Finding 519773 (2024-008)

Material Weakness
Requirement
C
Questioned Costs
-
Year
2024
Accepted
2025-01-20
Audit: 338909
Organization: Bishop State Community College (AL)

AI Summary

  • Core Issue: The College lacks a proper review and approval process for cash drawdowns, leading to noncompliance with federal requirements.
  • Impacted Requirements: 2 CFR Part 200.305 mandates internal controls over cash management, which were not followed for 9 months.
  • Recommended Follow-Up: Strengthen cash management policies and procedures to ensure effective controls are in place and functioning.

Finding Text

Finding 2024-008 – Cash Management (Material Weakness and Noncompliance) Information on the Federal Program: U.S. Department of Education, Higher Education- Institutional Aid, Assistance Listing No. 84.031Criteria: 2 CFR Part 200.305 establishes the methods of receiving payment from the federal agency. The College uses the reimbursement method to receive Title III funds. The non-federal entity is also required to design and implement internal controls over the cash management process. Condition: We selected 5 drawdowns for reimbursement made during the year for testing. For 4 drawdowns, there was no documentation of a review of the calculation of the amount to draw or approval to draw down the funds. Cause: The College did not have a review and approval process in place for 9 months of the fiscal year. Effect: The College’s grant reimbursements were not properly approved. Questioned Costs: None reported Recommendation: We recommend the College strengthen its policies and procedures over cash management to ensure controls are properly implemented and working effectively. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.

Corrective Action Plan

Management's Response: Management concurs with the above finding and implementation of proper approval and documentation was completed in July 2024. All required documentation will be attached to each drawdown receipt.

Categories

Cash Management

Other Findings in this Audit

  • 519769 2024-012
    Significant Deficiency
  • 519770 2024-012
    Significant Deficiency
  • 519771 2024-012
    Significant Deficiency
  • 519772 2024-007
    Material Weakness
  • 519774 2024-009
    Significant Deficiency
  • 519775 2024-010
    Significant Deficiency
  • 519776 2024-011
    Significant Deficiency
  • 1096211 2024-012
    Significant Deficiency
  • 1096212 2024-012
    Significant Deficiency
  • 1096213 2024-012
    Significant Deficiency
  • 1096214 2024-007
    Material Weakness
  • 1096215 2024-008
    Material Weakness
  • 1096216 2024-009
    Significant Deficiency
  • 1096217 2024-010
    Significant Deficiency
  • 1096218 2024-011
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $14.47M
84.063 Federal Pell Grant Program $9.46M
84.031 Higher Education Institutional Aid $5.53M
84.002 Adult Education - Basic Grants to States $587,268
84.048 Career and Technical Education -- Basic Grants to States $465,323
84.042 Trio Student Support Services $249,285
84.007 Federal Supplemental Educational Opportunity Grants $209,274
17.268 H-1b Job Training Grants $166,381
17.259 Wioa Youth Activities $127,540
84.033 Federal Work-Study Program $95,025
20.205 Highway Planning and Construction $21,836