Finding 11841 (2023-002)

Significant Deficiency
Requirement
BL
Questioned Costs
$1
Year
2023
Accepted
2024-02-05
Audit: 15661
Organization: Texas College (TX)

AI Summary

  • Core Issue: Non-compliance with federal regulations on historic preservation due to lack of expense verification and late interim report filing.
  • Impacted Requirements: Certification of payment requests and timely submission of performance and financial reports.
  • Recommended Follow-Up: Implement stricter guidelines for expense certifications and ensure all reports are filed on time.

Finding Text

Finding 2023-002 – National Park Service (Significant Deficiency): Information on the federal program: Rehabilitation of D.R. Glass Library, FAL No. 15.904, June 30, 2023 Criteria – Federal regulations governing historic preservation. Condition – Non-compliance noted regarding verification of all expenses under the grant and untimely filing of interim report. Questioned Costs – As provided below. Context – We noted the following in connection with our testing of compliance: ■ Concerning the D. R. Glass Library renovation project, the architect certified roughly two-thirds of the $450,000 spent under the grant. The College paid out approximately $131,000 to the construction company without formal certification of incurred expenses. The construction company used AIA Document G702 for payment requests, which includes a certification section. Only three of 11 payment requests had appropriate certifications by the architect or the College before payment was made. ■ The interim report that was due on September 30, 2022 was dated October 31, 2022 and not filed until November 4, 2022 indicating it was filed untimely. Cause – Oversight by responsible employees. Effect – Unallowable costs could have been incurred by the construction company. Reporting deadline was missed. Repeat Finding – No. Auditor’s Recommendation – To ensure compliance and the appropriateness of expenses, all payment requests should be certified either by the architect or the College's designated, qualified person overseeing the project. All performance and financial reports should be filed timely. Views of Responsible Officials – The College accepts the auditors’ recommendations. The College is comfortable that no unallowable cost payments were made in connection with this project; however, it understands that it needs to establish stricter guidelines when it comes to certifications of contractual payments. The College will more closely adhere to program reporting schedules.

Corrective Action Plan

The auditors noted the following in connection with our texting of compliance: • Concerning the D.R. Glass Library renovation project, the architect certified roughly two- thirds of the $450, 000 spent under the grant. The College paid out approximately $131,000 to the construction company without formal certification of incurred expenses. The construction company used AIA Document G702 for payment requests, which includes a certification section. Only three of the 11 payment requests had appropriate certification by the architect or the College before payment was made. • The interim report that was due on September 30, 2022 was dated October 31, 2022 and filed until November 4, 2022. To ensure compliance and the appropriateness of expenses, all payment requests should be certified either by the architect or the College’s designated, qualified person overseeing the project. All performance and financial reports should be filed timely. The College’s Corrective Plan: The College accepts the auditors’ recommendations. The College is comfortable that no unallowable cost payments were made in connection with this project; however, it understands that it needs to establish stricter guidelines when it comes to certifications of contractual payments. The College will more closely adhere to program reporting schedules.

Categories

Questioned Costs Allowable Costs / Cost Principles Reporting

Other Findings in this Audit

  • 11834 2023-001
    Significant Deficiency
  • 11835 2023-001
    Significant Deficiency
  • 11836 2023-001
    Significant Deficiency
  • 11837 2023-001
    Significant Deficiency
  • 11838 2023-003
    Significant Deficiency
  • 11839 2023-003
    Significant Deficiency
  • 11840 2023-003
    Significant Deficiency
  • 588276 2023-001
    Significant Deficiency
  • 588277 2023-001
    Significant Deficiency
  • 588278 2023-001
    Significant Deficiency
  • 588279 2023-001
    Significant Deficiency
  • 588280 2023-003
    Significant Deficiency
  • 588281 2023-003
    Significant Deficiency
  • 588282 2023-003
    Significant Deficiency
  • 588283 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $2.71M
84.425 Education Stabilization Fund $2.63M
84.063 Federal Pell Grant Program $2.61M
84.031 Higher Education_institutional Aid $600,777
15.904 Historic Preservation Fund Grants-in-Aid $450,000
84.007 Federal Supplemental Educational Opportunity Grants $436,550
84.033 Federal Work-Study Program $130,594
47.074 Biological Sciences $32,619
11.028 Connecting Minority Communities Pilot Program $28,032
47.070 Computer and Information Science and Engineering $25,324
47.076 Education and Human Resources $15,583