In the annual financial and compliance audit conducted by Deloitte & Touche, showed questioned costs of $3,683 in cooperative extension service; $13,199 for student support service, talent search and upward bound; and $18,927 for college access challenge grant program.
The audit report of Deloitte & Touche covered the fiscal year that ended on Sept. 30, 2010 was contained in the Office of Public Auditor’s executive summary concerning its the report on CNMI agencies’ implementation of audit recommendations as of Dec. 31, 2010.
Regarding NMC’s $3,683 questioned costs, the report said the expenses should be authorized, supported, approved prior to incurrence and recorded in the proper period.
“Lack of controls over program cost was reported as a finding in the single audits of the college for fiscal years 2007 to 2009,” the report said.
Ross Manglona, Northern Marianas College’s Cooperative Research Extension and Education Service director and expenditure authority, and NMC chief financial and administrative officer Rogelio Madriaga, in their response, said the college partially agrees with the audit findings.
“The college concurs with the auditor and has submitted a proposed adjustment to move the expense to the general operations fund. The grantor agency will be credited for the questioned amount. The program will monitor the close out of travel more closely,” they said.
The audit firm recommended the college to strengthen its control procedures over program costs.
On the $13,199 questioned costs, the report said the college is noncompliant with its procurement policies and procedures when it procured software through expedited procurement.
In correcting the problem, NMC said it will continue to strengthen its compliance with procurement policies and procedure.
The $18,927 questioned costs concerned employees that charge to more than one federal program. The report said they should be required to maintain records documenting the allocation of time to the different programs.
The audit report noted a lack of documentation to allocate time charges to various programs.
“The effect…is potential noncompliance with applicable cost allocation principles and questioned costs of $18,927,” the report added.
It said the college should establish procedures to allocate payroll costs being charged to these programs.
