Finding 1200762 (2025-005)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-03-30
Audit: 395745
Organization: Central College (IA)

AI Summary

  • Core Issue: The College failed to include Community Facilities Loans on the Schedule of Expenditures of Federal Awards (SEFA) in previous years, leading to an understatement.
  • Impacted Requirements: USDA mandates that these loans must be reflected on the SEFA for compliance.
  • Recommended Follow-Up: Implement a control process to regularly review all federal loans and grants for SEFA inclusion and ensure compliance with updated regulations.

Finding Text

Assistance Listing, Federal Agency, and Program Name - 10.766 Community Facilities Loans and Grants, U.S. Department of Agriculture (USDA) Federal Award Identification Number and Year - N/A Pass through Entity - N/A Finding Type - Material weakness Repeat Finding - No Criteria - USDA requires the Community Facilities Loans and Grants to be reflected on the schedule of expenditures of federal awards (SEFA) for continuing compliance requirements. Condition The College did not include their Community Facilities Loans on the Schedule of Federal Expenditures in prior years. Questioned Costs - None If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported - N/A Identification of How Questioned Costs Were Computed - N/A Context - While the College did not include the loans on prior year SEFAs, the College included the loans on the current year SEFA subject to audit as a major program. Cause and Effect - A control was lacking to identify changes in the federal regulations pertaining to the Community Facilities Loans and Grants program. As a result, the SEFA was understated in prior years. Recommendation - We recommend a control be implemented to review all federal loans and grants programs for inclusion on the SEFA. Views of Responsible Officials and Planned Corrective Actions - The College will ensure that updates to compliance requirements are identified and complied with through review of Compliance supplements and other resources. The College will continue to reconcile grant funds received to the SEFA to ensure that all appropriate programs are included.

Corrective Action Plan

Finding Number: 2025-005 Condition: The College did not include their Community Facilities Loans on the Schedule of Federal Expenditures in prior years. Planned Corrective Action: The College will ensure that updates to compliance requirements are identified and complied with through review of Compliance supplements and other resources. The College will continue to reconcile grant funds received to the SEFA to ensure that all appropriate programs are included. Contact person responsible for corrective action: Kayla Flanders Anticipated Completion Date: 6/30/2026

Categories

No categories assigned yet.

Other Findings in this Audit

  • 1200740 2025-006
    Material Weakness Repeat
  • 1200741 2025-007
    Material Weakness Repeat
  • 1200742 2025-008
    Material Weakness Repeat
  • 1200743 2025-009
    Material Weakness Repeat
  • 1200744 2025-007
    Material Weakness Repeat
  • 1200745 2025-009
    Material Weakness Repeat
  • 1200746 2025-007
    Material Weakness Repeat
  • 1200747 2025-009
    Material Weakness Repeat
  • 1200748 2025-007
    Material Weakness Repeat
  • 1200749 2025-008
    Material Weakness Repeat
  • 1200750 2025-009
    Material Weakness Repeat
  • 1200751 2025-006
    Material Weakness Repeat
  • 1200752 2025-007
    Material Weakness Repeat
  • 1200753 2025-009
    Material Weakness Repeat
  • 1200754 2025-007
    Material Weakness Repeat
  • 1200755 2025-008
    Material Weakness Repeat
  • 1200756 2025-009
    Material Weakness Repeat
  • 1200757 2025-009
    Material Weakness Repeat
  • 1200758 2025-009
    Material Weakness Repeat
  • 1200759 2025-009
    Material Weakness Repeat
  • 1200760 2025-009
    Material Weakness Repeat
  • 1200761 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.766 COMMUNITY FACILITIES LOANS AND GRANTS $5.84M
84.268 FEDERAL DIRECT STUDENT LOANS $5.73M
84.063 FEDERAL PELL GRANT PROGRAM $1.57M
84.044 TRIO TALENT SEARCH $556,827
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $516,848
84.042 TRIO STUDENT SUPPORT SERVICES $362,076
84.047 TRIO UPWARD BOUND $353,980
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $217,833
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $205,172
84.033 FEDERAL WORK-STUDY PROGRAM $127,046
47.049 MATHEMATICAL AND PHYSICAL SCIENCES $38,962
47.083 INTEGRATIVE ACTIVITIES $25,406
47.075 SOCIAL, BEHAVIORAL, AND ECONOMIC SCIENCES $13,977