Finding 588274 (2023-001)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2024-02-05

AI Summary

  • Core Issue: The College did not consistently obtain executed employment contracts for all employees under the program, violating internal control requirements.
  • Impacted Requirements: This oversight affects compliance with 2 CFR section 200.303, which mandates effective internal controls over Federal awards.
  • Recommended Follow-Up: Ensure strict adherence to the policy of obtaining executed contracts for all employees to prevent potential disallowed costs; corrective actions are expected by February 29, 2024.

Finding Text

TRIO Cluster ‐ Assistance Listing # 84.042, 84.044, 84.047 U.S. Department of Education Federal Assistance Identification Number – P042A2A200272, P044A210475, P047A220386 Federal Award Year ‐ 2022 Criteria – As specified in 2 CFR section 200.303 the non‐Federal entity must 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. Adequate controls must be in place to ensure that expenditures are properly authorized and allowable under program guidelines and are reported in the applicable reporting periods. Condition – The College’s internal control over compliance with allowable costs and activities requires that the terms of employment in the program be documented in an executed contract which details the terms of the employment. This control was not consistently adhered to for all employees. Cause – We noted three instances in a sample of sixteen employees in which an executed employment contract was not obtained to document the terms and approval of the employment under the program. Effect – Failure to follow the College’s policy of obtaining an executed contract for each employee under the program could result in disallowed costs. Questioned Costs – Not determinable. Recommendation – We recommend that the College strictly adhere to its policy of obtaining executed contracts for all employed under the program to ensure there is evidence of review and approval of employee contracts prior to payment. Management’s Response – The College will put into place controls that will provide assurance of proper review and approval of contracts for employees payroll disbursements prior to payment. The Dean of Business Affairs will be responsible for this corrective action and anticipates completion of corrective action will be taken before February 29, 2024.

Categories

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Other Findings in this Audit

  • 11831 2023-001
    Significant Deficiency
  • 11832 2023-001
    Significant Deficiency
  • 11833 2023-001
    Significant Deficiency
  • 588273 2023-001
    Significant Deficiency
  • 588275 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $9.70M
84.425 Covid-19 Education Stabilization Fund $2.39M
84.042 Trio_student Support Services $678,645
84.031 Higher Education_institutional Aid $451,924
17.258 Wia Adult Program $378,212
84.002 Adult Education - Basic Grants to States $370,946
84.048 Career and Technical Education -- Basic Grants to States $358,584
84.047 Trio_upward Bound $344,644
84.044 Trio_talent Search $340,521
84.007 Federal Supplemental Educational Opportunity Grants $162,862
84.033 Federal Work-Study Program $110,346
17.259 Wia Youth Activities $57,964
17.268 H-1b Job Training Grants $49,980
17.278 Wia Dislocated Worker Formula Grants $3,092