Finding 623566 (2022-002)

Material Weakness
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2023-03-29

AI Summary

  • Core Issue: The College improperly applied its indirect cost rate to all direct costs, including tuition remission and scholarships, leading to excess claims.
  • Impacted Requirements: Compliance with Section 200.303 on internal controls and the proper calculation of modified total direct costs as per the approved indirect cost rate agreement.
  • Recommended Follow-Up: Establish a process and internal controls to ensure accurate calculation of indirect costs for federal programs.

Finding Text

2022 ? 002: Allowable Indirect Costs Federal Agency: U.S. Department of Interior Federal Program Name: Assistance to Tribally Controlled Community Colleges and Universities Assistance Listing Number: 15.027 Federal Award Identification Number and Year: A19AP00124 ? Year Ended June 30, 2022 Award Period: 7/1/2019 ? 6/30/2024 ____________________________________________________ Federal Agency: U.S. Department of Education Federal Program Name: COVID-19 Education Stabilization Fund: Higher Education Emergency Relief Funds Assistance Listing Number: 84.425K Federal Award Identification Number and Year: P425K200020-20B ? Year Ended June 30, 2022 Award Period: 05/28/2020 ? 06/30/2024 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance (Modified Opinion) Criteria or specific requirement: Section 200.303, Internal Controls, states that the College shall ?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. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Indirect costs should be calculated based on modified total direct costs excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000, as stipulated by the College?s approved indirect cost rate agreement. Condition: The College applied their indirect cost rate to all direct costs of the Programs including tuition remission, scholarships, and payments to students. Questioned costs: The questioned costs have been calculated based on the recalculation of modified total direct costs multiplied by the College?s negotiated indirect cost rate. The known questioned costs for 15.027 totals $148,287. The known questioned costs for 84.425K totals $263,299. Context: As a part of the audit of allowable costs and activities, it was noted that the College was not appropriately calculating the indirect costs to be charged to the federal program in accordance with the stated criteria. Cause: The College did not appropriately calculate the modified total direct costs in accordance with the stated criteria. Effect: The College claimed indirect costs in excess of what would be allowed by the stated criteria. Repeat Finding: No Recommendation: We recommend that the College develop a process and internal controls that will mitigate the risk of incorrectly calculating the indirect costs to be charged to federal programs. Views of responsible officials: There is no disagreement with the audit finding.

Categories

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness Equipment & Real Property Management Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 47111 2022-003
    Significant Deficiency
  • 47112 2022-002
    Material Weakness
  • 47113 2022-003
    Significant Deficiency
  • 47114 2022-004
    Significant Deficiency
  • 47115 2022-002
    Material Weakness
  • 47116 2022-003
    Significant Deficiency
  • 47117 2022-004
    Significant Deficiency
  • 47118 2022-003
    Significant Deficiency
  • 47119 2022-002
    Material Weakness
  • 47120 2022-005
    Significant Deficiency
  • 47121 2022-002
    Material Weakness
  • 47122 2022-003
    Significant Deficiency
  • 47123 2022-005
    Significant Deficiency
  • 47124 2022-002
    Material Weakness
  • 47125 2022-003
    Significant Deficiency
  • 47126 2022-005
    Significant Deficiency
  • 623553 2022-003
    Significant Deficiency
  • 623554 2022-002
    Material Weakness
  • 623555 2022-003
    Significant Deficiency
  • 623556 2022-004
    Significant Deficiency
  • 623557 2022-002
    Material Weakness
  • 623558 2022-003
    Significant Deficiency
  • 623559 2022-004
    Significant Deficiency
  • 623560 2022-003
    Significant Deficiency
  • 623561 2022-002
    Material Weakness
  • 623562 2022-005
    Significant Deficiency
  • 623563 2022-002
    Material Weakness
  • 623564 2022-003
    Significant Deficiency
  • 623565 2022-005
    Significant Deficiency
  • 623567 2022-003
    Significant Deficiency
  • 623568 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
15.027 Assistance to Tribally Controlled Community Colleges and Universities $1.70M
84.031 Higher Education_institutional Aid $1.06M
10.351 Rural Business Development Grant $756,796
84.063 Federal Pell Grant Program $500,126
12.002 Procurement Technical Assistance for Business Firms $327,355
84.425 Education Stabilization Fund $307,860
10.227 1994 Institutions Research Program $197,981
10.221 Tribal Colleges Education Equity Grants $159,411
10.500 Cooperative Extension Service $117,806
47.076 Education and Human Resources $103,286
10.222 Tribal Colleges Endowment Program $93,227
10.766 Community Facilities Loans and Grants $70,104
47.083 Integrative Activities $40,653
10.527 New Beginnings for Tribal Students $37,242
10.U00 Federal Excess Personal Property Program $33,853
43.008 Education $32,362
45.162 Promotion of the Humanities_teaching and Learning Resources and Curriculum Development $30,716
10.229 Extension Collaborative on Immunization Teaching & Engagement $26,794
84.007 Federal Supplemental Educational Opportunity Grants $9,062
47.U01 Three Sisters Garden Research $6,998
84.033 Federal Work-Study Program $2,132
10.443 Outreach and Assistance for Socially Disadvantaged and Veteran Farmers and Ranchers $1,960
93.587 Promote the Survival and Continuing Vitality of Native American Languages $1,359
81.123 National Nuclear Security Administration (nnsa) Minority Serving Institutions (msi) Program $732