Finding 501954 (2023-004)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-10-07

AI Summary

  • Core Issue: The College failed to reconcile grant accounts at year-end, leading to inaccurate financial reporting.
  • Impacted Requirements: Grants must be properly recorded and reconciled to reflect all expenses and revenues accurately.
  • Recommended Follow-Up: Establish written procedures for year-end grant accounting and ensure dedicated staff oversight for accurate reconciliations.

Finding Text

ACCOUNTING FOR GRANTS - MATERIAL WEAKNESS Federal Program COVID-19 Education Stabilization Fund (ALN 84.425 C, F, & M) and Student Financial Assistance Cluster (ALN 84.007, 84.033, 84.063, and 84.268) Criteria The College receives grants from a variety of funding sources throughout the year. At year end, grants should be reconciled for any expenses that have been incurred where reimbursement has yet to be received to properly reflect revenues and expenses. Condition/Context The grants accounts receivable account was not reconciled at year end to properly reflect grant activity. It was noted that grant funds drawn down from the G5 system in April, May, and June 2023 were not recorded in the general ledger. When the College made a journal entry to correct the missing deposits, a clearing account was used not the grants accounts receivable account where the entry should have been posted. Cause The College did not have a written year end closing process for grants or cash accounts. The lack of written procedures, the turnover within the grant accounting staff, and lack of proper oversight from management did not allow grants to be properly accounted for. Effect Material entries were needed to correctly account for drawdowns made before year end and amount owed after year end. Certain grants were also difficult to manage within the period of availability due to either the inadequacy of accounting for expenses or the lack of timely invoices for drawdowns performed to cover expenses that were already incurred. Questioned Costs None. Repeat Finding No. Recommendation Proper accounting for grants is an integral function for the College. The timely and accurate reporting of expenses and the related cash receipts allows for proper grant management of available funds to be expended in the period of availability. The College should review the responsibilities of the staff within the accounting department to ensure that an individual is dedicated to maintaining accurate grant reconciliations and in contact with the various grant managers. The College also should ensure proper oversight is in place to oversee the grant reporting process. Management Response See corrective action plan included in this report package.

Categories

Cash Management Material Weakness Reporting

Other Findings in this Audit

  • 501944 2023-005
    Significant Deficiency
  • 501945 2023-007
    Significant Deficiency
  • 501946 2023-005
    Significant Deficiency
  • 501947 2023-007
    Significant Deficiency
  • 501948 2023-005
    Significant Deficiency
  • 501949 2023-007
    Significant Deficiency
  • 501950 2023-004
    Material Weakness
  • 501951 2023-005
    Significant Deficiency
  • 501952 2023-006
    Material Weakness
  • 501953 2023-007
    Significant Deficiency
  • 501955 2023-005
    Significant Deficiency
  • 501956 2023-006
    Material Weakness
  • 501957 2023-007
    Significant Deficiency
  • 501958 2023-005
    Significant Deficiency
  • 501959 2023-004
    Material Weakness
  • 501960 2023-005
    Significant Deficiency
  • 501961 2023-006
    Material Weakness
  • 501962 2023-007
    Significant Deficiency
  • 501963 2023-007
    Significant Deficiency
  • 501964 2023-004
    Material Weakness
  • 501965 2023-004
    Material Weakness
  • 501966 2023-004
    Material Weakness
  • 501967 2023-004
    Material Weakness
  • 1078386 2023-005
    Significant Deficiency
  • 1078387 2023-007
    Significant Deficiency
  • 1078388 2023-005
    Significant Deficiency
  • 1078389 2023-007
    Significant Deficiency
  • 1078390 2023-005
    Significant Deficiency
  • 1078391 2023-007
    Significant Deficiency
  • 1078392 2023-004
    Material Weakness
  • 1078393 2023-005
    Significant Deficiency
  • 1078394 2023-006
    Material Weakness
  • 1078395 2023-007
    Significant Deficiency
  • 1078396 2023-004
    Material Weakness
  • 1078397 2023-005
    Significant Deficiency
  • 1078398 2023-006
    Material Weakness
  • 1078399 2023-007
    Significant Deficiency
  • 1078400 2023-005
    Significant Deficiency
  • 1078401 2023-004
    Material Weakness
  • 1078402 2023-005
    Significant Deficiency
  • 1078403 2023-006
    Material Weakness
  • 1078404 2023-007
    Significant Deficiency
  • 1078405 2023-007
    Significant Deficiency
  • 1078406 2023-004
    Material Weakness
  • 1078407 2023-004
    Material Weakness
  • 1078408 2023-004
    Material Weakness
  • 1078409 2023-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $12.28M
84.268 Federal Direct Student Loans $11.87M
84.425 Education Stabilization Fund $856,635
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $573,318
84.048 Career and Technical Education -- Basic Grants to States $428,544
84.007 Federal Supplemental Educational Opportunity Grants $350,000
93.558 Temporary Assistance for Needy Families $291,539
84.033 Federal Work-Study Program $258,342
84.031 Higher Education Institutional Aid $214,079
17.278 Wioa Dislocated Worker Formula Grants $90,779
47.076 Stem Education (formerly Education and Human Resources) $53,669
92.599 Chafee Education and Training Vouchers Program $50,500
17.258 Wioa Adult Program $28,348
84.016 Undergraduate International Studies and Foreign Language Programs $10,460
17.245 Trade Adjustment Assistance $5,000