Audit 46390

FY End
2022-06-30
Total Expended
$1.95M
Findings
8
Programs
4
Year: 2022 Accepted: 2023-02-26

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
47616 2022-002 - - C
47617 2022-003 - - L
47618 2022-002 - - C
47619 2022-003 - - L
624058 2022-002 - - C
624059 2022-003 - - L
624060 2022-002 - - C
624061 2022-003 - - L

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $638,873 Yes 0
84.425 Education Stabilization Fund $310,508 Yes 2
84.048 Career and Technical Education -- Basic Grants to States $294,124 - 0
84.063 Federal Pell Grant Program $276,555 Yes 0

Contacts

Name Title Type
C7LUJ1U8MY35 Katie M. Braun Auditee
2157844843 Ronald L. Minninger, CPA Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Eastern Center for Arts and Technology under programs of the federal government for the year ended June 30, 2022. The information on this Schedule is prepared 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 Eastern Center for Arts and Technology, it is not intended to and does not present the financial position or changes in net position of Eastern Center for Arts and Technology. 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 may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

2022-002 HEERF Institutional Aid Portion ? Assistance Listing No. 84.425F, Grant Period May 20, 2020 through May 11, 2022; and Higher Education Emergency Relief Fund (HEERF) Student Aid Portion ? Assistance Listing No. 84.425E, grant period April 25, 2020 through May 11, 2022 Condition: During the year ended June 30, 2022, Eastern Center for Arts and Technology received HEERF grant funds totaling $726,580, of which $720,080 was received in July 2021. However, funds totaling $110,676 remained unexpended as of June 30, 2022. Criteria: Non-federal entities must minimize the time elapsing between the transfer of funds from the U.S. Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means (2 CFR section 200.305(b)). Cause: Eastern Center for Arts and Technology did not adequately monitor the amount and the timing of the expenditure of the federal funds received. Effect: Eastern Center for Arts and Technology did not minimize the time elapsing between the transfer of funds from the U.S. Treasury and the disbursement for program costs and, therefore, did not comply with the Cash Management compliance requirement. Context: The financial accounting records reflect that federal funds totaling $726,580 were received during the year ended June 30, 2022 and that $110,676 remained unexpended as of June 30, 2022. Recommendation: Eastern Center for Arts and Technology should more closely monitor the timing of the expenditure of federal funds received. In addition, Eastern Center for Arts and Technology should return unexpended funds once the grant period has ended. Views of Responsible Officials and Planned Corrective Actions: See Corrective Action Plan.
2022-003 HEERF Institutional Aid Portion ? Assistance Listing No. 84.425F, Grant Period May 20, 2020 through May 11, 2022; and Higher Education Emergency Relief Fund (HEERF) Student Aid Portion ? Assistance Listing No. 84.425E, grant period April 25, 2020 through May 11, 2022 Condition: The ?Quarterly Budget and Expenditure Reporting for HEERF I, II, and III? form (OMB Control Number 1840-0849) for the fourth quarter 2021 is posted on Eastern Center for Arts and Technology?s website. However, quarterly reports for the quarters ended March 31, 2022 and June 30, 2022 have not been posted to the Organization?s website. Criteria: Quarterly Public Reporting Forms are required to be completed and conspicuously posted on the institution?s website. Cause: Eastern Center for Arts and Technology removed the quarterly reports from the website at the end of the 2021-22 school year since management believed the reports no longer needed to be posted. Effect: Eastern Center for Arts and Technology is not in compliance with the reporting requirements for these grants. Context: As part of testing compliance with the reporting compliance requirement, the auditor observed the Organization?s website to determine whether the Quarterly Public Reporting Forms were conspicuously posted. Recommendation: Eastern Center for Arts and Technology should complete and post to the Organization?s website the Quarterly Public Reporting Forms referenced above and ensure that all applicable future reports are posted. Views of Responsible Officials and Planned Corrective Actions: See Corrective Action Plan.
