Finding 1136463 (2021-001)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2021
Accepted
2025-05-09
Audit: 355948
Organization: Stark State College (OH)

AI Summary

  • Core Issue: The College failed to include $839,935 in expenses related to the CARES Act grant in the Schedule of Expenditures of Federal Awards.
  • Impacted Requirements: Compliance with 2 CFR Subpart F § 200.510(b) regarding the accurate reporting of federal awards and expenditures.
  • Recommended Follow-up: Management should regularly review federal revenues and expenditures to ensure they are reported in the correct period for future audits.

Finding Text

2 CFR Subpart F § 200.510(b) requires the auditee prepare a Schedule of Expenditures of Federal Awards (the Schedule) for the period covered by the College’s financial statements which must include the total federal awards expended as determined in accordance with § 200.502. At a minimum, the Schedule must: (1) List individual federal programs by Federal agency. (2) For federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. (3) Provide total federal awards expended for each individual federal program and the ALN number or other identifying number when the ALN information is not available. (4) Include the total amount provided to subrecipients from each federal program. (5) For loan or loan guarantee programs described in § 200.502 basis for determining federal awards expended, paragraph (b), identify in the notes to the schedule the balances outstanding at the end of the audit period. (6) Include notes that describe the significant accounting policies used in preparing the Schedule, and note whether or not the auditee has elected to use the 10 percent de minimis cost rate as covered in § 200.414 Indirect (F&A) costs. The College’s internal control procedures did not identify $839,935 of expenses in the Schedule of Expenditures of Federal Awards related to the CARES Act grant. Adjustments, to which management have agreed, are reflected in the accompanying Schedule. We recommend that management continue to analyze the federal revenues and expenditures and include them in the proper period for audit.

Categories

Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Reporting

Other Findings in this Audit

  • 560020 2021-001
    Material Weakness
  • 560021 2021-001
    Material Weakness
  • 1136462 2021-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $13.89M
84.063 Federal Pell Grant Program $12.71M
84.425 Higher Education Emergency Relief Fund - Institutional Portion $4.08M
84.425 Higher Education Emergency Relief Fund - Student Portion $1.71M
84.425 Higher Education Emergency Relief Fund - Sip Title III Emerg. $355,967
84.007 Federal Supplemental Educational Opportunity Grants $354,579
84.047 Trio_upward Bound $311,578
84.042 Trio_student Support Services $258,815
84.048 Career and Technical Education -- Basic Grants to States $239,885
12.300 Ohio Manufacturing Talent Expansion for the Defenseindustrial Supply Chain - Dod Meep $120,162
84.033 Federal Work-Study Program $93,989
21.019 Coronavirus Relief Fund $54,949
84.031 Higher Education_institutional Aid $51,957
84.425 Cares Act - Coronavirus Relief Fund - Geer Mental Health Grant $29,366
47.076 Education and Human Resources $17,526
17.268 H-1b Job Training Grants $7,982
17.285 Apprenticeship USA Grants $7,511
84.425 Cares Act - Coronavirus Relief Fund - Geer Fafsa $3,140
64.028 Post-9/11 Veterans Educational Assistance $175