Finding 22725 (2022-002)

Significant Deficiency
Requirement
H
Questioned Costs
-
Year
2022
Accepted
2023-08-30
Audit: 17796
Organization: Guam Community College (GU)

AI Summary

  • Core Issue: The College charged costs to grant V002A190061 after the period of performance ended on September 30, 2021, affecting compliance.
  • Impacted Requirements: Costs must only be incurred during the approved budget period; non-compliance was noted in 5 out of 28 samples.
  • Recommended Follow-Up: Management should strengthen monitoring controls and clarify with the grantor about allowable costs through the liquidation end date.

Finding Text

Federal Agency: U.S. Department of Education ALN and Title: 84.002 ? Adult Education ? Basic Grants to States Federal Award Number: V002A190061 Compliance Requirement: Period of Performance Questioned Cost: $0 Criteria: In accordance with applicable period of performance requirements, a non-Federal entity may charge only allowable costs incurred during the approved budget period of a federal award?s period of performance. Grant award V002A190061 specifies that the period of performance is from July 1, 2019 to September 30, 2020 with additional costs that can be obligated up to September 30, 2021 and liquidated through January 28, 2022. Condition: For 5 (or 18%) of 28 samples, aggregating $80,231 of $552,945 in total unaudited program costs, the cost was incurred subsequent to September 30, 2021 and was charged to award number V002A190061 after the award?s period of performance ended on September 30, 2021. See Schedule of Findings and Questioned Costs for chart/table. No questioned cost is presented for this finding because the costs could be charged to award number V002A200061 with a period of performance from July 1, 2020 to September 30, 2021 with additional costs that can be obligated up to September 30, 2022 and liquidated through January 28, 2023. This grant award has an available balance of $120,138 as of September 30, 2022. The College provided journal voucher number J00019662, transferring the cost to the available award. Cause: The College did not enforce monitoring controls over compliance with applicable period of performance requirements. Program personnel was of the understanding that costs may be incurred through the award?s liquidation end date. Effect: The College is not in compliance with applicable period of performance requirements of the grant. Recommendation: The College?s management should enforce monitoring controls over compliance with applicable period of performance requirements. Responsible personnel should seek clarification from the grantor as to whether costs may be incurred through the award?s liquidation end date. Views of responsible officials: See Corrective Action Plan.

Corrective Action Plan

Views of responsible officials and planned corrective actions: The College has taken steps to charge the cost to the appropriate grant award number. The College will ensure that future costs are properly charged to the correct grant award number and that costs are within the appropriate period of performance. In addition, finance and program staff will be trained on period of performance requirements, as well as other aspects of grant management. Contact Person: Rodalyn Gerardo, Vice President for Finance & Administration Expected Completion Date: September 30, 2023

Categories

Subrecipient Monitoring Allowable Costs / Cost Principles Period of Performance Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 22724 2022-001
    Material Weakness
  • 599166 2022-001
    Material Weakness
  • 599167 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $3.74M
84.425 Covid-19 - Education Stabilization Fund $1.36M
84.033 Federal Work-Study Program $83,723
84.007 Federal Supplemental Educational Opportunity Grants $74,284
17.285 Apprenticeship USA Grants $60,878
84.002 Adult Education - Basic Grants to States $31,231
47.076 Education and Human Resources $16,412
15.875 Economic, Social, and Political Development of the Territories $235