Finding 21010 (2022-003)

-
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-04-26

AI Summary

  • Core Issue: Documentation for lost revenue estimates was not provided to management on time for review and approval.
  • Impacted Requirements: Institutions must keep financial records and supporting documents for three years as per 2 CFR 200.334.
  • Recommended Follow-Up: Ensure all documentation is maintained and reviewed by management before submitting drawdowns for grant funds.

Finding Text

(#2022-003) Allowable Costs? CFDA No. 84.425N ? COVID-19 HEERF-FIPSE Formula Grant Year Ended ? June 30, 2022 Direct Program Federal Agency ? U.S. Department of Education Criteria ?Institutions must follow the documentation requirements under 2 CFR ? 200.334 to retain financial records, supporting documents, statistical records, and all other institutional records pertinent to lost revenue and the administration of the HEERF grant programs generally for a period of three years from the date of submission of the final expenditure report. Condition ? Documentation to support the estimates for lost revenue was not provided to management timely for review and approval. Cause ?Adequate documentation was not maintained to support the lost revenue estimate. Effect ?Documentation supporting lost revenue estimates was not properly maintained prior to the submission of drawdowns of grant funds. Questioned Costs ? There were no questioned costs noted related to this finding. Context ?This finding was identified during our testing of lost revenues reported as allowable costs. BOCES was able to provide their calculation and method for estimating lost revenue for the program, however, management was not able to provide support for the enrollment numbers used in the estimate. Subsequent to our original request, the Continuing Education Department was able to provide enrollment documentation which supported the estimates selected for testing. Recommendation ? Documentation used in developing the estimates should be maintained in accordance with grant terms, and provided to management for their review and approval prior to the submission of drawdowns. BOCES? Response ? BOCES will ensure that clear and appropriate supporting documentation is in line with grant terms and is provided by the department and reviewed with the Finance Office prior to any submission for grant disbursement.

Corrective Action Plan

(#2022-003) Allowable Costs ? Documentation to support the estimates for lost revenue was not provided to management timely for review and approval. Corrective Action Plan BOCES will ensure that clear and appropriate supporting documentation is in line with grant terms and is provided by the department and reviewed with the Finance Office prior to any submission for grant disbursement. Responsible Party Ms. Amy Windus, Executive Director of Finance Anticipated Completion Date June 30, 2023

Categories

Allowable Costs / Cost Principles Cash Management

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $269,706
10.855 Distance Learning and Telemedicine Loans and Grants $211,269
84.268 Federal Direct Student Loans $198,300
84.048 Career and Technical Education -- Basic Grants to States $131,847
84.063 Federal Pell Grant Program $99,208