Finding No.: 2024-002 – Allowability – Significant deficiency Federal Agency: Various Program Name: Research and Development Cluster ALN Number: Various Federal Award Year: July 1, 2023 – June 30, 2024 Criteria: In accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committeeof Sponsoring Organizations of the Treadway Commission (COSO).Conditions Found: I. Indirect Cost Expenditures (IDC): To ensure compliance with federally funded grants, particularly concerning indirect cost rates, the institution must adhere to specific criteria. Firstly, compliance with the Uniform Guidance (2 CFR Part 200) is essential. This regulation establishes uniform administrative requirements, cost principles, and audit requirements for federal awards to non-federal entities. The institution must follow these guidelines, which include the proper application and calculation of indirect cost rates. Additionally, adherence to approved indirect cost rates as specified in 2 CFR 200.414 is required. The institution must apply the federally approved indirect cost rates when charging costs to federal awards, ensuring that any deviations, such as using a de minimis rate, are appropriately justified and documented.During our audit we found 3 out of 15 samples selected for our compliance testwork, the College used an incorrect IDC rate. This represents an overcharge, as the IDC rate is intended to cover general administrative expenses that cannot be directly attributed to a specific project. In utilizing a higher rate, the College effectively inflated the administrative costs charged to the federal grants. II. Fringe Rates: When applying fringe rates to federally funded R&D grants, institutions must comply with specific laws, regulations, and requirements to ensure adherence to federal guidelines. The primary regulatory framework is outlined in the OMB Uniform Guidance (2CFR Part 200), which provides the Uniform Administrative Requirements, Cost Principles,and Audit Requirements for Federal Awards. This regulation specifies that fringe benefits,which include employee-related expenses such as health insurance and retirement contributions, are allowable costs only if they are necessary, reasonable, and allocable to the federal award. Additionally, the Federal Acquisition Regulation (FAR) Part 31 outlines the cost principles and procedures for determining the allowability of costs under government contracts, reinforcing the need for costs to be necessary, reasonable, and allocable. Institutions must apply fringe benefit rates that align with the approved rates set by the overseeing federal agency. Overcharging or applying incorrect rates can result in noncompliance with federal regulations. Adequate internal controls are necessary to ensure the correct application of fringe rates, which includes regular monitoring and verification. In cases of noncompliance, corrective actions must be taken to address and rectify discrepancies. Proper documentation and recordkeeping are also essential to support the application of fringe rates and demonstrate compliance with federal guidelines. During our audit we found 5 out of 20 samples selected for our compliance testwork, the College charged an incorrect fringe rate. After inquiry of management, we noted during thefirst quarter of the period under audit, the College charged a fringe benefit rate of 19.9%,instead of the actual rate of 18.65%. KPMG noted for our 15 of 20 samples which were incurred during quarters two, three, and four, the appropriate fringe rate was utilized. Cause: I. Indirect Cost Expenditures (IDC): The cause of the condition is that the College’s internal controls over the review of the rates applied to calculate the IDC charges were not operating effectively to the awards throughout the year. The College manually calculates what the IDC costs are based upon outdated rates and was booked into their financial reporting system without a supplemental review or reconciliation. II. Fringe Rates: The cause of the condition found is the institution not maintaining appropriately functioning controls to review the rates applied to the fringe benefit charges applied to theawards throughout the year. The College manually reviews the fringe benefits charges afterthe expenditure process and therefore is not designed to catch noncompliance prior to the charges to grant. The College identified they were using the incorrect fringe rates during the first quarter, however, did not go back and correct the error as they deemed it to be immaterial. Possible Asserted Effect: I. Indirect Cost Expenditures (IDC): The inflated rate has led to an unwarranted increase in administrative costs charged to federal grants, potentially resulting in the overcharge. II. Fringe Rates: The possible effect of the condition found is that the Institution is overcharging future federal grants for an excess of fringe more than what is deemed as allowable. Questioned Costs The known questioned costs are $3,835 (IDC known questioned costs are $1,703 and fringe known questioned costs are $2,132) and the likely questioned costs are $4,767. Statistical Sampling: Neither samples were intended to be, and were not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: I. Indirect Cost Expenditures (IDC): We recommend that management review its internal controls and establish a routine audit and monitoring process to regularly review the application of indirect cost rates and ensure compliance with federal regulations.
Finding No.: 2024-002 – Allowability – Significant deficiency Federal Agency: Various Program Name: Research and Development Cluster ALN Number: Various Federal Award Year: July 1, 2023 – June 30, 2024 Criteria: In accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committeeof Sponsoring Organizations of the Treadway Commission (COSO).Conditions Found: I. Indirect Cost Expenditures (IDC): To ensure compliance with federally funded grants, particularly concerning indirect cost rates, the institution must adhere to specific criteria. Firstly, compliance with the Uniform Guidance (2 CFR Part 200) is essential. This regulation establishes uniform administrative requirements, cost principles, and audit requirements for federal awards to non-federal entities. The institution must follow these guidelines, which include the proper application and calculation of indirect cost rates. Additionally, adherence to approved indirect cost rates as specified in 2 CFR 200.414 is required. The institution must apply the federally approved indirect cost rates when charging costs to federal awards, ensuring that any deviations, such as using a de minimis rate, are appropriately justified and documented.During our audit we found 3 out of 15 samples selected for our compliance testwork, the College used an incorrect IDC rate. This represents an overcharge, as the IDC rate is intended to cover general administrative expenses that cannot be directly attributed to a specific project. In utilizing a higher rate, the College effectively inflated the administrative costs charged to the federal grants. II. Fringe Rates: When applying fringe rates to federally funded R&D grants, institutions must comply with specific laws, regulations, and requirements to ensure adherence to federal guidelines. The primary regulatory framework is outlined in the OMB Uniform Guidance (2CFR Part 200), which provides the Uniform Administrative Requirements, Cost Principles,and Audit Requirements for Federal Awards. This regulation specifies that fringe benefits,which include employee-related expenses such as health insurance and retirement contributions, are allowable costs only if they are necessary, reasonable, and allocable to the federal award. Additionally, the Federal Acquisition Regulation (FAR) Part 31 outlines the cost principles and procedures for determining the allowability of costs under government contracts, reinforcing the need for costs to be necessary, reasonable, and allocable. Institutions must apply fringe benefit rates that align with the approved rates set by the overseeing federal agency. Overcharging or applying incorrect rates can result in noncompliance with federal regulations. Adequate internal controls are necessary to ensure the correct application of fringe rates, which includes regular monitoring and verification. In cases of noncompliance, corrective actions must be taken to address and rectify discrepancies. Proper documentation and recordkeeping are also essential to support the application of fringe rates and demonstrate compliance with federal guidelines. During our audit we found 5 out of 20 samples selected for our compliance testwork, the College charged an incorrect fringe rate. After inquiry of management, we noted during thefirst quarter of the period under audit, the College charged a fringe benefit rate of 19.9%,instead of the actual rate of 18.65%. KPMG noted for our 15 of 20 samples which were incurred during quarters two, three, and four, the appropriate fringe rate was utilized. Cause: I. Indirect Cost Expenditures (IDC): The cause of the condition is that the College’s internal controls over the review of the rates applied to calculate the IDC charges were not operating effectively to the awards throughout the year. The College manually calculates what the IDC costs are based upon outdated rates and was booked into their financial reporting system without a supplemental review or reconciliation. II. Fringe Rates: The cause of the condition found is the institution not maintaining appropriately functioning controls to review the rates applied to the fringe benefit charges applied to theawards throughout the year. The College manually reviews the fringe benefits charges afterthe expenditure process and therefore is not designed to catch noncompliance prior to the charges to grant. The College identified they were using the incorrect fringe rates during the first quarter, however, did not go back and correct the error as they deemed it to be immaterial. Possible Asserted Effect: I. Indirect Cost Expenditures (IDC): The inflated rate has led to an unwarranted increase in administrative costs charged to federal grants, potentially resulting in the overcharge. II. Fringe Rates: The possible effect of the condition found is that the Institution is overcharging future federal grants for an excess of fringe more than what is deemed as allowable. Questioned Costs The known questioned costs are $3,835 (IDC known questioned costs are $1,703 and fringe known questioned costs are $2,132) and the likely questioned costs are $4,767. Statistical Sampling: Neither samples were intended to be, and were not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: I. Indirect Cost Expenditures (IDC): We recommend that management review its internal controls and establish a routine audit and monitoring process to regularly review the application of indirect cost rates and ensure compliance with federal regulations.
Finding No.: 2024-002 – Allowability – Significant deficiency Federal Agency: Various Program Name: Research and Development Cluster ALN Number: Various Federal Award Year: July 1, 2023 – June 30, 2024 Criteria: In accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committeeof Sponsoring Organizations of the Treadway Commission (COSO).Conditions Found: I. Indirect Cost Expenditures (IDC): To ensure compliance with federally funded grants, particularly concerning indirect cost rates, the institution must adhere to specific criteria. Firstly, compliance with the Uniform Guidance (2 CFR Part 200) is essential. This regulation establishes uniform administrative requirements, cost principles, and audit requirements for federal awards to non-federal entities. The institution must follow these guidelines, which include the proper application and calculation of indirect cost rates. Additionally, adherence to approved indirect cost rates as specified in 2 CFR 200.414 is required. The institution must apply the federally approved indirect cost rates when charging costs to federal awards, ensuring that any deviations, such as using a de minimis rate, are appropriately justified and documented.During our audit we found 3 out of 15 samples selected for our compliance testwork, the College used an incorrect IDC rate. This represents an overcharge, as the IDC rate is intended to cover general administrative expenses that cannot be directly attributed to a specific project. In utilizing a higher rate, the College effectively inflated the administrative costs charged to the federal grants. II. Fringe Rates: When applying fringe rates to federally funded R&D grants, institutions must comply with specific laws, regulations, and requirements to ensure adherence to federal guidelines. The primary regulatory framework is outlined in the OMB Uniform Guidance (2CFR Part 200), which provides the Uniform Administrative Requirements, Cost Principles,and Audit Requirements for Federal Awards. This regulation specifies that fringe benefits,which include employee-related expenses such as health insurance and retirement contributions, are allowable costs only if they are necessary, reasonable, and allocable to the federal award. Additionally, the Federal Acquisition Regulation (FAR) Part 31 outlines the cost principles and procedures for determining the allowability of costs under government contracts, reinforcing the need for costs to be necessary, reasonable, and allocable. Institutions must apply fringe benefit rates that align with the approved rates set by the overseeing federal agency. Overcharging or applying incorrect rates can result in noncompliance with federal regulations. Adequate internal controls are necessary to ensure the correct application of fringe rates, which includes regular monitoring and verification. In cases of noncompliance, corrective actions must be taken to address and rectify discrepancies. Proper documentation and recordkeeping are also essential to support the application of fringe rates and demonstrate compliance with federal guidelines. During our audit we found 5 out of 20 samples selected for our compliance testwork, the College charged an incorrect fringe rate. After inquiry of management, we noted during thefirst quarter of the period under audit, the College charged a fringe benefit rate of 19.9%,instead of the actual rate of 18.65%. KPMG noted for our 15 of 20 samples which were incurred during quarters two, three, and four, the appropriate fringe rate was utilized. Cause: I. Indirect Cost Expenditures (IDC): The cause of the condition is that the College’s internal controls over the review of the rates applied to calculate the IDC charges were not operating effectively to the awards throughout the year. The College manually calculates what the IDC costs are based upon outdated rates and was booked into their financial reporting system without a supplemental review or reconciliation. II. Fringe Rates: The cause of the condition found is the institution not maintaining appropriately functioning controls to review the rates applied to the fringe benefit charges applied to theawards throughout the year. The College manually reviews the fringe benefits charges afterthe expenditure process and therefore is not designed to catch noncompliance prior to the charges to grant. The College identified they were using the incorrect fringe rates during the first quarter, however, did not go back and correct the error as they deemed it to be immaterial. Possible Asserted Effect: I. Indirect Cost Expenditures (IDC): The inflated rate has led to an unwarranted increase in administrative costs charged to federal grants, potentially resulting in the overcharge. II. Fringe Rates: The possible effect of the condition found is that the Institution is overcharging future federal grants for an excess of fringe more than what is deemed as allowable. Questioned Costs The known questioned costs are $3,835 (IDC known questioned costs are $1,703 and fringe known questioned costs are $2,132) and the likely questioned costs are $4,767. Statistical Sampling: Neither samples were intended to be, and were not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: I. Indirect Cost Expenditures (IDC): We recommend that management review its internal controls and establish a routine audit and monitoring process to regularly review the application of indirect cost rates and ensure compliance with federal regulations.
Finding No.: 2024-002 – Allowability – Significant deficiency Federal Agency: Various Program Name: Research and Development Cluster ALN Number: Various Federal Award Year: July 1, 2023 – June 30, 2024 Criteria: In accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committeeof Sponsoring Organizations of the Treadway Commission (COSO).Conditions Found: I. Indirect Cost Expenditures (IDC): To ensure compliance with federally funded grants, particularly concerning indirect cost rates, the institution must adhere to specific criteria. Firstly, compliance with the Uniform Guidance (2 CFR Part 200) is essential. This regulation establishes uniform administrative requirements, cost principles, and audit requirements for federal awards to non-federal entities. The institution must follow these guidelines, which include the proper application and calculation of indirect cost rates. Additionally, adherence to approved indirect cost rates as specified in 2 CFR 200.414 is required. The institution must apply the federally approved indirect cost rates when charging costs to federal awards, ensuring that any deviations, such as using a de minimis rate, are appropriately justified and documented.During our audit we found 3 out of 15 samples selected for our compliance testwork, the College used an incorrect IDC rate. This represents an overcharge, as the IDC rate is intended to cover general administrative expenses that cannot be directly attributed to a specific project. In utilizing a higher rate, the College effectively inflated the administrative costs charged to the federal grants. II. Fringe Rates: When applying fringe rates to federally funded R&D grants, institutions must comply with specific laws, regulations, and requirements to ensure adherence to federal guidelines. The primary regulatory framework is outlined in the OMB Uniform Guidance (2CFR Part 200), which provides the Uniform Administrative Requirements, Cost Principles,and Audit Requirements for Federal Awards. This regulation specifies that fringe benefits,which include employee-related expenses such as health insurance and retirement contributions, are allowable costs only if they are necessary, reasonable, and allocable to the federal award. Additionally, the Federal Acquisition Regulation (FAR) Part 31 outlines the cost principles and procedures for determining the allowability of costs under government contracts, reinforcing the need for costs to be necessary, reasonable, and allocable. Institutions must apply fringe benefit rates that align with the approved rates set by the overseeing federal agency. Overcharging or applying incorrect rates can result in noncompliance with federal regulations. Adequate internal controls are necessary to ensure the correct application of fringe rates, which includes regular monitoring and verification. In cases of noncompliance, corrective actions must be taken to address and rectify discrepancies. Proper documentation and recordkeeping are also essential to support the application of fringe rates and demonstrate compliance with federal guidelines. During our audit we found 5 out of 20 samples selected for our compliance testwork, the College charged an incorrect fringe rate. After inquiry of management, we noted during thefirst quarter of the period under audit, the College charged a fringe benefit rate of 19.9%,instead of the actual rate of 18.65%. KPMG noted for our 15 of 20 samples which were incurred during quarters two, three, and four, the appropriate fringe rate was utilized. Cause: I. Indirect Cost Expenditures (IDC): The cause of the condition is that the College’s internal controls over the review of the rates applied to calculate the IDC charges were not operating effectively to the awards throughout the year. The College manually calculates what the IDC costs are based upon outdated rates and was booked into their financial reporting system without a supplemental review or reconciliation. II. Fringe Rates: The cause of the condition found is the institution not maintaining appropriately functioning controls to review the rates applied to the fringe benefit charges applied to theawards throughout the year. The College manually reviews the fringe benefits charges afterthe expenditure process and therefore is not designed to catch noncompliance prior to the charges to grant. The College identified they were using the incorrect fringe rates during the first quarter, however, did not go back and correct the error as they deemed it to be immaterial. Possible Asserted Effect: I. Indirect Cost Expenditures (IDC): The inflated rate has led to an unwarranted increase in administrative costs charged to federal grants, potentially resulting in the overcharge. II. Fringe Rates: The possible effect of the condition found is that the Institution is overcharging future federal grants for an excess of fringe more than what is deemed as allowable. Questioned Costs The known questioned costs are $3,835 (IDC known questioned costs are $1,703 and fringe known questioned costs are $2,132) and the likely questioned costs are $4,767. Statistical Sampling: Neither samples were intended to be, and were not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: I. Indirect Cost Expenditures (IDC): We recommend that management review its internal controls and establish a routine audit and monitoring process to regularly review the application of indirect cost rates and ensure compliance with federal regulations.
