Finding 1096215 (2024-008)

Material Weakness
Requirement
C
Questioned Costs
-
Year
2024
Accepted
2025-01-20
Audit: 338909
Organization: Bishop State Community College (AL)

AI Summary

  • Core Issue: The College lacks a proper review and approval process for cash drawdowns, leading to noncompliance with federal requirements.
  • Impacted Requirements: 2 CFR Part 200.305 mandates internal controls over cash management, which were not followed for 9 months.
  • Recommended Follow-Up: Strengthen cash management policies and procedures to ensure effective controls are in place and functioning.

Finding Text

Finding 2024-008 – Cash Management (Material Weakness and Noncompliance) Information on the Federal Program: U.S. Department of Education, Higher Education- Institutional Aid, Assistance Listing No. 84.031Criteria: 2 CFR Part 200.305 establishes the methods of receiving payment from the federal agency. The College uses the reimbursement method to receive Title III funds. The non-federal entity is also required to design and implement internal controls over the cash management process. Condition: We selected 5 drawdowns for reimbursement made during the year for testing. For 4 drawdowns, there was no documentation of a review of the calculation of the amount to draw or approval to draw down the funds. Cause: The College did not have a review and approval process in place for 9 months of the fiscal year. Effect: The College’s grant reimbursements were not properly approved. Questioned Costs: None reported Recommendation: We recommend the College strengthen its policies and procedures over cash management to ensure controls are properly implemented and working effectively. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.

Categories

Cash Management

Other Findings in this Audit

  • 519769 2024-012
    Significant Deficiency
  • 519770 2024-012
    Significant Deficiency
  • 519771 2024-012
    Significant Deficiency
  • 519772 2024-007
    Material Weakness
  • 519773 2024-008
    Material Weakness
  • 519774 2024-009
    Significant Deficiency
  • 519775 2024-010
    Significant Deficiency
  • 519776 2024-011
    Significant Deficiency
  • 1096211 2024-012
    Significant Deficiency
  • 1096212 2024-012
    Significant Deficiency
  • 1096213 2024-012
    Significant Deficiency
  • 1096214 2024-007
    Material Weakness
  • 1096216 2024-009
    Significant Deficiency
  • 1096217 2024-010
    Significant Deficiency
  • 1096218 2024-011
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $14.47M
84.063 Federal Pell Grant Program $9.46M
84.031 Higher Education Institutional Aid $5.53M
84.002 Adult Education - Basic Grants to States $587,268
84.048 Career and Technical Education -- Basic Grants to States $465,323
84.042 Trio Student Support Services $249,285
84.007 Federal Supplemental Educational Opportunity Grants $209,274
17.268 H-1b Job Training Grants $166,381
17.259 Wioa Youth Activities $127,540
84.033 Federal Work-Study Program $95,025
20.205 Highway Planning and Construction $21,836