Finding Text
Finding 2022-013 ? Internal Controls Over Grant Management (Significant Deficiency) Information on the Federal Program: U.S. Department of Education, CFDA No. 84.425, COVID-19 Education Stabilization Fund ? Higher Education Emergency Relief Fund Criteria: 2 CFR 200.303 requires non-federal entities receiving federal awards establish and maintain internal controls over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations and the terms and conditions of the federal awards. Condition: During audit procedures we tested controls over applicable compliance requirements. We tested two drawdowns for cash management requirements. One of the draws was a reimbursement for lost revenue. Although the method to calculate lost revenue was reviewed and approved, the individual calculations and amounts to be drawn were not reviewed and approved. We tested five disbursements made directly to students as grant awards. Of these five, four disbursements did not have documentation of review or approval of the amounts to be paid. Cause: The College did not properly document controls over cash management and allowable costs. Effect: The College was not in compliance with internal control requirements for grant management. Questioned Costs: None reported Recommendation: We recommend the College strengthen its policies and procedures to ensure internal controls are properly implemented and documented. Views of Responsible Officials: See Management?s View and Corrective Action Plan included at the end of the report.