Audit 406851

Federal Agency: Department of Education Federal Program: Title: Student Financial Assistance Cluster Title: Higher Education Institutional Aid Assistance Listing No.: 84.063, 84.033, 84.007, 84.268, and 84.031 Federal Award Numbers: P033A208469(SEOG) P033A208469(FWS) P063P204871(PELL) P268K234871(FDSL) Award Period: July 1, 2021 to June 30, 2024 Name of Applicable Pass-Through Entity- Not applicable Condition: The College did not submit its data collection form for the year ending June 30, 2023, by the earlier of 30 days after release of the financial statements or nine months after the reporting period. Management’s progress: Management continues to work on closing their books and submitting timely. Criteria: Per 200.512 (a)(1) of the Uniform Guidance, the Data Collection Form is required to be completed and submitted to the Federal Audit Clearinghouse within the earlier of 30 days after the issuance of the respective auditor’s reports or within nine months after the end of the audit period. Questioned costs: None. Cause: The FY2023 financial close was late therefore the audit not completed timely. Effect: The College was noncompliant with this requirement in relation to its federal funding. The College shall be subject to a high-risk assessment on its next single audit. Recommendation: We recommend that the system of financial close and reporting objectives and risks be identified, and the risks mitigated through strengthening the department.

Federal Agency: Department of Education Federal Program: Title: Higher Education Institutional Aid Assistance Listing Nos: 84.031 Higher Education Institutional Aid Federal Award Number: Not Available Award Period: June 30, 2015-June 30, 2024 Name of Applicable Pass-Through Entity: Not applicable Condition: During the audit, information received from the Foundation as custodian for endowment resources reported a different endowment balance for the Title V endowment than the College recorded. Neither the College nor the Foundation could provide complete information on policies, procedures and support documentation on award requirements or reporting requirements. Management’s progress: The College made no progress in correcting this finding. They are attempting to complete the Foundation’s Audits but have only gotten to fiscal year 2021. Criteria: The Title V endowment was funded with federal funds of $125,000 and the Foundation raised and contributed matching funds of $125,000 to make a $250,000 corpus. The endowment corpus is restricted for a 20-year period. The endowment including matching funds is reported on the books of the College. Questioned Costs: None. Cause: It appears the Foundation reported the Title V corpus based on federal funds received and did not include the matching funds as part of the endowment. This is compounded by the delay in the Foundation’s financial statements. Effect: Without policies and procedures in place and correct records, management is unable to determine if appropriate funding has been received and may not receive all funding for which it is eligible. Recommendation: We recommend that the records for the endowment be brought in agreement and changes made at RBC as needed. The Foundation Board should adopt the Title V balance as correct at a meeting. Records should be compiled and retained in relation to the Federal grants on an ongoing basis.