Finding 544452 (2024-003)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-03-31

AI Summary

  • Core Issue: The College lacks effective internal controls for accurate reporting in the TRIO Cluster programs, leading to material weaknesses in compliance.
  • Impacted Requirements: Noncompliance with 2 CFR 200.303, 2 CFR 200.329(c)(1), and 34 CFR 646.32(c) regarding accurate recordkeeping and reporting.
  • Recommended Follow-Up: Strengthen internal controls and develop policies to ensure TRIO Cluster reporting aligns with supporting records.

Finding Text

FINDING 2024-003 Subject: TRIO Cluster - Reporting Federal Agency: US Department of Education Federal Programs: Student Support Services, Upward Bound Assistance Listings Numbers: 84.042A, 84.047 Federal Award Numbers and Years (or Other Identifying Numbers): P042A200749, P042A200690, P042A201220, P042A201222, P044A220683, P047A221086, P047A221077 Compliance Requirement: Reporting Audit Findings: Material Weakness, Other Matters INDIANA STATE BOARD OF ACCOUNTS 20 IVY TECH COMMUNITY COLLEGE OF INDIANA SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Condition and Context An effective internal control system was not in place at the College to ensure compliance with requirements related to the Reporting compliance requirement. The following errors in the reporting of key line items (per Part 4 of the Compliance Supplement) on the fiscal year 2023 Annual Performance Report (APR) were noted:  For Student Support Services at the Indianapolis campus, key line items were tested for 16 students. For 2 students, field 27 "College Grade Level (at the end of academic year)" was inaccurately reported.  For Student Support Services at the Richmond campus, key line items were tested for 17 students. o For 1 student, field 18 "Date of First Project Service" was inaccurately reported. o For 2 students, field 19 "College Grade Level (entry into project)" was inaccurately reported. o For 3 students, field 23 "Enrollment Status (at the end of academic year)" was inaccurately reported. o For 2 students, field 24 "Academic Standing" was inaccurately reported. o For 1 student, field 27 "College Grade Level (at end of academic year)" was inaccurately reported.  For Upward Bound at the Indianapolis campus, key line items were tested for 6 students. For 4 students, field 28 "Participation Level for reporting year" was inaccurately reported.  For Upward Bound at the Muncie campus, key line items were tested for 6 students. o For 2 students, field 16 "Eligibility" was inaccurately reported. o For 1 student, field 17 "At Risk: Reading Language Arts or Math Proficiency Not Achieved (at time of initial selection)" was inaccurately reported. The lack of effective internal controls and noncompliance was a systemic issue at 4 of the 7 campuses that were reported on the TRIO Program during the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." INDIANA STATE BOARD OF ACCOUNTS 21 IVY TECH COMMUNITY COLLEGE OF INDIANA SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) 2 CFR 200.329(c)(1) states in part: "The recipient or subrecipient must submit performance reports as required by the Federal award. . . ." 34 CFR 646.32(c) states in part: "Recordkeeping. A grantee must maintain participant records that show– (1) The basis for the grantee's determination that each participant is eligible to participate in the project under sec. 646.3; (2) The grantee's basis for determining the academic need for each participant; (3) The services that are provided to each participant; (4) The performance and progress of each participant by cohort for the duration of the participant's attendance at the grantee's institution . . ." Cause The College's management had not developed an effective system of internal controls that would have ensured compliance with the Reporting compliance requirement. The College had not developed policies and procedures to verify that TRIO Cluster reporting agreed with supporting records. Effect Without the proper implementation of an effectively designed system of internal control, the College cannot ensure reporting for TRIO Cluster is accurate and in agreement with supporting records. Noncompliance with the reporting requirement could have resulted in the loss of federal funds to the College. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the College's management strengthen the internal controls related to the compliance requirement listed above. We also recommended strengthening its policies and procedures to ensure reporting for the TRIO Cluster programs agree with supporting records of the College. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.

