Audit 52542

Allowable Costs ? COVID 19 Federal Emergency Management Agency Disaster Grants ? Public Assistance, Assistance Listing Number 97.036, Department of Homeland Security Criteria or Specific Requirement Only valid non-duplicative costs are allowed under the program. Condition A cost item was submitted twice within the applications of FEMA funds and funded by FEMA. Cause Notwithstanding review and analysis of these applications, a cross check between the two was either not performed or did not detect duplicate costs being presented in the grant application. Effect The College received more funding than it was entitled to receive. Questioned Costs $176,000 of Known Questioned Costs were identified which management accrued for in the May 31, 2022 financial statements. Management is working with FEMA to return these funds proactively. Context The College received two tranches of Federal Emergency Management Agency contracts during 2022. Upon inspection of the supporting invoices for these contracts, an invoice was identified that was submitted for reimbursement that was included in both contracts. This was a statistically valid sample. Management derecognized the revenue once this was identified $176,000. Identification as a Repeat Finding Not a repeat finding Recommendation While this is somewhat mute given the non-recurring nature of this funding, should the College receive like cost reimbursement funding in the future, greater attention, review and monitoring of grant applications or costs submittals should be made to reduce the risk of duplication of costs being submitted. Management should work with FEMA relative to the return of funds as soon as administratively practicable. Since this matter was identified and is in the process of being corrected, we do not recommend further review or assessment of submitted costs data.

Allowable Costs ? COVID 19 Federal Emergency Management Agency Disaster Grants ? Public Assistance, Assistance Listing Number 97.036, Department of Homeland Security Criteria or Specific Requirement Only valid non-duplicative costs are allowed under the program. Condition A cost item was submitted twice within the applications of FEMA funds and funded by FEMA. Cause Notwithstanding review and analysis of these applications, a cross check between the two was either not performed or did not detect duplicate costs being presented in the grant application. Effect The College received more funding than it was entitled to receive. Questioned Costs $176,000 of Known Questioned Costs were identified which management accrued for in the May 31, 2022 financial statements. Management is working with FEMA to return these funds proactively. Context The College received two tranches of Federal Emergency Management Agency contracts during 2022. Upon inspection of the supporting invoices for these contracts, an invoice was identified that was submitted for reimbursement that was included in both contracts. This was a statistically valid sample. Management derecognized the revenue once this was identified $176,000. Identification as a Repeat Finding Not a repeat finding Recommendation While this is somewhat mute given the non-recurring nature of this funding, should the College receive like cost reimbursement funding in the future, greater attention, review and monitoring of grant applications or costs submittals should be made to reduce the risk of duplication of costs being submitted. Management should work with FEMA relative to the return of funds as soon as administratively practicable. Since this matter was identified and is in the process of being corrected, we do not recommend further review or assessment of submitted costs data.