Audit 46519

FY End
2022-09-30
Total Expended
$12.11M
Findings
12
Programs
20
Year: 2022 Accepted: 2023-02-15

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
47910 2022-001 Material Weakness - I
47911 2022-001 Material Weakness - I
47912 2022-001 Material Weakness - I
47913 2022-002 Significant Deficiency - E
47914 2022-002 Significant Deficiency - E
47915 2022-002 Significant Deficiency - E
624352 2022-001 Material Weakness - I
624353 2022-001 Material Weakness - I
624354 2022-001 Material Weakness - I
624355 2022-002 Significant Deficiency - E
624356 2022-002 Significant Deficiency - E
624357 2022-002 Significant Deficiency - E

Contacts

Name Title Type
CDVSG3NKJ1D7 Daniel Long Auditee
3343472623 Tyler Dunaway, Auditor
No contacts on file

Notes to SEFA

Title: LOAN / LOAN GUARANTEE OUTSTANDING BALANCES Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal spending of the Enterprise State Community College (the College) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in preparation of, the basic financial statements. Because the schedule presents only a selected portion of the operations of the College, it is not intended to and does not represent the financial position of the College. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The College did not have any federal loans or loan guarantees outstanding during the year ended September 30, 2022.
Title: NONCASH ASSISTANCE AND OTHER Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal spending of the Enterprise State Community College (the College) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in preparation of, the basic financial statements. Because the schedule presents only a selected portion of the operations of the College, it is not intended to and does not represent the financial position of the College. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The College did not receive any noncash assistance or federally funded insurance during the year ended September 30, 2022.
Title: CONTINGENCIES Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal spending of the Enterprise State Community College (the College) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in preparation of, the basic financial statements. Because the schedule presents only a selected portion of the operations of the College, it is not intended to and does not represent the financial position of the College. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Grant monies received and disbursed by the College are for specific purposes and are subject to review by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based upon experience, the College does not believe that such disallowance, if any, would have a material effect on the financial position of the College.
Title: FEDERAL PASSTHROUGH FUNDS Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal spending of the Enterprise State Community College (the College) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in preparation of, the basic financial statements. Because the schedule presents only a selected portion of the operations of the College, it is not intended to and does not represent the financial position of the College. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The College is also the subrecipient of federal funds that have been subjected to testing and are reported as expenditures and listed as federal passthrough funds. Federal awards other than those indicated as passthrough are considered to be direct.

