Finding 37656 (2022-004)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-03-29
Audit: 36236
Organization: Cornell College (IA)

AI Summary

  • Core Issue: The College did not follow its procurement policy, failing to obtain required price quotations and lacking a vendor verification policy.
  • Impacted Requirements: Non-compliance with federal regulations regarding procurement and vendor debarment checks as outlined in 2 CFR 200.318 and 2 CFR 180.995.
  • Recommended Follow-Up: Review and update the procurement policy to ensure compliance, and create a new policy for verifying vendor suspension and debarment.

Finding Text

2022 ? 004 ? Higher Education Emergency Relief Fund (HEERF) ? Procurement, Suspension and Debarment Federal Agency: Department of Education Federal Program Title: Higher Education Emergency Relief Fund Assistance Listing Numbers: 84.425F Award Period: July 1, 2021 through June 30, 2022 Type of Finding: - Significant Deficiency in Internal Control over Compliance - Other Matters Criteria or Specific Requirement: Title 2, Subtitle A, Chapter 2 Part 200, Subpart D, section 200.318 of the Code of Federal Regulations requires Colleges to have a written procurement policy that includes certain requirements as it relates to procuring good and services using federal dollars. Additionally, 2 CFR 180.995 requires that the College has a written policy where Colleges should perform a check to ensure vendors are not debarred. Condition: During our testing, it was noted that the College has a procurement policy, but this policy was not followed. The College failed to obtain, or document why it failed to obtain, at least two price or rate quotations from two qualified sources prior to making the purchase. Also, it was noted during testing that there is no written policy that requires the College to verify that vendors are suspended or debarred. Questioned Costs: None Context: The College did not have appropriate documentation that met the procurement and suspension and debarment federal requirements. Cause: The College had difficulty acquiring testing supplies and purchased these whenever they were able. The College had difficulty finding multiple vendors at any given time. Effect: The College did not have appropriate documentation that met the procurement and suspension and debarment federal requirements. Repeat Finding: No Recommendation: We recommend that the College review their procurement policy to ensure a process is in place to follow it in the future. We also recommend a policy be drafted surrounding suspension and debarment that includes all federal requirements. Views of Responsible Officials: There is no disagreement with the audit finding.

Corrective Action Plan

HEERF Procurement, Suspension and Debarment ? Assistance Listing No. 84.425F Recommendation: We recommend that the College review their procurement policy to ensure a process is in place to follow it in the future. We also recommend a policy be drafted surrounding suspension and debarment that includes all federal requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The College will review their procedures around HEERF reporting and ensure someone is designated to review prior to uploading the reports. Name(s) of the contact person(s) responsible for corrective action: Kelly Flege Planned completion date for corrective action plan: update plan

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 37646 2022-002
    Significant Deficiency Repeat
  • 37647 2022-002
    Significant Deficiency Repeat
  • 37648 2022-002
    Significant Deficiency Repeat
  • 37649 2022-002
    Significant Deficiency Repeat
  • 37650 2022-002
    Significant Deficiency Repeat
  • 37651 2022-002
    Significant Deficiency Repeat
  • 37652 2022-002
    Significant Deficiency Repeat
  • 37653 2022-002
    Significant Deficiency Repeat
  • 37654 2022-003
    Significant Deficiency Repeat
  • 37655 2022-003
    Significant Deficiency Repeat
  • 614088 2022-002
    Significant Deficiency Repeat
  • 614089 2022-002
    Significant Deficiency Repeat
  • 614090 2022-002
    Significant Deficiency Repeat
  • 614091 2022-002
    Significant Deficiency Repeat
  • 614092 2022-002
    Significant Deficiency Repeat
  • 614093 2022-002
    Significant Deficiency Repeat
  • 614094 2022-002
    Significant Deficiency Repeat
  • 614095 2022-002
    Significant Deficiency Repeat
  • 614096 2022-003
    Significant Deficiency Repeat
  • 614097 2022-003
    Significant Deficiency Repeat
  • 614098 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans - Unsubsidized Loans $2.24M
84.268 Federal Direct Student Loans - Subsidized Loans $2.13M
84.268 Federal Direct Student Loans - Plus Loans $1.48M
84.063 Federal Pell Grant $1.42M
84.425E Heerf Student Aid Portion $1.19M
84.425F Heerf Institutional Portion $1.19M
84.038 Federal Perkins Loan Program - Beginning Balance $438,216
84.033 Federal Work-Study Program $332,203
84.007 Federal Supplemental Educational Opportunity Grants $125,964
47.050 Geosciences: Napal $76,910
47.050 Geosciences: Indo-Pacific Monsoon $22,465
47.050 Geosciences: Portugal $14,768
47.050 Geosciences: Rainfull Events on Australian Stalagmite $12,140
47.076 Education and Human Resources: Stem $11,997
84.379 Teacher Education Assistance for College & Higher Education Grants $9,430
47.074 Rui Collaborative Research: Untangling Tropical Diversity: A Phylogenetic Analysis $1,320