2022-002 HEERF Institutional Aid Portion ? Assistance Listing No. 84.425F, Grant Period May 20, 2020 through May 11, 2022; and Higher Education Emergency Relief Fund (HEERF) Student Aid Portion ? Assistance Listing No. 84.425E, grant period April 25, 2020 through May 11, 2022 Condition: During the year ended June 30, 2022, Eastern Center for Arts and Technology received HEERF grant funds totaling $726,580, of which $720,080 was received in July 2021. However, funds totaling $110,676 remained unexpended as of June 30, 2022. Criteria: Non-federal entities must minimize the time elapsing between the transfer of funds from the U.S. Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means (2 CFR section 200.305(b)). Cause: Eastern Center for Arts and Technology did not adequately monitor the amount and the timing of the expenditure of the federal funds received. Effect: Eastern Center for Arts and Technology did not minimize the time elapsing between the transfer of funds from the U.S. Treasury and the disbursement for program costs and, therefore, did not comply with the Cash Management compliance requirement. Context: The financial accounting records reflect that federal funds totaling $726,580 were received during the year ended June 30, 2022 and that $110,676 remained unexpended as of June 30, 2022. Recommendation: Eastern Center for Arts and Technology should more closely monitor the timing of the expenditure of federal funds received. In addition, Eastern Center for Arts and Technology should return unexpended funds once the grant period has ended. Views of Responsible Officials and Planned Corrective Actions: See Corrective Action Plan.
2022-003 HEERF Institutional Aid Portion ? Assistance Listing No. 84.425F, Grant Period May 20, 2020 through May 11, 2022; and Higher Education Emergency Relief Fund (HEERF) Student Aid Portion ? Assistance Listing No. 84.425E, grant period April 25, 2020 through May 11, 2022 Condition: The ?Quarterly Budget and Expenditure Reporting for HEERF I, II, and III? form (OMB Control Number 1840-0849) for the fourth quarter 2021 is posted on Eastern Center for Arts and Technology?s website. However, quarterly reports for the quarters ended March 31, 2022 and June 30, 2022 have not been posted to the Organization?s website. Criteria: Quarterly Public Reporting Forms are required to be completed and conspicuously posted on the institution?s website. Cause: Eastern Center for Arts and Technology removed the quarterly reports from the website at the end of the 2021-22 school year since management believed the reports no longer needed to be posted. Effect: Eastern Center for Arts and Technology is not in compliance with the reporting requirements for these grants. Context: As part of testing compliance with the reporting compliance requirement, the auditor observed the Organization?s website to determine whether the Quarterly Public Reporting Forms were conspicuously posted. Recommendation: Eastern Center for Arts and Technology should complete and post to the Organization?s website the Quarterly Public Reporting Forms referenced above and ensure that all applicable future reports are posted. Views of Responsible Officials and Planned Corrective Actions: See Corrective Action Plan.
2022-002 HEERF Institutional Aid Portion ? Assistance Listing No. 84.425F, Grant Period May 20, 2020 through May 11, 2022; and Higher Education Emergency Relief Fund (HEERF) Student Aid Portion ? Assistance Listing No. 84.425E, grant period April 25, 2020 through May 11, 2022 Condition: During the year ended June 30, 2022, Eastern Center for Arts and Technology received HEERF grant funds totaling $726,580, of which $720,080 was received in July 2021. However, funds totaling $110,676 remained unexpended as of June 30, 2022. Criteria: Non-federal entities must minimize the time elapsing between the transfer of funds from the U.S. Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means (2 CFR section 200.305(b)). Cause: Eastern Center for Arts and Technology did not adequately monitor the amount and the timing of the expenditure of the federal funds received. Effect: Eastern Center for Arts and Technology did not minimize the time elapsing between the transfer of funds from the U.S. Treasury and the disbursement for program costs and, therefore, did not comply with the Cash Management compliance requirement. Context: The financial accounting records reflect that federal funds totaling $726,580 were received during the year ended June 30, 2022 and that $110,676 remained unexpended as of June 30, 2022. Recommendation: Eastern Center for Arts and Technology should more closely monitor the timing of the expenditure of federal funds received. In addition, Eastern Center for Arts and Technology should return unexpended funds once the grant period has ended. Views of Responsible Officials and Planned Corrective Actions: See Corrective Action Plan.
