See Schedule of Findings and Questioned Cost for chart/table 2022-001: Reporting Criteria: 2 CFR 200.327 ? Financial Reporting; and the laws, regulations, and the provisions of contract or grant agreements pertaining to the specific programs require that reports be complete, accurate, and supported by accounting records (if applicable) and be submitted in compliance with the appropriate deadlines. Condition/Context: A total of five reports were selected for testing, this included one annual report, two quarterly reports related to the Student Portion and two quarterly reports related to the Institutional Portion. Of these five reports: ? The Quarterly Institutional report for the period ending September 30, 2021 improperly categorized $165,000 of expenditures as software as opposed to the proper category, revenue replacement. ? The Annual report for the period ending December 31, 2021 improperly categorized $165,000 of expenditures as software as opposed to the proper category, revenue replacement. Additionally, revenue replacement expenditures were improperly reported by $37,910. Questioned Costs: $0 Cause: The College's internal control system did not have a sufficient control process in place to ensure all reports were accurate or a sufficient control process to review the reports for propriety to identify errors. Effect: 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 may impose additional conditions, which include requiring payments as reimbursements rather than advance payments, withholding authority to proceed to the next phase until receipt of evidence of acceptable performance within a given period of performance, require additional, more detailed financial reports, require additional project monitoring, require the non-Federal entity to obtain technical or management assistance, and establish additional prior approvals. If the Federal awarding agency determines that noncompliance cannot be remedied by imposing additional conditions, the Federal awarding agency may take one or more of the following actions, as appropriate in the circumstances: ? Temporarily withhold cash payments pending correction of the deficiency by the non-Federal entity or more severe enforcement action by the Federal awarding agency. ? (b) Disallow (that is, deny both use of funds and any applicable matching credit for) all or part of the cost of the activity or action not in compliance. ? (c) Wholly or partly suspend or terminate the Federal award. ? (d) Initiate suspension or debarment proceedings as authorized under 2 CFR part 180 and Federal awarding agency regulations (or in the case of a pass-through entity, recommend such a proceeding be initiated by a Federal awarding agency). ? (e) Withhold further Federal awards for the project or program. ? (f) Take other remedies that may be legally available. Identifications as a Repeat Finding: Yes. Recommendation: We recommend the College revise its control procedures to ensure reporting is completed accurately and to include an independent review before submission Views of Responsible Officials: Management concurs with the finding. See Exhibit I.
See Schedule of Findings and Questioned Cost for chart/table 2022-001: Reporting Criteria: 2 CFR 200.327 ? Financial Reporting; and the laws, regulations, and the provisions of contract or grant agreements pertaining to the specific programs require that reports be complete, accurate, and supported by accounting records (if applicable) and be submitted in compliance with the appropriate deadlines. Condition/Context: A total of five reports were selected for testing, this included one annual report, two quarterly reports related to the Student Portion and two quarterly reports related to the Institutional Portion. Of these five reports: ? The Quarterly Institutional report for the period ending September 30, 2021 improperly categorized $165,000 of expenditures as software as opposed to the proper category, revenue replacement. ? The Annual report for the period ending December 31, 2021 improperly categorized $165,000 of expenditures as software as opposed to the proper category, revenue replacement. Additionally, revenue replacement expenditures were improperly reported by $37,910. Questioned Costs: $0 Cause: The College's internal control system did not have a sufficient control process in place to ensure all reports were accurate or a sufficient control process to review the reports for propriety to identify errors. Effect: 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 may impose additional conditions, which include requiring payments as reimbursements rather than advance payments, withholding authority to proceed to the next phase until receipt of evidence of acceptable performance within a given period of performance, require additional, more detailed financial reports, require additional project monitoring, require the non-Federal entity to obtain technical or management assistance, and establish additional prior approvals. If the Federal awarding agency determines that noncompliance cannot be remedied by imposing additional conditions, the Federal awarding agency may take one or more of the following actions, as appropriate in the circumstances: ? Temporarily withhold cash payments pending correction of the deficiency by the non-Federal entity or more severe enforcement action by the Federal awarding agency. ? (b) Disallow (that is, deny both use of funds and any applicable matching credit for) all or part of the cost of the activity or action not in compliance. ? (c) Wholly or partly suspend or terminate the Federal award. ? (d) Initiate suspension or debarment proceedings as authorized under 2 CFR part 180 and Federal awarding agency regulations (or in the case of a pass-through entity, recommend such a proceeding be initiated by a Federal awarding agency). ? (e) Withhold further Federal awards for the project or program. ? (f) Take other remedies that may be legally available. Identifications as a Repeat Finding: Yes. Recommendation: We recommend the College revise its control procedures to ensure reporting is completed accurately and to include an independent review before submission Views of Responsible Officials: Management concurs with the finding. See Exhibit I.