Audit 374669

2025-001: Academic Programs - Period of Performance (Material Weakness; Noncompliance) Assistance Listing Number/Title: #81.252, Academic Programs Federal Agency Name: U.S. Department of Energy Award Number: DE-LM0000497 Award Year: October 1, 2023 - March 31, 2025 Criteria: Per 2 CFR 200.343, the recipient must incur expenditures within the performance period of the grant award, as indicated in the Assistance Agreement(s). Per 2 CFR 200.344(c), the recipient must liquidate all obligations incurred under the award no later than 120 calendar days after the conclusion of the period of performance. Condition/context: This award closed on March 31, 2025, with a final liquidation date of July 29, 2025. Two expenditures for obligations totaling $69,608 were not incurred by March 31, 2025. Neither expenditure for those obligations was liquidated by July 29, 2025. Cause: Central Wyoming College (the College) originally anticipated this funding to last several more years (beyond March 31, 2025). As such, a long-term project that was funded by this award was ongoing at the end of the award period of performance. Due to external pressures surrounding award closeout, the College requested two pay applications from its contractor for work not yet performed. The College then held checks for each pay application until the related work was completed. Effect: Per 2 CFR 200.339, if a non-Federal entity fails to comply with Federal statutes, regulations, or the terms and conditions of a Federal award, the Federal awarding agency or pass-through entity may impose additional conditions, as described in §200.208, Specific Conditions. If the Federal awarding agency or pass-through entity determines that noncompliance cannot be remedied by imposing additional conditions, the Federal awarding agency or pass-through entity may take one or more of the following actions, as appropriate in the circumstances: a. Temporarily withhold payments until the recipient or subrecipient takes corrective action. b. Disallow costs for all or part of the cost of the activity associated with the noncompliance of the recipient or subrecipient. c. Suspend or terminate the Federal award in part or in its entirety. d. Initiate suspension or debarment proceedings as authorized in 2 CFR Part 180 and the Federal agency’s regulations or, for pass-through entities, recommend suspension or debarment proceedings be initiated by the Federal agency. e. Withhold further Federal funds (new awards or continuation funding) for the project or program. f. Pursue other legally available remedies. Questioned costs: $69,608 Identification as a repeat finding: No. Recommendation: We recommend that the College work closely with its granting agency to ensure that any unanticipated changes/reductions in funding periods are communicated in time to allow the College to effectively close out the grant, or to obtain permission for funding of expenditures that will not be incurred and/or liquidated timely. Views of responsible officials: Management concurs with the finding. See Exhibit I for corrective action plan.

2025-002: Academic Programs - Suspension and Debarment (Significant Deficiency) Assistance Listing Number/Title: #81.252, Academic Programs Federal Agency Name: U.S. Department of Energy Award Number: DE-LM0000497 Award Year: October 1, 2023 - March 31, 2025 Criteria: Per 2 CFR 200.303(a), a non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the Federal award is managed in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Per review of 2 CFR 200.213, non-Federal entities are prohibited from contracting with, or making sub-awards under covered transactions to, parties that are suspended or debarred or whose principals are suspended or debarred. Covered transactions include contracts for goods and services awarded under a non-procurement transaction that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR Section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., sub-awards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR Section 180.215. Condition/context: Of the two vendors selected and tested, we determined that: • One vendor did not have a suspension and debarment clause in the contract and the College did not perform other verification procedures to ensure that the contractor was not suspended or debarred. However, we independently verified that the contractor was not suspended or debarred per review of sam.gov. • One vendor did not have a suspension and debarment clause in the contract, and while the College provided documentation of its review of sam.gov to verify that the contractor was not suspended or debarred, that documentation did not contain evidence that the verification was performed timely (i.e., before entering into the contract with the vendor). Cause: The College’s preferred verification for suspension and debarment is checking sam.gov. The program’s backup method of verification is a standard suspension and debarment clause within the formal contract. However, the program’s control system did not function as designed. Effect: If the College is not verifying that vendors with which it contracts are neither suspended nor debarred or keeping record of such verification, it is possible that the College could contract with a vendor that is suspended or debarred, in which case the College may be required to return the funds expensed to that vendor to the Federal oversight agency. Questioned costs: None. Identification as a repeat finding: No. Recommendation: We recommend that the College review and revise its current control system to require that all contracts be initiated through a procurement process that includes the suspension and debarment certification process. If this is not feasible, we recommend that a secondary control system be established to ensure that all contracts entered into outside of the procurement process be reviewed to ensure compliance with all of the necessary Federal requirements, including suspension and debarment. This could include documenting and keeping records of the sam.gov checks being completed for each vendor and showing proof that each was reviewed by appropriate personnel in a timely manner. Views of responsible officials: Management concurs with the finding. See Exhibit I for corrective action plan.