FINDING 2022-001 ? Material Adjustments Condition Found: During the course of the audit for the College, we proposed a journal entry to adjust deferred revenue and federal grant revenue. In 2021, the College received a federal grant that should not be recognized as revenue until allowable expenses have been made. During 2022, the College did incur the allowable expenses and therefore reduced the amount that had been recorded as deferred, however, the amount was not recorded as federal grant revenue. In addition, there were some expenses that should have been recorded as accounts payable at June 30, 2022 that were not recorded. Criteria: Based on professional standards, identification by an auditor of a material misstatement in the financial statement under audit that was not initially identified by the entity's internal control is an indicator of a material weakness or significant deficiency. Cause: This occurred because the College did not identify and make all necessary adjustments to the financial statements before the audit began. Possible Asserted Effect: Because the aforementioned adjustments would have materially misstated the statement of financial position and statement of activities, we believe that this matter is a material weakness in the controls and practices of the College. Repeat Finding: See Finding 2021-001 for a similar finding in the prior year. Recommendation: We recommend that the College develop and implement procedures to properly record transactions before the records are submitted for audit. This was an unusual item that does not happen every year. We also recommend that management contact us if they encounter any other unusual items in the future so that the accounting records can be reported properly before the audit begins. Management Response: The financial personnel of CCBS will continue, to the best of their ability, to ensure that year-end adjustments are entered appropriately and that financial statements maintain GAAP standards before being submitted for audit.
FINDING 2022-002 ? COD Disbursement Dates Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Direct Student Loan Program Federal Pell Grant Program AL# and Program Expenditure: 84.268 ($451,732) 84.063 ($279,693) Award Number: P268K227533 P063P217533 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $-0- Condition Found: The Common Origination and Disbursement System (?COD?) disbursement date did not agree with the disbursement date on accounts for five of the eight students receiving Federal Direct Loans and ten of the fourteen students receiving Federal Pell Grant funds in our sample. A total of twelve students were affected by this finding. Criteria: The disbursement date to be reported to the COD is the date that the institution credits funds to a student?s account or pays funds to a student or parent directly. Cause: For one disbursement cycle, the employee that posts funds to student accounts was out of the office when the funds were requested. The day the employee returned was the date used to the post to the student accounts. This did not agree with disbursement date posted in COD. Possible Asserted Effect: The disbursement date in COD is the date interest begins accruing on the Federal Direct Loans. In order for the interest calculation to be accurate, the disbursement date in COD should be the date the students received the loan funds. Repeat Finding: There was not a similar finding for the year ended June 30, 2021. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Student Financial Aid Director should correct the disbursement dates on the student accounts so that the dates agree with the COD disbursement dates. Management Response: The Vice President of Finance corrected the disbursement dates for the students in question in October 2022. Going forward, the Student Financial Aid Office and Business Office will coordinate the drawdown of funds, reporting to COD, and posting to student accounts.
FINDING 2022-003 ? Exit Interview Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Direct Student Loan Program AL# and Program Expenditures: 84.268 ($451,732) Award Number: P268K227533 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $-0- Condition Found: Two of the sixteen federal student financial aid recipients in our sample did not complete an exit interview or were not sent exit interview instructions. Criteria: An exit interview should be completed or mailed to a student to complete within thirty days from when a student withdraws, graduates from school, or is enrolled less than half-time for Federal Direct Loans. Cause: The Financial Aid Director did not send exit interviews or exit interview instructions to students who withdrew from the College during the semester. Possible Asserted Effect: The students were unaware of the loan repayment responsibilities at the time the students withdrew from the College. Repeat Finding: See Finding 2021-005 for a similar finding in the prior year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: Exit interview instructions should be sent to the students in question. Procedures should be improved to ensure that an exit interview is completed when a student withdraws from the College. We also recommend reviewing the student listing to determine if any other student should have completed an exit interview for the 2021-2022 award year. Management Response: An exit interview was sent to both of the students in question on August 9, 2022. Procedures will be improved to ensure that an exit interview is completed when a student withdraws from the College.
FINDING 2022-004 ? R2T4 Calculation Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Direct Student Loan Program Federal Pell Grant Program AL# and Program Expenditures: 84.268 ($451,732) 84.063 ($279,693) Award Number: P268K227533 P063P227533 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $4,227 Condition Found: The R2T4 was not calculated correctly for two of the sixteen students in the compliance testing sample. A separate sample was selected to test additional R2T4 calculations. The R2T4 was not calculated correctly for two of the three students in the R2T4 testing sample. Between the two samples, all of the R2T4s completed during the year were reviewed. Criteria: For a student who is administratively withdrawn due to excessive absences, the date the student withdrew would be the date the student exceeded the maximum number of absences. If a student enrolled in a module course does not begin one or more of the module courses, the Federal Pell Grant funds for that course must be returned to the Department of Education and excluded from the aid disbursed amount in the R2T4 calculation. Cause: The Financial Aid Director believed the Federal Pell Grant adjustment for a module not begun was automatically included in the R2T4 calculation. This part of the calculation is manual and not included in the R2T4 form. The Financial Aid Director received incorrect information regarding calculating the withdraw date for students who are administratively withdrawn for excessive absences. Possible Asserted Effect: The R2T4 calculations were not completed accurately. Between the four students, $3,381 of Federal Pell Grant Funds and $846 of Federal Direction Loan Funds were returned to the Department of Education on October 6, 2022. Repeat Finding: See finding 2021-006 for a similar finding related to R2T2 calculations in the prior year. While both years had R2T4 calculation issues, the causes of the errors were different. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The R2T4s that were not calculated correctly should be recalculated. A total of $3,381 of additional Federal Pell Grant Funds and $846 of Federal Direct Loan Funds should be returned to the Department of Education. Procedures should be improved to ensure that R2T4s are calculated correctly. Management Response: All of the R2T4s completed during the year were recalculated in October 2022. On October 6, 2022, $3,381 of Federal Pell Grant Funds and $846 of Federal Direct Loan Funds were returned to the Department of Education. Procedures will be improved to ensure that R2T4s are calculated correctly.
