Finding 1089413 (2024-004)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2024-12-04
Audit: 330786
Organization: Clarendon College (TX)

AI Summary

  • Core Issue: The 2023 report was submitted after the January 31st deadline, violating the USDA Grant agreement.
  • Impacted Requirements: Timely submission of the SF 425 - Federal Financial Report is crucial to avoid grant termination.
  • Recommended Follow-up: Establish a tracking process for grant reporting requirements to ensure timely submissions in the future.

Finding Text

Criteria: In accordance with TX0790-B17 USDA Grant agreement Section 5.7 “(a) No later than January 31st of the following year in which all or any portion of the Grant is first advanced and continuing in subsequent years until completion of the Project, the Grantee must submit the following information to RUS, as directed by the agency… (iv) a completed SF 425- Federal Financial Report.” Condition: We reviewed a sample of two reporting periods for funds spent in the fiscal year. Out of the two periods, the 2023 mandatory report was filed later than the required January 31st deadline. Population and Sample Size: Number Dollars Questioned Cost Population 2 $ N/A $ N/A Sample 2 N/A N/A Not in compliance 1 N/A N/A Effect: Untimely reporting can result in the termination of the grant, as stated in the “Termination of the Grant” section of the grant agreement. Cause: Management did not identify the appropriate reporting requirements from the grant letter to file a report every subsequent year that funds were spent until completion of the Project. Recommendation: We recommend that the College institute establish a process when obtaining a new grant to identify and track reporting requirements to ensure reports are submitted in a timely manner. Views of the responsible official and planned corrective actions: The comptroller will read through the new grant to determine reporting requirements and place these requirements in a notebook and on a calendar located on the comptroller’s desk. The calendar will be reviewed monthly to determine what is due in each grant. This item will also show up as a task on the Outlook calendar.

Categories

Reporting

Other Findings in this Audit

  • 512967 2024-003
    Significant Deficiency
  • 512968 2024-003
    Significant Deficiency
  • 512969 2024-003
    Significant Deficiency
  • 512970 2024-003
    Significant Deficiency
  • 512971 2024-004
    Significant Deficiency
  • 1089409 2024-003
    Significant Deficiency
  • 1089410 2024-003
    Significant Deficiency
  • 1089411 2024-003
    Significant Deficiency
  • 1089412 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $2.14M
84.268 Federal Direct Student Loans $1.19M
10.855 Distance Learning and Telemedicine Loans and Grants $918,614
84.048 Career and Technical Education -- Basic Grants to States $49,146
84.033 Federal Work-Study Program $40,259
84.007 Federal Supplemental Educational Opportunity Grants $37,801