Finding 1169659 (2024-001)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2024
Accepted
2026-01-20
Audit: 382662
Organization: Talladega College (AL)

AI Summary

  • Core Issue: Missing documentation for certain Title III expenditures raises concerns about compliance with federal guidelines.
  • Impacted Requirements: 2 CFR Part 200.400(d) and OMB A-133 require adequate documentation for costs charged to federal programs.
  • Recommended Follow-Up: Review Title III expenditures from fiscal year 2024 to assess the allowability of costs.

Finding Text

Condition Documentation supporting Title III expenditures could not be located for certain transactions selected. Criteria 2 CFR Part 200.400(d) states, " [t]he accounting practices of the recipient and subrecipient must be consistent with these cost principles and support the accumulation of costs as required by these cost principles, including maintaining adequate documentation to support costs charged to the Federal Award." Further, OMB A-133 Compliance Supplement, Compliance requirement B. Allowable Costs/Cost Principles "Basic Guidelines".. require that expenses/expenditures charged to federal programs be adequately documented. Cause Controls for accumulating and maintaining supporting documentation for Federal award expenditure were not followed. Effect Costs charged to Title III program may be disallowed. Context A sample of 35 non-payroll expenditures totaling $502,650 was selected for testing from a population of 173 totaling $142,441. Testing found that 9 expenditure transactions contained inadequate or no supporting documentation. Our sample was not statistical. Recommendation We recommend the College should review the Title III expenditures charged to the program during fiscal year 2024 to determine the allowability of the costs.

Corrective Action Plan

We have conducted a thorough review of our existing procedures for managing Title III funds to identify gaps and areas of improvement. Management hired a Title III consultant to assist with proper accountability and to establish clear guidelines for fund allocation, monitoring, and reporting. Management will conduct periodic internal reviews to verify adherence to established controls and address discrepancies promptly.

Categories

Allowable Costs / Cost Principles Subrecipient Monitoring

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $6.20M
84.063 FEDERAL PELL GRANT PROGRAM $3.73M
84.031 HIGHER EDUCATION INSTITUTIONAL AID $3.42M
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $321,995
84.217 TRIO MCNAIR POST-BACCALAUREATE ACHIEVEMENT $317,604
84.047 TRIO UPWARD BOUND $176,574
84.033 FEDERAL WORK-STUDY PROGRAM $146,347