FAC Explorer

Audit 47973

FY End
2022-06-30
Total Expended
$6.65M
Findings
6
Programs
7
Organization: North Central Michigan College (MI)
Year: 2022 Accepted: 2022-12-12
Auditor: Rehmann Robson LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
39339 2022-001 Significant Deficiency - B
39340 2022-001 Significant Deficiency - B
39341 2022-001 Significant Deficiency - B
615781 2022-001 Significant Deficiency - B
615782 2022-001 Significant Deficiency - B
615783 2022-001 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
84.063 Federal Pell Grant Program $1.62M - 0
84.268 Federal Direct Student Loans $564,689 - 0
84.425 Education Stabilization Fund $85,725 Yes 1
84.007 Federal Supplemental Educational Opportunity Grants $64,035 - 0
84.033 Federal Work-Study Program $34,224 - 0
45.164 Promotion of the Humanities_public Programs $14,510 - 0
84.048 Career and Technical Education -- Basic Grants to States $9,200 - 0

Contacts

Name Title Type
P7D7XAUF4QE4 Troy Slater Auditee
2313486610 Joshua Sullivan Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of North Central Michigan College (the College) under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the College, it is not intended to and does not present the net position, changes in net position or cash flows of the College. Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note 1 to the College's financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance or other applicable guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001
2022-001 - Grant Funds Used for Executive Salaries and Benefits Finding Type. Immaterial Noncompliance / Significant Deficiency in Internal Control over Compliance (Allowable Costs/Cost Principles). Program. COVID-19 - Higher Education Emergency Relief Fund - Institutions of Higher Education - Institutional ("HEERF"), Assistance Listing Number 84.425F, Award Number P425F204485. COVID-19 - HEERF - Institutions of Higher Education - Student Aid, Assistance Listing Number 84.425E, Award Number P425E201660. COVID-19 - HEERF - Institutions of Higher Education - Strengthening Institutions Programs, Assistance Listing Number 84.425M, Award Number P425M200871. Criteria. The Compliance Supplement states that a College cannot use HEERF grant funds for executive salaries and benefits. Condition. HEERF grant funds were used for a portion of five executives' salaries and benefits. Cause. The College was unaware that grant funds could not be used for executive salaries and benefits. Effect. As a result of this condition, the College used HEERF grant funds for unallowable costs. Questioned Costs. Questioned costs totaled $34,007 as a result of this finding. Recommendation. We recommend that the College implement procedures to ensure grant funds are only used on allowable costs. View of Responsible Officials. Management was unaware that the grant funds could not be used for executive salaries and benefit, and has prepared a Corrective Action Plan.
Finding 2022-001
2022-001 - Grant Funds Used for Executive Salaries and Benefits Finding Type. Immaterial Noncompliance / Significant Deficiency in Internal Control over Compliance (Allowable Costs/Cost Principles). Program. COVID-19 - Higher Education Emergency Relief Fund - Institutions of Higher Education - Institutional ("HEERF"), Assistance Listing Number 84.425F, Award Number P425F204485. COVID-19 - HEERF - Institutions of Higher Education - Student Aid, Assistance Listing Number 84.425E, Award Number P425E201660. COVID-19 - HEERF - Institutions of Higher Education - Strengthening Institutions Programs, Assistance Listing Number 84.425M, Award Number P425M200871. Criteria. The Compliance Supplement states that a College cannot use HEERF grant funds for executive salaries and benefits. Condition. HEERF grant funds were used for a portion of five executives' salaries and benefits. Cause. The College was unaware that grant funds could not be used for executive salaries and benefits. Effect. As a result of this condition, the College used HEERF grant funds for unallowable costs. Questioned Costs. Questioned costs totaled $34,007 as a result of this finding. Recommendation. We recommend that the College implement procedures to ensure grant funds are only used on allowable costs. View of Responsible Officials. Management was unaware that the grant funds could not be used for executive salaries and benefit, and has prepared a Corrective Action Plan.
Finding 2022-001