FINDING 2022-006 ? NSLDS Reporting Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Direct Student Loan Program AL# and Program Expenditures: 84.268 ($451,732) Award Number: P268K227533 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $-0- Condition Found: The incorrect enrollment status was reported to the National Student Loan Database System (?NSLDS?) for two of the sixteen students selected for testing. Criteria: NSLDS informs loan servicers of changes in a student?s enrollment status that indicate when the repayments or interest accrual begins and ends. The date a student enrolls, withdraws, graduates, or drops below half-time status should be reported accurately. Cause: One student was reported as withdrawn instead of ? time because the integration between the Department of Education software and College?s software, Populi, did not identify the student as enrolled and receiving federal aid when the student was attending the College. The second student was reported as graduated in NSLDS when the student was enrolled full-time. The student completed the AAA program, but had continued attending the College working towards a bachelor?s degree. Possible Asserted Effect: The loan servicers were not aware of the correct deferral, repayment, and interest calculation dates. Repeat Finding: There was not a similar finding in the prior year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Student Financial Aid Director should update the enrollment status for the two students in question. Procedures should be improved to ensure that a student?s enrollment status is accurately and timely reported to NSLDS. Management Response: The Student Financial Aid Director corrected the enrollment status for the students in question in August 2022. Procedures are being improved to ensure that the student enrollment statuses are reported to NSDLS accurately and timely.
FINDING 2022-007 ? Drug Free Workplace Policy and Drug and Alcohol Abuse Prevention Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Pell Grant Program Federal Direct Loan Program AL# and Program Expenditure: 84.268 ($451,732) 84.063 ($279,693) Award Number: P268K227533 P063P217533 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $-0- Condition Found: The Drug Free Workplace Policy and other drug and alcohol abuse prevention material does not include all of the required documentation. Criteria: The College?s published policy must include the following: o information on preventing drug and alcohol abuse; o standards of conduct that clearly prohibit, at a minimum, the unlawful possession, use, or distribution of drugs and alcohol by students and employees on the school's property or as part of the school's activities; o a description of the sanctions under local, state, and federal law for unlawful possession, use, or distribution of illicit drugs and alcohol; o a description of any drug and alcohol counseling, treatment, or rehabilitation programs available to students and employees; o a description of the health risks associated with the use of illicit drugs and alcohol; and o a clear statement that the school will impose sanctions on students and employees for violations of the standards of conduct (consistent with local, state, and federal law) and a description of these sanctions, up to and including expulsion, termination of employment, and referral for prosecution. Cause: The College administration has not revised the policy to comply with the SFA regulations. Possible Asserted Effect: The policy did not contain all of the required documentation listed above. Staff and students were unaware of the College?s full policy and drug prevention efforts. Repeat Finding: See Finding 2021-008 for a similar finding in the prior year. Recommendation: The College administration should rewrite the Drug Free Workplace Policy and drug and alcohol abuse prevention information to include the information listed above. In addition, the drug free workplace policy and drug and alcohol abuse prevention information should be distributed annually to students. This information should also be included in the Annual Security Report. Management Response: Management will update the drug free workplace policy and drug and alcohol abuse prevention information in the 2023 fiscal year. The information will be distributed to the staff and students.
FINDING 2022-008 ? Biennial Review of the Drug and Alcohol Abuse Prevention Program and Policies Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Pell Grant Program Federal Direct Loan Program AL# and Program Expenditure: 84.268 ($451,732) 84.063 ($279,693) Award Number: P268K227533 P063P217533 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $-0- Condition Found: The College administration did not complete the biennial review of their Drug Free Workplace Policy and drug free prevention process. Criteria: The biennial review should include the following: ? the number of drug and alcohol-related violations and fatalities that occur on a College?s campus or as a part of any of the College?s activities that are reported to campus officials; and ? the number and type of sanctions that are imposed by the school as a result of drug and alcohol-related violations and fatalities on the College?s campus or as part of any of the College?s activities. Cause: The College administration did not complete the biennial review because they were not aware of the requirement and the College?s policies did not contain all of the required elements which would allow the College to complete the biennial review. Possible Asserted Effect: The College administration cannot determine or document the effectiveness of their policies. The College cannot determine if improvements to policies should be made. Repeat Finding: See Finding 2021-009 for a similar finding the prior year. Recommendation: The College Administration should complete and document biennial review of the drug free workplace and drug prevention policies. The policies are going to have to be updated and the necessary information tracked before this can completed. Management Response: Management will complete the biennial review after the drug free workplace and drug and alcohol abuse prevention polices have been updated and the required data has been tracked.
FINDING 2022-001 ? Material Adjustments Condition Found: During the course of the audit for the College, we proposed a journal entry to adjust deferred revenue and federal grant revenue. In 2021, the College received a federal grant that should not be recognized as revenue until allowable expenses have been made. During 2022, the College did incur the allowable expenses and therefore reduced the amount that had been recorded as deferred, however, the amount was not recorded as federal grant revenue. In addition, there were some expenses that should have been recorded as accounts payable at June 30, 2022 that were not recorded. Criteria: Based on professional standards, identification by an auditor of a material misstatement in the financial statement under audit that was not initially identified by the entity's internal control is an indicator of a material weakness or significant deficiency. Cause: This occurred because the College did not identify and make all necessary adjustments to the financial statements before the audit began. Possible Asserted Effect: Because the aforementioned adjustments would have materially misstated the statement of financial position and statement of activities, we believe that this matter is a material weakness in the controls and practices of the College. Repeat Finding: See Finding 2021-001 for a similar finding in the prior year. Recommendation: We recommend that the College develop and implement procedures to properly record transactions before the records are submitted for audit. This was an unusual item that does not happen every year. We also recommend that management contact us if they encounter any other unusual items in the future so that the accounting records can be reported properly before the audit begins. Management Response: The financial personnel of CCBS will continue, to the best of their ability, to ensure that year-end adjustments are entered appropriately and that financial statements maintain GAAP standards before being submitted for audit.
