Finding Text
CFDA Number, Federal Agency, and Program Name - 84.425J - U.S. Department of Education, Education Stabilization Fund - Higher Education Emergency Relief Fund Federal Award Identification Number and Year - 2022 - 84.425 J Finding Type - Material weakness Repeat Finding - No Criteria -Per 2 CFR 200.510(b), the College must prepare a schedule of federal expenditures (SEFA) for the period covered by the auditee's financial statements which must include the total federal awards expended as as determined in accordance with section 200.502. Condition - The SEFA was not complete or accurate. Questioned Costs - none Identification of How Questioned Costs Were Computed - N/A Context - As described in financial statement finding 2022-001, during fiscal year June 20, 2022, approximately $9.3 million of lost revenue was incorrectly recorded as revenue in fiscal year 2022. In addition, the College initially also incorrectly included the $9.3 million in lost revenue on the fiscal year 2022 SEFA. This lost revenue was incurred in fiscal year June 30, 2021 and has been excluded from the final June 30, 2022 SEFA. Recommendation -The College should implement a procedure to ensure the SEFA is complete and accurate. Views of Responsible Officials and Corrective Action Plan - Management has accepted the finding. Moving forward, internal controls will be strengthened with regard to review and recording of revenue and expense recognition. Specifically, as it relates to this instance, review of documentation from the U.S. Department of Education (DOE) as it relates to HEERF grant funding will be more closely reviewed for understanding to include verification of understanding, guidelines and procedures from the DOE and other pertinent agencies for grant funding.