Finding 50254 (2022-003)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-01-25

AI Summary

  • Core Issue: The College reported $593,703 in expenditures on the SEFA for disbursements made before July 1, 2021, which does not align with the required accrual basis of accounting.
  • Impacted Requirements: Expenditures must be reported according to 2 CFR 200.502(a) and GAAP, but the College incorrectly reported them in the wrong period.
  • Recommended Follow-Up: The College should implement controls to ensure proper cutoff for SEFA reporting and review practices to comply with U.S. GAAP and uniform guidance.

Finding Text

Assistance Listing Number, Federal Agency, and Program Name - 84.425, U.S. Department of Education, Education Stabalization Fund Federal Award Identification Number and Year - P425E203325, Various Pass-through Entity - N/A Finding Type: Significant Deficiency Repeat Finding - No Criteria - Expenditures are required to be reported on the Schedule of Expenditures of Federal Awards (SEFA) according to the basis of accounting followed by the nonfederal entity, per 2 CFR 200.502(a) and in accordance with the cost principles that the program is subject to (2 CFR 200, Subpart E). Condition - The College reported $593,703 of expenditures on the SEFA for disbursements to students that occurred prior to July 1, 2021. This treatment is not in accordance with the accrual basis of accounting following generally accepted accounting principles (GAAP), which is the basis of accounting for the College's SEFA. Questioned Costs - There were no questioned costs identified. Identification of How Questioned Costs Were Computed - Although the expenditures identified were not reported in the appropriate period for the purposes of the SEFA, based on audit procedures performed, they were still within the period of performance for the award. Context - Amounts that were disbursed to students in June 2021 as emergency grants under the Student Portion of the award for summer term were incorrectly not captured on the June 30, 2021 SEFA. These amounts were reported on the June 30, 2022 SEFA. Because they were not captured in the appropriate period, the College concluded to report them on the 2022 SEFA in order to ensure that the expenditures were subject to audit. Cause and Effect - Instead of the College accumulating the total expenditures by disbursement date, management accumulated the total expenditures by academic term. This resulted in a certain expenditures being reported on the SEFA in the incorrect period. Recommendation - We recommend that the College establish controls to ensure appropriate cutoff for SEFA reporting purposes. Views of Responsible Officials and Corrective Action Plan - The College will review its practices for SEFA reporting and in the future follow U.S. GAAP and the uniform guidance.

Corrective Action Plan

Finding Number: 2022-003 Condition: The College reported $593,703 of expenditures on the SEFA for disbursements to students that occurred prior to July 1, 2021. This treatment is not in accordance with the accrual basis of accounting following generally accepted accounting principles (GAAP), which is the basis of accounting for the College's SEFA. Planned Corrective Action: The College will review its practices for SEFA reporting and in the future follow U.S. GAAP and the uniform guidance. Contact person responsible for corrective action: Tom Reynolds, Associate Vice President of Business Services and Deputy Treasurer Lakeland Community College Anticipated Completion Date: As soon as possible moving forward starting 12/19/2022

Categories

Reporting

Other Findings in this Audit

  • 50252 2022-001
    Material Weakness
  • 50253 2022-002
    Significant Deficiency
  • 50255 2022-001
    Material Weakness
  • 50256 2022-001
    Material Weakness
  • 50257 2022-001
    Material Weakness
  • 50258 2022-002
    Significant Deficiency
  • 50259 2022-003
    Significant Deficiency
  • 626694 2022-001
    Material Weakness
  • 626695 2022-002
    Significant Deficiency
  • 626696 2022-003
    Significant Deficiency
  • 626697 2022-001
    Material Weakness
  • 626698 2022-001
    Material Weakness
  • 626699 2022-001
    Material Weakness
  • 626700 2022-002
    Significant Deficiency
  • 626701 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $4.87M
84.063 Federal Pell Grant Program $4.79M
84.425 Covid-19 - Education Stabilization Fund $304,171
84.048 Career and Technical Education -- Basic Grants to States $183,894
84.007 Federal Supplemental Educational Opportunity Grants $174,624
59.037 Small Business Development Centers $112,946
59.037 Covid-19 - Small Business Development Centers $110,352
84.033 Federal Work-Study Program $71,405
17.285 Apprenticeship USA Grants $62,239
93.575 Child Care and Development Block Grant $53,703
17.278 Wioa Dislocated Worker Formula Grants $2,025