Finding No.: 2024-002 – Allowability – Significant deficiency Federal Agency: Various Program Name: Research and Development Cluster ALN Number: Various Federal Award Year: July 1, 2023 – June 30, 2024 Criteria: In accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committeeof Sponsoring Organizations of the Treadway Commission (COSO).Conditions Found: I. Indirect Cost Expenditures (IDC): To ensure compliance with federally funded grants, particularly concerning indirect cost rates, the institution must adhere to specific criteria. Firstly, compliance with the Uniform Guidance (2 CFR Part 200) is essential. This regulation establishes uniform administrative requirements, cost principles, and audit requirements for federal awards to non-federal entities. The institution must follow these guidelines, which include the proper application and calculation of indirect cost rates. Additionally, adherence to approved indirect cost rates as specified in 2 CFR 200.414 is required. The institution must apply the federally approved indirect cost rates when charging costs to federal awards, ensuring that any deviations, such as using a de minimis rate, are appropriately justified and documented.During our audit we found 3 out of 15 samples selected for our compliance testwork, the College used an incorrect IDC rate. This represents an overcharge, as the IDC rate is intended to cover general administrative expenses that cannot be directly attributed to a specific project. In utilizing a higher rate, the College effectively inflated the administrative costs charged to the federal grants. II. Fringe Rates: When applying fringe rates to federally funded R&D grants, institutions must comply with specific laws, regulations, and requirements to ensure adherence to federal guidelines. The primary regulatory framework is outlined in the OMB Uniform Guidance (2CFR Part 200), which provides the Uniform Administrative Requirements, Cost Principles,and Audit Requirements for Federal Awards. This regulation specifies that fringe benefits,which include employee-related expenses such as health insurance and retirement contributions, are allowable costs only if they are necessary, reasonable, and allocable to the federal award. Additionally, the Federal Acquisition Regulation (FAR) Part 31 outlines the cost principles and procedures for determining the allowability of costs under government contracts, reinforcing the need for costs to be necessary, reasonable, and allocable. Institutions must apply fringe benefit rates that align with the approved rates set by the overseeing federal agency. Overcharging or applying incorrect rates can result in noncompliance with federal regulations. Adequate internal controls are necessary to ensure the correct application of fringe rates, which includes regular monitoring and verification. In cases of noncompliance, corrective actions must be taken to address and rectify discrepancies. Proper documentation and recordkeeping are also essential to support the application of fringe rates and demonstrate compliance with federal guidelines. During our audit we found 5 out of 20 samples selected for our compliance testwork, the College charged an incorrect fringe rate. After inquiry of management, we noted during thefirst quarter of the period under audit, the College charged a fringe benefit rate of 19.9%,instead of the actual rate of 18.65%. KPMG noted for our 15 of 20 samples which were incurred during quarters two, three, and four, the appropriate fringe rate was utilized. Cause: I. Indirect Cost Expenditures (IDC): The cause of the condition is that the College’s internal controls over the review of the rates applied to calculate the IDC charges were not operating effectively to the awards throughout the year. The College manually calculates what the IDC costs are based upon outdated rates and was booked into their financial reporting system without a supplemental review or reconciliation. II. Fringe Rates: The cause of the condition found is the institution not maintaining appropriately functioning controls to review the rates applied to the fringe benefit charges applied to theawards throughout the year. The College manually reviews the fringe benefits charges afterthe expenditure process and therefore is not designed to catch noncompliance prior to the charges to grant. The College identified they were using the incorrect fringe rates during the first quarter, however, did not go back and correct the error as they deemed it to be immaterial. Possible Asserted Effect: I. Indirect Cost Expenditures (IDC): The inflated rate has led to an unwarranted increase in administrative costs charged to federal grants, potentially resulting in the overcharge. II. Fringe Rates: The possible effect of the condition found is that the Institution is overcharging future federal grants for an excess of fringe more than what is deemed as allowable. Questioned Costs The known questioned costs are $3,835 (IDC known questioned costs are $1,703 and fringe known questioned costs are $2,132) and the likely questioned costs are $4,767. Statistical Sampling: Neither samples were intended to be, and were not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: I. Indirect Cost Expenditures (IDC): We recommend that management review its internal controls and establish a routine audit and monitoring process to regularly review the application of indirect cost rates and ensure compliance with federal regulations.
Finding No.: 2024-002 – Allowability – Significant deficiency Federal Agency: Various Program Name: Research and Development Cluster ALN Number: Various Federal Award Year: July 1, 2023 – June 30, 2024 Criteria: In accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committeeof Sponsoring Organizations of the Treadway Commission (COSO).Conditions Found: I. Indirect Cost Expenditures (IDC): To ensure compliance with federally funded grants, particularly concerning indirect cost rates, the institution must adhere to specific criteria. Firstly, compliance with the Uniform Guidance (2 CFR Part 200) is essential. This regulation establishes uniform administrative requirements, cost principles, and audit requirements for federal awards to non-federal entities. The institution must follow these guidelines, which include the proper application and calculation of indirect cost rates. Additionally, adherence to approved indirect cost rates as specified in 2 CFR 200.414 is required. The institution must apply the federally approved indirect cost rates when charging costs to federal awards, ensuring that any deviations, such as using a de minimis rate, are appropriately justified and documented.During our audit we found 3 out of 15 samples selected for our compliance testwork, the College used an incorrect IDC rate. This represents an overcharge, as the IDC rate is intended to cover general administrative expenses that cannot be directly attributed to a specific project. In utilizing a higher rate, the College effectively inflated the administrative costs charged to the federal grants. II. Fringe Rates: When applying fringe rates to federally funded R&D grants, institutions must comply with specific laws, regulations, and requirements to ensure adherence to federal guidelines. The primary regulatory framework is outlined in the OMB Uniform Guidance (2CFR Part 200), which provides the Uniform Administrative Requirements, Cost Principles,and Audit Requirements for Federal Awards. This regulation specifies that fringe benefits,which include employee-related expenses such as health insurance and retirement contributions, are allowable costs only if they are necessary, reasonable, and allocable to the federal award. Additionally, the Federal Acquisition Regulation (FAR) Part 31 outlines the cost principles and procedures for determining the allowability of costs under government contracts, reinforcing the need for costs to be necessary, reasonable, and allocable. Institutions must apply fringe benefit rates that align with the approved rates set by the overseeing federal agency. Overcharging or applying incorrect rates can result in noncompliance with federal regulations. Adequate internal controls are necessary to ensure the correct application of fringe rates, which includes regular monitoring and verification. In cases of noncompliance, corrective actions must be taken to address and rectify discrepancies. Proper documentation and recordkeeping are also essential to support the application of fringe rates and demonstrate compliance with federal guidelines. During our audit we found 5 out of 20 samples selected for our compliance testwork, the College charged an incorrect fringe rate. After inquiry of management, we noted during thefirst quarter of the period under audit, the College charged a fringe benefit rate of 19.9%,instead of the actual rate of 18.65%. KPMG noted for our 15 of 20 samples which were incurred during quarters two, three, and four, the appropriate fringe rate was utilized. Cause: I. Indirect Cost Expenditures (IDC): The cause of the condition is that the College’s internal controls over the review of the rates applied to calculate the IDC charges were not operating effectively to the awards throughout the year. The College manually calculates what the IDC costs are based upon outdated rates and was booked into their financial reporting system without a supplemental review or reconciliation. II. Fringe Rates: The cause of the condition found is the institution not maintaining appropriately functioning controls to review the rates applied to the fringe benefit charges applied to theawards throughout the year. The College manually reviews the fringe benefits charges afterthe expenditure process and therefore is not designed to catch noncompliance prior to the charges to grant. The College identified they were using the incorrect fringe rates during the first quarter, however, did not go back and correct the error as they deemed it to be immaterial. Possible Asserted Effect: I. Indirect Cost Expenditures (IDC): The inflated rate has led to an unwarranted increase in administrative costs charged to federal grants, potentially resulting in the overcharge. II. Fringe Rates: The possible effect of the condition found is that the Institution is overcharging future federal grants for an excess of fringe more than what is deemed as allowable. Questioned Costs The known questioned costs are $3,835 (IDC known questioned costs are $1,703 and fringe known questioned costs are $2,132) and the likely questioned costs are $4,767. Statistical Sampling: Neither samples were intended to be, and were not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: I. Indirect Cost Expenditures (IDC): We recommend that management review its internal controls and establish a routine audit and monitoring process to regularly review the application of indirect cost rates and ensure compliance with federal regulations.
Finding No.: 2024-002 – Allowability – Significant deficiency Federal Agency: Various Program Name: Research and Development Cluster ALN Number: Various Federal Award Year: July 1, 2023 – June 30, 2024 Criteria: In accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committeeof Sponsoring Organizations of the Treadway Commission (COSO).Conditions Found: I. Indirect Cost Expenditures (IDC): To ensure compliance with federally funded grants, particularly concerning indirect cost rates, the institution must adhere to specific criteria. Firstly, compliance with the Uniform Guidance (2 CFR Part 200) is essential. This regulation establishes uniform administrative requirements, cost principles, and audit requirements for federal awards to non-federal entities. The institution must follow these guidelines, which include the proper application and calculation of indirect cost rates. Additionally, adherence to approved indirect cost rates as specified in 2 CFR 200.414 is required. The institution must apply the federally approved indirect cost rates when charging costs to federal awards, ensuring that any deviations, such as using a de minimis rate, are appropriately justified and documented.During our audit we found 3 out of 15 samples selected for our compliance testwork, the College used an incorrect IDC rate. This represents an overcharge, as the IDC rate is intended to cover general administrative expenses that cannot be directly attributed to a specific project. In utilizing a higher rate, the College effectively inflated the administrative costs charged to the federal grants. II. Fringe Rates: When applying fringe rates to federally funded R&D grants, institutions must comply with specific laws, regulations, and requirements to ensure adherence to federal guidelines. The primary regulatory framework is outlined in the OMB Uniform Guidance (2CFR Part 200), which provides the Uniform Administrative Requirements, Cost Principles,and Audit Requirements for Federal Awards. This regulation specifies that fringe benefits,which include employee-related expenses such as health insurance and retirement contributions, are allowable costs only if they are necessary, reasonable, and allocable to the federal award. Additionally, the Federal Acquisition Regulation (FAR) Part 31 outlines the cost principles and procedures for determining the allowability of costs under government contracts, reinforcing the need for costs to be necessary, reasonable, and allocable. Institutions must apply fringe benefit rates that align with the approved rates set by the overseeing federal agency. Overcharging or applying incorrect rates can result in noncompliance with federal regulations. Adequate internal controls are necessary to ensure the correct application of fringe rates, which includes regular monitoring and verification. In cases of noncompliance, corrective actions must be taken to address and rectify discrepancies. Proper documentation and recordkeeping are also essential to support the application of fringe rates and demonstrate compliance with federal guidelines. During our audit we found 5 out of 20 samples selected for our compliance testwork, the College charged an incorrect fringe rate. After inquiry of management, we noted during thefirst quarter of the period under audit, the College charged a fringe benefit rate of 19.9%,instead of the actual rate of 18.65%. KPMG noted for our 15 of 20 samples which were incurred during quarters two, three, and four, the appropriate fringe rate was utilized. Cause: I. Indirect Cost Expenditures (IDC): The cause of the condition is that the College’s internal controls over the review of the rates applied to calculate the IDC charges were not operating effectively to the awards throughout the year. The College manually calculates what the IDC costs are based upon outdated rates and was booked into their financial reporting system without a supplemental review or reconciliation. II. Fringe Rates: The cause of the condition found is the institution not maintaining appropriately functioning controls to review the rates applied to the fringe benefit charges applied to theawards throughout the year. The College manually reviews the fringe benefits charges afterthe expenditure process and therefore is not designed to catch noncompliance prior to the charges to grant. The College identified they were using the incorrect fringe rates during the first quarter, however, did not go back and correct the error as they deemed it to be immaterial. Possible Asserted Effect: I. Indirect Cost Expenditures (IDC): The inflated rate has led to an unwarranted increase in administrative costs charged to federal grants, potentially resulting in the overcharge. II. Fringe Rates: The possible effect of the condition found is that the Institution is overcharging future federal grants for an excess of fringe more than what is deemed as allowable. Questioned Costs The known questioned costs are $3,835 (IDC known questioned costs are $1,703 and fringe known questioned costs are $2,132) and the likely questioned costs are $4,767. Statistical Sampling: Neither samples were intended to be, and were not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: I. Indirect Cost Expenditures (IDC): We recommend that management review its internal controls and establish a routine audit and monitoring process to regularly review the application of indirect cost rates and ensure compliance with federal regulations.
