FAC Explorer

Finding 419462 (2022-003)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-01-05
Audit: 312232
Organization: Hagerstown Community College (MD)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The College failed to maintain proper documentation for quarterly and annual reports, leading to inaccuracies in financial reporting.
  • Impacted Requirements: This finding violates 2 CFR, Part 200, Section 200.328, which mandates accurate and supported financial reporting.
  • Recommended Follow-Up: The College should enhance its procedures to ensure all necessary documentation is collected and maintained for compliance with reporting requirements.

Finding Text

Reference Number: 2022-003Federal Agency: U.S. Department of EducationFederal Program: Education Stabilization FundAssistance Listing Number: 84.425FAward Number and Period: P425F200021; May 4, 2020 ? June 30, 2023Compliance Requirement: ReportingType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:2 CFR, Part 200, Section 200.328 requires that unless otherwise approved by OMB, the Federal awarding agency must solicit only the OMB-approved governmentwide data elements for collection of financial information (at time of publication the Federal Financial Report or such future, OMB-approved, governmentwide data elements available from the OMB-designated standards lead. This information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. The Federal awarding agency must use OMB-approved common information collections, as applicable, when providing financial and performance reporting information.Condition:The College was unable to provide supporting documentation that agreed to the quarterly and annual reports submitted for the grant.Context:As part of the testing of the reporting requirement, CLA identified 2 errors in the quarterly reports out of the 4 tested, and an error in the annual report.Cause:The College did not have appropriate controls to ensure documentation for the quarterly and annual reporting was properly maintained.Effect:The College annual reporting may not be accurate and supported.Repeat Finding: NoQuestioned Costs:NoneRecommendation:We recommend the College review current procedures to ensure documentation is maintained to support the amounts submitted on quarterly and annual reports.Views of Responsible Officials:Management agrees with the finding.

Corrective Action Plan

2022-003 Education Stabilization Fund ? Assistance Listing No. 84.425FCondition: The College was unable to provide supporting documentation that agreed to the quarterly and annual reports submitted for the grant.Recommendation: We recommend the College review current procedures to ensure documentation is maintained to support the amounts submitted on quarterly and annual reports.Explanation of disagreement with audit finding: There is no disagreement with the audit finding.Action taken in response to finding: Management has reviewed their current procedures and has included additional controls to ensure the supporting documents are maintain with a copy of the submitted quarterly and annual reports.Name(s) of the contact person(s) responsible for corrective action: Dr. Heike Soeffker-Culicerto, Vice President of Administration and Finance, 240-500-2235Planned completion date for corrective action plan: March 31, 2023

Categories

Reporting Subrecipient Monitoring Significant Deficiency

Other Findings in this Audit

  • 419456 2022-002
    Significant Deficiency
  • 419457 2022-002
    Significant Deficiency
  • 419458 2022-002
    Significant Deficiency
  • 419459 2022-002
    Significant Deficiency
  • 419460 2022-002
    Significant Deficiency
  • 419461 2022-002
    Significant Deficiency
  • 419463 2022-003
    Significant Deficiency
  • 419464 2022-003
    Significant Deficiency
  • 995898 2022-002
    Significant Deficiency
  • 995899 2022-002
    Significant Deficiency
  • 995900 2022-002
    Significant Deficiency
  • 995901 2022-002
    Significant Deficiency
  • 995902 2022-002
    Significant Deficiency
  • 995903 2022-002
    Significant Deficiency
  • 995904 2022-003
    Significant Deficiency
  • 995905 2022-003
    Significant Deficiency
  • 995906 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $4.87M
84.425 Education Stabilization Fund $4.64M
84.268 Federal Direct Student Loans $4.33M
84.047 Trio_upward Bound $271,104
84.042 Trio_student Support Services $260,110
84.048 Career and Technical Education -- Basic Grants to States $165,017
84.007 Federal Supplemental Educational Opportunity Grants $113,850
84.033 Federal Work-Study Program $93,016
84.335 Child Care Access Means Parents in School $89,941
84.002 Adult Education - Basic Grants to States $71,967
93.575 Child Care and Development Block Grant $37,086
23.002 Appalachian Area Development $32,671
45.162 Promotion of the Humanities_teaching and Learning Resources and Curriculum Development $16,667
45.149 Promotion of the Humanities_division of Preservation and Access $8,698