2022-003 HEERF Institutional Aid Portion ? Assistance Listing No. 84.425F, Grant Period May 20, 2020 through May 11, 2022; and Higher Education Emergency Relief Fund (HEERF) Student Aid Portion ? Assistance Listing No. 84.425E, grant period April 25, 2020 through May 11, 2022 Condition: The ?Quarterly Budget and Expenditure Reporting for HEERF I, II, and III? form (OMB Control Number 1840-0849) for the fourth quarter 2021 is posted on Eastern Center for Arts and Technology?s website. However, quarterly reports for the quarters ended March 31, 2022 and June 30, 2022 have not been posted to the Organization?s website. Criteria: Quarterly Public Reporting Forms are required to be completed and conspicuously posted on the institution?s website. Cause: Eastern Center for Arts and Technology removed the quarterly reports from the website at the end of the 2021-22 school year since management believed the reports no longer needed to be posted. Effect: Eastern Center for Arts and Technology is not in compliance with the reporting requirements for these grants. Context: As part of testing compliance with the reporting compliance requirement, the auditor observed the Organization?s website to determine whether the Quarterly Public Reporting Forms were conspicuously posted. Recommendation: Eastern Center for Arts and Technology should complete and post to the Organization?s website the Quarterly Public Reporting Forms referenced above and ensure that all applicable future reports are posted. Views of Responsible Officials and Planned Corrective Actions: See Corrective Action Plan.
2022-002 HEERF Institutional Aid Portion ? Assistance Listing No. 84.425F, Grant Period May 20, 2020 through May 11, 2022; and Higher Education Emergency Relief Fund (HEERF) Student Aid Portion ? Assistance Listing No. 84.425E, grant period April 25, 2020 through May 11, 2022 Condition: During the year ended June 30, 2022, Eastern Center for Arts and Technology received HEERF grant funds totaling $726,580, of which $720,080 was received in July 2021. However, funds totaling $110,676 remained unexpended as of June 30, 2022. Criteria: Non-federal entities must minimize the time elapsing between the transfer of funds from the U.S. Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means (2 CFR section 200.305(b)). Cause: Eastern Center for Arts and Technology did not adequately monitor the amount and the timing of the expenditure of the federal funds received. Effect: Eastern Center for Arts and Technology did not minimize the time elapsing between the transfer of funds from the U.S. Treasury and the disbursement for program costs and, therefore, did not comply with the Cash Management compliance requirement. Context: The financial accounting records reflect that federal funds totaling $726,580 were received during the year ended June 30, 2022 and that $110,676 remained unexpended as of June 30, 2022. Recommendation: Eastern Center for Arts and Technology should more closely monitor the timing of the expenditure of federal funds received. In addition, Eastern Center for Arts and Technology should return unexpended funds once the grant period has ended. Views of Responsible Officials and Planned Corrective Actions: See Corrective Action Plan.
2022-003 HEERF Institutional Aid Portion ? Assistance Listing No. 84.425F, Grant Period May 20, 2020 through May 11, 2022; and Higher Education Emergency Relief Fund (HEERF) Student Aid Portion ? Assistance Listing No. 84.425E, grant period April 25, 2020 through May 11, 2022 Condition: The ?Quarterly Budget and Expenditure Reporting for HEERF I, II, and III? form (OMB Control Number 1840-0849) for the fourth quarter 2021 is posted on Eastern Center for Arts and Technology?s website. However, quarterly reports for the quarters ended March 31, 2022 and June 30, 2022 have not been posted to the Organization?s website. Criteria: Quarterly Public Reporting Forms are required to be completed and conspicuously posted on the institution?s website. Cause: Eastern Center for Arts and Technology removed the quarterly reports from the website at the end of the 2021-22 school year since management believed the reports no longer needed to be posted. Effect: Eastern Center for Arts and Technology is not in compliance with the reporting requirements for these grants. Context: As part of testing compliance with the reporting compliance requirement, the auditor observed the Organization?s website to determine whether the Quarterly Public Reporting Forms were conspicuously posted. Recommendation: Eastern Center for Arts and Technology should complete and post to the Organization?s website the Quarterly Public Reporting Forms referenced above and ensure that all applicable future reports are posted. Views of Responsible Officials and Planned Corrective Actions: See Corrective Action Plan.