Finding 1191486 (2025-001)

Material Weakness Repeat Finding
Requirement
C
Questioned Costs
-
Year
2025
Accepted
2026-03-27
Audit: 395408

AI Summary

  • Core Issue: There is a significant deficiency due to a lack of documented controls in the cash management program for federal awards.
  • Impacted Requirements: The absence of documented internal controls violates the Uniform Guidance, which mandates adequate systems for managing federal programs.
  • Recommended Follow-Up: The College should formalize and maintain documentation of cash drawdown controls, ensuring a review by someone other than the preparer before requests are made.

Finding Text

Finding 2025-001: Significant Deficiency - Lack of Documented Controls - Cash Management Program: Student Financial Assistance Cluster Assistance Listing Number: various Federal Agency: U.S. Department of Education Federal Award Identification Number: various Federal Award Year: June 30, 2025 Repeat finding: 2024-001 Criteria: The Uniform Guidance requires recipients of federal awards to administer its federal programs with an adequate system of internal controls over applicable compliance requirements. Condition/Context: For six of eight selected G5/G6 Title IV drawdown transactions, there was no documented internal controls in place over cash management drawdowns. Despite the lack of documented controls over the cash drawdowns, there were no compliance exceptions noted. The sample was not a statistically valid sample. Cause: The College indicated the control of review was more informal/verbal and although had started documenting via email during the year, the documentation was not maintained. Questioned Costs: Not applicable Effect: The College could drawdown an incorrect amount although compensation controls/reconciliations would likely catch the error. Recommendation: The College should document controls in place to ensure cash drawdowns are complete and accurate. This should include a review by someone other than the preparer prior to the drawdown being requested in G5/G6. Management's Response: Management has implemented internal controls during fiscal year 2025 ensuring proper documentation.

Corrective Action Plan

Corrective Action Plan for the Year Ending June 30, 2025 Finding 2025-001: Significant Deficiency – Lack of Documented Controls – Cash Management Program: Student Financial Assistance Cluster Assistance Listing Number: various Federal Agency: U.S. Department of Education Federal Award Identification Number: various Federal Award Year: June 30, 2025 Repeat Finding: 2024-001 Criteria: The Uniform Guidance requires recipients of federal awards to administer its federal programs with an adequate system of internal controls over applicable compliance requirements. Condition/Context: For six of eight selected G5/G6 Title IV drawdown transactions, there was no documented internal controls in place over cash management drawdowns. Despite the lack of documented controls over the cash drawdowns, there were no compliance exceptions noted. The sample was not a statistically valid sample. Cause: The College indicated the control of review was more informal/verbal and although had started documenting via email during the year, the documentation was not maintained. Questioned Costs: Not applicable Effect: The College could drawdown an incorrect amount although compensation controls/reconciliations would likely catch the error. Recommendation: The College should document controls in place to ensure cash drawdowns are complete and accurate. This should include a review by someone other than the preparer prior to the drawdown being requested in G5/G6. Action Taken: Management concurs with the finding and has taken the appropriate actions to remediate the significant deficiency. The team has made improvements to become more formal by implementing written communication among all members involved in the process. Each member of their respective roles are communicating through email presenting the step by step process of the review and approval before the drawdown of cash from G5/G6. Name(s) of Contact Person Responsible for Corrective Action: Kevin Brand, Director of Operations and Systems for Financial Aid; Laurie Klizos, Director of Student Accounts; Seong Nevins, Controller. Anticipated Completion Date: June 30, 2026 Signed by Charlie Faas and Jim Brooks

Categories

Cash Management Student Financial Aid Significant Deficiency

Other Findings in this Audit

  • 1191482 2025-001
    Material Weakness Repeat
  • 1191483 2025-001
    Material Weakness Repeat
  • 1191484 2025-001
    Material Weakness Repeat
  • 1191485 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $22.30M
84.063 FEDERAL PELL GRANT PROGRAM $3.84M
84.033 FEDERAL WORK-STUDY PROGRAM $558,000
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $425,000
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $369,000
84.042 TRIO STUDENT SUPPORT SERVICES $273,000
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $219,000
47.049 MATHEMATICAL AND PHYSICAL SCIENCES $166,000
47.050 GEOSCIENCES $130,000
84.411 EDUCATION INNOVATION AND RESEARCH (FORMERLY INVESTING IN INNOVATION (I3) FUND) $95,000
94.006 AMERICORPS STATE AND NATIONAL 94.006 $90,000
93.866 AGING RESEARCH $48,000
45.162 PROMOTION OF THE HUMANITIES TEACHING AND LEARNING RESOURCES AND CURRICULUM DEVELOPMENT $21,000
43.003 EXPLORATION $12,000
47.084 NSF TECHNOLOGY, INNOVATION, AND PARTNERSHIPS $2,000