Finding 519807 (2024-001)

Material Weakness
Requirement
C
Questioned Costs
-
Year
2024
Accepted
2025-01-21
Audit: 339006
Organization: Bevill State Community College (AL)

AI Summary

  • Core Issue: The College lacks proper documentation for the review and approval of cash draw downs, leading to ineffective cash management controls.
  • Impacted Requirements: Compliance with 2 CFR 200.305, which mandates internal controls for federal payment processes.
  • Recommended Follow-Up: Strengthen policies and procedures to ensure proper documentation and approval for reimbursement draw downs.

Finding Text

Finding 2024-001 – Cash Management (Material Weakness) Information on the Federal Program: U.S. Department of Education, Trio Cluster Criteria: 2 CFR 200.305 establishes the procedures for receiving federal payments. Non-federal entities must design and implement internal controls to ensure compliance with cash management requirements. Condition: We selected a sample of 24 reimbursement draw downs made during the year through the G5 payment system. Procedures were in place to accumulate expenses based on approved invoices and draw the reimbursement amount down through G5, however, documentation of review and approval of amounts to be drawn was not available. Cause: The College did not document the review and approval of the calculated reimbursement before it was drawn down. Effect: Key controls over cash management were not operating effectively. Questioned Costs: None reported Recommendation: We recommend the College strengthen its policies and procedures to properly design and implement controls over the draw down process. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.

Corrective Action Plan

Information on the Federal Program: U.S. Department of Education, Trio Cluster Criteria: 2 CFR 200.305 establishes the procedures for receiving federal payments. Non-federal entities must design and implement internal controls to ensure compliance with cash management requirements. Condition: We selected a sample of 24 reimbursement draw downs made during the year through the G5 payment system. Procedures were in place to accumulate expenses based on approved invoices and draw the reimbursement amount down through G5, however, documentation of review and approval of amounts to be drawn was not available. Management’s Response: The College has always had controls on draw downs associated with separation of duties and the review of grants. The College will ensure a signature page is included to document these efforts of the review and approval of all Federal draw downs. Anticipated Completion Date: January 31, 2025

Categories

Cash Management

Other Findings in this Audit

  • 519808 2024-001
    Material Weakness
  • 519809 2024-001
    Material Weakness
  • 519810 2024-001
    Material Weakness
  • 519811 2024-002
    Significant Deficiency
  • 519812 2024-002
    Significant Deficiency
  • 519813 2024-002
    Significant Deficiency
  • 519814 2024-002
    Significant Deficiency
  • 519815 2024-002
    Significant Deficiency
  • 519816 2024-002
    Significant Deficiency
  • 1096249 2024-001
    Material Weakness
  • 1096250 2024-001
    Material Weakness
  • 1096251 2024-001
    Material Weakness
  • 1096252 2024-001
    Material Weakness
  • 1096253 2024-002
    Significant Deficiency
  • 1096254 2024-002
    Significant Deficiency
  • 1096255 2024-002
    Significant Deficiency
  • 1096256 2024-002
    Significant Deficiency
  • 1096257 2024-002
    Significant Deficiency
  • 1096258 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $7.59M
84.047 Trio Upward Bound $1.62M
23.002 Appalachian Area Development $1.50M
84.042 Trio Student Support Services $1.18M
84.044 Trio Talent Search $791,489
84.002 Adult Education - Basic Grants to States $333,295
84.066 Trio Educational Opportunity Centers $268,146
84.048 Career and Technical Education -- Basic Grants to States $239,351
17.600 Mine Health and Safety Grants $221,244
81.042 Weatherization Assistance for Low-Income Persons $191,259
84.007 Federal Supplemental Educational Opportunity Grants $149,509
17.259 Wioa Youth Activities $111,897
93.558 Temporary Assistance for Needy Families $32,155
84.033 Federal Work-Study Program $29,930
17.268 H-1b Job Training Grants $21,792
47.076 Stem Education (formerly Education and Human Resources) $2,691