Finding Text
2022 ? 004: Program Income - Federal Agency: U.S. Department of Interior Federal Program Name: Assistance to Tribally Controlled Community Colleges and Universities Assistance Listing Number: 15.027 Federal Award Identification Number and Year: A19AP00124 ? Year Ended June 30, 2022 Award Period: 7/1/2019 ? 6/30/2024 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: Section 200.303, Internal Controls, states that the College shall ?establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). If interest in excess of $500 per year is earned on federal cash draws, the College is required to consider annual remittance to the granting agency in absence of other direction from the granting agency. Condition: The College has taken advance draws from the granting agency without incurring qualifying expenditures. These advance draws are reported as unearned revenues in the College?s financial statements in the amount originally drawn. Interest being earned on these funds have not been remitted to the granting agency. Questioned costs: None Context: As part of the audit of the College?s cash management process, it was noted that the College was not appropriately tracking and remitting program income being earned on advance draws in accordance with compliance requirements. Cause: The College did not appropriately track and remit program income earned on advance draws. Effect: The College earned interest income that was not appropriately tracked or remitted back to the granting agency. Repeat Finding: No Recommendation: We recommend that the College develop a process and internal controls to draw federal funds when qualifying expenditures have been incurred or scheduled to be incurred. We recommend that the College develop a process and internal controls to track program income earned when funds are drawn in advance of qualifying expenditures being incurred or scheduled to be incurred. Views of responsible officials: The College agrees with the auditor?s comments and has taken corrective action to ensure program income and cash management consideration is added to policies and procedures.