FAC Explorer

Finding 1154137 (2024-004)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
$1
Year
2024
Accepted
2025-09-23
Audit: 367061
Organization: American Association of Community Colleges (DC)
Auditor: Sb & Company LLC

AI Summary

  • Core Issue: The ETA-9130 report for Q3 FY 2024 failed to include about $3 million in unliquidated federal obligations, indicating incomplete reporting.
  • Impacted Requirements: This deficiency violates the requirement for financial reports to be complete and accurate as per Department of Labor standards.
  • Recommended Follow-Up: AACC should establish a policy to ensure all federal obligations are accurately reported on the ETA-9130 report.

Finding Text

Finding 2024-004 Agency: Department of Labor Program: Apprenticeship State Funds (AL No. 17.285) Control Deficiency over Reporting Repeat Finding: No Condition: The ETA-9130 report the third quarter of fiscal year 2024 did not properly include the federal share of unliquidated obligations of approximately $3 million to show unspent funds from subrecipients. Criteria: Financial reports submitted to the Department of Labor must be complete and accurate. Cause: AACC did not have an effective policy in place to ensure proper reporting of unliquidated obligations on the ETA-9130 report. Effect: AACC was not in compliance with the Reporting requirements in accordance with Uniform Guidance. Questioned Costs: None Recommendation: We recommend AACC implements a policy to properly report all federal obligations on the ETA-9130 report. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in Part V of this report.

Corrective Action Plan

To address this finding, AACC will continue to request that all contracts be reviewed by the Chief Financial Officer prior to execution based on AACC’s Financial Policies and Procedures (page 25). Signed copies of the agreement will be held on file within the accounting department and the party executing the agreement.

Categories

Questioned Costs Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1154131 2024-005
    Material Weakness Repeat
  • 1154132 2024-005
    Material Weakness Repeat
  • 1154133 2024-005
    Material Weakness Repeat
  • 1154134 2024-001
    Material Weakness Repeat
  • 1154135 2024-002
    Material Weakness Repeat
  • 1154136 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
17.285 Apprenticeship USA Grants $1.33M
47.076 Education and Human Resources $108,736
11.307 Economic Adjustment Assistance $12,860
17.268 H-1b Job Training Grants $7,283
23.002 Appalachian Area Development $6,859