FAC Explorer

Audit 46564

FY End
2022-06-30
Total Expended
$4.44M
Findings
16
Programs
6
Organization: Salem Community College (NJ)
Year: 2022 Accepted: 2023-09-24
Auditor: Bkc CPAS PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
38861 2022-003 Significant Deficiency Yes C
38862 2022-004 Significant Deficiency - L
38863 2022-007 Significant Deficiency - E
38864 2022-003 Significant Deficiency Yes C
38865 2022-005 Significant Deficiency Yes C
38866 2022-006 Significant Deficiency Yes E
38867 2022-003 Significant Deficiency Yes C
38868 2022-003 Significant Deficiency Yes C
615303 2022-003 Significant Deficiency Yes C
615304 2022-004 Significant Deficiency - L
615305 2022-007 Significant Deficiency - E
615306 2022-003 Significant Deficiency Yes C
615307 2022-005 Significant Deficiency Yes C
615308 2022-006 Significant Deficiency Yes E
615309 2022-003 Significant Deficiency Yes C
615310 2022-003 Significant Deficiency Yes C

Programs

ALN Program Spent Major Findings
84.063 Federal Pell Grant Program $1.72M Yes 3
84.268 Federal Direct Student Loans $706,653 Yes 3
84.425 Education Stabilization Fund $384,401 Yes 0
84.048 Career and Technical Education -- Basic Grants to States $118,898 - 0
84.007 Federal Supplemental Educational Opportunity Grants $34,099 Yes 1
84.033 Federal Work-Study Program $16,381 Yes 1

Contacts

Name Title Type
LJTULSHF5N35 Rod Jefferson Auditee
8563512612 Michael Holk Auditor
No contacts on file

Notes to SEFA

Title: Other student loan programs Accounting Policies: The accompanying Schedules of Expenditures of Federal Awards and State Financial Assistance include federal and state award activity of Salem Community College (SCC). SCC is defined in note 1 to SCCs basic financial statements. The information in these schedules is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and State of New Jersey Circular 15-08-OMB, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. All federal and state awards received directly from federal and state agencies, as well as federal awards and state financial assistance passed through other government agencies, are included on the schedules. Because these schedules present only a selected position and changes in operations of SCC, it is not intended to and does not present the financial position and changes in operations of SCC. Accordingly, some amounts presented in the respective schedules may differ from amounts presented in, or used in the preparation of, SCCs June 30, 2022 financial statements.Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and State of New Jersey Circular 15-08-OMB 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. SCC is responsible for the performance of certain administrative duties with respect to Federal Direct Student Loans and New Jersey Class Loans; accordingly, these loan balances are not included in SCCs basis financial statements. It is not practical to determine the balance of loans outstanding to students of SCC under these programs as of June 30, 2022.
Title: Donated personal protected equipment (PPE) Accounting Policies: The accompanying Schedules of Expenditures of Federal Awards and State Financial Assistance include federal and state award activity of Salem Community College (SCC). SCC is defined in note 1 to SCCs basic financial statements. The information in these schedules is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and State of New Jersey Circular 15-08-OMB, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. All federal and state awards received directly from federal and state agencies, as well as federal awards and state financial assistance passed through other government agencies, are included on the schedules. Because these schedules present only a selected position and changes in operations of SCC, it is not intended to and does not present the financial position and changes in operations of SCC. Accordingly, some amounts presented in the respective schedules may differ from amounts presented in, or used in the preparation of, SCCs June 30, 2022 financial statements.Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and State of New Jersey Circular 15-08-OMB 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. SCC has not received any donations of Personal Protected Equipment (PPE) related to COVID-19.

