Finding Text
Federal Program
COVID-19 Education Stabilization Fund (ALN 84.425 C, F, & M) and Student Financial Assistance Cluster (ALN 84.033, 84.063, and 84.268)
Criteria
The Code of Federal Regulations, 2 CFR 200.303, non-Federal entities receiving Federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations and program compliance requirements.
Condition
The College did not locate evidence that the lost revenue calculation was performed before drawdown was completed in the G5 system. Evidence of approval to drawdown funds form the G5 system was also not located by management.
Cause
Turnover within the accounting office and lack of proper oversight from management led to the lack of evidence to support the timing of drawdowns reported to be located and provided to the auditor.
Effect
The College’s lack of evidence to support drawdowns did not allow the auditor to test the cash management internal control over compliance requirement for the College.
Questioned Costs
None.
Context
There was significant turnover within the accounting office during the 2023 fiscal year. The current staff was unable to locate the calculation that was performed for the lost revenue drawdown or the approval to draw funds from the grant website.
Repeat Finding
No
Recommendation
The College should revisit its internal control procedures to ensure that direct and material compliance requirement are being followed and controls are implemented to ensure the processes are followed and assign accountability for completion. The procedures should be documented to allow new employees an understanding of the grant requirements and how they are fulfilled.
Management Response
See corrective action plan included in this report package.