Finding 396989 (2022-006)

Material Weakness
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2024-05-15
Audit: 306394
Organization: College of Micronesia - Fsm (FM)

AI Summary

  • Core Issue: Two out of 32 transactions lacked prior written approval for capital expenditures, totaling $24,320.
  • Impacted Requirements: Noncompliance with allowable costs/cost principles, as expenditures must be approved before incurring costs.
  • Recommended Follow-Up: Implement better monitoring of program costs to ensure compliance with approval requirements.

Finding Text

Criteria: In accordance with applicable allowable costs/cost principles requirements, written approval of Federal awarding agency or pass-through entity must be obtained prior to incurring the capital expenditures, and costs must represent valid expenditures of the program. Condition: A. For 2 (or 6%) of 32 non-payroll transactions tested, aggregating $56K of $409K in total nonpayroll program costs, no written prior approval obtained prior to incurring capital expenditures. Program Details Effective Date Campus Code Division Code Transaction Description Session ID Amount Funding Source 1 5/31/2022 10 104 po22-01531 apn22-013 $ 1,670 SEG 2 6/27/2022 10 104 po22-02805;8931 api22-1083 22,650 SEG Total $ 24,320 B. In 1 (or 3%) of 32 non-payroll transactions tested, aggregating $56K of $409K in total nonpayroll program costs, stipend was paid to an individual who no longer participated in the program. Program Details Effective Date Campus Code Division Code Transaction Description Session ID Amount Funding Source 2/1/2022 10 104 Employee: 290786 Stipend api22-0429 $ 100 SEG No questioned cost was identified for this finding as the College subsequently obtained approval for the aforementioned capital expenditures. Cause: COM-FSM did not effectively monitor compliance with applicable allowable costs/cost principles requirements. Effect: COM-FSM is in noncompliance with applicable allowable costs/cost principles requirements. Recommendation: COM-FSM should effectively monitor program costs for compliance with allowable costs/cost principles requirements.

Categories

Allowable Costs / Cost Principles Subrecipient Monitoring

Other Findings in this Audit

  • 396988 2022-006
    Material Weakness
  • 396990 2022-006
    Material Weakness
  • 396991 2022-007
    Significant Deficiency
  • 396992 2022-007
    Significant Deficiency
  • 396993 2022-007
    Significant Deficiency
  • 973430 2022-006
    Material Weakness
  • 973431 2022-006
    Material Weakness
  • 973432 2022-006
    Material Weakness
  • 973433 2022-007
    Significant Deficiency
  • 973434 2022-007
    Significant Deficiency
  • 973435 2022-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $10.17M
84.425 Education Stabilization Fund $5.11M
11.307 Economic Adjustment Assistance $561,846
84.044 Trio_talent Search $536,049
84.047 Trio_upward Bound $344,462
93.236 Grants to States to Support Oral Health Workforce Activities $308,993
15.875 Economic, Social, and Political Development of the Territories $144,500
93.107 Area Health Education Centers Point of Service Maintenance and Enhancement Awards $106,670
10.308 Resident Instruction Grants for Insular Area Activities $95,935
47.076 Education and Human Resources $20,937