Audit 50836

FY End
2022-06-30
Total Expended
$994,660
Findings
12
Programs
6
Year: 2022 Accepted: 2022-12-11

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
52041 2022-003 Material Weakness - L
52042 2022-002 Material Weakness - C
52043 2022-002 Material Weakness - C
52044 2022-003 Material Weakness - L
52045 2022-002 Material Weakness - C
52046 2022-003 Material Weakness - L
628483 2022-003 Material Weakness - L
628484 2022-002 Material Weakness - C
628485 2022-002 Material Weakness - C
628486 2022-003 Material Weakness - L
628487 2022-002 Material Weakness - C
628488 2022-003 Material Weakness - L

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $258,241 - 0
17.258 Wia Adult Program $222,715 - 0
84.063 Federal Pell Grant Program $122,737 - 0
84.048 Career and Technical Education -- Basic Grants to States $116,945 - 0
84.425 Education Stabilization Fund $90,815 Yes 2
17.245 Trade Adjustment Assistance $13,980 - 0

Contacts

Name Title Type
DG4EJBS533C5 Susan Barger Auditee
8147655308 John W. Compton, Jr. Auditor
No contacts on file

Notes to SEFA

Title: Federal Student Loan Programs Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. The underlying accounting records for some grant programs, primarily those involving governmental activities (i.e. General Fund), are maintained on the modified accrual basis of accounting. Under the modified accrual basis, revenues are recorded when susceptible to accural, i.e., both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures are recorded when the liability is incurred. De Minimis Rate Used: N Rate Explanation: Indirect Cost Rate. The Center has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The total loans granted under Federal Direct Student Loans, which were not made by the Center but were received by its students, were approximately $258,000 for the year ended June 30, 2022.
Title: Major Program Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. The underlying accounting records for some grant programs, primarily those involving governmental activities (i.e. General Fund), are maintained on the modified accrual basis of accounting. Under the modified accrual basis, revenues are recorded when susceptible to accural, i.e., both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures are recorded when the liability is incurred. De Minimis Rate Used: N Rate Explanation: Indirect Cost Rate. The Center has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The amount expended under the Center's major program totaled approximately $256,000, which is approximately 26% of total expenditures of federal awards for the year ended June 30, 2022. Federal awards expenditures for purposes of this calculation includes loans administered under the Federal Direct Student Loan Program during the year ended June 30, 2022.
Title: Adjustment Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. The underlying accounting records for some grant programs, primarily those involving governmental activities (i.e. General Fund), are maintained on the modified accrual basis of accounting. Under the modified accrual basis, revenues are recorded when susceptible to accural, i.e., both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures are recorded when the liability is incurred. De Minimis Rate Used: N Rate Explanation: Indirect Cost Rate. The Center has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Center received funding under CARES Fund for the Improvement of Postsecondary Education (FIPSE) and derecognized $4,516 of expenditures unallowed under the grant, which it recognized as federal sources revenues in fiscal 2020-21, during the 2021-22 year. In addition, the Center had drawn down the remainder of this grant funding during fiscal 2022, but did not have eligible expenditures, and so$207,610 is recorded and included as accounts payable on the statement of net position which will be returned to the U.S Department of Education (DE) and is reflected as deferred revenue at June 30, 2022 on the schedule of expenditures of federal awards. The Center has also requested a waiver from DE to keep these funds and is awaiting a decision. See more information in Note 9 to the financial statements.
Title: Basis of Accounting Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. The underlying accounting records for some grant programs, primarily those involving governmental activities (i.e. General Fund), are maintained on the modified accrual basis of accounting. Under the modified accrual basis, revenues are recorded when susceptible to accural, i.e., both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures are recorded when the liability is incurred. De Minimis Rate Used: N Rate Explanation: Indirect Cost Rate. The Center has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) presents the expenditures of all federal award activity of Clearfield County Career and Technology Center (the Center) 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 select portion of the operations of the Center, it is not intended to and does not present the financial position or changes in net position of the Center.