Finding No.: 2024-002 – Allowability – Significant deficiency Federal Agency: Various Program Name: Research and Development Cluster ALN Number: Various Federal Award Year: July 1, 2023 – June 30, 2024 Criteria: In accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committeeof Sponsoring Organizations of the Treadway Commission (COSO).Conditions Found: I. Indirect Cost Expenditures (IDC): To ensure compliance with federally funded grants, particularly concerning indirect cost rates, the institution must adhere to specific criteria. Firstly, compliance with the Uniform Guidance (2 CFR Part 200) is essential. This regulation establishes uniform administrative requirements, cost principles, and audit requirements for federal awards to non-federal entities. The institution must follow these guidelines, which include the proper application and calculation of indirect cost rates. Additionally, adherence to approved indirect cost rates as specified in 2 CFR 200.414 is required. The institution must apply the federally approved indirect cost rates when charging costs to federal awards, ensuring that any deviations, such as using a de minimis rate, are appropriately justified and documented.During our audit we found 3 out of 15 samples selected for our compliance testwork, the College used an incorrect IDC rate. This represents an overcharge, as the IDC rate is intended to cover general administrative expenses that cannot be directly attributed to a specific project. In utilizing a higher rate, the College effectively inflated the administrative costs charged to the federal grants. II. Fringe Rates: When applying fringe rates to federally funded R&D grants, institutions must comply with specific laws, regulations, and requirements to ensure adherence to federal guidelines. The primary regulatory framework is outlined in the OMB Uniform Guidance (2CFR Part 200), which provides the Uniform Administrative Requirements, Cost Principles,and Audit Requirements for Federal Awards. This regulation specifies that fringe benefits,which include employee-related expenses such as health insurance and retirement contributions, are allowable costs only if they are necessary, reasonable, and allocable to the federal award. Additionally, the Federal Acquisition Regulation (FAR) Part 31 outlines the cost principles and procedures for determining the allowability of costs under government contracts, reinforcing the need for costs to be necessary, reasonable, and allocable. Institutions must apply fringe benefit rates that align with the approved rates set by the overseeing federal agency. Overcharging or applying incorrect rates can result in noncompliance with federal regulations. Adequate internal controls are necessary to ensure the correct application of fringe rates, which includes regular monitoring and verification. In cases of noncompliance, corrective actions must be taken to address and rectify discrepancies. Proper documentation and recordkeeping are also essential to support the application of fringe rates and demonstrate compliance with federal guidelines. During our audit we found 5 out of 20 samples selected for our compliance testwork, the College charged an incorrect fringe rate. After inquiry of management, we noted during thefirst quarter of the period under audit, the College charged a fringe benefit rate of 19.9%,instead of the actual rate of 18.65%. KPMG noted for our 15 of 20 samples which were incurred during quarters two, three, and four, the appropriate fringe rate was utilized. Cause: I. Indirect Cost Expenditures (IDC): The cause of the condition is that the College’s internal controls over the review of the rates applied to calculate the IDC charges were not operating effectively to the awards throughout the year. The College manually calculates what the IDC costs are based upon outdated rates and was booked into their financial reporting system without a supplemental review or reconciliation. II. Fringe Rates: The cause of the condition found is the institution not maintaining appropriately functioning controls to review the rates applied to the fringe benefit charges applied to theawards throughout the year. The College manually reviews the fringe benefits charges afterthe expenditure process and therefore is not designed to catch noncompliance prior to the charges to grant. The College identified they were using the incorrect fringe rates during the first quarter, however, did not go back and correct the error as they deemed it to be immaterial. Possible Asserted Effect: I. Indirect Cost Expenditures (IDC): The inflated rate has led to an unwarranted increase in administrative costs charged to federal grants, potentially resulting in the overcharge. II. Fringe Rates: The possible effect of the condition found is that the Institution is overcharging future federal grants for an excess of fringe more than what is deemed as allowable. Questioned Costs The known questioned costs are $3,835 (IDC known questioned costs are $1,703 and fringe known questioned costs are $2,132) and the likely questioned costs are $4,767. Statistical Sampling: Neither samples were intended to be, and were not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: I. Indirect Cost Expenditures (IDC): We recommend that management review its internal controls and establish a routine audit and monitoring process to regularly review the application of indirect cost rates and ensure compliance with federal regulations.
Finding No.: 2024-003- Equipment – Material weakness and material non-compliance Federal Agency: Various Program Name: Research and Development Cluster ALN Number: Various Federal Award Year: July 1, 2023 – June 30, 2024 Criteria Institutions with federally acquired research and development equipment must adhere to specific guidelines outlined in 2 CFR 200.313. This regulation mandates that entities conduct bi-annual inventory counts of federally acquired equipment to ensure accurate tracking and accountability. It requires maintaining detailed records of all equipment, including acquisition date, cost, location, and current status, to reflect any changes or discrepancies following each inventory count .Additionally, the regulation specifies procedures for the appropriate disposal of federally acquired equipment that is no longer needed or has reached the end of its useful life. Entities must request disposal instructions from the federal awarding agency and ensure that disposal methods comply with federal regulations, including obtaining necessary approvals and documenting the disposal process.Furthermore, in accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance withthe guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Conditions Found During our audit, we sampled and tested the equipment listing and discovered that 1 out of 11samples selected for testing could not be located while on site at Union College as the equipmentitem's actual storage location had not been updated in the College's master listing appropriately.Additionally, we were informed that the equipment is no longer functional and should have been disposed of, but it had not been, showing a failure to maintain accurate records of federally acquired equipment and dispose of equipment according to compliance requirements. Cause: The cause of the condition found that the College did not follow its policies to conduct a physical inventory count, resulting in discrepancies in the equipment listing as well as a lack of formally written policies and procedures to update and report changes in equipment status at the College. Possible Asserted Effect: The inability to locate equipment and improper disposal practices compromise the integrity of inventory management. Moreover, the absence of formal policies could result in federal noncompliance. Questioned Costs: No questioned costs were identified. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: We recommend that management perform a thorough physical inventory audit to locate all equipmentand update the master equipment listing with accurate details, including current locations and statuses .Additionally, we recommend the institution review and regularly circulate a formal plan for the appropriate disposal of non-functional or obsolete equipment. This plan should include obtaining necessary approvals and documenting the disposal process as per federal guidelines. Views of Responsible Officials: Recommendation accepted.
Finding No.: 2024-003- Equipment – Material weakness and material non-compliance Federal Agency: Various Program Name: Research and Development Cluster ALN Number: Various Federal Award Year: July 1, 2023 – June 30, 2024 Criteria Institutions with federally acquired research and development equipment must adhere to specific guidelines outlined in 2 CFR 200.313. This regulation mandates that entities conduct bi-annual inventory counts of federally acquired equipment to ensure accurate tracking and accountability. It requires maintaining detailed records of all equipment, including acquisition date, cost, location, and current status, to reflect any changes or discrepancies following each inventory count .Additionally, the regulation specifies procedures for the appropriate disposal of federally acquired equipment that is no longer needed or has reached the end of its useful life. Entities must request disposal instructions from the federal awarding agency and ensure that disposal methods comply with federal regulations, including obtaining necessary approvals and documenting the disposal process.Furthermore, in accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance withthe guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Conditions Found During our audit, we sampled and tested the equipment listing and discovered that 1 out of 11samples selected for testing could not be located while on site at Union College as the equipmentitem's actual storage location had not been updated in the College's master listing appropriately.Additionally, we were informed that the equipment is no longer functional and should have been disposed of, but it had not been, showing a failure to maintain accurate records of federally acquired equipment and dispose of equipment according to compliance requirements. Cause: The cause of the condition found that the College did not follow its policies to conduct a physical inventory count, resulting in discrepancies in the equipment listing as well as a lack of formally written policies and procedures to update and report changes in equipment status at the College. Possible Asserted Effect: The inability to locate equipment and improper disposal practices compromise the integrity of inventory management. Moreover, the absence of formal policies could result in federal noncompliance. Questioned Costs: No questioned costs were identified. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: We recommend that management perform a thorough physical inventory audit to locate all equipmentand update the master equipment listing with accurate details, including current locations and statuses .Additionally, we recommend the institution review and regularly circulate a formal plan for the appropriate disposal of non-functional or obsolete equipment. This plan should include obtaining necessary approvals and documenting the disposal process as per federal guidelines. Views of Responsible Officials: Recommendation accepted.
Finding No.: 2024-003- Equipment – Material weakness and material non-compliance Federal Agency: Various Program Name: Research and Development Cluster ALN Number: Various Federal Award Year: July 1, 2023 – June 30, 2024 Criteria Institutions with federally acquired research and development equipment must adhere to specific guidelines outlined in 2 CFR 200.313. This regulation mandates that entities conduct bi-annual inventory counts of federally acquired equipment to ensure accurate tracking and accountability. It requires maintaining detailed records of all equipment, including acquisition date, cost, location, and current status, to reflect any changes or discrepancies following each inventory count .Additionally, the regulation specifies procedures for the appropriate disposal of federally acquired equipment that is no longer needed or has reached the end of its useful life. Entities must request disposal instructions from the federal awarding agency and ensure that disposal methods comply with federal regulations, including obtaining necessary approvals and documenting the disposal process.Furthermore, in accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance withthe guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Conditions Found During our audit, we sampled and tested the equipment listing and discovered that 1 out of 11samples selected for testing could not be located while on site at Union College as the equipmentitem's actual storage location had not been updated in the College's master listing appropriately.Additionally, we were informed that the equipment is no longer functional and should have been disposed of, but it had not been, showing a failure to maintain accurate records of federally acquired equipment and dispose of equipment according to compliance requirements. Cause: The cause of the condition found that the College did not follow its policies to conduct a physical inventory count, resulting in discrepancies in the equipment listing as well as a lack of formally written policies and procedures to update and report changes in equipment status at the College. Possible Asserted Effect: The inability to locate equipment and improper disposal practices compromise the integrity of inventory management. Moreover, the absence of formal policies could result in federal noncompliance. Questioned Costs: No questioned costs were identified. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: We recommend that management perform a thorough physical inventory audit to locate all equipmentand update the master equipment listing with accurate details, including current locations and statuses .Additionally, we recommend the institution review and regularly circulate a formal plan for the appropriate disposal of non-functional or obsolete equipment. This plan should include obtaining necessary approvals and documenting the disposal process as per federal guidelines. Views of Responsible Officials: Recommendation accepted.
Finding No.: 2024-003- Equipment – Material weakness and material non-compliance Federal Agency: Various Program Name: Research and Development Cluster ALN Number: Various Federal Award Year: July 1, 2023 – June 30, 2024 Criteria Institutions with federally acquired research and development equipment must adhere to specific guidelines outlined in 2 CFR 200.313. This regulation mandates that entities conduct bi-annual inventory counts of federally acquired equipment to ensure accurate tracking and accountability. It requires maintaining detailed records of all equipment, including acquisition date, cost, location, and current status, to reflect any changes or discrepancies following each inventory count .Additionally, the regulation specifies procedures for the appropriate disposal of federally acquired equipment that is no longer needed or has reached the end of its useful life. Entities must request disposal instructions from the federal awarding agency and ensure that disposal methods comply with federal regulations, including obtaining necessary approvals and documenting the disposal process.Furthermore, in accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance withthe guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Conditions Found During our audit, we sampled and tested the equipment listing and discovered that 1 out of 11samples selected for testing could not be located while on site at Union College as the equipmentitem's actual storage location had not been updated in the College's master listing appropriately.Additionally, we were informed that the equipment is no longer functional and should have been disposed of, but it had not been, showing a failure to maintain accurate records of federally acquired equipment and dispose of equipment according to compliance requirements. Cause: The cause of the condition found that the College did not follow its policies to conduct a physical inventory count, resulting in discrepancies in the equipment listing as well as a lack of formally written policies and procedures to update and report changes in equipment status at the College. Possible Asserted Effect: The inability to locate equipment and improper disposal practices compromise the integrity of inventory management. Moreover, the absence of formal policies could result in federal noncompliance. Questioned Costs: No questioned costs were identified. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: We recommend that management perform a thorough physical inventory audit to locate all equipmentand update the master equipment listing with accurate details, including current locations and statuses .Additionally, we recommend the institution review and regularly circulate a formal plan for the appropriate disposal of non-functional or obsolete equipment. This plan should include obtaining necessary approvals and documenting the disposal process as per federal guidelines. Views of Responsible Officials: Recommendation accepted.
Finding No.: 2024-003- Equipment – Material weakness and material non-compliance Federal Agency: Various Program Name: Research and Development Cluster ALN Number: Various Federal Award Year: July 1, 2023 – June 30, 2024 Criteria Institutions with federally acquired research and development equipment must adhere to specific guidelines outlined in 2 CFR 200.313. This regulation mandates that entities conduct bi-annual inventory counts of federally acquired equipment to ensure accurate tracking and accountability. It requires maintaining detailed records of all equipment, including acquisition date, cost, location, and current status, to reflect any changes or discrepancies following each inventory count .Additionally, the regulation specifies procedures for the appropriate disposal of federally acquired equipment that is no longer needed or has reached the end of its useful life. Entities must request disposal instructions from the federal awarding agency and ensure that disposal methods comply with federal regulations, including obtaining necessary approvals and documenting the disposal process.Furthermore, in accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance withthe guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Conditions Found During our audit, we sampled and tested the equipment listing and discovered that 1 out of 11samples selected for testing could not be located while on site at Union College as the equipmentitem's actual storage location had not been updated in the College's master listing appropriately.Additionally, we were informed that the equipment is no longer functional and should have been disposed of, but it had not been, showing a failure to maintain accurate records of federally acquired equipment and dispose of equipment according to compliance requirements. Cause: The cause of the condition found that the College did not follow its policies to conduct a physical inventory count, resulting in discrepancies in the equipment listing as well as a lack of formally written policies and procedures to update and report changes in equipment status at the College. Possible Asserted Effect: The inability to locate equipment and improper disposal practices compromise the integrity of inventory management. Moreover, the absence of formal policies could result in federal noncompliance. Questioned Costs: No questioned costs were identified. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: We recommend that management perform a thorough physical inventory audit to locate all equipmentand update the master equipment listing with accurate details, including current locations and statuses .Additionally, we recommend the institution review and regularly circulate a formal plan for the appropriate disposal of non-functional or obsolete equipment. This plan should include obtaining necessary approvals and documenting the disposal process as per federal guidelines. Views of Responsible Officials: Recommendation accepted.
Finding No.: 2024-003- Equipment – Material weakness and material non-compliance Federal Agency: Various Program Name: Research and Development Cluster ALN Number: Various Federal Award Year: July 1, 2023 – June 30, 2024 Criteria Institutions with federally acquired research and development equipment must adhere to specific guidelines outlined in 2 CFR 200.313. This regulation mandates that entities conduct bi-annual inventory counts of federally acquired equipment to ensure accurate tracking and accountability. It requires maintaining detailed records of all equipment, including acquisition date, cost, location, and current status, to reflect any changes or discrepancies following each inventory count .Additionally, the regulation specifies procedures for the appropriate disposal of federally acquired equipment that is no longer needed or has reached the end of its useful life. Entities must request disposal instructions from the federal awarding agency and ensure that disposal methods comply with federal regulations, including obtaining necessary approvals and documenting the disposal process.Furthermore, in accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance withthe guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Conditions Found During our audit, we sampled and tested the equipment listing and discovered that 1 out of 11samples selected for testing could not be located while on site at Union College as the equipmentitem's actual storage location had not been updated in the College's master listing appropriately.Additionally, we were informed that the equipment is no longer functional and should have been disposed of, but it had not been, showing a failure to maintain accurate records of federally acquired equipment and dispose of equipment according to compliance requirements. Cause: The cause of the condition found that the College did not follow its policies to conduct a physical inventory count, resulting in discrepancies in the equipment listing as well as a lack of formally written policies and procedures to update and report changes in equipment status at the College. Possible Asserted Effect: The inability to locate equipment and improper disposal practices compromise the integrity of inventory management. Moreover, the absence of formal policies could result in federal noncompliance. Questioned Costs: No questioned costs were identified. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: We recommend that management perform a thorough physical inventory audit to locate all equipmentand update the master equipment listing with accurate details, including current locations and statuses .Additionally, we recommend the institution review and regularly circulate a formal plan for the appropriate disposal of non-functional or obsolete equipment. This plan should include obtaining necessary approvals and documenting the disposal process as per federal guidelines. Views of Responsible Officials: Recommendation accepted.