FINDING 2022-002 ? COD Disbursement Dates Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Direct Student Loan Program Federal Pell Grant Program AL# and Program Expenditure: 84.268 ($451,732) 84.063 ($279,693) Award Number: P268K227533 P063P217533 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $-0- Condition Found: The Common Origination and Disbursement System (?COD?) disbursement date did not agree with the disbursement date on accounts for five of the eight students receiving Federal Direct Loans and ten of the fourteen students receiving Federal Pell Grant funds in our sample. A total of twelve students were affected by this finding. Criteria: The disbursement date to be reported to the COD is the date that the institution credits funds to a student?s account or pays funds to a student or parent directly. Cause: For one disbursement cycle, the employee that posts funds to student accounts was out of the office when the funds were requested. The day the employee returned was the date used to the post to the student accounts. This did not agree with disbursement date posted in COD. Possible Asserted Effect: The disbursement date in COD is the date interest begins accruing on the Federal Direct Loans. In order for the interest calculation to be accurate, the disbursement date in COD should be the date the students received the loan funds. Repeat Finding: There was not a similar finding for the year ended June 30, 2021. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Student Financial Aid Director should correct the disbursement dates on the student accounts so that the dates agree with the COD disbursement dates. Management Response: The Vice President of Finance corrected the disbursement dates for the students in question in October 2022. Going forward, the Student Financial Aid Office and Business Office will coordinate the drawdown of funds, reporting to COD, and posting to student accounts.
FINDING 2022-004 ? R2T4 Calculation Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Direct Student Loan Program Federal Pell Grant Program AL# and Program Expenditures: 84.268 ($451,732) 84.063 ($279,693) Award Number: P268K227533 P063P227533 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $4,227 Condition Found: The R2T4 was not calculated correctly for two of the sixteen students in the compliance testing sample. A separate sample was selected to test additional R2T4 calculations. The R2T4 was not calculated correctly for two of the three students in the R2T4 testing sample. Between the two samples, all of the R2T4s completed during the year were reviewed. Criteria: For a student who is administratively withdrawn due to excessive absences, the date the student withdrew would be the date the student exceeded the maximum number of absences. If a student enrolled in a module course does not begin one or more of the module courses, the Federal Pell Grant funds for that course must be returned to the Department of Education and excluded from the aid disbursed amount in the R2T4 calculation. Cause: The Financial Aid Director believed the Federal Pell Grant adjustment for a module not begun was automatically included in the R2T4 calculation. This part of the calculation is manual and not included in the R2T4 form. The Financial Aid Director received incorrect information regarding calculating the withdraw date for students who are administratively withdrawn for excessive absences. Possible Asserted Effect: The R2T4 calculations were not completed accurately. Between the four students, $3,381 of Federal Pell Grant Funds and $846 of Federal Direction Loan Funds were returned to the Department of Education on October 6, 2022. Repeat Finding: See finding 2021-006 for a similar finding related to R2T2 calculations in the prior year. While both years had R2T4 calculation issues, the causes of the errors were different. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The R2T4s that were not calculated correctly should be recalculated. A total of $3,381 of additional Federal Pell Grant Funds and $846 of Federal Direct Loan Funds should be returned to the Department of Education. Procedures should be improved to ensure that R2T4s are calculated correctly. Management Response: All of the R2T4s completed during the year were recalculated in October 2022. On October 6, 2022, $3,381 of Federal Pell Grant Funds and $846 of Federal Direct Loan Funds were returned to the Department of Education. Procedures will be improved to ensure that R2T4s are calculated correctly.
FINDING 2022-005 ? Pell Award Calculation Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Pell Grant Program AL# and Program Expenditures: 84.063 ($279,693) Award Number: P063P227533 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $-0- Condition Found: The amount of Pell grant awarded was calculated incorrectly for one of the fourteen students who received Pell in our sample. The student was awarded Pell grant funds as if the student was enrolled ? time when the student was enrolled full-time. Cause: The financial aid office was not informed that the student enrolled in an additional course. This increased the enrollment status from ? time to full-time. Criteria: Federal Pell Grant eligibility is determined by the student?s expected family contribution (?EFC?), cost of attendance, and enrollment status. Possible Asserted Effect: The student is eligible to receive an additional $318 of Pell grant funds. Repeat Finding: There was not a similar finding for the year ended June 30, 2021. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The College should award an additional $318 to the student in question. Communication between the offices should be improved so that the financial aid office is made aware of enrollment status changes timely. Management Response: An additional $318 of Federal Pell Grant funds was awarded to the student in question in August 2022. Communication between the offices will be improved to ensure that the financial aid office is made aware of enrollment status changes timely.