Finding Details

Finding No. 2022-003 - Reporting - Material Weakness/Non-Compliance - Assistance Listing #84.425 Education Stabilization Funds Criteria: Section 18004(e) of the Coronavirus Aid, Relief and Economic Security Act (CARES Act), directed institutions receiving funds under Section 18004 of the Act, to submit a new, separate form covering aggregate amounts spent for HEERF I, HEERF II and HEERF III funds each quarterly reporting period (September 30, December 31, March 31, June 30), concluding after an institution has expended and liquidated all (a)(1) Institutional Portion, (a)(2) and (a)(3) funds and checks the ?final report? box. Condition/Context: The Center posted two inaccurate reports to their website, including the Quarterly Budget and Expenditure Reporting under CARES Act Sections 18004(a)(1) Institutional Portion, 18004(a)2), and 18004(a)(3) reports covering the quarters ending December 31, 2021 and March 31, 2022. Two of the five reports tested did not comply with requirements. Effect: The Center did not provide the public with accurate and reliable data related to the 18004 (a)(3) funds. Cause: The Center did not fill out the forms correctly nor in accordance with the HEERF reporting requirements. Questioned Costs: Not applicable. Recommendation: The Center should assign an individual to monitor reporting requirements of awards to ensure the Center is in compliance. In addition, the Center will need to submit updated reports to reflect accurate presentation of the information noted previously that during the year, the Center drew down funds and subsequently reported expenses, it did not incur eligible costs for. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. While the Center did not provide the public with accurate data, the Center believed it had filed the reports correctly at the time. Since the finding was identified during the audit, the Center plans to submit the revised reports stated above. See Corrective Action Plan.
Finding No. 2022-002 - Cash Management - Material Weakness/Non-Compliance - Assistance Listing #84.425 Education Stabilization Funds Criteria: The tracking and matching of grant revenues and expenditures and the related grant receivable and unearned revenue amounts is necessary to assist in making management decisions and for the proper reporting and use of such funds in accordance with each of the individual grant requirements and this information is essential for grant administration and for preparing the Center's Schedule of Expenditures of Federal Awards (SEFA).Condition/Context: The Center's system of tracking its grants and matching revenues with expenditures lacks the necessary level of sophistication, given the number and complexities of the Center's grant activities, which hampers the Center's ability to properly administer its grants and prepare a complete and accurate SEFA. In addition, one of the grants was funded under the reimbursement method where costs for which reimbursement was requested are to be paid for prior to the date of the reimbursement request. During the year, the Center drew down $207,610 it had not yet incurred eligible costs for, and then continued to spend this amount after the grant period had ended. One of the two draws tested did not comply with requirements. Effect: The Center should work with the U.S. Department of Education for purposes of determining whether the $207,610 should be returned. The Center also did not prepare a complete and accurate SEFA in a timely manner to comply with its financial reporting requirements. Cause: The Center has not prioritized a formal system for tracking its grant activities and also lacked a complete and accurate understanding of grant funding under the reimbursement method. Questioned Costs: $207,610 Recommendation: We recommend that the Center develop and implement a formal system for tracking its grant related activities including the review and approval of grant reports and draw down requests reconcile to the general ledger grant activity prior to submitting a reimbursement request or grant report. Views of Responsible Officials and Planned Corrective Actions: Management agrees, and is working to realign the grant process from formalizing the administration and determining the involvement of staff members. A timeline will be initiated between all involved staff to oversee, track, report and manage all of the Center?s grant awards. Timeline will ensure that budgets, reporting requirements and purchases are handled in a timely manner. Management is also working with the U.S. Department of Education regarding the resolution of this matter. See Corrective Action Plan.
