FAC Explorer

Finding 1120896 (2024-004)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-31
Audit: 351125
Organization: Ivy Tech Community College of Indiana (IN)
Auditor: Indiana State Board of Accounts

AI Summary

  • Core Issue: The College lacked effective internal controls to ensure compliance with federal requirements for the Upward Bound Program, specifically regarding dual reviews of participant applications.
  • Impacted Requirements: Noncompliance with 2 CFR 200.303, which mandates maintaining effective internal controls over federal awards.
  • Recommended Follow-Up: Strengthen internal controls and policies to ensure proper documentation of application reviews and compliance with federal program requirements.

Finding Text

FINDING 2024-004 Subject: TRIO Cluster - Special Tests and Provisions - Core Curriculum Instruction in the Upward Bound Program Federal Agency: US Department of Education Federal Program: Upward Bound Program Assistance Listings Number: 84.047 Federal Award Numbers and Years (or Other Identifying Numbers): P047A221086, P047A221077 Compliance Requirement: Special Tests and Provisions - Core Curriculum Instruction in the Upward Bound Program Audit Finding: Significant Deficiency Condition and Context An effective internal control system was not in place at the College to ensure compliance with the Special Tests and Provisions - Core Curriculum Instruction in the Upward Bound Program compliance requirement. Applications for 15 participants in the Upward Bound Program were tested for evidence of review by 2 members of the TRIO staff. For 2 of the 15 applications tested, both from the Indianapolis campus, there was no documentation of a dual review at the Indianapolis campus. The lack of internal controls was isolated to one campus during the audit period. Criteria 2 CFR 200.303 states in part: "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. These internal controls should be in compliance with 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). . . ." Cause The College's management was unable to provide evidence of review of applications for the TRIO Program was performed. This was due to policies and procedures not being adequate to retain the documentation for the TRIO Special Tests and Provisions - Core Curriculum Instruction in the Upward Bound Program. Effect The failure to establish an effective internal control system enabled material noncompliance to go undetected. Noncompliance with the Special Tests and Provisions - Core Curriculum Instruction in the Upward Bound Program compliance requirement could have resulted in the loss of federal funds to the College. INDIANA STATE BOARD OF ACCOUNTS 23 IVY TECH COMMUNITY COLLEGE OF INDIANA SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Questioned Costs There were no questioned costs identified. Recommendation We recommended that the College's management strengthen the internal controls related to the compliance requirement listed above. We also recommended strengthening its policies and procedures to ensure appropriate supporting documentation for evidence of review and other internal control procedures for federal programs are retained to be presented for audit. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.

Categories

Special Tests & Provisions Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 544448 2024-001
    Significant Deficiency
  • 544449 2024-002
    Significant Deficiency
  • 544450 2024-002
    Significant Deficiency
  • 544451 2024-002
    Significant Deficiency
  • 544452 2024-003
    Material Weakness
  • 544453 2024-003
    Material Weakness
  • 544454 2024-004
    Significant Deficiency
  • 1120890 2024-001
    Significant Deficiency
  • 1120891 2024-002
    Significant Deficiency
  • 1120892 2024-002
    Significant Deficiency
  • 1120893 2024-002
    Significant Deficiency
  • 1120894 2024-003
    Material Weakness
  • 1120895 2024-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $105.88M
84.268 Federal Direct Student Loans $42.94M
84.007 Federal Supplemental Educational Opportunity Grants $3.12M
11.307 Economic Adjustment Assistance $2.76M
84.048 Career and Technical Education -- Basic Grants to States $1.80M
84.042 Trio Student Support Services $1.03M
84.116 Fund for the Improvement of Postsecondary Education $870,419
84.033 Federal Work-Study Program $723,187
17.261 Workforce Data Quality Initiative (wdqi) $670,137
84.047 Trio Upward Bound $616,258
12.905 Cybersecurity Core Curriculum $561,196
84.044 Trio Talent Search $293,567
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $200,373
17.245 Trade Adjustment Assistance $168,965
93.142 Niehs Hazardous Waste Worker Health and Safety Training $148,896
93.959 Block Grants for Prevention and Treatment of Substance Abuse $132,846
59.037 Small Business Development Centers $125,587
93.359 Nurse Education, Practice Quality and Retention Grants $120,946
84.031 Higher Education Institutional Aid $113,212
11.037 Chips Incentives Program $87,490
84.002 Adult Education - Basic Grants to States $83,348
93.958 Block Grants for Community Mental Health Services $78,443
21.027 Coronavirus State and Local Fiscal Recovery Funds $66,753
47.070 Computer and Information Science and Engineering $61,825
17.268 H-1b Job Training Grants $52,530
84.425 Education Stabilization Fund $49,600
17.270 Reentry Employment Opportunities $41,975
17.285 Registered Apprenticeship $35,306
12.404 National Guard Challenge Program $30,867
47.084 Nsf Technology, Innovation, and Partnerships $29,098
47.041 Engineering $22,440
66.605 Performance Partnership Grants $21,708
17.207 Employment Service/wagner-Peyser Funded Activities $16,500
47.076 Stem Education (formerly Education and Human Resources) $13,726
93.367 Flexible Funding Model - Infrastructure Development and Maintenance for State Manufactured Food Regulatory Programs $13,613
84.220 Centers for International Business Education $13,095
84.016 Undergraduate International Studies and Foreign Language Programs $13,091
10.902 Soil and Water Conservation $9,485
84.215 Innovative Approaches to Literacy; Promise Neighborhoods; Full-Service Community Schools; and Congressionally Directed Spending for Elementary and Secondary Education Community Projects $8,400
81.041 State Energy Program $7,992
93.994 Maternal and Child Health Services Block Grant to the States $7,565
84.305 Education Research, Development and Dissemination $6,390
12.401 National Guard Military Operations and Maintenance (o&m) Projects $1,331