FINDING 2022-007 ? Drug Free Workplace Policy and Drug and Alcohol Abuse Prevention Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Pell Grant Program Federal Direct Loan Program AL# and Program Expenditure: 84.268 ($451,732) 84.063 ($279,693) Award Number: P268K227533 P063P217533 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $-0- Condition Found: The Drug Free Workplace Policy and other drug and alcohol abuse prevention material does not include all of the required documentation. Criteria: The College?s published policy must include the following: o information on preventing drug and alcohol abuse; o standards of conduct that clearly prohibit, at a minimum, the unlawful possession, use, or distribution of drugs and alcohol by students and employees on the school's property or as part of the school's activities; o a description of the sanctions under local, state, and federal law for unlawful possession, use, or distribution of illicit drugs and alcohol; o a description of any drug and alcohol counseling, treatment, or rehabilitation programs available to students and employees; o a description of the health risks associated with the use of illicit drugs and alcohol; and o a clear statement that the school will impose sanctions on students and employees for violations of the standards of conduct (consistent with local, state, and federal law) and a description of these sanctions, up to and including expulsion, termination of employment, and referral for prosecution. Cause: The College administration has not revised the policy to comply with the SFA regulations. Possible Asserted Effect: The policy did not contain all of the required documentation listed above. Staff and students were unaware of the College?s full policy and drug prevention efforts. Repeat Finding: See Finding 2021-008 for a similar finding in the prior year. Recommendation: The College administration should rewrite the Drug Free Workplace Policy and drug and alcohol abuse prevention information to include the information listed above. In addition, the drug free workplace policy and drug and alcohol abuse prevention information should be distributed annually to students. This information should also be included in the Annual Security Report. Management Response: Management will update the drug free workplace policy and drug and alcohol abuse prevention information in the 2023 fiscal year. The information will be distributed to the staff and students.
FINDING 2022-008 ? Biennial Review of the Drug and Alcohol Abuse Prevention Program and Policies Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Pell Grant Program Federal Direct Loan Program AL# and Program Expenditure: 84.268 ($451,732) 84.063 ($279,693) Award Number: P268K227533 P063P217533 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $-0- Condition Found: The College administration did not complete the biennial review of their Drug Free Workplace Policy and drug free prevention process. Criteria: The biennial review should include the following: ? the number of drug and alcohol-related violations and fatalities that occur on a College?s campus or as a part of any of the College?s activities that are reported to campus officials; and ? the number and type of sanctions that are imposed by the school as a result of drug and alcohol-related violations and fatalities on the College?s campus or as part of any of the College?s activities. Cause: The College administration did not complete the biennial review because they were not aware of the requirement and the College?s policies did not contain all of the required elements which would allow the College to complete the biennial review. Possible Asserted Effect: The College administration cannot determine or document the effectiveness of their policies. The College cannot determine if improvements to policies should be made. Repeat Finding: See Finding 2021-009 for a similar finding the prior year. Recommendation: The College Administration should complete and document biennial review of the drug free workplace and drug prevention policies. The policies are going to have to be updated and the necessary information tracked before this can completed. Management Response: Management will complete the biennial review after the drug free workplace and drug and alcohol abuse prevention polices have been updated and the required data has been tracked.
FINDING 2022-001 ? Material Adjustments Condition Found: During the course of the audit for the College, we proposed a journal entry to adjust deferred revenue and federal grant revenue. In 2021, the College received a federal grant that should not be recognized as revenue until allowable expenses have been made. During 2022, the College did incur the allowable expenses and therefore reduced the amount that had been recorded as deferred, however, the amount was not recorded as federal grant revenue. In addition, there were some expenses that should have been recorded as accounts payable at June 30, 2022 that were not recorded. Criteria: Based on professional standards, identification by an auditor of a material misstatement in the financial statement under audit that was not initially identified by the entity's internal control is an indicator of a material weakness or significant deficiency. Cause: This occurred because the College did not identify and make all necessary adjustments to the financial statements before the audit began. Possible Asserted Effect: Because the aforementioned adjustments would have materially misstated the statement of financial position and statement of activities, we believe that this matter is a material weakness in the controls and practices of the College. Repeat Finding: See Finding 2021-001 for a similar finding in the prior year. Recommendation: We recommend that the College develop and implement procedures to properly record transactions before the records are submitted for audit. This was an unusual item that does not happen every year. We also recommend that management contact us if they encounter any other unusual items in the future so that the accounting records can be reported properly before the audit begins. Management Response: The financial personnel of CCBS will continue, to the best of their ability, to ensure that year-end adjustments are entered appropriately and that financial statements maintain GAAP standards before being submitted for audit.
FINDING 2022-001 ? Material Adjustments Condition Found: During the course of the audit for the College, we proposed a journal entry to adjust deferred revenue and federal grant revenue. In 2021, the College received a federal grant that should not be recognized as revenue until allowable expenses have been made. During 2022, the College did incur the allowable expenses and therefore reduced the amount that had been recorded as deferred, however, the amount was not recorded as federal grant revenue. In addition, there were some expenses that should have been recorded as accounts payable at June 30, 2022 that were not recorded. Criteria: Based on professional standards, identification by an auditor of a material misstatement in the financial statement under audit that was not initially identified by the entity's internal control is an indicator of a material weakness or significant deficiency. Cause: This occurred because the College did not identify and make all necessary adjustments to the financial statements before the audit began. Possible Asserted Effect: Because the aforementioned adjustments would have materially misstated the statement of financial position and statement of activities, we believe that this matter is a material weakness in the controls and practices of the College. Repeat Finding: See Finding 2021-001 for a similar finding in the prior year. Recommendation: We recommend that the College develop and implement procedures to properly record transactions before the records are submitted for audit. This was an unusual item that does not happen every year. We also recommend that management contact us if they encounter any other unusual items in the future so that the accounting records can be reported properly before the audit begins. Management Response: The financial personnel of CCBS will continue, to the best of their ability, to ensure that year-end adjustments are entered appropriately and that financial statements maintain GAAP standards before being submitted for audit.
