federal awarding agency and the disbursement of funds by the entity. Condition: The College withdrew all funds remaining in the G5 grants system and did not disburse the funds. Cause: The College withdrew all funds remaining under each award as of December 21, 2021 with the understanding that the funds were expiring as of December 31, 2021. Effect: The College is noncompliant with the requirements under Cash Management. Recommendation: We recommend that the College develop and implement procedures to ensure that federal funds are administered in accordance with program compliance requirements.
Finding 2022-001 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E, 84.425F, and 84.425N Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Reporting Type of Finding: Internal Control over Compliance - Material Weakness Criteria: The College is required to establish and maintain effective internal control over the federal award that provides reasonable assurance that the College is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: The College was unable to provide documentation indicating the existence and implementation of internal controls over the Reporting compliance criteria and requirements for the Education Stabilization Fund (ESF) program. Cause: The College has written documentation to include the reporting requirements and related deadlines for the ESF program through December 31, 2021. However, internal controls over the preparation, reconciliation, and filing of the reports have not been designed and implemented. Effect: The internal control over the Reporting compliance requirement for the ESF program is likely to be ineffective in preventing or detecting noncompliance. Identification of a Repeat Finding: Finding 2021-002. Recommendation: We recommend that the College document the existence and implementation of internal controls over the Reporting compliance criteria for the ESF program.
Finding 2022-002 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E, 84.425F, and 84.425N Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Reporting Type of Finding: Noncompliance Criteria: The College must publicly post quarterly forms on its website for the specific subprograms of the federal award and submit an annual form to the ED reporting expenditures for the period ended December 31, 2021. Condition: The College posted quarterly reports to its website. However, the College was unable to provide data logs to support the timely posting of these reports. In addition, expenditures reported on the quarterly reports and in the annual reporting form for the period ended December 31, 2021 did not agree with the College's internal records. Cause: The College failed to develop procedures to perform the reporting requirements. Effect: The College is noncompliant with the ESF program requirements. Context: 2 out of 4 quarterly reports selected for testing; 1 annual report selected for testing Identification of a Repeat Finding: 2021-003. Recommendation: We recommend that the College develop procedures and related controls over the reporting requirements of the ESF program.
Finding 2022-005 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E and 84.425N Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Cash Management Type of Finding: Internal Control over Compliance ? Significant Deficiency; Noncompliance Criteria: Entities must minimize the time elapsing between the transfer of funds from the federal awarding agency and the disbursement of funds by the entity. Disbursements of student awards under the Student Aid Portion of HEERF should be disbursed within 15 calendar days of the drawdown form Department of Education's G5 grants system. Disbursements of funds from the Fund for the Improvement of Postsecondary Education (FIPSE) Formula Grant should be disbursed within 3 calendar days of the drawdown from G5. Condition: The College withdrew the funds and did not disburse the funds until 119 days later (Student Aid Portion), 35 days later (FIPSE - Institutional), and 15 days later (FIPSE ? Student Aid). Cause: The College withdrew funds under the Student Aid Portion (misapplied funds ? see Finding 2022-003) and under FIPSE to pay for the purchase of audio-visual equipment. Delivery of equipment and presentation of invoice were delayed, and therefore, the funds should have been returned to the G5 grants system. The College withdrew funds under FIPSE for student awards and applied the disbursement guidelines under the Student Aid Portion of HEERF rather than the disbursement guidelines under FIPSE. Effect: The College is noncompliant with the requirements under Cash Management. Context: 4 sample selections ($8,400) out of a sample of 7 items from a population of 68 items ($159,999) were tested. The portion of the population of student awards that was disbursed 15 days after the draw from G5 was 46 items ($95,800). Recommendation: We recommend that the College develop and implement procedures to ensure that federal funds are administered in accordance with program compliance requirements.
Finding 2022-006 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E, 84.425F, and 84.425N Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Cash Management Type of Finding: Noncompliance Criteria: Entities must minimize the time elapsing between the transfer of funds from the federal awarding agency and the disbursement of funds by the entity. Condition: The College withdrew all funds remaining in the G5 grants system and did not disburse the funds. Cause: The College withdrew all funds remaining under each award as of December 21, 2021 with the understanding that the funds were expiring as of December 31, 2021. Effect: The College is noncompliant with the requirements under Cash Management. Recommendation: We recommend that the College develop and implement procedures to ensure that federal funds are administered in accordance with program compliance requirements.