Finding No.: 2024-003- Equipment – Material weakness and material non-compliance Federal Agency: Various Program Name: Research and Development Cluster ALN Number: Various Federal Award Year: July 1, 2023 – June 30, 2024 Criteria Institutions with federally acquired research and development equipment must adhere to specific guidelines outlined in 2 CFR 200.313. This regulation mandates that entities conduct bi-annual inventory counts of federally acquired equipment to ensure accurate tracking and accountability. It requires maintaining detailed records of all equipment, including acquisition date, cost, location, and current status, to reflect any changes or discrepancies following each inventory count .Additionally, the regulation specifies procedures for the appropriate disposal of federally acquired equipment that is no longer needed or has reached the end of its useful life. Entities must request disposal instructions from the federal awarding agency and ensure that disposal methods comply with federal regulations, including obtaining necessary approvals and documenting the disposal process.Furthermore, in accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance withthe guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Conditions Found During our audit, we sampled and tested the equipment listing and discovered that 1 out of 11samples selected for testing could not be located while on site at Union College as the equipmentitem's actual storage location had not been updated in the College's master listing appropriately.Additionally, we were informed that the equipment is no longer functional and should have been disposed of, but it had not been, showing a failure to maintain accurate records of federally acquired equipment and dispose of equipment according to compliance requirements. Cause: The cause of the condition found that the College did not follow its policies to conduct a physical inventory count, resulting in discrepancies in the equipment listing as well as a lack of formally written policies and procedures to update and report changes in equipment status at the College. Possible Asserted Effect: The inability to locate equipment and improper disposal practices compromise the integrity of inventory management. Moreover, the absence of formal policies could result in federal noncompliance. Questioned Costs: No questioned costs were identified. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: We recommend that management perform a thorough physical inventory audit to locate all equipmentand update the master equipment listing with accurate details, including current locations and statuses .Additionally, we recommend the institution review and regularly circulate a formal plan for the appropriate disposal of non-functional or obsolete equipment. This plan should include obtaining necessary approvals and documenting the disposal process as per federal guidelines. Views of Responsible Officials: Recommendation accepted.
Finding No.: 2024-003- Equipment – Material weakness and material non-compliance Federal Agency: Various Program Name: Research and Development Cluster ALN Number: Various Federal Award Year: July 1, 2023 – June 30, 2024 Criteria Institutions with federally acquired research and development equipment must adhere to specific guidelines outlined in 2 CFR 200.313. This regulation mandates that entities conduct bi-annual inventory counts of federally acquired equipment to ensure accurate tracking and accountability. It requires maintaining detailed records of all equipment, including acquisition date, cost, location, and current status, to reflect any changes or discrepancies following each inventory count .Additionally, the regulation specifies procedures for the appropriate disposal of federally acquired equipment that is no longer needed or has reached the end of its useful life. Entities must request disposal instructions from the federal awarding agency and ensure that disposal methods comply with federal regulations, including obtaining necessary approvals and documenting the disposal process.Furthermore, in accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance withthe guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Conditions Found During our audit, we sampled and tested the equipment listing and discovered that 1 out of 11samples selected for testing could not be located while on site at Union College as the equipmentitem's actual storage location had not been updated in the College's master listing appropriately.Additionally, we were informed that the equipment is no longer functional and should have been disposed of, but it had not been, showing a failure to maintain accurate records of federally acquired equipment and dispose of equipment according to compliance requirements. Cause: The cause of the condition found that the College did not follow its policies to conduct a physical inventory count, resulting in discrepancies in the equipment listing as well as a lack of formally written policies and procedures to update and report changes in equipment status at the College. Possible Asserted Effect: The inability to locate equipment and improper disposal practices compromise the integrity of inventory management. Moreover, the absence of formal policies could result in federal noncompliance. Questioned Costs: No questioned costs were identified. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: We recommend that management perform a thorough physical inventory audit to locate all equipmentand update the master equipment listing with accurate details, including current locations and statuses .Additionally, we recommend the institution review and regularly circulate a formal plan for the appropriate disposal of non-functional or obsolete equipment. This plan should include obtaining necessary approvals and documenting the disposal process as per federal guidelines. Views of Responsible Officials: Recommendation accepted.
Finding No.: 2024-003- Equipment – Material weakness and material non-compliance Federal Agency: Various Program Name: Research and Development Cluster ALN Number: Various Federal Award Year: July 1, 2023 – June 30, 2024 Criteria Institutions with federally acquired research and development equipment must adhere to specific guidelines outlined in 2 CFR 200.313. This regulation mandates that entities conduct bi-annual inventory counts of federally acquired equipment to ensure accurate tracking and accountability. It requires maintaining detailed records of all equipment, including acquisition date, cost, location, and current status, to reflect any changes or discrepancies following each inventory count .Additionally, the regulation specifies procedures for the appropriate disposal of federally acquired equipment that is no longer needed or has reached the end of its useful life. Entities must request disposal instructions from the federal awarding agency and ensure that disposal methods comply with federal regulations, including obtaining necessary approvals and documenting the disposal process.Furthermore, in accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance withthe guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Conditions Found During our audit, we sampled and tested the equipment listing and discovered that 1 out of 11samples selected for testing could not be located while on site at Union College as the equipmentitem's actual storage location had not been updated in the College's master listing appropriately.Additionally, we were informed that the equipment is no longer functional and should have been disposed of, but it had not been, showing a failure to maintain accurate records of federally acquired equipment and dispose of equipment according to compliance requirements. Cause: The cause of the condition found that the College did not follow its policies to conduct a physical inventory count, resulting in discrepancies in the equipment listing as well as a lack of formally written policies and procedures to update and report changes in equipment status at the College. Possible Asserted Effect: The inability to locate equipment and improper disposal practices compromise the integrity of inventory management. Moreover, the absence of formal policies could result in federal noncompliance. Questioned Costs: No questioned costs were identified. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: We recommend that management perform a thorough physical inventory audit to locate all equipmentand update the master equipment listing with accurate details, including current locations and statuses .Additionally, we recommend the institution review and regularly circulate a formal plan for the appropriate disposal of non-functional or obsolete equipment. This plan should include obtaining necessary approvals and documenting the disposal process as per federal guidelines. Views of Responsible Officials: Recommendation accepted.
Finding No.: 2024-003- Equipment – Material weakness and material non-compliance Federal Agency: Various Program Name: Research and Development Cluster ALN Number: Various Federal Award Year: July 1, 2023 – June 30, 2024 Criteria Institutions with federally acquired research and development equipment must adhere to specific guidelines outlined in 2 CFR 200.313. This regulation mandates that entities conduct bi-annual inventory counts of federally acquired equipment to ensure accurate tracking and accountability. It requires maintaining detailed records of all equipment, including acquisition date, cost, location, and current status, to reflect any changes or discrepancies following each inventory count .Additionally, the regulation specifies procedures for the appropriate disposal of federally acquired equipment that is no longer needed or has reached the end of its useful life. Entities must request disposal instructions from the federal awarding agency and ensure that disposal methods comply with federal regulations, including obtaining necessary approvals and documenting the disposal process.Furthermore, in accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance withthe guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Conditions Found During our audit, we sampled and tested the equipment listing and discovered that 1 out of 11samples selected for testing could not be located while on site at Union College as the equipmentitem's actual storage location had not been updated in the College's master listing appropriately.Additionally, we were informed that the equipment is no longer functional and should have been disposed of, but it had not been, showing a failure to maintain accurate records of federally acquired equipment and dispose of equipment according to compliance requirements. Cause: The cause of the condition found that the College did not follow its policies to conduct a physical inventory count, resulting in discrepancies in the equipment listing as well as a lack of formally written policies and procedures to update and report changes in equipment status at the College. Possible Asserted Effect: The inability to locate equipment and improper disposal practices compromise the integrity of inventory management. Moreover, the absence of formal policies could result in federal noncompliance. Questioned Costs: No questioned costs were identified. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: We recommend that management perform a thorough physical inventory audit to locate all equipmentand update the master equipment listing with accurate details, including current locations and statuses .Additionally, we recommend the institution review and regularly circulate a formal plan for the appropriate disposal of non-functional or obsolete equipment. This plan should include obtaining necessary approvals and documenting the disposal process as per federal guidelines. Views of Responsible Officials: Recommendation accepted.
Finding No.: 2024-003- Equipment – Material weakness and material non-compliance Federal Agency: Various Program Name: Research and Development Cluster ALN Number: Various Federal Award Year: July 1, 2023 – June 30, 2024 Criteria Institutions with federally acquired research and development equipment must adhere to specific guidelines outlined in 2 CFR 200.313. This regulation mandates that entities conduct bi-annual inventory counts of federally acquired equipment to ensure accurate tracking and accountability. It requires maintaining detailed records of all equipment, including acquisition date, cost, location, and current status, to reflect any changes or discrepancies following each inventory count .Additionally, the regulation specifies procedures for the appropriate disposal of federally acquired equipment that is no longer needed or has reached the end of its useful life. Entities must request disposal instructions from the federal awarding agency and ensure that disposal methods comply with federal regulations, including obtaining necessary approvals and documenting the disposal process.Furthermore, in accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance withthe guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Conditions Found During our audit, we sampled and tested the equipment listing and discovered that 1 out of 11samples selected for testing could not be located while on site at Union College as the equipmentitem's actual storage location had not been updated in the College's master listing appropriately.Additionally, we were informed that the equipment is no longer functional and should have been disposed of, but it had not been, showing a failure to maintain accurate records of federally acquired equipment and dispose of equipment according to compliance requirements. Cause: The cause of the condition found that the College did not follow its policies to conduct a physical inventory count, resulting in discrepancies in the equipment listing as well as a lack of formally written policies and procedures to update and report changes in equipment status at the College. Possible Asserted Effect: The inability to locate equipment and improper disposal practices compromise the integrity of inventory management. Moreover, the absence of formal policies could result in federal noncompliance. Questioned Costs: No questioned costs were identified. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: We recommend that management perform a thorough physical inventory audit to locate all equipmentand update the master equipment listing with accurate details, including current locations and statuses .Additionally, we recommend the institution review and regularly circulate a formal plan for the appropriate disposal of non-functional or obsolete equipment. This plan should include obtaining necessary approvals and documenting the disposal process as per federal guidelines. Views of Responsible Officials: Recommendation accepted.
Finding No.: 2024-003- Equipment – Material weakness and material non-compliance Federal Agency: Various Program Name: Research and Development Cluster ALN Number: Various Federal Award Year: July 1, 2023 – June 30, 2024 Criteria Institutions with federally acquired research and development equipment must adhere to specific guidelines outlined in 2 CFR 200.313. This regulation mandates that entities conduct bi-annual inventory counts of federally acquired equipment to ensure accurate tracking and accountability. It requires maintaining detailed records of all equipment, including acquisition date, cost, location, and current status, to reflect any changes or discrepancies following each inventory count .Additionally, the regulation specifies procedures for the appropriate disposal of federally acquired equipment that is no longer needed or has reached the end of its useful life. Entities must request disposal instructions from the federal awarding agency and ensure that disposal methods comply with federal regulations, including obtaining necessary approvals and documenting the disposal process.Furthermore, in accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance withthe guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Conditions Found During our audit, we sampled and tested the equipment listing and discovered that 1 out of 11samples selected for testing could not be located while on site at Union College as the equipmentitem's actual storage location had not been updated in the College's master listing appropriately.Additionally, we were informed that the equipment is no longer functional and should have been disposed of, but it had not been, showing a failure to maintain accurate records of federally acquired equipment and dispose of equipment according to compliance requirements. Cause: The cause of the condition found that the College did not follow its policies to conduct a physical inventory count, resulting in discrepancies in the equipment listing as well as a lack of formally written policies and procedures to update and report changes in equipment status at the College. Possible Asserted Effect: The inability to locate equipment and improper disposal practices compromise the integrity of inventory management. Moreover, the absence of formal policies could result in federal noncompliance. Questioned Costs: No questioned costs were identified. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: We recommend that management perform a thorough physical inventory audit to locate all equipmentand update the master equipment listing with accurate details, including current locations and statuses .Additionally, we recommend the institution review and regularly circulate a formal plan for the appropriate disposal of non-functional or obsolete equipment. This plan should include obtaining necessary approvals and documenting the disposal process as per federal guidelines. Views of Responsible Officials: Recommendation accepted.
Finding No.: 2024-003- Equipment – Material weakness and material non-compliance Federal Agency: Various Program Name: Research and Development Cluster ALN Number: Various Federal Award Year: July 1, 2023 – June 30, 2024 Criteria Institutions with federally acquired research and development equipment must adhere to specific guidelines outlined in 2 CFR 200.313. This regulation mandates that entities conduct bi-annual inventory counts of federally acquired equipment to ensure accurate tracking and accountability. It requires maintaining detailed records of all equipment, including acquisition date, cost, location, and current status, to reflect any changes or discrepancies following each inventory count .Additionally, the regulation specifies procedures for the appropriate disposal of federally acquired equipment that is no longer needed or has reached the end of its useful life. Entities must request disposal instructions from the federal awarding agency and ensure that disposal methods comply with federal regulations, including obtaining necessary approvals and documenting the disposal process.Furthermore, in accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance withthe guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Conditions Found During our audit, we sampled and tested the equipment listing and discovered that 1 out of 11samples selected for testing could not be located while on site at Union College as the equipmentitem's actual storage location had not been updated in the College's master listing appropriately.Additionally, we were informed that the equipment is no longer functional and should have been disposed of, but it had not been, showing a failure to maintain accurate records of federally acquired equipment and dispose of equipment according to compliance requirements. Cause: The cause of the condition found that the College did not follow its policies to conduct a physical inventory count, resulting in discrepancies in the equipment listing as well as a lack of formally written policies and procedures to update and report changes in equipment status at the College. Possible Asserted Effect: The inability to locate equipment and improper disposal practices compromise the integrity of inventory management. Moreover, the absence of formal policies could result in federal noncompliance. Questioned Costs: No questioned costs were identified. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: We recommend that management perform a thorough physical inventory audit to locate all equipmentand update the master equipment listing with accurate details, including current locations and statuses .Additionally, we recommend the institution review and regularly circulate a formal plan for the appropriate disposal of non-functional or obsolete equipment. This plan should include obtaining necessary approvals and documenting the disposal process as per federal guidelines. Views of Responsible Officials: Recommendation accepted.