FINDING 2022-001 ? Material Adjustments Condition Found: During the course of the audit for the College, we proposed a journal entry to adjust deferred revenue and federal grant revenue. In 2021, the College received a federal grant that should not be recognized as revenue until allowable expenses have been made. During 2022, the College did incur the allowable expenses and therefore reduced the amount that had been recorded as deferred, however, the amount was not recorded as federal grant revenue. In addition, there were some expenses that should have been recorded as accounts payable at June 30, 2022 that were not recorded. Criteria: Based on professional standards, identification by an auditor of a material misstatement in the financial statement under audit that was not initially identified by the entity's internal control is an indicator of a material weakness or significant deficiency. Cause: This occurred because the College did not identify and make all necessary adjustments to the financial statements before the audit began. Possible Asserted Effect: Because the aforementioned adjustments would have materially misstated the statement of financial position and statement of activities, we believe that this matter is a material weakness in the controls and practices of the College. Repeat Finding: See Finding 2021-001 for a similar finding in the prior year. Recommendation: We recommend that the College develop and implement procedures to properly record transactions before the records are submitted for audit. This was an unusual item that does not happen every year. We also recommend that management contact us if they encounter any other unusual items in the future so that the accounting records can be reported properly before the audit begins. Management Response: The financial personnel of CCBS will continue, to the best of their ability, to ensure that year-end adjustments are entered appropriately and that financial statements maintain GAAP standards before being submitted for audit.
FINDING 2022-002 ? COD Disbursement Dates Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Direct Student Loan Program Federal Pell Grant Program AL# and Program Expenditure: 84.268 ($451,732) 84.063 ($279,693) Award Number: P268K227533 P063P217533 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $-0- Condition Found: The Common Origination and Disbursement System (?COD?) disbursement date did not agree with the disbursement date on accounts for five of the eight students receiving Federal Direct Loans and ten of the fourteen students receiving Federal Pell Grant funds in our sample. A total of twelve students were affected by this finding. Criteria: The disbursement date to be reported to the COD is the date that the institution credits funds to a student?s account or pays funds to a student or parent directly. Cause: For one disbursement cycle, the employee that posts funds to student accounts was out of the office when the funds were requested. The day the employee returned was the date used to the post to the student accounts. This did not agree with disbursement date posted in COD. Possible Asserted Effect: The disbursement date in COD is the date interest begins accruing on the Federal Direct Loans. In order for the interest calculation to be accurate, the disbursement date in COD should be the date the students received the loan funds. Repeat Finding: There was not a similar finding for the year ended June 30, 2021. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Student Financial Aid Director should correct the disbursement dates on the student accounts so that the dates agree with the COD disbursement dates. Management Response: The Vice President of Finance corrected the disbursement dates for the students in question in October 2022. Going forward, the Student Financial Aid Office and Business Office will coordinate the drawdown of funds, reporting to COD, and posting to student accounts.
FINDING 2022-003 ? Exit Interview Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Direct Student Loan Program AL# and Program Expenditures: 84.268 ($451,732) Award Number: P268K227533 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $-0- Condition Found: Two of the sixteen federal student financial aid recipients in our sample did not complete an exit interview or were not sent exit interview instructions. Criteria: An exit interview should be completed or mailed to a student to complete within thirty days from when a student withdraws, graduates from school, or is enrolled less than half-time for Federal Direct Loans. Cause: The Financial Aid Director did not send exit interviews or exit interview instructions to students who withdrew from the College during the semester. Possible Asserted Effect: The students were unaware of the loan repayment responsibilities at the time the students withdrew from the College. Repeat Finding: See Finding 2021-005 for a similar finding in the prior year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: Exit interview instructions should be sent to the students in question. Procedures should be improved to ensure that an exit interview is completed when a student withdraws from the College. We also recommend reviewing the student listing to determine if any other student should have completed an exit interview for the 2021-2022 award year. Management Response: An exit interview was sent to both of the students in question on August 9, 2022. Procedures will be improved to ensure that an exit interview is completed when a student withdraws from the College.
FINDING 2022-004 ? R2T4 Calculation Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Direct Student Loan Program Federal Pell Grant Program AL# and Program Expenditures: 84.268 ($451,732) 84.063 ($279,693) Award Number: P268K227533 P063P227533 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $4,227 Condition Found: The R2T4 was not calculated correctly for two of the sixteen students in the compliance testing sample. A separate sample was selected to test additional R2T4 calculations. The R2T4 was not calculated correctly for two of the three students in the R2T4 testing sample. Between the two samples, all of the R2T4s completed during the year were reviewed. Criteria: For a student who is administratively withdrawn due to excessive absences, the date the student withdrew would be the date the student exceeded the maximum number of absences. If a student enrolled in a module course does not begin one or more of the module courses, the Federal Pell Grant funds for that course must be returned to the Department of Education and excluded from the aid disbursed amount in the R2T4 calculation. Cause: The Financial Aid Director believed the Federal Pell Grant adjustment for a module not begun was automatically included in the R2T4 calculation. This part of the calculation is manual and not included in the R2T4 form. The Financial Aid Director received incorrect information regarding calculating the withdraw date for students who are administratively withdrawn for excessive absences. Possible Asserted Effect: The R2T4 calculations were not completed accurately. Between the four students, $3,381 of Federal Pell Grant Funds and $846 of Federal Direction Loan Funds were returned to the Department of Education on October 6, 2022. Repeat Finding: See finding 2021-006 for a similar finding related to R2T2 calculations in the prior year. While both years had R2T4 calculation issues, the causes of the errors were different. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The R2T4s that were not calculated correctly should be recalculated. A total of $3,381 of additional Federal Pell Grant Funds and $846 of Federal Direct Loan Funds should be returned to the Department of Education. Procedures should be improved to ensure that R2T4s are calculated correctly. Management Response: All of the R2T4s completed during the year were recalculated in October 2022. On October 6, 2022, $3,381 of Federal Pell Grant Funds and $846 of Federal Direct Loan Funds were returned to the Department of Education. Procedures will be improved to ensure that R2T4s are calculated correctly.
