Audit 39204

FY End
2022-06-30
Total Expended
$19.43M
Findings
4
Programs
12
Organization: Harford Community College (MD)
Year: 2022 Accepted: 2022-11-17

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
42397 2022-002 Significant Deficiency - L
42398 2022-001 Significant Deficiency Yes I
618839 2022-002 Significant Deficiency - L
618840 2022-001 Significant Deficiency Yes I

Contacts

Name Title Type
FW2LLLFFGB81 Karina Jackson Auditee
4434122114 Christina Bowman 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: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Harford Community College (the College) under programs of the federal government for the year ended June 30, 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 position, or cash flows of the College.

Finding Details

Criteria or specific requirement: Per Federal Register Notice of Public Posting Requirement of Grant Information for Higher Education Emergency Relief Fund (HEERF) Grantees dated May 13, 2021, institutions are required to submit (in a time and manner required by the Secretary) reports to the Secretary describing the use of funds distributed from the HEERF. Condition: The quarterly HEERF report for the period October 1, 2021 to December 31, 2021, understated the amount of student aid grants from HEERF III funds by $80,165. Questioned costs: None Context: This condition occurred for 1 of 2 quarterly student reports selected for testing. Cause: The reporting requirements of HEERF were extensive and came from various sources within the College. Unfortunately, due to the multiple data summations involved in the quarterly reporting, an amount was mis-reported. Effect: Information reported in the quarterly HEERF report for the period October 1, 2021 to December 31, 2021, was incorrect. Repeat Finding: No Recommendation: We recommend the College review its processes for collecting and submitting grant reports to ensure all required elements are reported correctly. Views of responsible officials: There is no disagreement with the audit finding. Refer to the College?s response on attached letterhead.
Criteria or specific requirement: Per Uniform Guidance 2 CFR sections 200.212 and 200.318(h); 2 CFR section 180.300; 48 CFR section 52.209-6, a nonfederal entity must have procedures for verifying that an entity with which it plans to enter into a covered transaction greater than $25,000 is not debarred, suspended, or otherwise excluded. Condition: The College did not have a policy in place to verify that a vendor had not been suspended or debarred, at the time the College entered into certain transactions greater than $25,000 with vendors. This policy was updated late in the year ended June 30, 2022, and the vendors were reviewed at that time. Questioned costs: None Context: This condition occurred for 5 of 5 vendors selected for testing. Cause: The general Terms & Conditions attached to College Purchase Orders were designed to protect the College when entering into agreements with vendors. Unfortunately, these Terms & Conditions were not updated to include the Uniform Guidance criteria pertaining to transactions with debarred, suspended or otherwise excluded vendors until late in the year ended June 30, 2022. Effect: The College could enter a covered transaction with a vendor who is suspended or debarred and not be in compliance with Uniform Guidance requirements. Repeat Finding: Yes Recommendation: We recommend the College continue to follow its policy which dictates how the College will ensure suspension and debarment procedures are followed for any aggregate disbursements with vendors greater than $25,000. This process should occur prior to entering into the transaction. Views of responsible officials: There is no disagreement with the audit finding. Refer to the College?s response on attached letterhead.
Criteria or specific requirement: Per Federal Register Notice of Public Posting Requirement of Grant Information for Higher Education Emergency Relief Fund (HEERF) Grantees dated May 13, 2021, institutions are required to submit (in a time and manner required by the Secretary) reports to the Secretary describing the use of funds distributed from the HEERF. Condition: The quarterly HEERF report for the period October 1, 2021 to December 31, 2021, understated the amount of student aid grants from HEERF III funds by $80,165. Questioned costs: None Context: This condition occurred for 1 of 2 quarterly student reports selected for testing. Cause: The reporting requirements of HEERF were extensive and came from various sources within the College. Unfortunately, due to the multiple data summations involved in the quarterly reporting, an amount was mis-reported. Effect: Information reported in the quarterly HEERF report for the period October 1, 2021 to December 31, 2021, was incorrect. Repeat Finding: No Recommendation: We recommend the College review its processes for collecting and submitting grant reports to ensure all required elements are reported correctly. Views of responsible officials: There is no disagreement with the audit finding. Refer to the College?s response on attached letterhead.
Criteria or specific requirement: Per Uniform Guidance 2 CFR sections 200.212 and 200.318(h); 2 CFR section 180.300; 48 CFR section 52.209-6, a nonfederal entity must have procedures for verifying that an entity with which it plans to enter into a covered transaction greater than $25,000 is not debarred, suspended, or otherwise excluded. Condition: The College did not have a policy in place to verify that a vendor had not been suspended or debarred, at the time the College entered into certain transactions greater than $25,000 with vendors. This policy was updated late in the year ended June 30, 2022, and the vendors were reviewed at that time. Questioned costs: None Context: This condition occurred for 5 of 5 vendors selected for testing. Cause: The general Terms & Conditions attached to College Purchase Orders were designed to protect the College when entering into agreements with vendors. Unfortunately, these Terms & Conditions were not updated to include the Uniform Guidance criteria pertaining to transactions with debarred, suspended or otherwise excluded vendors until late in the year ended June 30, 2022. Effect: The College could enter a covered transaction with a vendor who is suspended or debarred and not be in compliance with Uniform Guidance requirements. Repeat Finding: Yes Recommendation: We recommend the College continue to follow its policy which dictates how the College will ensure suspension and debarment procedures are followed for any aggregate disbursements with vendors greater than $25,000. This process should occur prior to entering into the transaction. Views of responsible officials: There is no disagreement with the audit finding. Refer to the College?s response on attached letterhead.