Finding 28617 (2022-001)

Material Weakness
Requirement
A
Questioned Costs
$1
Year
2022
Accepted
2023-02-15
Audit: 38149
Organization: Valor Christian College (OH)
Auditor: Sikich LLP

AI Summary

  • Core Issue: The Institution charged unallowable costs to the federal grant, totaling $73,594.
  • Impacted Requirements: Costs must be necessary and reasonable under federal guidelines (2 C.F.R. part 200).
  • Recommended Follow-Up: Strengthen internal controls to ensure compliance with allowable cost regulations.

Finding Text

FINDING 2022-001: UNALLOWABLE QUESTIONED COSTS FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: HEERF CLUSTER 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. Views of Responsible Officials: The College agrees with the Single Audit Finding and a response is included in the Corrective Action Plan. See Schedule of Findings and Questioned Costs for chart/table.

Corrective Action Plan

Comments on Findings and Recommendations. Finding 2022-001 Valor Christian College concurs with the finding and recommendations in the finding. Actions Taken or Planned: Finding 2022-001 - 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 originally attributed to advertising expenses has been reallocated to allowable items/expenses.

Categories

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 30016 2022-002
    Material Weakness
  • 605059 2022-001
    Material Weakness
  • 606458 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 Education Stabilization Fund $638,610