FINDING 2022-006 ? NSLDS Reporting Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Direct Student Loan Program AL# and Program Expenditures: 84.268 ($451,732) Award Number: P268K227533 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $-0- Condition Found: The incorrect enrollment status was reported to the National Student Loan Database System (?NSLDS?) for two of the sixteen students selected for testing. Criteria: NSLDS informs loan servicers of changes in a student?s enrollment status that indicate when the repayments or interest accrual begins and ends. The date a student enrolls, withdraws, graduates, or drops below half-time status should be reported accurately. Cause: One student was reported as withdrawn instead of ? time because the integration between the Department of Education software and College?s software, Populi, did not identify the student as enrolled and receiving federal aid when the student was attending the College. The second student was reported as graduated in NSLDS when the student was enrolled full-time. The student completed the AAA program, but had continued attending the College working towards a bachelor?s degree. Possible Asserted Effect: The loan servicers were not aware of the correct deferral, repayment, and interest calculation dates. Repeat Finding: There was not a similar finding in the prior year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Student Financial Aid Director should update the enrollment status for the two students in question. Procedures should be improved to ensure that a student?s enrollment status is accurately and timely reported to NSLDS. Management Response: The Student Financial Aid Director corrected the enrollment status for the students in question in August 2022. Procedures are being improved to ensure that the student enrollment statuses are reported to NSDLS accurately and timely.
FINDING 2022-007 ? Drug Free Workplace Policy and Drug and Alcohol Abuse Prevention Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Pell Grant Program Federal Direct Loan Program AL# and Program Expenditure: 84.268 ($451,732) 84.063 ($279,693) Award Number: P268K227533 P063P217533 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $-0- Condition Found: The Drug Free Workplace Policy and other drug and alcohol abuse prevention material does not include all of the required documentation. Criteria: The College?s published policy must include the following: o information on preventing drug and alcohol abuse; o standards of conduct that clearly prohibit, at a minimum, the unlawful possession, use, or distribution of drugs and alcohol by students and employees on the school's property or as part of the school's activities; o a description of the sanctions under local, state, and federal law for unlawful possession, use, or distribution of illicit drugs and alcohol; o a description of any drug and alcohol counseling, treatment, or rehabilitation programs available to students and employees; o a description of the health risks associated with the use of illicit drugs and alcohol; and o a clear statement that the school will impose sanctions on students and employees for violations of the standards of conduct (consistent with local, state, and federal law) and a description of these sanctions, up to and including expulsion, termination of employment, and referral for prosecution. Cause: The College administration has not revised the policy to comply with the SFA regulations. Possible Asserted Effect: The policy did not contain all of the required documentation listed above. Staff and students were unaware of the College?s full policy and drug prevention efforts. Repeat Finding: See Finding 2021-008 for a similar finding in the prior year. Recommendation: The College administration should rewrite the Drug Free Workplace Policy and drug and alcohol abuse prevention information to include the information listed above. In addition, the drug free workplace policy and drug and alcohol abuse prevention information should be distributed annually to students. This information should also be included in the Annual Security Report. Management Response: Management will update the drug free workplace policy and drug and alcohol abuse prevention information in the 2023 fiscal year. The information will be distributed to the staff and students.
FINDING 2022-008 ? Biennial Review of the Drug and Alcohol Abuse Prevention Program and Policies Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Pell Grant Program Federal Direct Loan Program AL# and Program Expenditure: 84.268 ($451,732) 84.063 ($279,693) Award Number: P268K227533 P063P217533 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $-0- Condition Found: The College administration did not complete the biennial review of their Drug Free Workplace Policy and drug free prevention process. Criteria: The biennial review should include the following: ? the number of drug and alcohol-related violations and fatalities that occur on a College?s campus or as a part of any of the College?s activities that are reported to campus officials; and ? the number and type of sanctions that are imposed by the school as a result of drug and alcohol-related violations and fatalities on the College?s campus or as part of any of the College?s activities. Cause: The College administration did not complete the biennial review because they were not aware of the requirement and the College?s policies did not contain all of the required elements which would allow the College to complete the biennial review. Possible Asserted Effect: The College administration cannot determine or document the effectiveness of their policies. The College cannot determine if improvements to policies should be made. Repeat Finding: See Finding 2021-009 for a similar finding the prior year. Recommendation: The College Administration should complete and document biennial review of the drug free workplace and drug prevention policies. The policies are going to have to be updated and the necessary information tracked before this can completed. Management Response: Management will complete the biennial review after the drug free workplace and drug and alcohol abuse prevention polices have been updated and the required data has been tracked.
FINDING 2022-001 ? Material Adjustments Condition Found: During the course of the audit for the College, we proposed a journal entry to adjust deferred revenue and federal grant revenue. In 2021, the College received a federal grant that should not be recognized as revenue until allowable expenses have been made. During 2022, the College did incur the allowable expenses and therefore reduced the amount that had been recorded as deferred, however, the amount was not recorded as federal grant revenue. In addition, there were some expenses that should have been recorded as accounts payable at June 30, 2022 that were not recorded. Criteria: Based on professional standards, identification by an auditor of a material misstatement in the financial statement under audit that was not initially identified by the entity's internal control is an indicator of a material weakness or significant deficiency. Cause: This occurred because the College did not identify and make all necessary adjustments to the financial statements before the audit began. Possible Asserted Effect: Because the aforementioned adjustments would have materially misstated the statement of financial position and statement of activities, we believe that this matter is a material weakness in the controls and practices of the College. Repeat Finding: See Finding 2021-001 for a similar finding in the prior year. Recommendation: We recommend that the College develop and implement procedures to properly record transactions before the records are submitted for audit. This was an unusual item that does not happen every year. We also recommend that management contact us if they encounter any other unusual items in the future so that the accounting records can be reported properly before the audit begins. Management Response: The financial personnel of CCBS will continue, to the best of their ability, to ensure that year-end adjustments are entered appropriately and that financial statements maintain GAAP standards before being submitted for audit.