Finding No. 2022-002 - Cash Management - Material Weakness/Non-Compliance - Assistance Listing #84.425 Education Stabilization Funds Criteria: The tracking and matching of grant revenues and expenditures and the related grant receivable and unearned revenue amounts is necessary to assist in making management decisions and for the proper reporting and use of such funds in accordance with each of the individual grant requirements and this information is essential for grant administration and for preparing the Center's Schedule of Expenditures of Federal Awards (SEFA).Condition/Context: The Center's system of tracking its grants and matching revenues with expenditures lacks the necessary level of sophistication, given the number and complexities of the Center's grant activities, which hampers the Center's ability to properly administer its grants and prepare a complete and accurate SEFA. In addition, one of the grants was funded under the reimbursement method where costs for which reimbursement was requested are to be paid for prior to the date of the reimbursement request. During the year, the Center drew down $207,610 it had not yet incurred eligible costs for, and then continued to spend this amount after the grant period had ended. One of the two draws tested did not comply with requirements. Effect: The Center should work with the U.S. Department of Education for purposes of determining whether the $207,610 should be returned. The Center also did not prepare a complete and accurate SEFA in a timely manner to comply with its financial reporting requirements. Cause: The Center has not prioritized a formal system for tracking its grant activities and also lacked a complete and accurate understanding of grant funding under the reimbursement method. Questioned Costs: $207,610 Recommendation: We recommend that the Center develop and implement a formal system for tracking its grant related activities including the review and approval of grant reports and draw down requests reconcile to the general ledger grant activity prior to submitting a reimbursement request or grant report. Views of Responsible Officials and Planned Corrective Actions: Management agrees, and is working to realign the grant process from formalizing the administration and determining the involvement of staff members. A timeline will be initiated between all involved staff to oversee, track, report and manage all of the Center?s grant awards. Timeline will ensure that budgets, reporting requirements and purchases are handled in a timely manner. Management is also working with the U.S. Department of Education regarding the resolution of this matter. See Corrective Action Plan.
Finding No. 2022-003 - Reporting - Material Weakness/Non-Compliance - Assistance Listing #84.425 Education Stabilization Funds Criteria: Section 18004(e) of the Coronavirus Aid, Relief and Economic Security Act (CARES Act), directed institutions receiving funds under Section 18004 of the Act, to submit a new, separate form covering aggregate amounts spent for HEERF I, HEERF II and HEERF III funds each quarterly reporting period (September 30, December 31, March 31, June 30), concluding after an institution has expended and liquidated all (a)(1) Institutional Portion, (a)(2) and (a)(3) funds and checks the ?final report? box. Condition/Context: The Center posted two inaccurate reports to their website, including the Quarterly Budget and Expenditure Reporting under CARES Act Sections 18004(a)(1) Institutional Portion, 18004(a)2), and 18004(a)(3) reports covering the quarters ending December 31, 2021 and March 31, 2022. Two of the five reports tested did not comply with requirements. Effect: The Center did not provide the public with accurate and reliable data related to the 18004 (a)(3) funds. Cause: The Center did not fill out the forms correctly nor in accordance with the HEERF reporting requirements. Questioned Costs: Not applicable. Recommendation: The Center should assign an individual to monitor reporting requirements of awards to ensure the Center is in compliance. In addition, the Center will need to submit updated reports to reflect accurate presentation of the information noted previously that during the year, the Center drew down funds and subsequently reported expenses, it did not incur eligible costs for. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. While the Center did not provide the public with accurate data, the Center believed it had filed the reports correctly at the time. Since the finding was identified during the audit, the Center plans to submit the revised reports stated above. See Corrective Action Plan.
Finding No. 2022-002 - Cash Management - Material Weakness/Non-Compliance - Assistance Listing #84.425 Education Stabilization Funds Criteria: The tracking and matching of grant revenues and expenditures and the related grant receivable and unearned revenue amounts is necessary to assist in making management decisions and for the proper reporting and use of such funds in accordance with each of the individual grant requirements and this information is essential for grant administration and for preparing the Center's Schedule of Expenditures of Federal Awards (SEFA).Condition/Context: The Center's system of tracking its grants and matching revenues with expenditures lacks the necessary level of sophistication, given the number and complexities of the Center's grant activities, which hampers the Center's ability to properly administer its grants and prepare a complete and accurate SEFA. In addition, one of the grants was funded under the reimbursement method where costs for which reimbursement was requested are to be paid for prior to the date of the reimbursement request. During the year, the Center drew down $207,610 it had not yet incurred eligible costs for, and then continued to spend this amount after the grant period had ended. One of the two draws tested did not comply with requirements. Effect: The Center should work with the U.S. Department of Education for purposes of determining whether the $207,610 should be returned. The Center also did not prepare a complete and accurate SEFA in a timely manner to comply with its financial reporting requirements. Cause: The Center has not prioritized a formal system for tracking its grant activities and also lacked a complete and accurate understanding of grant funding under the reimbursement method. Questioned Costs: $207,610 Recommendation: We recommend that the Center develop and implement a formal system for tracking its grant related activities including the review and approval of grant reports and draw down requests reconcile to the general ledger grant activity prior to submitting a reimbursement request or grant report. Views of Responsible Officials and Planned Corrective Actions: Management agrees, and is working to realign the grant process from formalizing the administration and determining the involvement of staff members. A timeline will be initiated between all involved staff to oversee, track, report and manage all of the Center?s grant awards. Timeline will ensure that budgets, reporting requirements and purchases are handled in a timely manner. Management is also working with the U.S. Department of Education regarding the resolution of this matter. See Corrective Action Plan.
