Finding 637747 (2022-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2022-11-08
Audit: 50153
Organization: Claremont McKenna College (CA)
Auditor: Moss Adams LLP

AI Summary

  • Core Issue: One quarterly report was not posted on time, violating the requirement to publish within 10 days after the quarter ends.
  • Impacted Requirements: Reports on COVID-19 assistance and institutional expenditures must be timely and remain online for three years.
  • Recommended Follow-Up: Implement a reconciliation process for expenditures and conduct regular checks to ensure timely posting of reports.

Finding Text

FINDING 2022-001 ? Reporting ? Significant Deficiency in Internal Control over Compliance "See Schedule of Findings and Questioned Costs for chart/table" Criteria ? 86 FR 26213 requires Education Stabilization Fund recipients to post certain quarterly information to the institution?s website within 10 days of the end of the quarter in which the funds were expended. Separate quarterly reporting is required to summarize COVID-19 assistance awarded to students and other reporting requires the College to summarize institutional expenditures that were used to cover lost revenue resulting from the pandemic or to reimburse for additional health and safety costs arising in response to the pandemic. Additionally, an annual report was required to be prepared and posted to the College?s website by May 6, 2022. These reports should remain online for a period of at least three years after the submission of the last quarterly or annual performance report. Condition/Context/Effect ? We selected two quarterly reports summarizing COVID-19 assistance awarded to students, three quarterly reports summarizing the College?s institutional expenditures, and the 2021 annual report for testing. We noted an exception in that one quarterly institutional report (out of the 6 reports tested) was not posted within the required timeframe. However, it has since been captured on the College?s website and no exceptions with the information reported were noted as a result of our testing. Questioned Costs ? No questioned costs were identified as part of this finding. Cause ? The College believed that it had completed its reporting requirements in December 2021; however, carryover expenditures occurred in early 2022 requiring one remaining quarterly report to be completed. Repeat Finding ? This is not a repeat finding. Recommendation ? We noted that the College has a tracking mechanism for reporting requirements and followed that throughout the course this award. One additional control that may have aided in preventing this exception is a reconciliation of the award amount to total expenditures incurred to date to help conclude if further reports will be needed. Views of Responsible Officials and Planned Corrective Actions ? Management agrees with the finding related to the timing of posting certain quarterly information to the College?s website within 10 days of the end of the quarter in which Education Stabilization Funds were expended. To address this issue, management has instituted a reconciliation of the award amount to the reported expenditures and implemented regular checks of the College?s COVID-19 response website to ensure reports continue to be posted in a timely manner. The College has now expended all Education Stabilization Funds, so they do not anticipate any additional quarterly reports needing to be posted on the College?s website.

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 61304 2022-001
    Significant Deficiency
  • 61305 2022-001
    Significant Deficiency
  • 637746 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $7.38M
84.425 Covid-19 - Education Stabilization Fund $1.68M
84.063 Federal Pell Grant Program $1.50M
97.036 US Department of Homeland Security - Fema $1.21M
84.038 Federal Perkins Loan Program (beginning of the Year) $346,800
47.075 Social, Behavioral, and Economic Sciences $310,891
12.800 Air Force Defense Research Sciences Program $304,167
84.033 Federal Work-Study Program $206,844
47.049 Mathematical and Physical Sciences $160,074
93.859 Biomedical Research and Research Training $158,672
84.007 Federal Supplemental Educational Opportunity Grants $157,688
47.076 Education and Human Resources $154,940
47.074 Biological Sciences $132,417
47.070 Computer and Information Science and Engineering $24,289
11.417 Sea Grant Support $4,086