Finding Details

Item 2022-001 ? Suspension and Debarment Education Stabilization Fund: Higher Education Emergency Relief Fund (HEERF) ? ALN # 84.425E, 84.425F, & 84.425M U.S. Department of Education Federal Award #P425E201496, P425F202110, P425M200661 Federal Award Year - 2020 Criteria ? 2 CFR 200.303 requires the non-Federal entity to ?(a) establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award.? Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include those procurement contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All nonprocurement transactions entered into by a recipient (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. Condition ? Adequate controls were not in place to provide for proper review of covered transactions for suspension and debarment. Covered transactions, over $25,000 paid with grant funding were not reviewed for suspension and debarment. Cause ? The College lacked sufficient controls to ensure evidence of compliance with suspension and debarment. Questioned Costs ? Not determinable Effect ? Failure to properly verify that a potential vendor has not been suspended or debarred could result in unallowable expenditures and disallowed costs. Recommendation ? We recommend that controls should be put into place to better monitor and document the compliance of vendors for suspension and debarment. Management?s Response ? The College will implement additional controls to ensure there is evidence of review of covered transactions over $25,000 for suspension and debarment prior to payment. Dean of Administrative Services will be responsible for the corrective action and anticipates completion of corrective action will be taken before September 30, 2023.
Item 2022-001 ? Suspension and Debarment Education Stabilization Fund: Higher Education Emergency Relief Fund (HEERF) ? ALN # 84.425E, 84.425F, & 84.425M U.S. Department of Education Federal Award #P425E201496, P425F202110, P425M200661 Federal Award Year - 2020 Criteria ? 2 CFR 200.303 requires the non-Federal entity to ?(a) establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award.? Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include those procurement contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All nonprocurement transactions entered into by a recipient (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. Condition ? Adequate controls were not in place to provide for proper review of covered transactions for suspension and debarment. Covered transactions, over $25,000 paid with grant funding were not reviewed for suspension and debarment. Cause ? The College lacked sufficient controls to ensure evidence of compliance with suspension and debarment. Questioned Costs ? Not determinable Effect ? Failure to properly verify that a potential vendor has not been suspended or debarred could result in unallowable expenditures and disallowed costs. Recommendation ? We recommend that controls should be put into place to better monitor and document the compliance of vendors for suspension and debarment. Management?s Response ? The College will implement additional controls to ensure there is evidence of review of covered transactions over $25,000 for suspension and debarment prior to payment. Dean of Administrative Services will be responsible for the corrective action and anticipates completion of corrective action will be taken before September 30, 2023.
Item 2022-001 ? Suspension and Debarment Education Stabilization Fund: Higher Education Emergency Relief Fund (HEERF) ? ALN # 84.425E, 84.425F, & 84.425M U.S. Department of Education Federal Award #P425E201496, P425F202110, P425M200661 Federal Award Year - 2020 Criteria ? 2 CFR 200.303 requires the non-Federal entity to ?(a) establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award.? Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include those procurement contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All nonprocurement transactions entered into by a recipient (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. Condition ? Adequate controls were not in place to provide for proper review of covered transactions for suspension and debarment. Covered transactions, over $25,000 paid with grant funding were not reviewed for suspension and debarment. Cause ? The College lacked sufficient controls to ensure evidence of compliance with suspension and debarment. Questioned Costs ? Not determinable Effect ? Failure to properly verify that a potential vendor has not been suspended or debarred could result in unallowable expenditures and disallowed costs. Recommendation ? We recommend that controls should be put into place to better monitor and document the compliance of vendors for suspension and debarment. Management?s Response ? The College will implement additional controls to ensure there is evidence of review of covered transactions over $25,000 for suspension and debarment prior to payment. Dean of Administrative Services will be responsible for the corrective action and anticipates completion of corrective action will be taken before September 30, 2023.
Item 2022-002 ? Eligibility TRIO Cluster ? ALN # 84.042A, 84.044A, & 84.066A U.S. Department of Education Federal Award #P042A200340-21, P044A210348, P066A210037 Federal Award Year - 2022 Criteria ? As specified in 2 CFR section 200.303 the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non- Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. The College lacked sufficient review of participant applications to verify compliance with eligibility requirements as referenced in 34 CFR section 644.3. Condition ? During a dual purpose tests of controls and compliance there were 3 participants selected for testing that did not certify to the fact that they were a citizen, national, or permanent resident of the United States, a requirement for eligibility of the TRIO program. Cause ? The College lacked sufficient review of participant application to verify compliance with eligibility. Questioned Costs ? Not determinable Effect ? Failure to properly verify eligibility could result in services being provided to participants that do not meet requirements of program. Recommendation ? We recommend that review should be performed of participants application before services are rendered. Management?s Response ? The College will implement additional controls to ensure there is evidence of review of certifying statement from participant prior to services being rendered. TRIO Services Director will be responsible for the corrective action and anticipates completion of corrective action will be taken before September 30, 2023.