FINDING 2022-002 ? COD Disbursement Dates Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Direct Student Loan Program Federal Pell Grant Program AL# and Program Expenditure: 84.268 ($451,732) 84.063 ($279,693) Award Number: P268K227533 P063P217533 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $-0- Condition Found: The Common Origination and Disbursement System (?COD?) disbursement date did not agree with the disbursement date on accounts for five of the eight students receiving Federal Direct Loans and ten of the fourteen students receiving Federal Pell Grant funds in our sample. A total of twelve students were affected by this finding. Criteria: The disbursement date to be reported to the COD is the date that the institution credits funds to a student?s account or pays funds to a student or parent directly. Cause: For one disbursement cycle, the employee that posts funds to student accounts was out of the office when the funds were requested. The day the employee returned was the date used to the post to the student accounts. This did not agree with disbursement date posted in COD. Possible Asserted Effect: The disbursement date in COD is the date interest begins accruing on the Federal Direct Loans. In order for the interest calculation to be accurate, the disbursement date in COD should be the date the students received the loan funds. Repeat Finding: There was not a similar finding for the year ended June 30, 2021. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Student Financial Aid Director should correct the disbursement dates on the student accounts so that the dates agree with the COD disbursement dates. Management Response: The Vice President of Finance corrected the disbursement dates for the students in question in October 2022. Going forward, the Student Financial Aid Office and Business Office will coordinate the drawdown of funds, reporting to COD, and posting to student accounts.
FINDING 2022-004 ? R2T4 Calculation Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Direct Student Loan Program Federal Pell Grant Program AL# and Program Expenditures: 84.268 ($451,732) 84.063 ($279,693) Award Number: P268K227533 P063P227533 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $4,227 Condition Found: The R2T4 was not calculated correctly for two of the sixteen students in the compliance testing sample. A separate sample was selected to test additional R2T4 calculations. The R2T4 was not calculated correctly for two of the three students in the R2T4 testing sample. Between the two samples, all of the R2T4s completed during the year were reviewed. Criteria: For a student who is administratively withdrawn due to excessive absences, the date the student withdrew would be the date the student exceeded the maximum number of absences. If a student enrolled in a module course does not begin one or more of the module courses, the Federal Pell Grant funds for that course must be returned to the Department of Education and excluded from the aid disbursed amount in the R2T4 calculation. Cause: The Financial Aid Director believed the Federal Pell Grant adjustment for a module not begun was automatically included in the R2T4 calculation. This part of the calculation is manual and not included in the R2T4 form. The Financial Aid Director received incorrect information regarding calculating the withdraw date for students who are administratively withdrawn for excessive absences. Possible Asserted Effect: The R2T4 calculations were not completed accurately. Between the four students, $3,381 of Federal Pell Grant Funds and $846 of Federal Direction Loan Funds were returned to the Department of Education on October 6, 2022. Repeat Finding: See finding 2021-006 for a similar finding related to R2T2 calculations in the prior year. While both years had R2T4 calculation issues, the causes of the errors were different. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The R2T4s that were not calculated correctly should be recalculated. A total of $3,381 of additional Federal Pell Grant Funds and $846 of Federal Direct Loan Funds should be returned to the Department of Education. Procedures should be improved to ensure that R2T4s are calculated correctly. Management Response: All of the R2T4s completed during the year were recalculated in October 2022. On October 6, 2022, $3,381 of Federal Pell Grant Funds and $846 of Federal Direct Loan Funds were returned to the Department of Education. Procedures will be improved to ensure that R2T4s are calculated correctly.
FINDING 2022-005 ? Pell Award Calculation Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Pell Grant Program AL# and Program Expenditures: 84.063 ($279,693) Award Number: P063P227533 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $-0- Condition Found: The amount of Pell grant awarded was calculated incorrectly for one of the fourteen students who received Pell in our sample. The student was awarded Pell grant funds as if the student was enrolled ? time when the student was enrolled full-time. Cause: The financial aid office was not informed that the student enrolled in an additional course. This increased the enrollment status from ? time to full-time. Criteria: Federal Pell Grant eligibility is determined by the student?s expected family contribution (?EFC?), cost of attendance, and enrollment status. Possible Asserted Effect: The student is eligible to receive an additional $318 of Pell grant funds. Repeat Finding: There was not a similar finding for the year ended June 30, 2021. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The College should award an additional $318 to the student in question. Communication between the offices should be improved so that the financial aid office is made aware of enrollment status changes timely. Management Response: An additional $318 of Federal Pell Grant funds was awarded to the student in question in August 2022. Communication between the offices will be improved to ensure that the financial aid office is made aware of enrollment status changes timely.
