Finding Text
2022-005 (2021-008) – Endowment Documentation-—Material Weakness Federal Agency: Federal Program: Assistance Listing Nos: Department of Education Title: Higher Education Institutional Aid 84.031 Higher Education Institutional Aid Federal Award Number: Not Available Award Period: June 30, 2015-June 30, 2023 Name of Applicable Pass-Through Entity- Not applicable Condition: During the audit, information received from the Foundation as custodian for endowment resources reported a different endowment balance for the Title V endowment than the College recorded. Neither the College nor the Foundation could provide complete information on policies, procedures and support documentation on award requirements or reporting requirements. Management’s progress: The College plans to include the information for the Foundation with its audit which will enable management to reconcile information to ensure correct balances are available for reporting. Criteria or specific requirement: The Title V endowment was funded with federal funds of $125,000 and the Foundation raised and contributed matching funds of $125,000 to make a $250,000 corpus. The endowment corpus is restricted for a 20-year period. The endowment including matching funds is reported on the books of the College. Questioned Costs: None. Cause: It appears the Foundation reported the Title V corpus based on federal funds received and did not include the matching funds as part of the endowment. Effect: Without policies and procedures in place and correct records, management is unable to determine if appropriate funding has been received and may not receive all funding for which it is eligible. Recommendation: We recommend that the records for the endowment be brought in agreement and changes made at RBC as needed. The Foundation Board should adopt the Title V balance as correct at a meeting. Records should be compiled and retained in relation to the Federal grants on an ongoing basis. Views of responsible officials and planned corrective actions: The College plans to include the information for the Foundation with its audit which will enable management to reconcile information to ensure correct balances are available for reporting. The planned completion date for the upgrades to the processes and systems is December 31, 2024. The responsible party is the Finance Director.