Corrective Action Plan

FINDING 2024-003 (Auditor Assigned Reference Number) Finding Subject: TRIO - Reporting Contact Person Responsible for Corrective Action: Nichole Stitt, AVP Sponsored Programs Contact Phone Number and Email Address: 317-921-4800 ext. 084987 and nstitt@ivytech.edu Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The college will develop an internal control system to ensure compliance with the requirement related to the TRIO reporting compliance requirement. Anticipated Completion Date: The projected date of completion for the CAP mentioned above is June 30, 2025. The Student Support Services APR process was corrected in April 2024, a query interfacing with Banner to identify errors in the APRs submitted by each campus, was created.

Categories

Subrecipient Monitoring Eligibility Material Weakness Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 544448 2024-001
    Significant Deficiency
  • 544449 2024-002
    Significant Deficiency
  • 544450 2024-002
    Significant Deficiency
  • 544451 2024-002
    Significant Deficiency
  • 544453 2024-003
    Material Weakness
  • 544454 2024-004
    Significant Deficiency
  • 1120890 2024-001
    Significant Deficiency
  • 1120891 2024-002
    Significant Deficiency
  • 1120892 2024-002
    Significant Deficiency
  • 1120893 2024-002
    Significant Deficiency
  • 1120894 2024-003
    Material Weakness
  • 1120895 2024-003
    Material Weakness
  • 1120896 2024-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $105.88M
84.268 Federal Direct Student Loans $42.94M
84.007 Federal Supplemental Educational Opportunity Grants $3.12M
11.307 Economic Adjustment Assistance $2.76M
84.048 Career and Technical Education -- Basic Grants to States $1.80M
84.042 Trio Student Support Services $1.03M
84.116 Fund for the Improvement of Postsecondary Education $870,419
84.033 Federal Work-Study Program $723,187
17.261 Workforce Data Quality Initiative (wdqi) $670,137
84.047 Trio Upward Bound $616,258
12.905 Cybersecurity Core Curriculum $561,196
84.044 Trio Talent Search $293,567
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $200,373
17.245 Trade Adjustment Assistance $168,965
93.142 Niehs Hazardous Waste Worker Health and Safety Training $148,896
93.959 Block Grants for Prevention and Treatment of Substance Abuse $132,846
59.037 Small Business Development Centers $125,587
93.359 Nurse Education, Practice Quality and Retention Grants $120,946
84.031 Higher Education Institutional Aid $113,212
11.037 Chips Incentives Program $87,490
84.002 Adult Education - Basic Grants to States $83,348
93.958 Block Grants for Community Mental Health Services $78,443
21.027 Coronavirus State and Local Fiscal Recovery Funds $66,753
47.070 Computer and Information Science and Engineering $61,825
17.268 H-1b Job Training Grants $52,530
84.425 Education Stabilization Fund $49,600
17.270 Reentry Employment Opportunities $41,975
17.285 Registered Apprenticeship $35,306
12.404 National Guard Challenge Program $30,867
47.084 Nsf Technology, Innovation, and Partnerships $29,098
47.041 Engineering $22,440
66.605 Performance Partnership Grants $21,708
17.207 Employment Service/wagner-Peyser Funded Activities $16,500
47.076 Stem Education (formerly Education and Human Resources) $13,726
93.367 Flexible Funding Model - Infrastructure Development and Maintenance for State Manufactured Food Regulatory Programs $13,613
84.220 Centers for International Business Education $13,095
84.016 Undergraduate International Studies and Foreign Language Programs $13,091
10.902 Soil and Water Conservation $9,485
84.215 Innovative Approaches to Literacy; Promise Neighborhoods; Full-Service Community Schools; and Congressionally Directed Spending for Elementary and Secondary Education Community Projects $8,400
81.041 State Energy Program $7,992
93.994 Maternal and Child Health Services Block Grant to the States $7,565
84.305 Education Research, Development and Dissemination $6,390
12.401 National Guard Military Operations and Maintenance (o&m) Projects $1,331