FAC Explorer

Audit 362826

FY End
2024-08-31
Total Expended
$4.60M
Findings
6
Programs
7
Organization: Sullivan County Community College (NY)
Year: 2024 Accepted: 2025-07-23
Auditor: Rbt CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
571814 2024-008 Material Weakness Yes N
571815 2024-009 Material Weakness Yes N
571816 2024-010 Material Weakness - L
1148256 2024-008 Material Weakness Yes N
1148257 2024-009 Material Weakness Yes N
1148258 2024-010 Material Weakness - L

Programs

ALN Program Spent Major Findings
84.063 Federal Pell Grant Program $2.69M Yes 0
84.268 Federal Direct Student Loans $1.29M Yes 0
84.038 Federal Perkins Loan Program_federal Capital Contributions $242,629 Yes 2
84.048 Career and Technical Education -- Basic Grants to States $150,273 - 0
84.425 Education Stabilization Fund $135,234 - 1
84.033 Federal Work-Study Program $46,052 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $39,350 Yes 0

Contacts

Name Title Type
EDWMLFDEJC44 Sean Welsh Auditee
8454345750 Donna Crowey Auditor
No contacts on file

Notes to SEFA

Title: 1.       BASIS OF PRESENTATION Accounting Policies: The Schedule is presented using generally accepted accounting principles, as described in the College’s financial statements De Minimis Rate Used: N Rate Explanation: The College did elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance The 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, 2024. 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.
Title: 2.       BASIS OF ACCOUNTING Accounting Policies: The Schedule is presented using generally accepted accounting principles, as described in the College’s financial statements De Minimis Rate Used: N Rate Explanation: The College did elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance The Schedule is presented using generally accepted accounting principles, as described in the College’s financial statements.
Title: 3.       INDIRECT COSTS Accounting Policies: The Schedule is presented using generally accepted accounting principles, as described in the College’s financial statements De Minimis Rate Used: N Rate Explanation: The College did elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance Indirect costs are included in the reported expenditures to the extent they are included in the financial reports used as the source for the expenditures presented.
Title: 4.       MATCHING COSTS Accounting Policies: The Schedule is presented using generally accepted accounting principles, as described in the College’s financial statements De Minimis Rate Used: N Rate Explanation: The College did elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance Matching costs, i.e., the College’s share of certain program costs, are not included in the reported expenditures.
Title: 5.       SUBRECIPIENTS Accounting Policies: The Schedule is presented using generally accepted accounting principles, as described in the College’s financial statements De Minimis Rate Used: N Rate Explanation: The College did elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance No amounts were provided to subrecipients.
Title: 6.       STUDENT LOAN PROGRAMS Accounting Policies: The Schedule is presented using generally accepted accounting principles, as described in the College’s financial statements De Minimis Rate Used: N Rate Explanation: The College did elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance Federal Direct Student Loan Program (Federal Assistance Listing #84.268) During the year ended August 31, 2024, the College processed $1,290,642 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 College’s financial statements do not include any amounts relative to these loans. The cumulative amount of total loans guaranteed and outstanding at August 31, 2024 is undeterminable. Federal Perkins Loans (Federal Assistance Listing #84.038) The balance of Perkins Loans outstanding at August 31, 2024 was $141,860.
Title: 7.       RECONCILIATION TO FINANCIAL STATEMENTS Accounting Policies: The Schedule is presented using generally accepted accounting principles, as described in the College’s financial statements De Minimis Rate Used: N Rate Explanation: The College did elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance only table