Finding No. 2022-003 - Reporting - Material Weakness/Non-Compliance - Assistance Listing #84.425 Education Stabilization Funds Criteria: Section 18004(e) of the Coronavirus Aid, Relief and Economic Security Act (CARES Act), directed institutions receiving funds under Section 18004 of the Act, to submit a new, separate form covering aggregate amounts spent for HEERF I, HEERF II and HEERF III funds each quarterly reporting period (September 30, December 31, March 31, June 30), concluding after an institution has expended and liquidated all (a)(1) Institutional Portion, (a)(2) and (a)(3) funds and checks the ?final report? box. Condition/Context: The Center posted two inaccurate reports to their website, including the Quarterly Budget and Expenditure Reporting under CARES Act Sections 18004(a)(1) Institutional Portion, 18004(a)2), and 18004(a)(3) reports covering the quarters ending December 31, 2021 and March 31, 2022. Two of the five reports tested did not comply with requirements. Effect: The Center did not provide the public with accurate and reliable data related to the 18004 (a)(3) funds. Cause: The Center did not fill out the forms correctly nor in accordance with the HEERF reporting requirements. Questioned Costs: Not applicable. Recommendation: The Center should assign an individual to monitor reporting requirements of awards to ensure the Center is in compliance. In addition, the Center will need to submit updated reports to reflect accurate presentation of the information noted previously that during the year, the Center drew down funds and subsequently reported expenses, it did not incur eligible costs for. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. While the Center did not provide the public with accurate data, the Center believed it had filed the reports correctly at the time. Since the finding was identified during the audit, the Center plans to submit the revised reports stated above. See Corrective Action Plan.
Finding No. 2022-003 - Reporting - Material Weakness/Non-Compliance - Assistance Listing #84.425 Education Stabilization Funds Criteria: Section 18004(e) of the Coronavirus Aid, Relief and Economic Security Act (CARES Act), directed institutions receiving funds under Section 18004 of the Act, to submit a new, separate form covering aggregate amounts spent for HEERF I, HEERF II and HEERF III funds each quarterly reporting period (September 30, December 31, March 31, June 30), concluding after an institution has expended and liquidated all (a)(1) Institutional Portion, (a)(2) and (a)(3) funds and checks the ?final report? box. Condition/Context: The Center posted two inaccurate reports to their website, including the Quarterly Budget and Expenditure Reporting under CARES Act Sections 18004(a)(1) Institutional Portion, 18004(a)2), and 18004(a)(3) reports covering the quarters ending December 31, 2021 and March 31, 2022. Two of the five reports tested did not comply with requirements. Effect: The Center did not provide the public with accurate and reliable data related to the 18004 (a)(3) funds. Cause: The Center did not fill out the forms correctly nor in accordance with the HEERF reporting requirements. Questioned Costs: Not applicable. Recommendation: The Center should assign an individual to monitor reporting requirements of awards to ensure the Center is in compliance. In addition, the Center will need to submit updated reports to reflect accurate presentation of the information noted previously that during the year, the Center drew down funds and subsequently reported expenses, it did not incur eligible costs for. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. While the Center did not provide the public with accurate data, the Center believed it had filed the reports correctly at the time. Since the finding was identified during the audit, the Center plans to submit the revised reports stated above. See Corrective Action Plan.
