Finding Text
Finding: 2022-002 ? Reporting Identification of the federal program: U.S. DEPARTMENT OF EDUCATION Education Stabilization ? CFDA 84.425(E), 84.425 (F), 84.425(M) Criteria: Internal controls should be in place that provide reasonable assurance that system generated records for all grant activities allow for proper reporting for reimbursement. Condition: During our testing of financial reports to the grantor, it was determined a breakdown in internal controls occurred, because staff did not keep support for amounts reported to grantors from the accounting system. Staff tried to re-create the reports with the accounting system and amounts were materially different than originally reported to the grantor. Cause: An oversight in management resulted in support to be disregarded therefore, the College had no support to verify amounts reported. Effect: The deficiencies in the design and operation of the internal controls in this area could have resulted in the College being paid for expenses not actually expended.Questioned Costs: None Context: During our testing of reports submitted to grantors, it was noted that there was no documentation from the accounting system to support reports submitted. Repeat Finding: No Recommendation: Additional training for staff is needed in the area of internal control over reporting. All reports filed should be thoroughly reviewed and approved before issuance. This review would include tying amounts reported to attached support from the accounting system. Views of responsible officials: Management is in agreement and will implement a Corrective Action Plan, see pages 54-55 of the current year audit.