Finding No.: 2024-003- Equipment – Material weakness and material non-compliance Federal Agency: Various Program Name: Research and Development Cluster ALN Number: Various Federal Award Year: July 1, 2023 – June 30, 2024 Criteria Institutions with federally acquired research and development equipment must adhere to specific guidelines outlined in 2 CFR 200.313. This regulation mandates that entities conduct bi-annual inventory counts of federally acquired equipment to ensure accurate tracking and accountability. It requires maintaining detailed records of all equipment, including acquisition date, cost, location, and current status, to reflect any changes or discrepancies following each inventory count .Additionally, the regulation specifies procedures for the appropriate disposal of federally acquired equipment that is no longer needed or has reached the end of its useful life. Entities must request disposal instructions from the federal awarding agency and ensure that disposal methods comply with federal regulations, including obtaining necessary approvals and documenting the disposal process.Furthermore, in accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance withthe guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Conditions Found During our audit, we sampled and tested the equipment listing and discovered that 1 out of 11samples selected for testing could not be located while on site at Union College as the equipmentitem's actual storage location had not been updated in the College's master listing appropriately.Additionally, we were informed that the equipment is no longer functional and should have been disposed of, but it had not been, showing a failure to maintain accurate records of federally acquired equipment and dispose of equipment according to compliance requirements. Cause: The cause of the condition found that the College did not follow its policies to conduct a physical inventory count, resulting in discrepancies in the equipment listing as well as a lack of formally written policies and procedures to update and report changes in equipment status at the College. Possible Asserted Effect: The inability to locate equipment and improper disposal practices compromise the integrity of inventory management. Moreover, the absence of formal policies could result in federal noncompliance. Questioned Costs: No questioned costs were identified. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: We recommend that management perform a thorough physical inventory audit to locate all equipmentand update the master equipment listing with accurate details, including current locations and statuses .Additionally, we recommend the institution review and regularly circulate a formal plan for the appropriate disposal of non-functional or obsolete equipment. This plan should include obtaining necessary approvals and documenting the disposal process as per federal guidelines. Views of Responsible Officials: Recommendation accepted.
Finding No.: 2024-003- Equipment – Material weakness and material non-compliance Federal Agency: Various Program Name: Research and Development Cluster ALN Number: Various Federal Award Year: July 1, 2023 – June 30, 2024 Criteria Institutions with federally acquired research and development equipment must adhere to specific guidelines outlined in 2 CFR 200.313. This regulation mandates that entities conduct bi-annual inventory counts of federally acquired equipment to ensure accurate tracking and accountability. It requires maintaining detailed records of all equipment, including acquisition date, cost, location, and current status, to reflect any changes or discrepancies following each inventory count .Additionally, the regulation specifies procedures for the appropriate disposal of federally acquired equipment that is no longer needed or has reached the end of its useful life. Entities must request disposal instructions from the federal awarding agency and ensure that disposal methods comply with federal regulations, including obtaining necessary approvals and documenting the disposal process.Furthermore, in accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance withthe guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Conditions Found During our audit, we sampled and tested the equipment listing and discovered that 1 out of 11samples selected for testing could not be located while on site at Union College as the equipmentitem's actual storage location had not been updated in the College's master listing appropriately.Additionally, we were informed that the equipment is no longer functional and should have been disposed of, but it had not been, showing a failure to maintain accurate records of federally acquired equipment and dispose of equipment according to compliance requirements. Cause: The cause of the condition found that the College did not follow its policies to conduct a physical inventory count, resulting in discrepancies in the equipment listing as well as a lack of formally written policies and procedures to update and report changes in equipment status at the College. Possible Asserted Effect: The inability to locate equipment and improper disposal practices compromise the integrity of inventory management. Moreover, the absence of formal policies could result in federal noncompliance. Questioned Costs: No questioned costs were identified. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: We recommend that management perform a thorough physical inventory audit to locate all equipmentand update the master equipment listing with accurate details, including current locations and statuses .Additionally, we recommend the institution review and regularly circulate a formal plan for the appropriate disposal of non-functional or obsolete equipment. This plan should include obtaining necessary approvals and documenting the disposal process as per federal guidelines. Views of Responsible Officials: Recommendation accepted.
Finding No.: 2024-003- Equipment – Material weakness and material non-compliance Federal Agency: Various Program Name: Research and Development Cluster ALN Number: Various Federal Award Year: July 1, 2023 – June 30, 2024 Criteria Institutions with federally acquired research and development equipment must adhere to specific guidelines outlined in 2 CFR 200.313. This regulation mandates that entities conduct bi-annual inventory counts of federally acquired equipment to ensure accurate tracking and accountability. It requires maintaining detailed records of all equipment, including acquisition date, cost, location, and current status, to reflect any changes or discrepancies following each inventory count .Additionally, the regulation specifies procedures for the appropriate disposal of federally acquired equipment that is no longer needed or has reached the end of its useful life. Entities must request disposal instructions from the federal awarding agency and ensure that disposal methods comply with federal regulations, including obtaining necessary approvals and documenting the disposal process.Furthermore, in accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance withthe guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Conditions Found During our audit, we sampled and tested the equipment listing and discovered that 1 out of 11samples selected for testing could not be located while on site at Union College as the equipmentitem's actual storage location had not been updated in the College's master listing appropriately.Additionally, we were informed that the equipment is no longer functional and should have been disposed of, but it had not been, showing a failure to maintain accurate records of federally acquired equipment and dispose of equipment according to compliance requirements. Cause: The cause of the condition found that the College did not follow its policies to conduct a physical inventory count, resulting in discrepancies in the equipment listing as well as a lack of formally written policies and procedures to update and report changes in equipment status at the College. Possible Asserted Effect: The inability to locate equipment and improper disposal practices compromise the integrity of inventory management. Moreover, the absence of formal policies could result in federal noncompliance. Questioned Costs: No questioned costs were identified. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: We recommend that management perform a thorough physical inventory audit to locate all equipmentand update the master equipment listing with accurate details, including current locations and statuses .Additionally, we recommend the institution review and regularly circulate a formal plan for the appropriate disposal of non-functional or obsolete equipment. This plan should include obtaining necessary approvals and documenting the disposal process as per federal guidelines. Views of Responsible Officials: Recommendation accepted.
Finding No.: 2024-003- Equipment – Material weakness and material non-compliance Federal Agency: Various Program Name: Research and Development Cluster ALN Number: Various Federal Award Year: July 1, 2023 – June 30, 2024 Criteria Institutions with federally acquired research and development equipment must adhere to specific guidelines outlined in 2 CFR 200.313. This regulation mandates that entities conduct bi-annual inventory counts of federally acquired equipment to ensure accurate tracking and accountability. It requires maintaining detailed records of all equipment, including acquisition date, cost, location, and current status, to reflect any changes or discrepancies following each inventory count .Additionally, the regulation specifies procedures for the appropriate disposal of federally acquired equipment that is no longer needed or has reached the end of its useful life. Entities must request disposal instructions from the federal awarding agency and ensure that disposal methods comply with federal regulations, including obtaining necessary approvals and documenting the disposal process.Furthermore, in accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance withthe guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Conditions Found During our audit, we sampled and tested the equipment listing and discovered that 1 out of 11samples selected for testing could not be located while on site at Union College as the equipmentitem's actual storage location had not been updated in the College's master listing appropriately.Additionally, we were informed that the equipment is no longer functional and should have been disposed of, but it had not been, showing a failure to maintain accurate records of federally acquired equipment and dispose of equipment according to compliance requirements. Cause: The cause of the condition found that the College did not follow its policies to conduct a physical inventory count, resulting in discrepancies in the equipment listing as well as a lack of formally written policies and procedures to update and report changes in equipment status at the College. Possible Asserted Effect: The inability to locate equipment and improper disposal practices compromise the integrity of inventory management. Moreover, the absence of formal policies could result in federal noncompliance. Questioned Costs: No questioned costs were identified. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: We recommend that management perform a thorough physical inventory audit to locate all equipmentand update the master equipment listing with accurate details, including current locations and statuses .Additionally, we recommend the institution review and regularly circulate a formal plan for the appropriate disposal of non-functional or obsolete equipment. This plan should include obtaining necessary approvals and documenting the disposal process as per federal guidelines. Views of Responsible Officials: Recommendation accepted.
Finding No.: 2024-003- Equipment – Material weakness and material non-compliance Federal Agency: Various Program Name: Research and Development Cluster ALN Number: Various Federal Award Year: July 1, 2023 – June 30, 2024 Criteria Institutions with federally acquired research and development equipment must adhere to specific guidelines outlined in 2 CFR 200.313. This regulation mandates that entities conduct bi-annual inventory counts of federally acquired equipment to ensure accurate tracking and accountability. It requires maintaining detailed records of all equipment, including acquisition date, cost, location, and current status, to reflect any changes or discrepancies following each inventory count .Additionally, the regulation specifies procedures for the appropriate disposal of federally acquired equipment that is no longer needed or has reached the end of its useful life. Entities must request disposal instructions from the federal awarding agency and ensure that disposal methods comply with federal regulations, including obtaining necessary approvals and documenting the disposal process.Furthermore, in accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance withthe guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Conditions Found During our audit, we sampled and tested the equipment listing and discovered that 1 out of 11samples selected for testing could not be located while on site at Union College as the equipmentitem's actual storage location had not been updated in the College's master listing appropriately.Additionally, we were informed that the equipment is no longer functional and should have been disposed of, but it had not been, showing a failure to maintain accurate records of federally acquired equipment and dispose of equipment according to compliance requirements. Cause: The cause of the condition found that the College did not follow its policies to conduct a physical inventory count, resulting in discrepancies in the equipment listing as well as a lack of formally written policies and procedures to update and report changes in equipment status at the College. Possible Asserted Effect: The inability to locate equipment and improper disposal practices compromise the integrity of inventory management. Moreover, the absence of formal policies could result in federal noncompliance. Questioned Costs: No questioned costs were identified. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: We recommend that management perform a thorough physical inventory audit to locate all equipmentand update the master equipment listing with accurate details, including current locations and statuses .Additionally, we recommend the institution review and regularly circulate a formal plan for the appropriate disposal of non-functional or obsolete equipment. This plan should include obtaining necessary approvals and documenting the disposal process as per federal guidelines. Views of Responsible Officials: Recommendation accepted.
Finding No.: 2024-003- Equipment – Material weakness and material non-compliance Federal Agency: Various Program Name: Research and Development Cluster ALN Number: Various Federal Award Year: July 1, 2023 – June 30, 2024 Criteria Institutions with federally acquired research and development equipment must adhere to specific guidelines outlined in 2 CFR 200.313. This regulation mandates that entities conduct bi-annual inventory counts of federally acquired equipment to ensure accurate tracking and accountability. It requires maintaining detailed records of all equipment, including acquisition date, cost, location, and current status, to reflect any changes or discrepancies following each inventory count .Additionally, the regulation specifies procedures for the appropriate disposal of federally acquired equipment that is no longer needed or has reached the end of its useful life. Entities must request disposal instructions from the federal awarding agency and ensure that disposal methods comply with federal regulations, including obtaining necessary approvals and documenting the disposal process.Furthermore, in accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance withthe guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Conditions Found During our audit, we sampled and tested the equipment listing and discovered that 1 out of 11samples selected for testing could not be located while on site at Union College as the equipmentitem's actual storage location had not been updated in the College's master listing appropriately.Additionally, we were informed that the equipment is no longer functional and should have been disposed of, but it had not been, showing a failure to maintain accurate records of federally acquired equipment and dispose of equipment according to compliance requirements. Cause: The cause of the condition found that the College did not follow its policies to conduct a physical inventory count, resulting in discrepancies in the equipment listing as well as a lack of formally written policies and procedures to update and report changes in equipment status at the College. Possible Asserted Effect: The inability to locate equipment and improper disposal practices compromise the integrity of inventory management. Moreover, the absence of formal policies could result in federal noncompliance. Questioned Costs: No questioned costs were identified. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: We recommend that management perform a thorough physical inventory audit to locate all equipmentand update the master equipment listing with accurate details, including current locations and statuses .Additionally, we recommend the institution review and regularly circulate a formal plan for the appropriate disposal of non-functional or obsolete equipment. This plan should include obtaining necessary approvals and documenting the disposal process as per federal guidelines. Views of Responsible Officials: Recommendation accepted.
Finding No.: 2024-003- Equipment – Material weakness and material non-compliance Federal Agency: Various Program Name: Research and Development Cluster ALN Number: Various Federal Award Year: July 1, 2023 – June 30, 2024 Criteria Institutions with federally acquired research and development equipment must adhere to specific guidelines outlined in 2 CFR 200.313. This regulation mandates that entities conduct bi-annual inventory counts of federally acquired equipment to ensure accurate tracking and accountability. It requires maintaining detailed records of all equipment, including acquisition date, cost, location, and current status, to reflect any changes or discrepancies following each inventory count .Additionally, the regulation specifies procedures for the appropriate disposal of federally acquired equipment that is no longer needed or has reached the end of its useful life. Entities must request disposal instructions from the federal awarding agency and ensure that disposal methods comply with federal regulations, including obtaining necessary approvals and documenting the disposal process.Furthermore, in accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance withthe guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Conditions Found During our audit, we sampled and tested the equipment listing and discovered that 1 out of 11samples selected for testing could not be located while on site at Union College as the equipmentitem's actual storage location had not been updated in the College's master listing appropriately.Additionally, we were informed that the equipment is no longer functional and should have been disposed of, but it had not been, showing a failure to maintain accurate records of federally acquired equipment and dispose of equipment according to compliance requirements. Cause: The cause of the condition found that the College did not follow its policies to conduct a physical inventory count, resulting in discrepancies in the equipment listing as well as a lack of formally written policies and procedures to update and report changes in equipment status at the College. Possible Asserted Effect: The inability to locate equipment and improper disposal practices compromise the integrity of inventory management. Moreover, the absence of formal policies could result in federal noncompliance. Questioned Costs: No questioned costs were identified. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: We recommend that management perform a thorough physical inventory audit to locate all equipmentand update the master equipment listing with accurate details, including current locations and statuses .Additionally, we recommend the institution review and regularly circulate a formal plan for the appropriate disposal of non-functional or obsolete equipment. This plan should include obtaining necessary approvals and documenting the disposal process as per federal guidelines. Views of Responsible Officials: Recommendation accepted.
Finding No.: 2024-003- Equipment – Material weakness and material non-compliance Federal Agency: Various Program Name: Research and Development Cluster ALN Number: Various Federal Award Year: July 1, 2023 – June 30, 2024 Criteria Institutions with federally acquired research and development equipment must adhere to specific guidelines outlined in 2 CFR 200.313. This regulation mandates that entities conduct bi-annual inventory counts of federally acquired equipment to ensure accurate tracking and accountability. It requires maintaining detailed records of all equipment, including acquisition date, cost, location, and current status, to reflect any changes or discrepancies following each inventory count .Additionally, the regulation specifies procedures for the appropriate disposal of federally acquired equipment that is no longer needed or has reached the end of its useful life. Entities must request disposal instructions from the federal awarding agency and ensure that disposal methods comply with federal regulations, including obtaining necessary approvals and documenting the disposal process.Furthermore, in accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance withthe guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Conditions Found During our audit, we sampled and tested the equipment listing and discovered that 1 out of 11samples selected for testing could not be located while on site at Union College as the equipmentitem's actual storage location had not been updated in the College's master listing appropriately.Additionally, we were informed that the equipment is no longer functional and should have been disposed of, but it had not been, showing a failure to maintain accurate records of federally acquired equipment and dispose of equipment according to compliance requirements. Cause: The cause of the condition found that the College did not follow its policies to conduct a physical inventory count, resulting in discrepancies in the equipment listing as well as a lack of formally written policies and procedures to update and report changes in equipment status at the College. Possible Asserted Effect: The inability to locate equipment and improper disposal practices compromise the integrity of inventory management. Moreover, the absence of formal policies could result in federal noncompliance. Questioned Costs: No questioned costs were identified. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: We recommend that management perform a thorough physical inventory audit to locate all equipmentand update the master equipment listing with accurate details, including current locations and statuses .Additionally, we recommend the institution review and regularly circulate a formal plan for the appropriate disposal of non-functional or obsolete equipment. This plan should include obtaining necessary approvals and documenting the disposal process as per federal guidelines. Views of Responsible Officials: Recommendation accepted.
