Finding Text
Assistance Listing, Federal Agency, and Program Name - Student Financial Assistance Cluster - Federal Pell Grant Program ALN 84.063, Federal Direct Student Loan Program ALN 84.268, Federal Supplemental Educational Opportunity Grant (SEOG) Program ALN 84.007, Federal Work Study (FWS) Program ALN 84.033, and Federal Perkins Loan Program ALN 84.038; TRIO Student Support Service (SSS) Grant Program ALN 84.042; and Corporation for National and Community Service AmeriCorps Vista Grant Program ALN 94.006
Federal Award Identification Number and Year - 2022-2023
Finding Type - Significant deficiency
Repeat Finding - No
Criteria - Per 2 CFR 200.510(b) - The auditee must also prepare a schedule of federal 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.
Condition - The schedule of expenditures of federal awards (SEFA) was not complete and accurate.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - N/A
Context - The SEFA provided did not include all expenditures of the FWS and TRIO SSS programs and no expenditures of the AmeriCorps Vista program. In addition, the SEFA did not include the correct outstanding Federal Perkins Loan Balance as of the beginning of the fiscal year. As a result, the SEFA was overstated by $1,220,928. In addition, we noted the SEFA was not fully reconciled to the related federal expenditures and grant revenue as of June 30, 2023 resulting in an overstatement of federal revenue of $209,446.
Cause and Effect - Controls in place did not ensure the SEFA was completed in a timely manner and that it was complete and accurate. The above errors have been corrected on the SEFA as of June 30, 2023.
Recommendation - The College should implement a process to ensure that the SEFA is prepared timely and that it is complete, accurate, and reconciled to the related federal revenue and expenditures. The College should also ensure all federal grants are appropriately classified as federal within the general ledger.
Views of Responsible Officials and Corrective Action Plan - The Albion College Business Office has established revised procedures for SEFA funds, in tandem with the Financial Aid Office, in which all Federal Awards and Grants will be reconciled on a quarterly basis, to be completed no later than the end of the first proceeding month of the quarter. The procedures create a dual- control process for the drawdown, recordation, and reporting of SEFA funds. Additionally, in FY24, the Perkins portfolio was divested. The Perkins Close- out will be part of the FY24 Single Audit.