Finding 29456 (2022-002)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-08-23
Audit: 29802
Organization: Northpoint Bible College (MA)

AI Summary

  • Core Issue: The College missed the deadline for submitting the Single Audit report to the Federal Audit Clearinghouse.
  • Impacted Requirements: This failure violates the Uniform Guidance for timely audit submissions.
  • Recommended Follow-up: Establish formal internal control procedures to ensure compliance with audit requirements and allow adequate time for audits.

Finding Text

Student Financial Aid Cluster: 84.007 Federal Supplemental Education Opportunity Grant; 84.033 Federal Work Study Program; 84.063 Federal Pell Grant Program; 84.268 Federal Direct Student Loans Education Stabilization Fund: 84.425E Higher Education Emergency Relief Fund (HEERF) Student Aid Portion; 84.425F HEERF institutional Portion Material Weakness 2022-002 Reporting Criteria: Formally documented internal control procedures ensure schedules are ready for a Single Audit audit on a timely basis. This ensures submission of the Single Audit report as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Condition: The College failed to submit the Single Audit report to the Federal Audit Clearinghouse by the required deadline. Questioned Costs: None noted. Context: The College was required to submit the April 30, 2022 Single Audit report to the Federal Audit Clearinghouse within nine months of the College?s year-end. The College did not submit this report in the required period. Effect: The lack of formal process to provide timely audit support could result in the late submission of the Single Audit report. Cause: The College did not identify the audit requirement prior to the required deadline. Recommendation: The College should develop formally documented internal control procedures to outline a process to review grant agreements for audit requirements. Additionally, the College should develop formally documented internal control procedures that allow sufficient time to properly conduct a Single Audit. View of Responsible Officials and Planned Corrective Actions: See accompanying Corrective Action Plan as prepared by management.

Corrective Action Plan

Corrective Action Plan: 1. Create a comprehensive timeline (from engagement letter to distribution of final audit) for the auditing process that drives all departments associated with the auditing procedure. 2. Yearly review of auditing timeline with the current auditor for the purpose of making adjustments. Anticipated Completion Date: 1. November 1, 2023 (rough draft is already completed) 2. 30-45 days prior to signing of engagement letter

Categories

Student Financial Aid Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Allowable Costs / Cost Principles Material Weakness Reporting

Other Findings in this Audit

  • 29450 2022-001
    Material Weakness Repeat
  • 29451 2022-001
    Material Weakness Repeat
  • 29452 2022-001
    Material Weakness Repeat
  • 29453 2022-001
    Material Weakness Repeat
  • 29454 2022-001
    Material Weakness Repeat
  • 29455 2022-001
    Material Weakness Repeat
  • 29457 2022-002
    Material Weakness
  • 29458 2022-002
    Material Weakness
  • 29459 2022-002
    Material Weakness
  • 29460 2022-002
    Material Weakness
  • 29461 2022-002
    Material Weakness
  • 605892 2022-001
    Material Weakness Repeat
  • 605893 2022-001
    Material Weakness Repeat
  • 605894 2022-001
    Material Weakness Repeat
  • 605895 2022-001
    Material Weakness Repeat
  • 605896 2022-001
    Material Weakness Repeat
  • 605897 2022-001
    Material Weakness Repeat
  • 605898 2022-002
    Material Weakness
  • 605899 2022-002
    Material Weakness
  • 605900 2022-002
    Material Weakness
  • 605901 2022-002
    Material Weakness
  • 605902 2022-002
    Material Weakness
  • 605903 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $651,378
84.063 Federal Pell Grant Program $511,039
84.425 Education Stabilization Fund $507,306
84.007 Federal Supplemental Educational Opportunity Grants $12,797
84.033 Federal Work-Study Program $11,439