Finding No.: 2024-003- Equipment – Material weakness and material non-compliance Federal Agency: Various Program Name: Research and Development Cluster ALN Number: Various Federal Award Year: July 1, 2023 – June 30, 2024 Criteria Institutions with federally acquired research and development equipment must adhere to specific guidelines outlined in 2 CFR 200.313. This regulation mandates that entities conduct bi-annual inventory counts of federally acquired equipment to ensure accurate tracking and accountability. It requires maintaining detailed records of all equipment, including acquisition date, cost, location, and current status, to reflect any changes or discrepancies following each inventory count .Additionally, the regulation specifies procedures for the appropriate disposal of federally acquired equipment that is no longer needed or has reached the end of its useful life. Entities must request disposal instructions from the federal awarding agency and ensure that disposal methods comply with federal regulations, including obtaining necessary approvals and documenting the disposal process.Furthermore, in accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance withthe guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Conditions Found During our audit, we sampled and tested the equipment listing and discovered that 1 out of 11samples selected for testing could not be located while on site at Union College as the equipmentitem's actual storage location had not been updated in the College's master listing appropriately.Additionally, we were informed that the equipment is no longer functional and should have been disposed of, but it had not been, showing a failure to maintain accurate records of federally acquired equipment and dispose of equipment according to compliance requirements. Cause: The cause of the condition found that the College did not follow its policies to conduct a physical inventory count, resulting in discrepancies in the equipment listing as well as a lack of formally written policies and procedures to update and report changes in equipment status at the College. Possible Asserted Effect: The inability to locate equipment and improper disposal practices compromise the integrity of inventory management. Moreover, the absence of formal policies could result in federal noncompliance. Questioned Costs: No questioned costs were identified. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: We recommend that management perform a thorough physical inventory audit to locate all equipmentand update the master equipment listing with accurate details, including current locations and statuses .Additionally, we recommend the institution review and regularly circulate a formal plan for the appropriate disposal of non-functional or obsolete equipment. This plan should include obtaining necessary approvals and documenting the disposal process as per federal guidelines. Views of Responsible Officials: Recommendation accepted.
Finding No.: 2024-003- Equipment – Material weakness and material non-compliance Federal Agency: Various Program Name: Research and Development Cluster ALN Number: Various Federal Award Year: July 1, 2023 – June 30, 2024 Criteria Institutions with federally acquired research and development equipment must adhere to specific guidelines outlined in 2 CFR 200.313. This regulation mandates that entities conduct bi-annual inventory counts of federally acquired equipment to ensure accurate tracking and accountability. It requires maintaining detailed records of all equipment, including acquisition date, cost, location, and current status, to reflect any changes or discrepancies following each inventory count .Additionally, the regulation specifies procedures for the appropriate disposal of federally acquired equipment that is no longer needed or has reached the end of its useful life. Entities must request disposal instructions from the federal awarding agency and ensure that disposal methods comply with federal regulations, including obtaining necessary approvals and documenting the disposal process.Furthermore, in accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance withthe guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Conditions Found During our audit, we sampled and tested the equipment listing and discovered that 1 out of 11samples selected for testing could not be located while on site at Union College as the equipmentitem's actual storage location had not been updated in the College's master listing appropriately.Additionally, we were informed that the equipment is no longer functional and should have been disposed of, but it had not been, showing a failure to maintain accurate records of federally acquired equipment and dispose of equipment according to compliance requirements. Cause: The cause of the condition found that the College did not follow its policies to conduct a physical inventory count, resulting in discrepancies in the equipment listing as well as a lack of formally written policies and procedures to update and report changes in equipment status at the College. Possible Asserted Effect: The inability to locate equipment and improper disposal practices compromise the integrity of inventory management. Moreover, the absence of formal policies could result in federal noncompliance. Questioned Costs: No questioned costs were identified. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: We recommend that management perform a thorough physical inventory audit to locate all equipmentand update the master equipment listing with accurate details, including current locations and statuses .Additionally, we recommend the institution review and regularly circulate a formal plan for the appropriate disposal of non-functional or obsolete equipment. This plan should include obtaining necessary approvals and documenting the disposal process as per federal guidelines. Views of Responsible Officials: Recommendation accepted.
Finding No.: 2024-004 – Enrollment Reporting- Significant deficiency Federal Agency: U.S. Department of Education Program Name: Student Financial Assistance Cluster ALN Number: VariousFederal Award Year: July 1, 2023 – June 30, 2024 Criteria: In accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committeeof Sponsoring Organizations of the Treadway Commission (COSO). Conditions Found: During our audit we found 2 of 30 students selected for testing whose change in enrollment status was transmitted to NSLDS. However, only their campus enrollment status change was appropriately updated, and their program status was not, resulting in a discrepancy in enrollment status. The engagement team notes that for these exceptions, the College appropriately reported the status change, however, failed to identify the change was only made at the campus level. Cause: The cause of this noncompliance was a control deficiency in which the institution has a lack of review on the student changes within NSLDS after submission to NSC. The engagement team notes the submission is input to NSC which is then transmitted to NSLDS automatically, but the College did not review to ensure changes were appropriately made on both camp us enrollment and programenrollment and therefore there is a lack of review after submission. Possible Asserted Effect: Failure to perform review procedures over enrollment reporting changes could result in reporting more or less students enrolled receiving financial aid than what true enrollment is which could result in students receiving aid when not required or failure to receive aid from the Department of Education. Questioned Costs: Not applicable. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: We recommend that management inquire with NSC as to why this enrollment change did not show on both enrollment reports at NSLDS and implement a manual review process for future years to review and ensure NSC properly updates NSLDS on both level reports for withdrawal and graduated students. Views of Responsible: OfficialsRecommendation accepted. Please refer to corrective action plan.
Finding No.: 2024-004 – Enrollment Reporting- Significant deficiency Federal Agency: U.S. Department of Education Program Name: Student Financial Assistance Cluster ALN Number: VariousFederal Award Year: July 1, 2023 – June 30, 2024 Criteria: In accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committeeof Sponsoring Organizations of the Treadway Commission (COSO). Conditions Found: During our audit we found 2 of 30 students selected for testing whose change in enrollment status was transmitted to NSLDS. However, only their campus enrollment status change was appropriately updated, and their program status was not, resulting in a discrepancy in enrollment status. The engagement team notes that for these exceptions, the College appropriately reported the status change, however, failed to identify the change was only made at the campus level. Cause: The cause of this noncompliance was a control deficiency in which the institution has a lack of review on the student changes within NSLDS after submission to NSC. The engagement team notes the submission is input to NSC which is then transmitted to NSLDS automatically, but the College did not review to ensure changes were appropriately made on both camp us enrollment and programenrollment and therefore there is a lack of review after submission. Possible Asserted Effect: Failure to perform review procedures over enrollment reporting changes could result in reporting more or less students enrolled receiving financial aid than what true enrollment is which could result in students receiving aid when not required or failure to receive aid from the Department of Education. Questioned Costs: Not applicable. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: We recommend that management inquire with NSC as to why this enrollment change did not show on both enrollment reports at NSLDS and implement a manual review process for future years to review and ensure NSC properly updates NSLDS on both level reports for withdrawal and graduated students. Views of Responsible: OfficialsRecommendation accepted. Please refer to corrective action plan.
Finding No.: 2024-004 – Enrollment Reporting- Significant deficiency Federal Agency: U.S. Department of Education Program Name: Student Financial Assistance Cluster ALN Number: VariousFederal Award Year: July 1, 2023 – June 30, 2024 Criteria: In accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committeeof Sponsoring Organizations of the Treadway Commission (COSO). Conditions Found: During our audit we found 2 of 30 students selected for testing whose change in enrollment status was transmitted to NSLDS. However, only their campus enrollment status change was appropriately updated, and their program status was not, resulting in a discrepancy in enrollment status. The engagement team notes that for these exceptions, the College appropriately reported the status change, however, failed to identify the change was only made at the campus level. Cause: The cause of this noncompliance was a control deficiency in which the institution has a lack of review on the student changes within NSLDS after submission to NSC. The engagement team notes the submission is input to NSC which is then transmitted to NSLDS automatically, but the College did not review to ensure changes were appropriately made on both camp us enrollment and programenrollment and therefore there is a lack of review after submission. Possible Asserted Effect: Failure to perform review procedures over enrollment reporting changes could result in reporting more or less students enrolled receiving financial aid than what true enrollment is which could result in students receiving aid when not required or failure to receive aid from the Department of Education. Questioned Costs: Not applicable. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: We recommend that management inquire with NSC as to why this enrollment change did not show on both enrollment reports at NSLDS and implement a manual review process for future years to review and ensure NSC properly updates NSLDS on both level reports for withdrawal and graduated students. Views of Responsible: OfficialsRecommendation accepted. Please refer to corrective action plan.
Finding No.: 2024-004 – Enrollment Reporting- Significant deficiency Federal Agency: U.S. Department of Education Program Name: Student Financial Assistance Cluster ALN Number: VariousFederal Award Year: July 1, 2023 – June 30, 2024 Criteria: In accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committeeof Sponsoring Organizations of the Treadway Commission (COSO). Conditions Found: During our audit we found 2 of 30 students selected for testing whose change in enrollment status was transmitted to NSLDS. However, only their campus enrollment status change was appropriately updated, and their program status was not, resulting in a discrepancy in enrollment status. The engagement team notes that for these exceptions, the College appropriately reported the status change, however, failed to identify the change was only made at the campus level. Cause: The cause of this noncompliance was a control deficiency in which the institution has a lack of review on the student changes within NSLDS after submission to NSC. The engagement team notes the submission is input to NSC which is then transmitted to NSLDS automatically, but the College did not review to ensure changes were appropriately made on both camp us enrollment and programenrollment and therefore there is a lack of review after submission. Possible Asserted Effect: Failure to perform review procedures over enrollment reporting changes could result in reporting more or less students enrolled receiving financial aid than what true enrollment is which could result in students receiving aid when not required or failure to receive aid from the Department of Education. Questioned Costs: Not applicable. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: We recommend that management inquire with NSC as to why this enrollment change did not show on both enrollment reports at NSLDS and implement a manual review process for future years to review and ensure NSC properly updates NSLDS on both level reports for withdrawal and graduated students. Views of Responsible: OfficialsRecommendation accepted. Please refer to corrective action plan.
Finding No.: 2024-004 – Enrollment Reporting- Significant deficiency Federal Agency: U.S. Department of Education Program Name: Student Financial Assistance Cluster ALN Number: VariousFederal Award Year: July 1, 2023 – June 30, 2024 Criteria: In accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committeeof Sponsoring Organizations of the Treadway Commission (COSO). Conditions Found: During our audit we found 2 of 30 students selected for testing whose change in enrollment status was transmitted to NSLDS. However, only their campus enrollment status change was appropriately updated, and their program status was not, resulting in a discrepancy in enrollment status. The engagement team notes that for these exceptions, the College appropriately reported the status change, however, failed to identify the change was only made at the campus level. Cause: The cause of this noncompliance was a control deficiency in which the institution has a lack of review on the student changes within NSLDS after submission to NSC. The engagement team notes the submission is input to NSC which is then transmitted to NSLDS automatically, but the College did not review to ensure changes were appropriately made on both camp us enrollment and programenrollment and therefore there is a lack of review after submission. Possible Asserted Effect: Failure to perform review procedures over enrollment reporting changes could result in reporting more or less students enrolled receiving financial aid than what true enrollment is which could result in students receiving aid when not required or failure to receive aid from the Department of Education. Questioned Costs: Not applicable. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: We recommend that management inquire with NSC as to why this enrollment change did not show on both enrollment reports at NSLDS and implement a manual review process for future years to review and ensure NSC properly updates NSLDS on both level reports for withdrawal and graduated students. Views of Responsible: OfficialsRecommendation accepted. Please refer to corrective action plan.
