Finding Text
Finding No.: 2022-020 Federal Agency: U.S. Department of Education AL Program: 84.425 Education Stabilization Fund AL Sub-Program: 84.425F HEERF - Institutional Portion Federal Award No.: COVID-19 P425F202732 Area: Allowable Costs/Cost Principles Questioned Costs: $0 Criteria: Federal program expenditures should be necessary and reasonable for the performance of the Federal award in accordance with allowable costs/cost principles requirements and be adequately documented. Furthermore, 2 CFR 200.303(a) states that the subrecipient must establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the subrecipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should align with the 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 COSO. Condition: : For two items (or 3%) of seventy-six items, aggregating $4,539,770 of $10,127,277 in total non-payroll expenditures, deficiencies were noted as follows: Item # PO# Description Expense Amount Questioned Cost 1 21-PO-2102 Small tools $311,212 $311,212 2 21-PO-2102 Small tools 311,211 311,211 $622,423 $622,423 Item #s 1 and 2 pertain to purchase of 750 units of laptop, however, there was no student distribution log to support distribution made to students. Cause: The College lacks adequate internal controls over compliance with the applicable federal regulations relating to allowable costs/cost principles, specifically, obtaining and retaining sufficient documentation to support all transactions. Effect: The College is not in compliance with the applicable allowable costs/cost principles requirements. No questioned costs are reported at this finding as questioned costs are reported at finding # 2022-022. Identified as a Repeat Finding: 2021-015 Recommendation: College management should improve internal control policies and strengthen controls requiring obtaining and retaining sufficient documentation to support all transactions. Views of Auditee and Planned Corrective Actions: The College agrees with the finding and provides details in its Corrective Action Plan.