Finding Text
Federal Agency U.S. Department of Education
Federal Program Name Higher Educational Institutional Aid
Assistance Listing Number 84.031X
Federal Award Identification Number and Year "
P031X220005 - 2024, P031X200005 - 2024, P031X230006 - 2024"
Pass-Through Agency (if applicable) N/A
Pass-Through Number(s) (if applicable) N/A
Award Period 7/1/23 - 6/30/24
Compliance Requirement Affected Allowable Costs and Special Tests and Provisions
Type of Finding
Internal Control Significant Deficiency
Document judgment for your assessment Control finding did not result in material questioned costs-therefore we will document as a SD. Additionally qualitatively failure did not have material impact on compliance.
Compliance Not Material
Document judgment for your assessment Not greater than 5% and not a systemic failure.
Criteria or specific requirement "Per 2 CFR 200.430(g)(1)(vi), Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records should support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity.
Per 2 CFR 200.303, nonfederal 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 have proper documentation of Time and Effort reporting.
Questioned costs: N/A
Known
Likely
Context During our testing of 40 Payroll transactions, we identified 8 time and effort reports that were not documented properly to track hours worked on federal grant and 12 reports that did not have a documentation of review. Additionally during our testing of 5 key personnel with Level of Effort provisions in the grant award notification, we identified 1 key personnel did not have documentation to track hours for level of effort required by the Federal agency.
Cause The College did not have proper procedures in place to track time and effort for personnel on federal grants.
Effect The College could potentially expense incorrect amount to federal grants.
Repeat Finding No
Recommendation "We recommend the College review policies and procedures to ensure all personnel on federal grants documented time and effort reports as stated in federal regulations.
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Views of Responsible Officials Management agrees with this finding.