FAC Explorer

Finding 218 (2022-001)

Material Weakness
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2023-10-10
Audit: 443
Organization: Valor Christian College (OH)
Auditor: Sikich LLP

AI Summary

  • Core Issue: The Institution charged unallowable costs to the grant, which is a significant compliance failure.
  • Impacted Requirements: Costs must be necessary, reasonable, and allocable under federal guidelines (2 C.F.R. part 200).
  • Recommended Follow-Up: Strengthen internal controls to ensure only allowable costs are charged to the grant.

Finding Text

UNALLOWABLE QUESTIONED COSTS FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: HEERF ALN: 84.425 FEDERAL AWARD YEAR: 2021-2022 Compliance Requirement: Activities Allowed and Unallowed (A.) Criteria: An Institution must demonstrate that costs incurred are allowable under the relevant statutory provisions. Allowable costs must be necessary and reasonable for the performance of the federal award and be allocable thereto under the principles in 2 C.F.R. part 200, subpart E. Condition: The Institution charged unallowable costs to the Institution portion of the grant. We consider this finding to be a material weakness. Cause: The condition was caused by administrative oversight. Effect or Potential Effect: The result is that the Institution expended unallowable costs. Statistical sampling was not used when making sample selections. Questioned Costs : $73,594 Recommendation: We recommend the Institution strengthen its internal controls around the allowable costs. Views of Responsible Officials: The College agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.

Corrective Action Plan

Comments on Findings and Recommendations: Valor Christian College concurs with the finding and recommendations in the finding. Actions Taken or Planned: The Valor Christian College Finance Department and the Valor Christian College CFO will increase controls over the process to ensure that no recruitment advertising expenses are attributed to CARES ACT funds. The amount of orginally atrributed advertising expenses has been reallocated to allowable items/expenses.

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 219 2022-002
    Material Weakness
  • 576660 2022-001
    Material Weakness
  • 576661 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $1.89M
84.063 Federal Pell Grant Program $949,978
84.425 Covid-19 Education Stabilization Fund $163,865
21.019 Covid-19 Coronavirus Relief Fund $153,620