Finding 615306 (2022-003)

Significant Deficiency Repeat Finding
Requirement
C
Questioned Costs
-
Year
2022
Accepted
2023-09-24
Audit: 46564
Organization: Salem Community College (NJ)
Auditor: Bkc CPAS PC

AI Summary

  • Core Issue: Federal funds are mixed together in one account, making it hard to track individual program balances.
  • Impacted Requirements: The School must clearly separate and identify federal funds to comply with accounting standards.
  • Recommended Follow-Up: Implement a process to accurately identify and track the balance of each federal aid program within the disbursement account.

Finding Text

Type: Internal Control Over Compliance Criteria: The School must ensure that its accounting records clearly reflect that it segregates federal funds from all other funds and can determine the amount of funds related to each federal program. Condition: Federal funds are comingled within the School?s financial aid disbursement account. No reconciliation is done to identify the balance of each type of federal aid that is included in the account. Cause: Federal funds are deposited into one account. Effect: The remaining balance of each type of federal funds included in the account cannot be determined. Recommendation: The School should develop a process for identifying the balance of funds for each financial aid program that is included in the School?s financial aid disbursement account as readily as if those funds were in a separate account. Management?s Response: The school is in the process of establishing procedures to identify the type of federal funds remaining in the financial aid disbursement account.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 38861 2022-003
    Significant Deficiency Repeat
  • 38862 2022-004
    Significant Deficiency
  • 38863 2022-007
    Significant Deficiency
  • 38864 2022-003
    Significant Deficiency Repeat
  • 38865 2022-005
    Significant Deficiency Repeat
  • 38866 2022-006
    Significant Deficiency Repeat
  • 38867 2022-003
    Significant Deficiency Repeat
  • 38868 2022-003
    Significant Deficiency Repeat
  • 615303 2022-003
    Significant Deficiency Repeat
  • 615304 2022-004
    Significant Deficiency
  • 615305 2022-007
    Significant Deficiency
  • 615307 2022-005
    Significant Deficiency Repeat
  • 615308 2022-006
    Significant Deficiency Repeat
  • 615309 2022-003
    Significant Deficiency Repeat
  • 615310 2022-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $1.72M
84.268 Federal Direct Student Loans $706,653
84.425 Education Stabilization Fund $384,401
84.048 Career and Technical Education -- Basic Grants to States $118,898
84.007 Federal Supplemental Educational Opportunity Grants $34,099
84.033 Federal Work-Study Program $16,381