Finding 972623 (2023-008)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2024-05-08
Audit: 305808
Auditor: Rbt CPAS LLP

AI Summary

  • Core Issue: The College failed to provide evidence of approval for grant disbursements, indicating weak internal controls.
  • Impacted Requirements: This finding violates the Education Stabilization Fund requirements for proper approval of activities and allowable costs.
  • Recommended Follow-Up: The College should enhance and document its internal controls over grant disbursements to prevent future issues.

Finding Text

Internal Control Finding 2023-008 Education Stabilization Fund 84.425 Requirements: (A) Activities Allowed or Unallowed and (B) Allowable Costs Condition: The College could not provide evidence of approval for grant disbursements. The College disbursed amounts to students, but could not demonstrate proper approvals for these disbursements. Criteria: The College is required to implement internal controls to ensure that federal funds are utilized appropriately. Cause: The College’s internal controls and internal control documentation need improvement. Effect: The College cannot demonstrate that the grants disbursements were approved. Repeat Finding: Repeat of 2022-07 Recommendation: RBT recommends that the College develop and document detailed controls over grants. Management’s Response: See corrective action plan.

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 396181 2023-008
    Material Weakness Repeat
  • 396182 2023-009
    Material Weakness
  • 972624 2023-009
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $2.26M
84.425 Education Stabilization Fund $1.72M
84.268 Federal Direct Student Loans $1.40M
84.048 Career and Technical Education -- Basic Grants to States $96,792
84.033 Federal Work-Study Program $46,052
84.007 Federal Supplemental Educational Opportunity Grants $38,700