Finding Details

Finding 2022-003
Type: Internal Control Over Compliance Criteria: The School must ensure that its accounting records clearly reflect that it segregates federal funds from all other funds and can determine the amount of funds related to each federal program. Condition: Federal funds are comingled within the School?s financial aid disbursement account. No reconciliation is done to identify the balance of each type of federal aid that is included in the account. Cause: Federal funds are deposited into one account. Effect: The remaining balance of each type of federal funds included in the account cannot be determined. Recommendation: The School should develop a process for identifying the balance of funds for each financial aid program that is included in the School?s financial aid disbursement account as readily as if those funds were in a separate account. Management?s Response: The school is in the process of establishing procedures to identify the type of federal funds remaining in the financial aid disbursement account.
Finding 2022-004
Type: Internal Control Over Compliance Criteria: Institutions must report all loan disbursements and submit required records to the U.S. Department of Education?s Common Origination and Disbursement (COD) within 15 days of the disbursement. Condition: SCC did not report the disbursement for one student to COD within the 15 day time frame. Cause: This was an administrative oversight. Effect: COD was not notified timely. Recommendation: The School should review their procedures to ensure that COD is notified of each disbursement within the 15 day time frame. Management?s Response: The school will review their COD reporting procedures.
Finding 2022-007
Type: Internal Control Over Compliance Criteria: Awarded Direct Loans should be credited to student accounts timely. Condition: Two students did not receive their Direct Loan disbursements. Cause: The Direct Loans were awarded but the awards were not credited to the student?s accounts. Effect: The students did not receive Direct Loans totaling $7,917. Recommendation: The School should implement procedures to ensure that all Direct Loans are properly credited to student accounts. Management?s Response: The School will review their procedures relating to the disbursement of Direct Loans.
Finding 2022-003
Type: Internal Control Over Compliance Criteria: The School must ensure that its accounting records clearly reflect that it segregates federal funds from all other funds and can determine the amount of funds related to each federal program. Condition: Federal funds are comingled within the School?s financial aid disbursement account. No reconciliation is done to identify the balance of each type of federal aid that is included in the account. Cause: Federal funds are deposited into one account. Effect: The remaining balance of each type of federal funds included in the account cannot be determined. Recommendation: The School should develop a process for identifying the balance of funds for each financial aid program that is included in the School?s financial aid disbursement account as readily as if those funds were in a separate account. Management?s Response: The school is in the process of establishing procedures to identify the type of federal funds remaining in the financial aid disbursement account.
Finding 2022-005
Type: Internal Control Over Compliance Criteria: Credit balances are required to be remitted to student no later than 14 days after the credit balance occurred. Condition: Credit balances for two students were not paid timely. Cause: The late payments were due to an oversight within the School. Effect: The students did not receive their credit balances timely. Recommendation: The School should review their procedures to ensure that student credit balances are returned within the 14-day time frame. Management?s Response: The School will review their procedures over the timely disbursement of student credit balances.
Finding 2022-006
Type: Internal Control Over Compliance Criteria: Pell awards are calculated by taking into account a student?s status, expected family contribution and cost of attendance. These factors are used in conjunction with the Pell Grant Scheduled Award Chart for the 2021-2022 Award Year. Condition: The incorrect Pell Award was made for two students. Cause: The under award was due to an update error within SCC?s financial aid software Effect: The students were under awarded a total of $61. Recommendation: The School should implement procedures to ensure that the proper Pell funds are awarded. Management?s Response: The School will review their procedures relating to the Pell award calculation process.
Finding 2022-003
Type: Internal Control Over Compliance Criteria: The School must ensure that its accounting records clearly reflect that it segregates federal funds from all other funds and can determine the amount of funds related to each federal program. Condition: Federal funds are comingled within the School?s financial aid disbursement account. No reconciliation is done to identify the balance of each type of federal aid that is included in the account. Cause: Federal funds are deposited into one account. Effect: The remaining balance of each type of federal funds included in the account cannot be determined. Recommendation: The School should develop a process for identifying the balance of funds for each financial aid program that is included in the School?s financial aid disbursement account as readily as if those funds were in a separate account. Management?s Response: The school is in the process of establishing procedures to identify the type of federal funds remaining in the financial aid disbursement account.
Finding 2022-003
Type: Internal Control Over Compliance Criteria: The School must ensure that its accounting records clearly reflect that it segregates federal funds from all other funds and can determine the amount of funds related to each federal program. Condition: Federal funds are comingled within the School?s financial aid disbursement account. No reconciliation is done to identify the balance of each type of federal aid that is included in the account. Cause: Federal funds are deposited into one account. Effect: The remaining balance of each type of federal funds included in the account cannot be determined. Recommendation: The School should develop a process for identifying the balance of funds for each financial aid program that is included in the School?s financial aid disbursement account as readily as if those funds were in a separate account. Management?s Response: The school is in the process of establishing procedures to identify the type of federal funds remaining in the financial aid disbursement account.
