Finding 600485 (2022-005)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-05-07
Audit: 19960
Organization: Cottey College (MO)

AI Summary

  • Core Issue: The College failed to maintain proper internal controls, leading to late and inaccurate reporting of federal grant expenditures.
  • Impacted Requirements: Non-compliance with Uniform Guidance 2 CFR 200.303 regarding timely and accurate submission of quarterly and annual reports.
  • Recommended Follow-up: Review and enhance reporting procedures, ensure proper documentation is retained, and implement a review process by someone other than the report preparer.

Finding Text

Federal Agency: Department of Education Federal Program: Higher Education Emergency Relief Funding Assistance Numbers: 84.425E and 84.425F Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: Per Uniform Guidance 2 CFR 200.303, non-federal entities receiving federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. The initial reporting for this grant requires the report to be submitted to the college or university?s website within 30 days of the signed Certification Agreement or 30 days after the electronic announcement dated May 6, whichever is later. Colleges and universities were then required to update their websites every 45 days after initial upload. This was changed to quarterly on August 31, 2020. In addition, an annual report is required. Condition: During our testing, we noted: ? The December 31, 2021, and March 31, 2022, student quarterly reports did not have proper documentation of expenditure. ? The December 31, 2021, and March 31, 2022, student quarterly reports were not posted timely. ? The March 31, 2022, Institutional quarterly report was not posted timely. ? The December 31, 2021, and March 31, 2022, institutional quarterly reports were not properly reviewed prior to submission. ? The December 31, 2021, annual report was not properly reviewed prior to submission. Question Cost: None Context: A control system to prevent and detect errors in the reporting process was not created at the time the reports were filed. Cause: The College did not have someone tracking the requirements to ensure that it posted the reporting timely and accurately. Effect: The College did not comply with ED regulations by reporting accurate information as well as retaining support for the information reported to ensure accuracy. Repeat Finding: No Recommendation: We recommend the College review its reporting procedures to ensure all required steps are included as well as the supporting documentation to prepare the report is retained. The reports should be reviewed by someone other than the preparer of the report and this review should be documented. View of Responsible Official: There is no disagreement with the audit finding.

Categories

Matching / Level of Effort / Earmarking Reporting Significant Deficiency

Other Findings in this Audit

  • 24031 2022-002
    Significant Deficiency
  • 24032 2022-003
    Significant Deficiency
  • 24033 2022-004
    Significant Deficiency Repeat
  • 24034 2022-002
    Significant Deficiency
  • 24035 2022-003
    Significant Deficiency
  • 24036 2022-004
    Significant Deficiency Repeat
  • 24037 2022-002
    Significant Deficiency
  • 24038 2022-003
    Significant Deficiency
  • 24039 2022-004
    Significant Deficiency Repeat
  • 24040 2022-002
    Significant Deficiency
  • 24041 2022-003
    Significant Deficiency
  • 24042 2022-004
    Significant Deficiency Repeat
  • 24043 2022-005
    Significant Deficiency
  • 24044 2022-005
    Significant Deficiency
  • 600473 2022-002
    Significant Deficiency
  • 600474 2022-003
    Significant Deficiency
  • 600475 2022-004
    Significant Deficiency Repeat
  • 600476 2022-002
    Significant Deficiency
  • 600477 2022-003
    Significant Deficiency
  • 600478 2022-004
    Significant Deficiency Repeat
  • 600479 2022-002
    Significant Deficiency
  • 600480 2022-003
    Significant Deficiency
  • 600481 2022-004
    Significant Deficiency Repeat
  • 600482 2022-002
    Significant Deficiency
  • 600483 2022-003
    Significant Deficiency
  • 600484 2022-004
    Significant Deficiency Repeat
  • 600486 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $999,516
84.063 Federal Pell Grant Program $637,109
84.425 Education Stabilization Fund $431,091
84.033 Federal Work-Study Program $29,746
84.007 Federal Supplemental Educational Opportunity Grants $18,741