2022-001 - Grant Funds Used for Executive Salaries and Benefits Finding Type. Immaterial Noncompliance / Significant Deficiency in Internal Control over Compliance (Allowable Costs/Cost Principles). Program. COVID-19 - Higher Education Emergency Relief Fund - Institutions of Higher Education - Institutional ("HEERF"), Assistance Listing Number 84.425F, Award Number P425F204485. COVID-19 - HEERF - Institutions of Higher Education - Student Aid, Assistance Listing Number 84.425E, Award Number P425E201660. COVID-19 - HEERF - Institutions of Higher Education - Strengthening Institutions Programs, Assistance Listing Number 84.425M, Award Number P425M200871. Criteria. The Compliance Supplement states that a College cannot use HEERF grant funds for executive salaries and benefits. Condition. HEERF grant funds were used for a portion of five executives' salaries and benefits. Cause. The College was unaware that grant funds could not be used for executive salaries and benefits. Effect. As a result of this condition, the College used HEERF grant funds for unallowable costs. Questioned Costs. Questioned costs totaled $34,007 as a result of this finding. Recommendation. We recommend that the College implement procedures to ensure grant funds are only used on allowable costs. View of Responsible Officials. Management was unaware that the grant funds could not be used for executive salaries and benefit, and has prepared a Corrective Action Plan.
Finding 2022-001
2022-001 - Grant Funds Used for Executive Salaries and Benefits Finding Type. Immaterial Noncompliance / Significant Deficiency in Internal Control over Compliance (Allowable Costs/Cost Principles). Program. COVID-19 - Higher Education Emergency Relief Fund - Institutions of Higher Education - Institutional ("HEERF"), Assistance Listing Number 84.425F, Award Number P425F204485. COVID-19 - HEERF - Institutions of Higher Education - Student Aid, Assistance Listing Number 84.425E, Award Number P425E201660. COVID-19 - HEERF - Institutions of Higher Education - Strengthening Institutions Programs, Assistance Listing Number 84.425M, Award Number P425M200871. Criteria. The Compliance Supplement states that a College cannot use HEERF grant funds for executive salaries and benefits. Condition. HEERF grant funds were used for a portion of five executives' salaries and benefits. Cause. The College was unaware that grant funds could not be used for executive salaries and benefits. Effect. As a result of this condition, the College used HEERF grant funds for unallowable costs. Questioned Costs. Questioned costs totaled $34,007 as a result of this finding. Recommendation. We recommend that the College implement procedures to ensure grant funds are only used on allowable costs. View of Responsible Officials. Management was unaware that the grant funds could not be used for executive salaries and benefit, and has prepared a Corrective Action Plan.
Finding 2022-001
2022-001 - Grant Funds Used for Executive Salaries and Benefits Finding Type. Immaterial Noncompliance / Significant Deficiency in Internal Control over Compliance (Allowable Costs/Cost Principles). Program. COVID-19 - Higher Education Emergency Relief Fund - Institutions of Higher Education - Institutional ("HEERF"), Assistance Listing Number 84.425F, Award Number P425F204485. COVID-19 - HEERF - Institutions of Higher Education - Student Aid, Assistance Listing Number 84.425E, Award Number P425E201660. COVID-19 - HEERF - Institutions of Higher Education - Strengthening Institutions Programs, Assistance Listing Number 84.425M, Award Number P425M200871. Criteria. The Compliance Supplement states that a College cannot use HEERF grant funds for executive salaries and benefits. Condition. HEERF grant funds were used for a portion of five executives' salaries and benefits. Cause. The College was unaware that grant funds could not be used for executive salaries and benefits. Effect. As a result of this condition, the College used HEERF grant funds for unallowable costs. Questioned Costs. Questioned costs totaled $34,007 as a result of this finding. Recommendation. We recommend that the College implement procedures to ensure grant funds are only used on allowable costs. View of Responsible Officials. Management was unaware that the grant funds could not be used for executive salaries and benefit, and has prepared a Corrective Action Plan.
Finding 2022-001
2022-001 - Grant Funds Used for Executive Salaries and Benefits Finding Type. Immaterial Noncompliance / Significant Deficiency in Internal Control over Compliance (Allowable Costs/Cost Principles). Program. COVID-19 - Higher Education Emergency Relief Fund - Institutions of Higher Education - Institutional ("HEERF"), Assistance Listing Number 84.425F, Award Number P425F204485. COVID-19 - HEERF - Institutions of Higher Education - Student Aid, Assistance Listing Number 84.425E, Award Number P425E201660. COVID-19 - HEERF - Institutions of Higher Education - Strengthening Institutions Programs, Assistance Listing Number 84.425M, Award Number P425M200871. Criteria. The Compliance Supplement states that a College cannot use HEERF grant funds for executive salaries and benefits. Condition. HEERF grant funds were used for a portion of five executives' salaries and benefits. Cause. The College was unaware that grant funds could not be used for executive salaries and benefits. Effect. As a result of this condition, the College used HEERF grant funds for unallowable costs. Questioned Costs. Questioned costs totaled $34,007 as a result of this finding. Recommendation. We recommend that the College implement procedures to ensure grant funds are only used on allowable costs. View of Responsible Officials. Management was unaware that the grant funds could not be used for executive salaries and benefit, and has prepared a Corrective Action Plan.