Item 2022-002 ? Eligibility TRIO Cluster ? ALN # 84.042A, 84.044A, & 84.066A U.S. Department of Education Federal Award #P042A200340-21, P044A210348, P066A210037 Federal Award Year - 2022 Criteria ? As specified in 2 CFR section 200.303 the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non- Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. The College lacked sufficient review of participant applications to verify compliance with eligibility requirements as referenced in 34 CFR section 644.3. Condition ? During a dual purpose tests of controls and compliance there were 3 participants selected for testing that did not certify to the fact that they were a citizen, national, or permanent resident of the United States, a requirement for eligibility of the TRIO program. Cause ? The College lacked sufficient review of participant application to verify compliance with eligibility. Questioned Costs ? Not determinable Effect ? Failure to properly verify eligibility could result in services being provided to participants that do not meet requirements of program. Recommendation ? We recommend that review should be performed of participants application before services are rendered. Management?s Response ? The College will implement additional controls to ensure there is evidence of review of certifying statement from participant prior to services being rendered. TRIO Services Director will be responsible for the corrective action and anticipates completion of corrective action will be taken before September 30, 2023.
Item 2022-002 ? Eligibility TRIO Cluster ? ALN # 84.042A, 84.044A, & 84.066A U.S. Department of Education Federal Award #P042A200340-21, P044A210348, P066A210037 Federal Award Year - 2022 Criteria ? As specified in 2 CFR section 200.303 the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non- Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. The College lacked sufficient review of participant applications to verify compliance with eligibility requirements as referenced in 34 CFR section 644.3. Condition ? During a dual purpose tests of controls and compliance there were 3 participants selected for testing that did not certify to the fact that they were a citizen, national, or permanent resident of the United States, a requirement for eligibility of the TRIO program. Cause ? The College lacked sufficient review of participant application to verify compliance with eligibility. Questioned Costs ? Not determinable Effect ? Failure to properly verify eligibility could result in services being provided to participants that do not meet requirements of program. Recommendation ? We recommend that review should be performed of participants application before services are rendered. Management?s Response ? The College will implement additional controls to ensure there is evidence of review of certifying statement from participant prior to services being rendered. TRIO Services Director will be responsible for the corrective action and anticipates completion of corrective action will be taken before September 30, 2023.
Item 2022-001 ? Suspension and Debarment Education Stabilization Fund: Higher Education Emergency Relief Fund (HEERF) ? ALN # 84.425E, 84.425F, & 84.425M U.S. Department of Education Federal Award #P425E201496, P425F202110, P425M200661 Federal Award Year - 2020 Criteria ? 2 CFR 200.303 requires the non-Federal entity to ?(a) establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award.? Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include those procurement contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All nonprocurement transactions entered into by a recipient (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. Condition ? Adequate controls were not in place to provide for proper review of covered transactions for suspension and debarment. Covered transactions, over $25,000 paid with grant funding were not reviewed for suspension and debarment. Cause ? The College lacked sufficient controls to ensure evidence of compliance with suspension and debarment. Questioned Costs ? Not determinable Effect ? Failure to properly verify that a potential vendor has not been suspended or debarred could result in unallowable expenditures and disallowed costs. Recommendation ? We recommend that controls should be put into place to better monitor and document the compliance of vendors for suspension and debarment. Management?s Response ? The College will implement additional controls to ensure there is evidence of review of covered transactions over $25,000 for suspension and debarment prior to payment. Dean of Administrative Services will be responsible for the corrective action and anticipates completion of corrective action will be taken before September 30, 2023.
Item 2022-001 ? Suspension and Debarment Education Stabilization Fund: Higher Education Emergency Relief Fund (HEERF) ? ALN # 84.425E, 84.425F, & 84.425M U.S. Department of Education Federal Award #P425E201496, P425F202110, P425M200661 Federal Award Year - 2020 Criteria ? 2 CFR 200.303 requires the non-Federal entity to ?(a) establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award.? Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include those procurement contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All nonprocurement transactions entered into by a recipient (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. Condition ? Adequate controls were not in place to provide for proper review of covered transactions for suspension and debarment. Covered transactions, over $25,000 paid with grant funding were not reviewed for suspension and debarment. Cause ? The College lacked sufficient controls to ensure evidence of compliance with suspension and debarment. Questioned Costs ? Not determinable Effect ? Failure to properly verify that a potential vendor has not been suspended or debarred could result in unallowable expenditures and disallowed costs. Recommendation ? We recommend that controls should be put into place to better monitor and document the compliance of vendors for suspension and debarment. Management?s Response ? The College will implement additional controls to ensure there is evidence of review of covered transactions over $25,000 for suspension and debarment prior to payment. Dean of Administrative Services will be responsible for the corrective action and anticipates completion of corrective action will be taken before September 30, 2023.