Finding Details

Finding 2024-008
Finding 2024-008 U.S. Department of Education Student Financial Aid Cluster 84.038 84.038 does not have a FAIN # on the USASpending.gov website Requirements: (N8) Perkins Condition: The College does not keep the original paper promissory notes in a locked fireproof container. The notes are stored in boxes in storage areas. Criteria: Per 34 CFR 674.19, institutions are required to keep original paper promissory notes and repayment schedules in a locked fireproof container. Cause: Management was not aware of the document retention requirements and did not establish proper physical security controls over the original promissory notes. Effect: The documents could be lost or damaged. Repeat Finding: Repeat of 2023-011 Recommendation: RBT suggests that the College develop and follow detailed controls over securing these documents. Perspective: This issue appears to be systemic since it impacted all promissory notes. Management’s Response: See corrective action plan.
Finding 2024-009
Finding 2024-009 U.S. Department of Education Student Financial Aid Cluster 84.007, 84.033, 84.063, 84.268, 84.038 84.038 does not have a FAIN # on the USASpending.gov website P007A222975, P033A222975, P063P221903, P268K231903 Requirements: (N9) Satisfactory Academic Progress Condition: The College’s written standards for measuring whether eligible students are maintaining satisfactory academic progress in their educational program did not contain all of the elements described in federal regulations. Criteria: Per 34 CFR 668.16(e), the College must establish and publish reasonable standards for measuring whether eligible students are maintaining satisfactory academic progress in their educational program. This policy should meet the requirements in 34 CFR 668.34. Cause: The College standards did not state when academic progress will be evaluated, state procedures for disbursements to students in a warning status, or provide for notification to students of the results of an evaluation that impacts eligibility, because management does not have a procedure to compare its policies to the criteria contained in the regulations. Effect: The College’s Satisfactory Academic Progress policy does not meet all of the criteria to be considered reasonable. Repeat Finding: Repeat of 2023-013 Recommendation: RBT suggests that the College update its Satisfactory Academic Progress policy to include all required criteria. We also recommend implementing a procedure to periodically review the policy to ensure it continues to meet the minimum requirements. Perspective: This issue impacts all student financial aid cluster programs. Management’s Response: See corrective action plan.
Finding 2024-010
Finding 2024-010 U.S. Department of Education Higher Education Emergency Relief Fund (HEERF) 84.425E/84.425F Requirements: Reporting Condition: During our audit of the Schedule of Expenditures of Federal Awards (“SEFA”) for the year ended August 31, 2024, we noted that the amount reported by the College for the HEERF grant on the SEFA did not agree with the cumulative expenditures reported in the Federal CARES Reporting Portal. Criteria: Per 2 CFR § 200.510(b), the SEFA must be complete and accurate, and per HEERF grant terms and conditions, institutions are required to accurately report grant expenditures in both the SEFA and the CARES Act Reporting Portal. Cause: The discrepancy appears to be the result of a lack of reconciliation procedures between the general ledger, the SEFA, and the Federal Reporting Portal submissions. Effect: The inconsistency may result in inaccurate financial reporting and a risk of noncompliance with federal reporting requirements, which could impact future funding or trigger additional oversight. Repeat Finding: Not a repeat finding Recommendation: We recommend that management implement formal reconciliation procedures to ensure that amounts reported in the SEFA align with those reported in the Federal CARES Portal. The reconciliation should be documented and reviewed by a responsible official prior to finalizing federal reporting submissions. Perspective: This issue only impacts reporting for the HEERF program. Management’s Response: See corrective action plan.
Finding 2024-008
Finding 2024-008 U.S. Department of Education Student Financial Aid Cluster 84.038 84.038 does not have a FAIN # on the USASpending.gov website Requirements: (N8) Perkins Condition: The College does not keep the original paper promissory notes in a locked fireproof container. The notes are stored in boxes in storage areas. Criteria: Per 34 CFR 674.19, institutions are required to keep original paper promissory notes and repayment schedules in a locked fireproof container. Cause: Management was not aware of the document retention requirements and did not establish proper physical security controls over the original promissory notes. Effect: The documents could be lost or damaged. Repeat Finding: Repeat of 2023-011 Recommendation: RBT suggests that the College develop and follow detailed controls over securing these documents. Perspective: This issue appears to be systemic since it impacted all promissory notes. Management’s Response: See corrective action plan.
Finding 2024-009
Finding 2024-009 U.S. Department of Education Student Financial Aid Cluster 84.007, 84.033, 84.063, 84.268, 84.038 84.038 does not have a FAIN # on the USASpending.gov website P007A222975, P033A222975, P063P221903, P268K231903 Requirements: (N9) Satisfactory Academic Progress Condition: The College’s written standards for measuring whether eligible students are maintaining satisfactory academic progress in their educational program did not contain all of the elements described in federal regulations. Criteria: Per 34 CFR 668.16(e), the College must establish and publish reasonable standards for measuring whether eligible students are maintaining satisfactory academic progress in their educational program. This policy should meet the requirements in 34 CFR 668.34. Cause: The College standards did not state when academic progress will be evaluated, state procedures for disbursements to students in a warning status, or provide for notification to students of the results of an evaluation that impacts eligibility, because management does not have a procedure to compare its policies to the criteria contained in the regulations. Effect: The College’s Satisfactory Academic Progress policy does not meet all of the criteria to be considered reasonable. Repeat Finding: Repeat of 2023-013 Recommendation: RBT suggests that the College update its Satisfactory Academic Progress policy to include all required criteria. We also recommend implementing a procedure to periodically review the policy to ensure it continues to meet the minimum requirements. Perspective: This issue impacts all student financial aid cluster programs. Management’s Response: See corrective action plan.
Finding 2024-010
Finding 2024-010 U.S. Department of Education Higher Education Emergency Relief Fund (HEERF) 84.425E/84.425F Requirements: Reporting Condition: During our audit of the Schedule of Expenditures of Federal Awards (“SEFA”) for the year ended August 31, 2024, we noted that the amount reported by the College for the HEERF grant on the SEFA did not agree with the cumulative expenditures reported in the Federal CARES Reporting Portal. Criteria: Per 2 CFR § 200.510(b), the SEFA must be complete and accurate, and per HEERF grant terms and conditions, institutions are required to accurately report grant expenditures in both the SEFA and the CARES Act Reporting Portal. Cause: The discrepancy appears to be the result of a lack of reconciliation procedures between the general ledger, the SEFA, and the Federal Reporting Portal submissions. Effect: The inconsistency may result in inaccurate financial reporting and a risk of noncompliance with federal reporting requirements, which could impact future funding or trigger additional oversight. Repeat Finding: Not a repeat finding Recommendation: We recommend that management implement formal reconciliation procedures to ensure that amounts reported in the SEFA align with those reported in the Federal CARES Portal. The reconciliation should be documented and reviewed by a responsible official prior to finalizing federal reporting submissions. Perspective: This issue only impacts reporting for the HEERF program. Management’s Response: See corrective action plan.