Finding No. 2022-002 - Cash Management - Material Weakness/Non-Compliance - Assistance Listing #84.425 Education Stabilization Funds Criteria: The tracking and matching of grant revenues and expenditures and the related grant receivable and unearned revenue amounts is necessary to assist in making management decisions and for the proper reporting and use of such funds in accordance with each of the individual grant requirements and this information is essential for grant administration and for preparing the Center's Schedule of Expenditures of Federal Awards (SEFA).Condition/Context: The Center's system of tracking its grants and matching revenues with expenditures lacks the necessary level of sophistication, given the number and complexities of the Center's grant activities, which hampers the Center's ability to properly administer its grants and prepare a complete and accurate SEFA. In addition, one of the grants was funded under the reimbursement method where costs for which reimbursement was requested are to be paid for prior to the date of the reimbursement request. During the year, the Center drew down $207,610 it had not yet incurred eligible costs for, and then continued to spend this amount after the grant period had ended. One of the two draws tested did not comply with requirements. Effect: The Center should work with the U.S. Department of Education for purposes of determining whether the $207,610 should be returned. The Center also did not prepare a complete and accurate SEFA in a timely manner to comply with its financial reporting requirements. Cause: The Center has not prioritized a formal system for tracking its grant activities and also lacked a complete and accurate understanding of grant funding under the reimbursement method. Questioned Costs: $207,610 Recommendation: We recommend that the Center develop and implement a formal system for tracking its grant related activities including the review and approval of grant reports and draw down requests reconcile to the general ledger grant activity prior to submitting a reimbursement request or grant report. Views of Responsible Officials and Planned Corrective Actions: Management agrees, and is working to realign the grant process from formalizing the administration and determining the involvement of staff members. A timeline will be initiated between all involved staff to oversee, track, report and manage all of the Center?s grant awards. Timeline will ensure that budgets, reporting requirements and purchases are handled in a timely manner. Management is also working with the U.S. Department of Education regarding the resolution of this matter. See Corrective Action Plan.
Finding No. 2022-002 - Cash Management - Material Weakness/Non-Compliance - Assistance Listing #84.425 Education Stabilization Funds Criteria: The tracking and matching of grant revenues and expenditures and the related grant receivable and unearned revenue amounts is necessary to assist in making management decisions and for the proper reporting and use of such funds in accordance with each of the individual grant requirements and this information is essential for grant administration and for preparing the Center's Schedule of Expenditures of Federal Awards (SEFA).Condition/Context: The Center's system of tracking its grants and matching revenues with expenditures lacks the necessary level of sophistication, given the number and complexities of the Center's grant activities, which hampers the Center's ability to properly administer its grants and prepare a complete and accurate SEFA. In addition, one of the grants was funded under the reimbursement method where costs for which reimbursement was requested are to be paid for prior to the date of the reimbursement request. During the year, the Center drew down $207,610 it had not yet incurred eligible costs for, and then continued to spend this amount after the grant period had ended. One of the two draws tested did not comply with requirements. Effect: The Center should work with the U.S. Department of Education for purposes of determining whether the $207,610 should be returned. The Center also did not prepare a complete and accurate SEFA in a timely manner to comply with its financial reporting requirements. Cause: The Center has not prioritized a formal system for tracking its grant activities and also lacked a complete and accurate understanding of grant funding under the reimbursement method. Questioned Costs: $207,610 Recommendation: We recommend that the Center develop and implement a formal system for tracking its grant related activities including the review and approval of grant reports and draw down requests reconcile to the general ledger grant activity prior to submitting a reimbursement request or grant report. Views of Responsible Officials and Planned Corrective Actions: Management agrees, and is working to realign the grant process from formalizing the administration and determining the involvement of staff members. A timeline will be initiated between all involved staff to oversee, track, report and manage all of the Center?s grant awards. Timeline will ensure that budgets, reporting requirements and purchases are handled in a timely manner. Management is also working with the U.S. Department of Education regarding the resolution of this matter. See Corrective Action Plan.
Finding No. 2022-003 - Reporting - Material Weakness/Non-Compliance - Assistance Listing #84.425 Education Stabilization Funds Criteria: Section 18004(e) of the Coronavirus Aid, Relief and Economic Security Act (CARES Act), directed institutions receiving funds under Section 18004 of the Act, to submit a new, separate form covering aggregate amounts spent for HEERF I, HEERF II and HEERF III funds each quarterly reporting period (September 30, December 31, March 31, June 30), concluding after an institution has expended and liquidated all (a)(1) Institutional Portion, (a)(2) and (a)(3) funds and checks the ?final report? box. Condition/Context: The Center posted two inaccurate reports to their website, including the Quarterly Budget and Expenditure Reporting under CARES Act Sections 18004(a)(1) Institutional Portion, 18004(a)2), and 18004(a)(3) reports covering the quarters ending December 31, 2021 and March 31, 2022. Two of the five reports tested did not comply with requirements. Effect: The Center did not provide the public with accurate and reliable data related to the 18004 (a)(3) funds. Cause: The Center did not fill out the forms correctly nor in accordance with the HEERF reporting requirements. Questioned Costs: Not applicable. Recommendation: The Center should assign an individual to monitor reporting requirements of awards to ensure the Center is in compliance. In addition, the Center will need to submit updated reports to reflect accurate presentation of the information noted previously that during the year, the Center drew down funds and subsequently reported expenses, it did not incur eligible costs for. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. While the Center did not provide the public with accurate data, the Center believed it had filed the reports correctly at the time. Since the finding was identified during the audit, the Center plans to submit the revised reports stated above. See Corrective Action Plan.
