Finding Text
Assistance Listing Number, Federal Agency, and Program Name - 84.425F, 84.425M, 84.425N; U.S. Department of Education; Education Stabilization Fund (ESF) - HEERF Institutional Portion, HEERF Strengthening Institutions Program (SIP), HEERF Fund for Improvement of Postsecondary Education (FIPSE) Formula Grant. Federal Award Identification Number and Year - P425F204736, P425M201046-20A , P425N200748 Pass-through Entity - N/A Finding Type - Material weakness Repeat Finding - Yes 2021-005 Criteria - Per 2 CFR 200.510(b) - The auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended as determined in accordance with ? 200.502. While not required, the auditee may choose to provide information requested by federal awarding agencies and pass-through entities to make the schedule easier to use. Condition - The schedule of expenditures of federal awards (SEFA) was not complete and accurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - In fiscal year 2022, the Corporation expended approximately $15.7 million of federal funding. The funding was received from several federal and nonfederal entities. The Corporation accumulates the financial data and other required information to complete the SEFA. The SEFA improperly excluded $387,635 of expenditures under programs ALN 84.425F, 84.425M, and 84.425N. The addition of the $387,635 of expenditures caused the ALN 84.425 Education Stabilization Fund to require testing as a major program Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate. The effect of the lack of controls is detailed in the context section above. Additionally, the lack of controls resulted in an additional major program the year ended June 30, 2022. The error noted above have been corrected on the SEFA as of June 30, 2022. Recommendation - The Corporation should implement a process to ensure that the SEFA is prepared is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - Management concurs with the finding and additional training for those individuals responsible for grant accounting has and will continue to be conducted as well as incorporating additional levels of review to ensure the SEFA is completed accurately and timely.