Finding Text
U.S. Department of Education Education Stabilization Fund 84.425 Federal award identification number P425E204935 Requirements: (A) Activities Allowed or Unallowed and (B) Allowable Costs Condition: For 37 tested grant disbursements to students, the College provided documentation of management approval, but was unable to provide documentation of Executive Committee approval. Criteria: Per 2 CFR section 200.303, recipients of federal awards must establish, document, and maintain effective internal controls to provide reasonable assurance that the recipient manages the federal award in compliance with statutes, regulations, terms and conditions applicable to the federal award. The College’s internal control policies state that all institutional expenses above $100 must be approved by an Executive Committee Member. Cause: The College failed to document this required approval due to management level staff turnover and new staff not being aware of the approval process. Effect: The College could not demonstrate that grant disbursements totaling $60,311 were approved by the Executive Committee. Repeat Finding: Repeat of 2022-07 Recommendation: RBT recommends that the College develop and document detailed controls over grants. Perspective: This control deficiency appears to be systemic and could impact an additional 497 grant disbursements totaling $800,540 that were not tested. Management’s Response: See corrective action plan.