FINDING 2022-007 ? Drug Free Workplace Policy and Drug and Alcohol Abuse Prevention Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Pell Grant Program Federal Direct Loan Program AL# and Program Expenditure: 84.268 ($451,732) 84.063 ($279,693) Award Number: P268K227533 P063P217533 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $-0- Condition Found: The Drug Free Workplace Policy and other drug and alcohol abuse prevention material does not include all of the required documentation. Criteria: The College?s published policy must include the following: o information on preventing drug and alcohol abuse; o standards of conduct that clearly prohibit, at a minimum, the unlawful possession, use, or distribution of drugs and alcohol by students and employees on the school's property or as part of the school's activities; o a description of the sanctions under local, state, and federal law for unlawful possession, use, or distribution of illicit drugs and alcohol; o a description of any drug and alcohol counseling, treatment, or rehabilitation programs available to students and employees; o a description of the health risks associated with the use of illicit drugs and alcohol; and o a clear statement that the school will impose sanctions on students and employees for violations of the standards of conduct (consistent with local, state, and federal law) and a description of these sanctions, up to and including expulsion, termination of employment, and referral for prosecution. Cause: The College administration has not revised the policy to comply with the SFA regulations. Possible Asserted Effect: The policy did not contain all of the required documentation listed above. Staff and students were unaware of the College?s full policy and drug prevention efforts. Repeat Finding: See Finding 2021-008 for a similar finding in the prior year. Recommendation: The College administration should rewrite the Drug Free Workplace Policy and drug and alcohol abuse prevention information to include the information listed above. In addition, the drug free workplace policy and drug and alcohol abuse prevention information should be distributed annually to students. This information should also be included in the Annual Security Report. Management Response: Management will update the drug free workplace policy and drug and alcohol abuse prevention information in the 2023 fiscal year. The information will be distributed to the staff and students.
FINDING 2022-008 ? Biennial Review of the Drug and Alcohol Abuse Prevention Program and Policies Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Pell Grant Program Federal Direct Loan Program AL# and Program Expenditure: 84.268 ($451,732) 84.063 ($279,693) Award Number: P268K227533 P063P217533 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $-0- Condition Found: The College administration did not complete the biennial review of their Drug Free Workplace Policy and drug free prevention process. Criteria: The biennial review should include the following: ? the number of drug and alcohol-related violations and fatalities that occur on a College?s campus or as a part of any of the College?s activities that are reported to campus officials; and ? the number and type of sanctions that are imposed by the school as a result of drug and alcohol-related violations and fatalities on the College?s campus or as part of any of the College?s activities. Cause: The College administration did not complete the biennial review because they were not aware of the requirement and the College?s policies did not contain all of the required elements which would allow the College to complete the biennial review. Possible Asserted Effect: The College administration cannot determine or document the effectiveness of their policies. The College cannot determine if improvements to policies should be made. Repeat Finding: See Finding 2021-009 for a similar finding the prior year. Recommendation: The College Administration should complete and document biennial review of the drug free workplace and drug prevention policies. The policies are going to have to be updated and the necessary information tracked before this can completed. Management Response: Management will complete the biennial review after the drug free workplace and drug and alcohol abuse prevention polices have been updated and the required data has been tracked.
FINDING 2022-001 ? Material Adjustments Condition Found: During the course of the audit for the College, we proposed a journal entry to adjust deferred revenue and federal grant revenue. In 2021, the College received a federal grant that should not be recognized as revenue until allowable expenses have been made. During 2022, the College did incur the allowable expenses and therefore reduced the amount that had been recorded as deferred, however, the amount was not recorded as federal grant revenue. In addition, there were some expenses that should have been recorded as accounts payable at June 30, 2022 that were not recorded. Criteria: Based on professional standards, identification by an auditor of a material misstatement in the financial statement under audit that was not initially identified by the entity's internal control is an indicator of a material weakness or significant deficiency. Cause: This occurred because the College did not identify and make all necessary adjustments to the financial statements before the audit began. Possible Asserted Effect: Because the aforementioned adjustments would have materially misstated the statement of financial position and statement of activities, we believe that this matter is a material weakness in the controls and practices of the College. Repeat Finding: See Finding 2021-001 for a similar finding in the prior year. Recommendation: We recommend that the College develop and implement procedures to properly record transactions before the records are submitted for audit. This was an unusual item that does not happen every year. We also recommend that management contact us if they encounter any other unusual items in the future so that the accounting records can be reported properly before the audit begins. Management Response: The financial personnel of CCBS will continue, to the best of their ability, to ensure that year-end adjustments are entered appropriately and that financial statements maintain GAAP standards before being submitted for audit.
FINDING 2022-001 ? Material Adjustments Condition Found: During the course of the audit for the College, we proposed a journal entry to adjust deferred revenue and federal grant revenue. In 2021, the College received a federal grant that should not be recognized as revenue until allowable expenses have been made. During 2022, the College did incur the allowable expenses and therefore reduced the amount that had been recorded as deferred, however, the amount was not recorded as federal grant revenue. In addition, there were some expenses that should have been recorded as accounts payable at June 30, 2022 that were not recorded. Criteria: Based on professional standards, identification by an auditor of a material misstatement in the financial statement under audit that was not initially identified by the entity's internal control is an indicator of a material weakness or significant deficiency. Cause: This occurred because the College did not identify and make all necessary adjustments to the financial statements before the audit began. Possible Asserted Effect: Because the aforementioned adjustments would have materially misstated the statement of financial position and statement of activities, we believe that this matter is a material weakness in the controls and practices of the College. Repeat Finding: See Finding 2021-001 for a similar finding in the prior year. Recommendation: We recommend that the College develop and implement procedures to properly record transactions before the records are submitted for audit. This was an unusual item that does not happen every year. We also recommend that management contact us if they encounter any other unusual items in the future so that the accounting records can be reported properly before the audit begins. Management Response: The financial personnel of CCBS will continue, to the best of their ability, to ensure that year-end adjustments are entered appropriately and that financial statements maintain GAAP standards before being submitted for audit.