Assistance Listings number and name: 10.557 WIC Special Supplemental Nutrition Program for Women, Infants, and Children Award numbers and years: CTR040363, October 1, 2018 through September 30, 2023; CTR067930, October 1, 2023 through September 30, 2028 Federal agency: U.S. Department of Agriculture Pass-through grantor: Arizona Department of Health Services Compliance requirement: Eligibility Questioned costs: Unknown1 Condition—Contrary to federal regulations and State policies, the County’s Health and Social Services Department (Department) issued program benefits without requiring each program participant to complete and sign a rights and obligations form during the eligibility certification process agreeing to provide current and truthful information, abide by program rules, and not share WIC benefits cards or other benefits. Specifically, for 15 of 62 participants tested, the Department did not require the participants to complete and sign a rights and obligations form for 6 participants’ initial certifications and 9 participants’ recertifications for ongoing benefits. Effect—The Department’s not requiring program participants to acknowledge their rights and obligations increases the risk of participants providing inaccurate information required for eligibility determinations, such as erroneous residency and income data that could allow program participants to receive benefits they are not eligible to receive.1 Further, there is an increased risk of misuse of program benefits received as the participants may not be aware of the program’s rules and could allow others to use their WIC benefits cards or sell, trade, or give away benefits received, such as food, formula, or breast pumps. Cause—Department management reported that State policies were not always followed because the program is administered at small clinic sites throughout the County, and Department staff who are responsible for ensuring each program participant complete and sign a rights and obligations form were busy and forgot to have each program participant do so. Further, the Department did not perform periodic monitoring to ensure Department clinic site staff had required participants to sign the rights and obligations form prior to issuing benefits and that the forms were maintained in its eligibility system. Criteria—Federal regulation and State policies require participants to sign a rights and obligations statement as part of the eligibility certification process (7 CFR 246.7[i][10]).2 Specifically, State eligibility certification policies require the Department’s staff who are responsible for the eligibility certification process to inform participants of their rights and obligations prior to issuing benefits during the participant’s initial certification and recertifications for ongoing benefits. Also, the participants must complete and sign the form acknowledging their rights and obligations, including: • Providing the most current and truthful information that WIC staff may verify. • Following the rules of the WIC program to avoid being prosecuted, disqualified, and/or asked to repay the program. • Allowing only the approved authorized recipient or proxy to use the WIC benefits card and reporting lost or stolen WIC benefits cards.1 • Being honest and not selling, trading, or giving away WIC benefits cards, food, formula, or breast pumps, and acknowledging that doing so will disqualify the recipient from benefits. Further, federal guidelines require establishing and maintaining effective internal control over federal awards that provides reasonable assurance that federal programs are being managed in compliance with all applicable laws, regulations, and award terms (2 CFR §200.303). Recommendations to the Department— 1. Follow the State’s eligibility certification policies that require program participants to complete and sign a rights and obligations form prior to the Department issuing benefits during initial certifications and recertifications for ongoing benefits. 2. Train Department staff who are responsible for the eligibility certification process regarding the following requirements: a. Participants must be informed of their rights and obligations prior to issuing benefits during the participant’s initial certification and recertifications for ongoing benefits. b. Participants must sign the rights and obligations form during the eligibility certification process agreeing to provide current and truthful information, abide by program rules, and not share WIC benefits cards or other benefits. c. Department staff must maintain the forms in its eligibility system. 3. Perform periodic monitoring at its clinic sites to ensure Department staff who are responsible for the eligibility certification process are performing all steps. The County’s corrective action plan at the end of this report includes the views and planned corrective action of its responsible officials. We are not required to audit and have not audited these responses and planned corrective actions and therefore provide no assurances as to their accuracy. 1 WIC recipients receive WIC benefits cards to use at designated vendors, such as a grocery store, that are preloaded with eligible food packages. A food package contains items by description and provides only specific quantities for fruits and vegetables. For example, 2 dozen eggs, 32 ounces of yogurt, 1 pound of cheese, etc. The recipient can purchase only the eligible items and specific quantities outlined in their designated food package. Unused benefits expire at the end of the month. For the errors identified, auditors were unable to determine the potential questioned cost as there is not a specific amount designated for each food package awarded to the recipients. The vendors who supplied food to the recipient bill the Arizona Department of Health Services for the benefits provided. 2 Arizona Department of Health Services. (2024). Arizona WIC Program Policy and Procedure Manual Chapter 2, Section H. Retrieved 4/30/2025 from https://www.azdhs.gov/documents/prevention/azwic/manuals/policy/chapter-02-certification.pdf?v=20240221
Finding 2024-007 Programs: All Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting Repeat Finding: Yes; 2023-006 Condition: Finance is responsible for preparing the schedule of expenditures of Federal awards based upon grant information obtained from the financial accounting records and other information provided by each department or agency. In many instances, the detail expenditure information in the accounting software differed from the expenditures reported by various City departments. Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not adequately tracked in the general ledger. Criteria: In accordance with 2 CFR 200.303, Internal controls: The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare appropriate financial statements, including the schedule of expenditures of Federal awards in accordance with §200.510 Financial statements. In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. For example, when a Federal program has multiple Federal award years, the auditee may list the amount of Federal awards expended for each Federal award year separately. At a minimum, the schedule must: (1) List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. (3) Provide total Federal awards expended for each individual Federal program and the AL number or other identifying number when the AL information is not available. For a cluster of programs, also provide the total for the cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total federal awards expended for loan or loan guarantee programs in the schedule; and (6) Include notes that describe that significant accounting policies used in preparing the schedule and note whether or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414 Indirect (F&A) costs. Cause: The City does not maintain a centralized grant accounting function or standardized policies and procedures, including requirements to periodically submit and reconcile expenditures; instead, each department maintains its own grant information. The lack of submission of grant documents and accurate information by the various agencies and departments to Finance weakens internal controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule. Internal controls over financial reporting should be designed to prevent, detect or correct errors in a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the Schedule is fairly presented. Controls have not been established by the City to ensure complete and accurate reporting for the Schedule for the 2024 fiscal year. Effect: The determination of which major programs will be audited is affected by the accuracy of the Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate reporting of the City’s financial information could occur, and the City cannot provide reasonable assurance that the SEFA is fairly presented. As a result, individual program reports throughout the year could have inaccurate information. There were also significant delays in the preparation of the Schedule of Federal awards, which prevented the City from meeting the March 31, 2025 deadline with the Federal clearinghouse. Questioned Costs: Unknown. Recommendation: We recommend that Finance establish policies and procedures to ensure that the Federal funds are properly identified and reported accurately in the Schedule in accordance with Uniform Guidance requirements. We also recommend that individuals responsible for administering Federal assistance programs with the City receive training in grant administration. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in Part V of this report. Auditor’s Conclusion: Finding remains as stated.
Finding 2024-007 Programs: All Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting Repeat Finding: Yes; 2023-006 Condition: Finance is responsible for preparing the schedule of expenditures of Federal awards based upon grant information obtained from the financial accounting records and other information provided by each department or agency. In many instances, the detail expenditure information in the accounting software differed from the expenditures reported by various City departments. Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not adequately tracked in the general ledger. Criteria: In accordance with 2 CFR 200.303, Internal controls: The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare appropriate financial statements, including the schedule of expenditures of Federal awards in accordance with §200.510 Financial statements. In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. For example, when a Federal program has multiple Federal award years, the auditee may list the amount of Federal awards expended for each Federal award year separately. At a minimum, the schedule must: (1) List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. (3) Provide total Federal awards expended for each individual Federal program and the AL number or other identifying number when the AL information is not available. For a cluster of programs, also provide the total for the cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total federal awards expended for loan or loan guarantee programs in the schedule; and (6) Include notes that describe that significant accounting policies used in preparing the schedule and note whether or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414 Indirect (F&A) costs. Cause: The City does not maintain a centralized grant accounting function or standardized policies and procedures, including requirements to periodically submit and reconcile expenditures; instead, each department maintains its own grant information. The lack of submission of grant documents and accurate information by the various agencies and departments to Finance weakens internal controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule. Internal controls over financial reporting should be designed to prevent, detect or correct errors in a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the Schedule is fairly presented. Controls have not been established by the City to ensure complete and accurate reporting for the Schedule for the 2024 fiscal year. Effect: The determination of which major programs will be audited is affected by the accuracy of the Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate reporting of the City’s financial information could occur, and the City cannot provide reasonable assurance that the SEFA is fairly presented. As a result, individual program reports throughout the year could have inaccurate information. There were also significant delays in the preparation of the Schedule of Federal awards, which prevented the City from meeting the March 31, 2025 deadline with the Federal clearinghouse. Questioned Costs: Unknown. Recommendation: We recommend that Finance establish policies and procedures to ensure that the Federal funds are properly identified and reported accurately in the Schedule in accordance with Uniform Guidance requirements. We also recommend that individuals responsible for administering Federal assistance programs with the City receive training in grant administration. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in Part V of this report. Auditor’s Conclusion: Finding remains as stated.
Finding 2024-007 Programs: All Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting Repeat Finding: Yes; 2023-006 Condition: Finance is responsible for preparing the schedule of expenditures of Federal awards based upon grant information obtained from the financial accounting records and other information provided by each department or agency. In many instances, the detail expenditure information in the accounting software differed from the expenditures reported by various City departments. Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not adequately tracked in the general ledger. Criteria: In accordance with 2 CFR 200.303, Internal controls: The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare appropriate financial statements, including the schedule of expenditures of Federal awards in accordance with §200.510 Financial statements. In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. For example, when a Federal program has multiple Federal award years, the auditee may list the amount of Federal awards expended for each Federal award year separately. At a minimum, the schedule must: (1) List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. (3) Provide total Federal awards expended for each individual Federal program and the AL number or other identifying number when the AL information is not available. For a cluster of programs, also provide the total for the cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total federal awards expended for loan or loan guarantee programs in the schedule; and (6) Include notes that describe that significant accounting policies used in preparing the schedule and note whether or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414 Indirect (F&A) costs. Cause: The City does not maintain a centralized grant accounting function or standardized policies and procedures, including requirements to periodically submit and reconcile expenditures; instead, each department maintains its own grant information. The lack of submission of grant documents and accurate information by the various agencies and departments to Finance weakens internal controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule. Internal controls over financial reporting should be designed to prevent, detect or correct errors in a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the Schedule is fairly presented. Controls have not been established by the City to ensure complete and accurate reporting for the Schedule for the 2024 fiscal year. Effect: The determination of which major programs will be audited is affected by the accuracy of the Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate reporting of the City’s financial information could occur, and the City cannot provide reasonable assurance that the SEFA is fairly presented. As a result, individual program reports throughout the year could have inaccurate information. There were also significant delays in the preparation of the Schedule of Federal awards, which prevented the City from meeting the March 31, 2025 deadline with the Federal clearinghouse. Questioned Costs: Unknown. Recommendation: We recommend that Finance establish policies and procedures to ensure that the Federal funds are properly identified and reported accurately in the Schedule in accordance with Uniform Guidance requirements. We also recommend that individuals responsible for administering Federal assistance programs with the City receive training in grant administration. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in Part V of this report. Auditor’s Conclusion: Finding remains as stated.
Finding 2024-007 Programs: All Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting Repeat Finding: Yes; 2023-006 Condition: Finance is responsible for preparing the schedule of expenditures of Federal awards based upon grant information obtained from the financial accounting records and other information provided by each department or agency. In many instances, the detail expenditure information in the accounting software differed from the expenditures reported by various City departments. Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not adequately tracked in the general ledger. Criteria: In accordance with 2 CFR 200.303, Internal controls: The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare appropriate financial statements, including the schedule of expenditures of Federal awards in accordance with §200.510 Financial statements. In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. For example, when a Federal program has multiple Federal award years, the auditee may list the amount of Federal awards expended for each Federal award year separately. At a minimum, the schedule must: (1) List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. (3) Provide total Federal awards expended for each individual Federal program and the AL number or other identifying number when the AL information is not available. For a cluster of programs, also provide the total for the cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total federal awards expended for loan or loan guarantee programs in the schedule; and (6) Include notes that describe that significant accounting policies used in preparing the schedule and note whether or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414 Indirect (F&A) costs. Cause: The City does not maintain a centralized grant accounting function or standardized policies and procedures, including requirements to periodically submit and reconcile expenditures; instead, each department maintains its own grant information. The lack of submission of grant documents and accurate information by the various agencies and departments to Finance weakens internal controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule. Internal controls over financial reporting should be designed to prevent, detect or correct errors in a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the Schedule is fairly presented. Controls have not been established by the City to ensure complete and accurate reporting for the Schedule for the 2024 fiscal year. Effect: The determination of which major programs will be audited is affected by the accuracy of the Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate reporting of the City’s financial information could occur, and the City cannot provide reasonable assurance that the SEFA is fairly presented. As a result, individual program reports throughout the year could have inaccurate information. There were also significant delays in the preparation of the Schedule of Federal awards, which prevented the City from meeting the March 31, 2025 deadline with the Federal clearinghouse. Questioned Costs: Unknown. Recommendation: We recommend that Finance establish policies and procedures to ensure that the Federal funds are properly identified and reported accurately in the Schedule in accordance with Uniform Guidance requirements. We also recommend that individuals responsible for administering Federal assistance programs with the City receive training in grant administration. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in Part V of this report. Auditor’s Conclusion: Finding remains as stated.
Finding 2024-007 Programs: All Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting Repeat Finding: Yes; 2023-006 Condition: Finance is responsible for preparing the schedule of expenditures of Federal awards based upon grant information obtained from the financial accounting records and other information provided by each department or agency. In many instances, the detail expenditure information in the accounting software differed from the expenditures reported by various City departments. Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not adequately tracked in the general ledger. Criteria: In accordance with 2 CFR 200.303, Internal controls: The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare appropriate financial statements, including the schedule of expenditures of Federal awards in accordance with §200.510 Financial statements. In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. For example, when a Federal program has multiple Federal award years, the auditee may list the amount of Federal awards expended for each Federal award year separately. At a minimum, the schedule must: (1) List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. (3) Provide total Federal awards expended for each individual Federal program and the AL number or other identifying number when the AL information is not available. For a cluster of programs, also provide the total for the cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total federal awards expended for loan or loan guarantee programs in the schedule; and (6) Include notes that describe that significant accounting policies used in preparing the schedule and note whether or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414 Indirect (F&A) costs. Cause: The City does not maintain a centralized grant accounting function or standardized policies and procedures, including requirements to periodically submit and reconcile expenditures; instead, each department maintains its own grant information. The lack of submission of grant documents and accurate information by the various agencies and departments to Finance weakens internal controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule. Internal controls over financial reporting should be designed to prevent, detect or correct errors in a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the Schedule is fairly presented. Controls have not been established by the City to ensure complete and accurate reporting for the Schedule for the 2024 fiscal year. Effect: The determination of which major programs will be audited is affected by the accuracy of the Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate reporting of the City’s financial information could occur, and the City cannot provide reasonable assurance that the SEFA is fairly presented. As a result, individual program reports throughout the year could have inaccurate information. There were also significant delays in the preparation of the Schedule of Federal awards, which prevented the City from meeting the March 31, 2025 deadline with the Federal clearinghouse. Questioned Costs: Unknown. Recommendation: We recommend that Finance establish policies and procedures to ensure that the Federal funds are properly identified and reported accurately in the Schedule in accordance with Uniform Guidance requirements. We also recommend that individuals responsible for administering Federal assistance programs with the City receive training in grant administration. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in Part V of this report. Auditor’s Conclusion: Finding remains as stated.
Finding 2024-007 Programs: All Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting Repeat Finding: Yes; 2023-006 Condition: Finance is responsible for preparing the schedule of expenditures of Federal awards based upon grant information obtained from the financial accounting records and other information provided by each department or agency. In many instances, the detail expenditure information in the accounting software differed from the expenditures reported by various City departments. Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not adequately tracked in the general ledger. Criteria: In accordance with 2 CFR 200.303, Internal controls: The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare appropriate financial statements, including the schedule of expenditures of Federal awards in accordance with §200.510 Financial statements. In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. For example, when a Federal program has multiple Federal award years, the auditee may list the amount of Federal awards expended for each Federal award year separately. At a minimum, the schedule must: (1) List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. (3) Provide total Federal awards expended for each individual Federal program and the AL number or other identifying number when the AL information is not available. For a cluster of programs, also provide the total for the cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total federal awards expended for loan or loan guarantee programs in the schedule; and (6) Include notes that describe that significant accounting policies used in preparing the schedule and note whether or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414 Indirect (F&A) costs. Cause: The City does not maintain a centralized grant accounting function or standardized policies and procedures, including requirements to periodically submit and reconcile expenditures; instead, each department maintains its own grant information. The lack of submission of grant documents and accurate information by the various agencies and departments to Finance weakens internal controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule. Internal controls over financial reporting should be designed to prevent, detect or correct errors in a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the Schedule is fairly presented. Controls have not been established by the City to ensure complete and accurate reporting for the Schedule for the 2024 fiscal year. Effect: The determination of which major programs will be audited is affected by the accuracy of the Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate reporting of the City’s financial information could occur, and the City cannot provide reasonable assurance that the SEFA is fairly presented. As a result, individual program reports throughout the year could have inaccurate information. There were also significant delays in the preparation of the Schedule of Federal awards, which prevented the City from meeting the March 31, 2025 deadline with the Federal clearinghouse. Questioned Costs: Unknown. Recommendation: We recommend that Finance establish policies and procedures to ensure that the Federal funds are properly identified and reported accurately in the Schedule in accordance with Uniform Guidance requirements. We also recommend that individuals responsible for administering Federal assistance programs with the City receive training in grant administration. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in Part V of this report. Auditor’s Conclusion: Finding remains as stated.
