Finding 2357 (2022-002)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-11-22
Audit: 4043
Auditor: Sikich LLP

AI Summary

  • Core Issue: The Institution will submit its 2022 Single Audit late due to delays in providing necessary audit support information.
  • Impacted Requirements: This late submission may lead to non-compliance with the Administrative Capability requirements set by the U.S. Department of Education.
  • Recommended Follow-Up: The Institution should submit the audit report promptly upon receipt and follow any instructions from the Department of Education.

Finding Text

FINDING 2022-002: LATE AUDIT FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM ALN#: 84.268 YEAR ENDED: DECEMBER 31, 2022 Compliance Requirement: Administrative Capability. Criteria: A non-Federal entity shall transmit the reporting package, in an electronic form in accordance with the data standards established under chapter 64 and which shall include the non-Federal entity's financial statements, schedule of expenditures of Federal awards, corrective action plan defined under subsection (i), and auditor's reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504, when the 9-month timeframe would place an undue burden on the non-Federal entity (31 U.S. Code 7502(h)(2)(B)) . Condition: The Institution will be submitting its 2022 Single Audit late. Cause: The condition was caused by the Institution not providing audit support information in a timely manner. Effect: The result is the Institution may not have been incompliance with regulations, thus affecting its ability to effectively monitor operations. Question Costs: $0 Recommendation: We recommend that the Institution submit this audit report upon receipt from the auditors and await instruction from the Department of Education. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.

Corrective Action Plan

A. Comments on Findings and Recommendations: 2022-002 – LATE AUDIT We agree with the finding for a late audit. B. Actions Taken or Planned: 2022-002 – LATE AUDIT The Board’s Treasurer for 2022 was unable to assist with the 2022 audit due to a health concern. There was delay in getting the information needed to finalize the financial audit, which then delayed the federal direct loan program audit. This has been rectified with a former Board Treasurer rejoining the Board who has experience from prior years. The college will implement the necessary procedures to prevent future audits from being submitted late.

Categories

Reporting Matching / Level of Effort / Earmarking Student Financial Aid

Other Findings in this Audit

  • 2356 2022-001
    Material Weakness
  • 2358 2022-003
    - Repeat
  • 578798 2022-001
    Material Weakness
  • 578799 2022-002
    Material Weakness
  • 578800 2022-003
    - Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $1.20M
84.425 Covid-19 Education Stabilization Fund $12,179