Item 2022-001 ? Suspension and Debarment Education Stabilization Fund: Higher Education Emergency Relief Fund (HEERF) ? ALN # 84.425E, 84.425F, & 84.425M U.S. Department of Education Federal Award #P425E201496, P425F202110, P425M200661 Federal Award Year - 2020 Criteria ? 2 CFR 200.303 requires the non-Federal entity to ?(a) establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award.? Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include those procurement contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All nonprocurement transactions entered into by a recipient (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. Condition ? Adequate controls were not in place to provide for proper review of covered transactions for suspension and debarment. Covered transactions, over $25,000 paid with grant funding were not reviewed for suspension and debarment. Cause ? The College lacked sufficient controls to ensure evidence of compliance with suspension and debarment. Questioned Costs ? Not determinable Effect ? Failure to properly verify that a potential vendor has not been suspended or debarred could result in unallowable expenditures and disallowed costs. Recommendation ? We recommend that controls should be put into place to better monitor and document the compliance of vendors for suspension and debarment. Management?s Response ? The College will implement additional controls to ensure there is evidence of review of covered transactions over $25,000 for suspension and debarment prior to payment. Dean of Administrative Services will be responsible for the corrective action and anticipates completion of corrective action will be taken before September 30, 2023.
Item 2022-002 ? Eligibility TRIO Cluster ? ALN # 84.042A, 84.044A, & 84.066A U.S. Department of Education Federal Award #P042A200340-21, P044A210348, P066A210037 Federal Award Year - 2022 Criteria ? As specified in 2 CFR section 200.303 the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non- Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. The College lacked sufficient review of participant applications to verify compliance with eligibility requirements as referenced in 34 CFR section 644.3. Condition ? During a dual purpose tests of controls and compliance there were 3 participants selected for testing that did not certify to the fact that they were a citizen, national, or permanent resident of the United States, a requirement for eligibility of the TRIO program. Cause ? The College lacked sufficient review of participant application to verify compliance with eligibility. Questioned Costs ? Not determinable Effect ? Failure to properly verify eligibility could result in services being provided to participants that do not meet requirements of program. Recommendation ? We recommend that review should be performed of participants application before services are rendered. Management?s Response ? The College will implement additional controls to ensure there is evidence of review of certifying statement from participant prior to services being rendered. TRIO Services Director will be responsible for the corrective action and anticipates completion of corrective action will be taken before September 30, 2023.
Item 2022-002 ? Eligibility TRIO Cluster ? ALN # 84.042A, 84.044A, & 84.066A U.S. Department of Education Federal Award #P042A200340-21, P044A210348, P066A210037 Federal Award Year - 2022 Criteria ? As specified in 2 CFR section 200.303 the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non- Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. The College lacked sufficient review of participant applications to verify compliance with eligibility requirements as referenced in 34 CFR section 644.3. Condition ? During a dual purpose tests of controls and compliance there were 3 participants selected for testing that did not certify to the fact that they were a citizen, national, or permanent resident of the United States, a requirement for eligibility of the TRIO program. Cause ? The College lacked sufficient review of participant application to verify compliance with eligibility. Questioned Costs ? Not determinable Effect ? Failure to properly verify eligibility could result in services being provided to participants that do not meet requirements of program. Recommendation ? We recommend that review should be performed of participants application before services are rendered. Management?s Response ? The College will implement additional controls to ensure there is evidence of review of certifying statement from participant prior to services being rendered. TRIO Services Director will be responsible for the corrective action and anticipates completion of corrective action will be taken before September 30, 2023.
Item 2022-002 ? Eligibility TRIO Cluster ? ALN # 84.042A, 84.044A, & 84.066A U.S. Department of Education Federal Award #P042A200340-21, P044A210348, P066A210037 Federal Award Year - 2022 Criteria ? As specified in 2 CFR section 200.303 the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non- Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. The College lacked sufficient review of participant applications to verify compliance with eligibility requirements as referenced in 34 CFR section 644.3. Condition ? During a dual purpose tests of controls and compliance there were 3 participants selected for testing that did not certify to the fact that they were a citizen, national, or permanent resident of the United States, a requirement for eligibility of the TRIO program. Cause ? The College lacked sufficient review of participant application to verify compliance with eligibility. Questioned Costs ? Not determinable Effect ? Failure to properly verify eligibility could result in services being provided to participants that do not meet requirements of program. Recommendation ? We recommend that review should be performed of participants application before services are rendered. Management?s Response ? The College will implement additional controls to ensure there is evidence of review of certifying statement from participant prior to services being rendered. TRIO Services Director will be responsible for the corrective action and anticipates completion of corrective action will be taken before September 30, 2023.