Finding 2024-007 Programs: All Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting Repeat Finding: Yes; 2023-006 Condition: Finance is responsible for preparing the schedule of expenditures of Federal awards based upon grant information obtained from the financial accounting records and other information provided by each department or agency. In many instances, the detail expenditure information in the accounting software differed from the expenditures reported by various City departments. Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not adequately tracked in the general ledger. Criteria: In accordance with 2 CFR 200.303, Internal controls: The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare appropriate financial statements, including the schedule of expenditures of Federal awards in accordance with §200.510 Financial statements. In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. For example, when a Federal program has multiple Federal award years, the auditee may list the amount of Federal awards expended for each Federal award year separately. At a minimum, the schedule must: (1) List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. (3) Provide total Federal awards expended for each individual Federal program and the AL number or other identifying number when the AL information is not available. For a cluster of programs, also provide the total for the cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total federal awards expended for loan or loan guarantee programs in the schedule; and (6) Include notes that describe that significant accounting policies used in preparing the schedule and note whether or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414 Indirect (F&A) costs. Cause: The City does not maintain a centralized grant accounting function or standardized policies and procedures, including requirements to periodically submit and reconcile expenditures; instead, each department maintains its own grant information. The lack of submission of grant documents and accurate information by the various agencies and departments to Finance weakens internal controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule. Internal controls over financial reporting should be designed to prevent, detect or correct errors in a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the Schedule is fairly presented. Controls have not been established by the City to ensure complete and accurate reporting for the Schedule for the 2024 fiscal year. Effect: The determination of which major programs will be audited is affected by the accuracy of the Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate reporting of the City’s financial information could occur, and the City cannot provide reasonable assurance that the SEFA is fairly presented. As a result, individual program reports throughout the year could have inaccurate information. There were also significant delays in the preparation of the Schedule of Federal awards, which prevented the City from meeting the March 31, 2025 deadline with the Federal clearinghouse. Questioned Costs: Unknown. Recommendation: We recommend that Finance establish policies and procedures to ensure that the Federal funds are properly identified and reported accurately in the Schedule in accordance with Uniform Guidance requirements. We also recommend that individuals responsible for administering Federal assistance programs with the City receive training in grant administration. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in Part V of this report. Auditor’s Conclusion: Finding remains as stated.
Finding 2024-007 Programs: All Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting Repeat Finding: Yes; 2023-006 Condition: Finance is responsible for preparing the schedule of expenditures of Federal awards based upon grant information obtained from the financial accounting records and other information provided by each department or agency. In many instances, the detail expenditure information in the accounting software differed from the expenditures reported by various City departments. Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not adequately tracked in the general ledger. Criteria: In accordance with 2 CFR 200.303, Internal controls: The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare appropriate financial statements, including the schedule of expenditures of Federal awards in accordance with §200.510 Financial statements. In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. For example, when a Federal program has multiple Federal award years, the auditee may list the amount of Federal awards expended for each Federal award year separately. At a minimum, the schedule must: (1) List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. (3) Provide total Federal awards expended for each individual Federal program and the AL number or other identifying number when the AL information is not available. For a cluster of programs, also provide the total for the cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total federal awards expended for loan or loan guarantee programs in the schedule; and (6) Include notes that describe that significant accounting policies used in preparing the schedule and note whether or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414 Indirect (F&A) costs. Cause: The City does not maintain a centralized grant accounting function or standardized policies and procedures, including requirements to periodically submit and reconcile expenditures; instead, each department maintains its own grant information. The lack of submission of grant documents and accurate information by the various agencies and departments to Finance weakens internal controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule. Internal controls over financial reporting should be designed to prevent, detect or correct errors in a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the Schedule is fairly presented. Controls have not been established by the City to ensure complete and accurate reporting for the Schedule for the 2024 fiscal year. Effect: The determination of which major programs will be audited is affected by the accuracy of the Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate reporting of the City’s financial information could occur, and the City cannot provide reasonable assurance that the SEFA is fairly presented. As a result, individual program reports throughout the year could have inaccurate information. There were also significant delays in the preparation of the Schedule of Federal awards, which prevented the City from meeting the March 31, 2025 deadline with the Federal clearinghouse. Questioned Costs: Unknown. Recommendation: We recommend that Finance establish policies and procedures to ensure that the Federal funds are properly identified and reported accurately in the Schedule in accordance with Uniform Guidance requirements. We also recommend that individuals responsible for administering Federal assistance programs with the City receive training in grant administration. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in Part V of this report. Auditor’s Conclusion: Finding remains as stated.
Finding 2024-007 Programs: All Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting Repeat Finding: Yes; 2023-006 Condition: Finance is responsible for preparing the schedule of expenditures of Federal awards based upon grant information obtained from the financial accounting records and other information provided by each department or agency. In many instances, the detail expenditure information in the accounting software differed from the expenditures reported by various City departments. Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not adequately tracked in the general ledger. Criteria: In accordance with 2 CFR 200.303, Internal controls: The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare appropriate financial statements, including the schedule of expenditures of Federal awards in accordance with §200.510 Financial statements. In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. For example, when a Federal program has multiple Federal award years, the auditee may list the amount of Federal awards expended for each Federal award year separately. At a minimum, the schedule must: (1) List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. (3) Provide total Federal awards expended for each individual Federal program and the AL number or other identifying number when the AL information is not available. For a cluster of programs, also provide the total for the cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total federal awards expended for loan or loan guarantee programs in the schedule; and (6) Include notes that describe that significant accounting policies used in preparing the schedule and note whether or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414 Indirect (F&A) costs. Cause: The City does not maintain a centralized grant accounting function or standardized policies and procedures, including requirements to periodically submit and reconcile expenditures; instead, each department maintains its own grant information. The lack of submission of grant documents and accurate information by the various agencies and departments to Finance weakens internal controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule. Internal controls over financial reporting should be designed to prevent, detect or correct errors in a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the Schedule is fairly presented. Controls have not been established by the City to ensure complete and accurate reporting for the Schedule for the 2024 fiscal year. Effect: The determination of which major programs will be audited is affected by the accuracy of the Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate reporting of the City’s financial information could occur, and the City cannot provide reasonable assurance that the SEFA is fairly presented. As a result, individual program reports throughout the year could have inaccurate information. There were also significant delays in the preparation of the Schedule of Federal awards, which prevented the City from meeting the March 31, 2025 deadline with the Federal clearinghouse. Questioned Costs: Unknown. Recommendation: We recommend that Finance establish policies and procedures to ensure that the Federal funds are properly identified and reported accurately in the Schedule in accordance with Uniform Guidance requirements. We also recommend that individuals responsible for administering Federal assistance programs with the City receive training in grant administration. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in Part V of this report. Auditor’s Conclusion: Finding remains as stated.
Finding 2024-007 Programs: All Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting Repeat Finding: Yes; 2023-006 Condition: Finance is responsible for preparing the schedule of expenditures of Federal awards based upon grant information obtained from the financial accounting records and other information provided by each department or agency. In many instances, the detail expenditure information in the accounting software differed from the expenditures reported by various City departments. Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not adequately tracked in the general ledger. Criteria: In accordance with 2 CFR 200.303, Internal controls: The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare appropriate financial statements, including the schedule of expenditures of Federal awards in accordance with §200.510 Financial statements. In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. For example, when a Federal program has multiple Federal award years, the auditee may list the amount of Federal awards expended for each Federal award year separately. At a minimum, the schedule must: (1) List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. (3) Provide total Federal awards expended for each individual Federal program and the AL number or other identifying number when the AL information is not available. For a cluster of programs, also provide the total for the cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total federal awards expended for loan or loan guarantee programs in the schedule; and (6) Include notes that describe that significant accounting policies used in preparing the schedule and note whether or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414 Indirect (F&A) costs. Cause: The City does not maintain a centralized grant accounting function or standardized policies and procedures, including requirements to periodically submit and reconcile expenditures; instead, each department maintains its own grant information. The lack of submission of grant documents and accurate information by the various agencies and departments to Finance weakens internal controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule. Internal controls over financial reporting should be designed to prevent, detect or correct errors in a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the Schedule is fairly presented. Controls have not been established by the City to ensure complete and accurate reporting for the Schedule for the 2024 fiscal year. Effect: The determination of which major programs will be audited is affected by the accuracy of the Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate reporting of the City’s financial information could occur, and the City cannot provide reasonable assurance that the SEFA is fairly presented. As a result, individual program reports throughout the year could have inaccurate information. There were also significant delays in the preparation of the Schedule of Federal awards, which prevented the City from meeting the March 31, 2025 deadline with the Federal clearinghouse. Questioned Costs: Unknown. Recommendation: We recommend that Finance establish policies and procedures to ensure that the Federal funds are properly identified and reported accurately in the Schedule in accordance with Uniform Guidance requirements. We also recommend that individuals responsible for administering Federal assistance programs with the City receive training in grant administration. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in Part V of this report. Auditor’s Conclusion: Finding remains as stated.
Finding 2024-007 Programs: All Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting Repeat Finding: Yes; 2023-006 Condition: Finance is responsible for preparing the schedule of expenditures of Federal awards based upon grant information obtained from the financial accounting records and other information provided by each department or agency. In many instances, the detail expenditure information in the accounting software differed from the expenditures reported by various City departments. Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not adequately tracked in the general ledger. Criteria: In accordance with 2 CFR 200.303, Internal controls: The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare appropriate financial statements, including the schedule of expenditures of Federal awards in accordance with §200.510 Financial statements. In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. For example, when a Federal program has multiple Federal award years, the auditee may list the amount of Federal awards expended for each Federal award year separately. At a minimum, the schedule must: (1) List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. (3) Provide total Federal awards expended for each individual Federal program and the AL number or other identifying number when the AL information is not available. For a cluster of programs, also provide the total for the cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total federal awards expended for loan or loan guarantee programs in the schedule; and (6) Include notes that describe that significant accounting policies used in preparing the schedule and note whether or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414 Indirect (F&A) costs. Cause: The City does not maintain a centralized grant accounting function or standardized policies and procedures, including requirements to periodically submit and reconcile expenditures; instead, each department maintains its own grant information. The lack of submission of grant documents and accurate information by the various agencies and departments to Finance weakens internal controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule. Internal controls over financial reporting should be designed to prevent, detect or correct errors in a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the Schedule is fairly presented. Controls have not been established by the City to ensure complete and accurate reporting for the Schedule for the 2024 fiscal year. Effect: The determination of which major programs will be audited is affected by the accuracy of the Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate reporting of the City’s financial information could occur, and the City cannot provide reasonable assurance that the SEFA is fairly presented. As a result, individual program reports throughout the year could have inaccurate information. There were also significant delays in the preparation of the Schedule of Federal awards, which prevented the City from meeting the March 31, 2025 deadline with the Federal clearinghouse. Questioned Costs: Unknown. Recommendation: We recommend that Finance establish policies and procedures to ensure that the Federal funds are properly identified and reported accurately in the Schedule in accordance with Uniform Guidance requirements. We also recommend that individuals responsible for administering Federal assistance programs with the City receive training in grant administration. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in Part V of this report. Auditor’s Conclusion: Finding remains as stated.
Finding 2024-007 Programs: All Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting Repeat Finding: Yes; 2023-006 Condition: Finance is responsible for preparing the schedule of expenditures of Federal awards based upon grant information obtained from the financial accounting records and other information provided by each department or agency. In many instances, the detail expenditure information in the accounting software differed from the expenditures reported by various City departments. Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not adequately tracked in the general ledger. Criteria: In accordance with 2 CFR 200.303, Internal controls: The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare appropriate financial statements, including the schedule of expenditures of Federal awards in accordance with §200.510 Financial statements. In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. For example, when a Federal program has multiple Federal award years, the auditee may list the amount of Federal awards expended for each Federal award year separately. At a minimum, the schedule must: (1) List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. (3) Provide total Federal awards expended for each individual Federal program and the AL number or other identifying number when the AL information is not available. For a cluster of programs, also provide the total for the cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total federal awards expended for loan or loan guarantee programs in the schedule; and (6) Include notes that describe that significant accounting policies used in preparing the schedule and note whether or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414 Indirect (F&A) costs. Cause: The City does not maintain a centralized grant accounting function or standardized policies and procedures, including requirements to periodically submit and reconcile expenditures; instead, each department maintains its own grant information. The lack of submission of grant documents and accurate information by the various agencies and departments to Finance weakens internal controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule. Internal controls over financial reporting should be designed to prevent, detect or correct errors in a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the Schedule is fairly presented. Controls have not been established by the City to ensure complete and accurate reporting for the Schedule for the 2024 fiscal year. Effect: The determination of which major programs will be audited is affected by the accuracy of the Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate reporting of the City’s financial information could occur, and the City cannot provide reasonable assurance that the SEFA is fairly presented. As a result, individual program reports throughout the year could have inaccurate information. There were also significant delays in the preparation of the Schedule of Federal awards, which prevented the City from meeting the March 31, 2025 deadline with the Federal clearinghouse. Questioned Costs: Unknown. Recommendation: We recommend that Finance establish policies and procedures to ensure that the Federal funds are properly identified and reported accurately in the Schedule in accordance with Uniform Guidance requirements. We also recommend that individuals responsible for administering Federal assistance programs with the City receive training in grant administration. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in Part V of this report. Auditor’s Conclusion: Finding remains as stated.
Finding 2024-007 Programs: All Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting Repeat Finding: Yes; 2023-006 Condition: Finance is responsible for preparing the schedule of expenditures of Federal awards based upon grant information obtained from the financial accounting records and other information provided by each department or agency. In many instances, the detail expenditure information in the accounting software differed from the expenditures reported by various City departments. Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not adequately tracked in the general ledger. Criteria: In accordance with 2 CFR 200.303, Internal controls: The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare appropriate financial statements, including the schedule of expenditures of Federal awards in accordance with §200.510 Financial statements. In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. For example, when a Federal program has multiple Federal award years, the auditee may list the amount of Federal awards expended for each Federal award year separately. At a minimum, the schedule must: (1) List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. (3) Provide total Federal awards expended for each individual Federal program and the AL number or other identifying number when the AL information is not available. For a cluster of programs, also provide the total for the cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total federal awards expended for loan or loan guarantee programs in the schedule; and (6) Include notes that describe that significant accounting policies used in preparing the schedule and note whether or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414 Indirect (F&A) costs. Cause: The City does not maintain a centralized grant accounting function or standardized policies and procedures, including requirements to periodically submit and reconcile expenditures; instead, each department maintains its own grant information. The lack of submission of grant documents and accurate information by the various agencies and departments to Finance weakens internal controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule. Internal controls over financial reporting should be designed to prevent, detect or correct errors in a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the Schedule is fairly presented. Controls have not been established by the City to ensure complete and accurate reporting for the Schedule for the 2024 fiscal year. Effect: The determination of which major programs will be audited is affected by the accuracy of the Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate reporting of the City’s financial information could occur, and the City cannot provide reasonable assurance that the SEFA is fairly presented. As a result, individual program reports throughout the year could have inaccurate information. There were also significant delays in the preparation of the Schedule of Federal awards, which prevented the City from meeting the March 31, 2025 deadline with the Federal clearinghouse. Questioned Costs: Unknown. Recommendation: We recommend that Finance establish policies and procedures to ensure that the Federal funds are properly identified and reported accurately in the Schedule in accordance with Uniform Guidance requirements. We also recommend that individuals responsible for administering Federal assistance programs with the City receive training in grant administration. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in Part V of this report. Auditor’s Conclusion: Finding remains as stated.