Finding No. 2022-002 - Cash Management - Material Weakness/Non-Compliance - Assistance Listing #84.425 Education Stabilization Funds Criteria: The tracking and matching of grant revenues and expenditures and the related grant receivable and unearned revenue amounts is necessary to assist in making management decisions and for the proper reporting and use of such funds in accordance with each of the individual grant requirements and this information is essential for grant administration and for preparing the Center's Schedule of Expenditures of Federal Awards (SEFA).Condition/Context: The Center's system of tracking its grants and matching revenues with expenditures lacks the necessary level of sophistication, given the number and complexities of the Center's grant activities, which hampers the Center's ability to properly administer its grants and prepare a complete and accurate SEFA. In addition, one of the grants was funded under the reimbursement method where costs for which reimbursement was requested are to be paid for prior to the date of the reimbursement request. During the year, the Center drew down $207,610 it had not yet incurred eligible costs for, and then continued to spend this amount after the grant period had ended. One of the two draws tested did not comply with requirements. Effect: The Center should work with the U.S. Department of Education for purposes of determining whether the $207,610 should be returned. The Center also did not prepare a complete and accurate SEFA in a timely manner to comply with its financial reporting requirements. Cause: The Center has not prioritized a formal system for tracking its grant activities and also lacked a complete and accurate understanding of grant funding under the reimbursement method. Questioned Costs: $207,610 Recommendation: We recommend that the Center develop and implement a formal system for tracking its grant related activities including the review and approval of grant reports and draw down requests reconcile to the general ledger grant activity prior to submitting a reimbursement request or grant report. Views of Responsible Officials and Planned Corrective Actions: Management agrees, and is working to realign the grant process from formalizing the administration and determining the involvement of staff members. A timeline will be initiated between all involved staff to oversee, track, report and manage all of the Center?s grant awards. Timeline will ensure that budgets, reporting requirements and purchases are handled in a timely manner. Management is also working with the U.S. Department of Education regarding the resolution of this matter. See Corrective Action Plan.
Finding No. 2022-003 - Reporting - Material Weakness/Non-Compliance - Assistance Listing #84.425 Education Stabilization Funds Criteria: Section 18004(e) of the Coronavirus Aid, Relief and Economic Security Act (CARES Act), directed institutions receiving funds under Section 18004 of the Act, to submit a new, separate form covering aggregate amounts spent for HEERF I, HEERF II and HEERF III funds each quarterly reporting period (September 30, December 31, March 31, June 30), concluding after an institution has expended and liquidated all (a)(1) Institutional Portion, (a)(2) and (a)(3) funds and checks the ?final report? box. Condition/Context: The Center posted two inaccurate reports to their website, including the Quarterly Budget and Expenditure Reporting under CARES Act Sections 18004(a)(1) Institutional Portion, 18004(a)2), and 18004(a)(3) reports covering the quarters ending December 31, 2021 and March 31, 2022. Two of the five reports tested did not comply with requirements. Effect: The Center did not provide the public with accurate and reliable data related to the 18004 (a)(3) funds. Cause: The Center did not fill out the forms correctly nor in accordance with the HEERF reporting requirements. Questioned Costs: Not applicable. Recommendation: The Center should assign an individual to monitor reporting requirements of awards to ensure the Center is in compliance. In addition, the Center will need to submit updated reports to reflect accurate presentation of the information noted previously that during the year, the Center drew down funds and subsequently reported expenses, it did not incur eligible costs for. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. While the Center did not provide the public with accurate data, the Center believed it had filed the reports correctly at the time. Since the finding was identified during the audit, the Center plans to submit the revised reports stated above. See Corrective Action Plan.