Finding Text
Finding 2022-006: Significant Deficiency ? Control Environment Program: Student Financial Assistance Cluster and Higher Education Emergency Relief Funds Assistance Listing Number: Various Federal Agency: U.S. Department of Education Federal Award Identification Number: Various Federal Award Year: June 30, 2022 Criteria: Non-federal entities in receipt of federal funds must comply with the requirements of 2 CFR 200.303(a), which require an entity to establish and maintain effective internal control over the Federal award to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition/Context: It was noted during the audit, that there were gaps in the internal control structure of the College, that was no longer adequate to ensure compliance with federal regulations and compliance requirements. Cause: During the audit, it was noted that there was significant turnover in key positions responsible for administering the federal awards programs. Effect: The College had several compliance and controls findings reported for the year ended June 30, 2022. Questioned costs: Not determinable Recommendation: The College should review all process, policies and procedures around federal awards programs to ensure adequate staffing, staff experience and continuing education and a system of internal controls are in place in order to comply with federal regulations and compliance requirements. Management?s Response: The staffing changes in the Business Office and the Financial Aid office resulted in learning curves for the new employees. Both offices have started projects to document procedures so that when turnover occurs, there is a blueprint in place to assist the new employees. SMC will also review the internal controls in place for federal reporting to determine how they can be strengthened.