Finding 2022-003
Type: Internal Control Over Compliance Criteria: The School must ensure that its accounting records clearly reflect that it segregates federal funds from all other funds and can determine the amount of funds related to each federal program. Condition: Federal funds are comingled within the School?s financial aid disbursement account. No reconciliation is done to identify the balance of each type of federal aid that is included in the account. Cause: Federal funds are deposited into one account. Effect: The remaining balance of each type of federal funds included in the account cannot be determined. Recommendation: The School should develop a process for identifying the balance of funds for each financial aid program that is included in the School?s financial aid disbursement account as readily as if those funds were in a separate account. Management?s Response: The school is in the process of establishing procedures to identify the type of federal funds remaining in the financial aid disbursement account.
Finding 2022-004
Type: Internal Control Over Compliance Criteria: Institutions must report all loan disbursements and submit required records to the U.S. Department of Education?s Common Origination and Disbursement (COD) within 15 days of the disbursement. Condition: SCC did not report the disbursement for one student to COD within the 15 day time frame. Cause: This was an administrative oversight. Effect: COD was not notified timely. Recommendation: The School should review their procedures to ensure that COD is notified of each disbursement within the 15 day time frame. Management?s Response: The school will review their COD reporting procedures.
Finding 2022-007
Type: Internal Control Over Compliance Criteria: Awarded Direct Loans should be credited to student accounts timely. Condition: Two students did not receive their Direct Loan disbursements. Cause: The Direct Loans were awarded but the awards were not credited to the student?s accounts. Effect: The students did not receive Direct Loans totaling $7,917. Recommendation: The School should implement procedures to ensure that all Direct Loans are properly credited to student accounts. Management?s Response: The School will review their procedures relating to the disbursement of Direct Loans.
Finding 2022-003
Type: Internal Control Over Compliance Criteria: The School must ensure that its accounting records clearly reflect that it segregates federal funds from all other funds and can determine the amount of funds related to each federal program. Condition: Federal funds are comingled within the School?s financial aid disbursement account. No reconciliation is done to identify the balance of each type of federal aid that is included in the account. Cause: Federal funds are deposited into one account. Effect: The remaining balance of each type of federal funds included in the account cannot be determined. Recommendation: The School should develop a process for identifying the balance of funds for each financial aid program that is included in the School?s financial aid disbursement account as readily as if those funds were in a separate account. Management?s Response: The school is in the process of establishing procedures to identify the type of federal funds remaining in the financial aid disbursement account.
Finding 2022-005
Type: Internal Control Over Compliance Criteria: Credit balances are required to be remitted to student no later than 14 days after the credit balance occurred. Condition: Credit balances for two students were not paid timely. Cause: The late payments were due to an oversight within the School. Effect: The students did not receive their credit balances timely. Recommendation: The School should review their procedures to ensure that student credit balances are returned within the 14-day time frame. Management?s Response: The School will review their procedures over the timely disbursement of student credit balances.
Finding 2022-006
Type: Internal Control Over Compliance Criteria: Pell awards are calculated by taking into account a student?s status, expected family contribution and cost of attendance. These factors are used in conjunction with the Pell Grant Scheduled Award Chart for the 2021-2022 Award Year. Condition: The incorrect Pell Award was made for two students. Cause: The under award was due to an update error within SCC?s financial aid software Effect: The students were under awarded a total of $61. Recommendation: The School should implement procedures to ensure that the proper Pell funds are awarded. Management?s Response: The School will review their procedures relating to the Pell award calculation process.
Finding 2022-003
Type: Internal Control Over Compliance Criteria: The School must ensure that its accounting records clearly reflect that it segregates federal funds from all other funds and can determine the amount of funds related to each federal program. Condition: Federal funds are comingled within the School?s financial aid disbursement account. No reconciliation is done to identify the balance of each type of federal aid that is included in the account. Cause: Federal funds are deposited into one account. Effect: The remaining balance of each type of federal funds included in the account cannot be determined. Recommendation: The School should develop a process for identifying the balance of funds for each financial aid program that is included in the School?s financial aid disbursement account as readily as if those funds were in a separate account. Management?s Response: The school is in the process of establishing procedures to identify the type of federal funds remaining in the financial aid disbursement account.
Finding 2022-003
Type: Internal Control Over Compliance Criteria: The School must ensure that its accounting records clearly reflect that it segregates federal funds from all other funds and can determine the amount of funds related to each federal program. Condition: Federal funds are comingled within the School?s financial aid disbursement account. No reconciliation is done to identify the balance of each type of federal aid that is included in the account. Cause: Federal funds are deposited into one account. Effect: The remaining balance of each type of federal funds included in the account cannot be determined. Recommendation: The School should develop a process for identifying the balance of funds for each financial aid program that is included in the School?s financial aid disbursement account as readily as if those funds were in a separate account. Management?s Response: The school is in the process of establishing procedures to identify the type of federal funds remaining in the financial aid disbursement account.