FAC Explorer

Audit 6864

FY End
2023-06-30
Total Expended
$17.37M
Findings
4
Programs
12
Organization: Rocky Mountain College (MT)
Year: 2023 Accepted: 2023-12-15
Auditor: Kcoe Isom LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
4411 2023-001 Significant Deficiency - AB
4412 2023-002 Significant Deficiency - L
580853 2023-001 Significant Deficiency - AB
580854 2023-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $13.88M Yes 0
84.063 Federal Pell Grant Program $1.21M Yes 0
84.425 Education Stabilization Fund $616,066 Yes 1
84.042 Trio_student Support Services $363,892 - 0
84.038 Federal Perkins Loan Program $331,337 Yes 0
84.033 Federal Work-Study Program $112,449 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $96,281 Yes 0
93.859 Biomedical Research and Research Training $87,953 - 0
93.136 Injury Prevention and Control Research and State and Community Based Programs $21,789 - 0
43.008 Education $17,833 - 0
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $15,088 Yes 0
47.083 Integrative Activities $10,767 - 0

Contacts

Name Title Type
QNN2SJRQXTE1 Melodie Milroy Auditee
4066571022 Stefeni Freese Auditor
No contacts on file

Notes to SEFA

Title: 3. PASS-THROUGH FINANCIAL ASSISTANCE Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Rocky Mountain College (the College) and is presented on the accrual basis of accounting. 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Expenditures reported on this schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 230, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The College has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance. During the year ended June 30, 2023, the College had no pass-through financial assistance to other organizations.
Title: 4. FEDERAL STUDENT LOAN PROGRAMS Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Rocky Mountain College (the College) and is presented on the accrual basis of accounting. 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Expenditures reported on this schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 230, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The College has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance. The College participates in the following federal loan programs: Perkins Loan Program (CFDA No. 84.038) Total Perkins loan expenditures and disbursements to students for the year ended June 30, 2023, was $-0-. The outstanding balance of Perkins loans as of June 30, 2023, was $207,550. Direct Student Loans (CFDA No. 84.268) During the year ended June 30, 2023, the College processed a total of $13,884,225 of new loans under the Direct Student Loan Program.

Finding Details

Finding 2023-001
Assistance Title: Education Stabilization Fund Assistance Listing Number: 84.425E and 84.425F Federal Agency: Department of Education Type of Finding: Significant Deficiency and Noncompliance Category of Finding: Allowable Costs and Activities Allowed Known Questioned Costs: $864 Likely Questioned Costs: Up to $3,000 Criteria: Under 2 CFR 200.403(g), costs must be adequately documented to be allowable under Federal awards. Condition: We tested a sample of sixty expenditures charged to the Education Stabilization Fund and identified two instances of noncompliance and deficiencies in internal control. For one student who received a student award under the Higher Education Emergency Relief Fund (HEERF), there was an absence of clarity regarding approved and unapproved expenditures, along with inadequate itemized receipts. Additionally, for one student who received a student award under HEERF, there was no completed application or supporting documentation to support the award. Cause: Lack of robust review process to ensure that all expenditures have detailed, appropriate supporting documentation. Effect: Unallowable costs could be incurred with Federal funds, subjecting the College to potential penalties and claw backs. Recommendation: We recommend that procedures be strengthened to ensure adequate documentation of expenses charged to Federal awards. Management’s Response: Management concurs with this finding. See Management’s Response and Corrective Action plan.
Finding 2023-002
Assistance Title: Education Stabilization Fund Assistance Listing Number: 84.425E and 84.425F Federal Agency: Department of Education Type of Finding: Significant Deficiency and Noncompliance Category of Finding: Reporting Known Questioned Costs: None Likely Questioned Costs: None Criteria: In accordance with the Federal award terms, the Quarterly Budget and Expenditure reports are required to be made publicly available by the 10th day of the month following the calendar quarter. Condition: The report for the calendar quarter ended December 31, 2022 was made publicly available on January 11, 2023, one day late. Although not made publicly available on January 10, 2023, the quarterly report was submitted timely to the Department of Education on January 10, 2023. Cause: Lack of robust controls in adhering to certain reporting deadlines. Effect: Submission of public reporting late could result in reputational damage and regulatory actions. Recommendation: We recommend that procedures be strengthened to ensure the College adheres to reporting deadlines. Management’s Response: Management concurs with this finding. See Management’s Response and Corrective Action plan.
Finding 2023-001
Assistance Title: Education Stabilization Fund Assistance Listing Number: 84.425E and 84.425F Federal Agency: Department of Education Type of Finding: Significant Deficiency and Noncompliance Category of Finding: Allowable Costs and Activities Allowed Known Questioned Costs: $864 Likely Questioned Costs: Up to $3,000 Criteria: Under 2 CFR 200.403(g), costs must be adequately documented to be allowable under Federal awards. Condition: We tested a sample of sixty expenditures charged to the Education Stabilization Fund and identified two instances of noncompliance and deficiencies in internal control. For one student who received a student award under the Higher Education Emergency Relief Fund (HEERF), there was an absence of clarity regarding approved and unapproved expenditures, along with inadequate itemized receipts. Additionally, for one student who received a student award under HEERF, there was no completed application or supporting documentation to support the award. Cause: Lack of robust review process to ensure that all expenditures have detailed, appropriate supporting documentation. Effect: Unallowable costs could be incurred with Federal funds, subjecting the College to potential penalties and claw backs. Recommendation: We recommend that procedures be strengthened to ensure adequate documentation of expenses charged to Federal awards. Management’s Response: Management concurs with this finding. See Management’s Response and Corrective Action plan.
Finding 2023-002
Assistance Title: Education Stabilization Fund Assistance Listing Number: 84.425E and 84.425F Federal Agency: Department of Education Type of Finding: Significant Deficiency and Noncompliance Category of Finding: Reporting Known Questioned Costs: None Likely Questioned Costs: None Criteria: In accordance with the Federal award terms, the Quarterly Budget and Expenditure reports are required to be made publicly available by the 10th day of the month following the calendar quarter. Condition: The report for the calendar quarter ended December 31, 2022 was made publicly available on January 11, 2023, one day late. Although not made publicly available on January 10, 2023, the quarterly report was submitted timely to the Department of Education on January 10, 2023. Cause: Lack of robust controls in adhering to certain reporting deadlines. Effect: Submission of public reporting late could result in reputational damage and regulatory actions. Recommendation: We recommend that procedures be strengthened to ensure the College adheres to reporting deadlines. Management’s Response: Management concurs with this finding. See Management’s Response and Corrective Action plan.