Finding 571816 (2024-010)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-07-23
Audit: 362826
Auditor: Rbt CPAS

AI Summary

  • Core Issue: The College's reported HEERF grant amount on the SEFA does not match the expenditures in the Federal CARES Reporting Portal.
  • Impacted Requirements: Accurate reporting is required by 2 CFR § 200.510(b) and HEERF grant terms.
  • Recommended Follow-Up: Implement formal reconciliation procedures to ensure alignment between SEFA and CARES Portal reports, with documentation reviewed by a responsible official.

Finding Text

Finding 2024-010 U.S. Department of Education Higher Education Emergency Relief Fund (HEERF) 84.425E/84.425F Requirements: Reporting Condition: During our audit of the Schedule of Expenditures of Federal Awards (“SEFA”) for the year ended August 31, 2024, we noted that the amount reported by the College for the HEERF grant on the SEFA did not agree with the cumulative expenditures reported in the Federal CARES Reporting Portal. Criteria: Per 2 CFR § 200.510(b), the SEFA must be complete and accurate, and per HEERF grant terms and conditions, institutions are required to accurately report grant expenditures in both the SEFA and the CARES Act Reporting Portal. Cause: The discrepancy appears to be the result of a lack of reconciliation procedures between the general ledger, the SEFA, and the Federal Reporting Portal submissions. Effect: The inconsistency may result in inaccurate financial reporting and a risk of noncompliance with federal reporting requirements, which could impact future funding or trigger additional oversight. Repeat Finding: Not a repeat finding Recommendation: We recommend that management implement formal reconciliation procedures to ensure that amounts reported in the SEFA align with those reported in the Federal CARES Portal. The reconciliation should be documented and reviewed by a responsible official prior to finalizing federal reporting submissions. Perspective: This issue only impacts reporting for the HEERF program. Management’s Response: See corrective action plan.

Corrective Action Plan

Reporting Administration will work to ensure that a procedure is in place for reconciliation which is documented and reviewed by the VP for Administrative Services and the College Controller by the end of 2025.

Categories

Reporting

Other Findings in this Audit

  • 571814 2024-008
    Material Weakness Repeat
  • 571815 2024-009
    Material Weakness Repeat
  • 1148256 2024-008
    Material Weakness Repeat
  • 1148257 2024-009
    Material Weakness Repeat
  • 1148258 2024-010
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $2.69M
84.268 Federal Direct Student Loans $1.29M
84.038 Federal Perkins Loan Program_federal Capital Contributions $242,629
84.048 Career and Technical Education -- Basic Grants to States $150,273
84.425 Education Stabilization Fund $135,234
84.033 Federal Work-Study Program $46,052
84.007 Federal Supplemental Educational Opportunity Grants $39,350