GUAM COMMUNITY COLLEGEState Government

Finding No. 2023-001 Federal Agency: U.S. Department of Education Pass-through Entity: Office of the Governor of Guam ALN and Title: 84.425H COVID-19 – Education Stabilization Fund – Governors (Outlying Areas) Federal Award Number: Unknown Compliance Requirement: Procurement and Suspension and Debarment Questioned Cost: $34,608 Criteria: 2 Guam Administrative Rules and Regulations (G.A.R.R.) Division 4 §3109 (b) provides that every procurement shall be made by competitive sealed bidding, subject to certain exceptions including the following: 1. Small purchases method applies to procurements less than $25,000 for supplies and services and less than $100,000 for construction, and procurement requirements shall not be artificially divided so as to constitute a small purchase. For small purchases, no less than three positive written quotations from businesses shall be solicited, recorded and placed in the procurement file. 2. Sole source procurement is not permissible unless a requirement is available from only a single supplier. In cases of reasonable doubt, competition should be solicited. 3. Emergency procurement shall be made with such competition as is practicable under the circumstances, and the procurement agent must solicit at least three informal price quotations. Condition: For 1 (20%) of 5 samples tested, procurement of equipment and services under purchase order no. P2300905 costing approximately $34,608 did not go through competitive sealed bidding. The College lacked the required documentation for procuring the equipment and services other than the competitive sealed bidding method. No record is in file documenting which of the exception criteria supports the procurement method selected. Cause: The College procured the equipment and services through a Request for Quotation (RFQ) method after three unsuccessful sealed bid solicitations for the item since 2021. Effect: The College is not in compliance with applicable procurement compliance requirements.   Finding No. 2023-001, continued Federal Agency: U.S. Department of Education Pass-through Entity: Office of the Governor of Guam ALN and Title: 84.425H COVID-19 – Education Stabilization Fund – Governors (Outlying Areas) Federal Award Number: Unknown Compliance Requirement: Procurement and Suspension and Debarment Questioned Cost: $34,608 Recommendation: Responsible procurement personnel should enforce compliance with applicable procurement laws and regulations particularly to meet the documentation requirements for procurements made outside of the prescribed procurement method. Views of responsible officials: See Corrective Action Plan.

Finding No. 2023-002 Federal Agency: U.S. Department of Education ALN and Title: 84.063 – Federal Pell Grant Program Federal Award Number: Unknown Compliance Requirement: Special Tests and Provisions – Return of Title IV Funds Questioned Cost: $1,496 Criteria: 2 CFR 200.303 requires that a non-federal entity must (a) establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). 34 CFR 688.22(a)(1) requires that when a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date. If the total amount of Title IV grant or loan assistance, or both, that the student earned is less than the amount of Title IV grant or loan assistance that was disbursed to the student as of the date of the institution's determination that the student withdrew, the difference between these amounts must be returned to the Title IV programs and no additional disbursements may be made to the student for the payment period or period of enrollment. If the total amount of Title IV grant or loan assistance, or both, that the student earned is greater than the total amount of Title IV grant or loan assistance, or both, that was disbursed to the student as of the date of the institution's determination that the student withdrew, the difference between these amounts must be treated as a post-withdrawal disbursement. 34 CFR 690.80(b)(2)(iii) requires that the institution shall recalculate the student's enrollment status to reflect only those classes for which the student actually began attendance if a student’s projected enrollment status changes during a payment period before the student begins attendance in all of his or her classes for that payment period. Condition: The College did not have effective internal controls surrounding the accurate and complete identification of students who officially and unofficially withdrew from the College for purposes of calculating amounts subject to return of Title IV funds (R2T4), whereby:  Finding No. 2023-002, continued Federal Agency: U.S. Department of Education ALN and Title: 84.063 – Federal Pell Grant Federal Award Number: Unknown Compliance Requirement: Special Tests and Provisions – Return of Title IV Funds Questioned Cost: $1,496 Condition, continued: 1. Ten students officially withdrawing from all classes have not been identified and subjected to R2T4 evaluation procedures. 2. For 1 (3%) out of 40 samples tested, a student unofficially withdrawing from all classes has not been identified and subjected to R2T4 evaluation procedures. The calculated amount for the College to return is $1,496 of which $862 is due to the College’s failure to recalculate the Pell award based on the student’s enrollment status for one course for which the student has never began attendance. Cause: The College relies on its IT application to determine the students officially withdrawing classes. The application utilizes the registration codes assigned by the Admissions Office as one of the parameters to perform the process. The lack of coordination between the Financial Aid Office and Admissions Office on the assignment of registration codes impacted the determination of students subject to R2T4. The College does not have a process to evaluate students who unofficially withdrew from all classes, particularly those receiving “TF” (technical failure) and/or “F” (failing) grades. Effect: If the College’s IT application is not producing an accurate and complete list of students officially withdrawing from classes, amounts subject to return to Title IV programs and/or post-withdrawal disbursement may not be identified. Lack of process to identify unofficial withdrawals may lead to noncompliance to R2T4 requirements.   Finding No. 2023-002, continued Federal Agency: U.S. Department of Education ALN and Title: 84.063 – Federal Pell Grant Federal Award Number: Unknown Compliance Requirement: Special Tests and Provisions – Return of Title IV Funds Questioned Cost: $1,496 Recommendation: The Financial Aid Office and Admissions Office should coordinate to determine the appropriate registration code assignment in the system to ensure the accurate and complete identification of students subject to R2T4. The College should design and implement controls to identify unofficial withdrawals, including a review of students receiving TF, F, incomplete and similar grades. Views of responsible officials: See Corrective Action Plan.

Finding No. 2022-001 Federal Agency: U.S. Department of Education ALN and Title: 84.002 ? Adult Education ? Basic Grants to States Federal Award Number: V002A200061 Compliance Requirement: Activities Allowed or Unallowed Questioned Cost: $0 Criteria: In accordance with applicable activities allowed or unallowed requirements and the Guam State Plan for program years 2020-2023, the state eligible agency shall provide adult education and literacy activities, including Career and Technical Education (CTE) electives from the same career program of study area as part of the student?s approved plan of study. Condition: For 3 (or 11%) of 28 samples, aggregating $80,231 of $552,945 in total unaudited program costs, the program was charged tuition and fees for students who attended the College?s CTE Programs. In an email dated April 13, 2023, the grantor stated, ?In summary, it is not allowable for local programs to use Title II funds to pay for stand-alone CTE courses.? No evidence was provided by the College to substantiate that the CTE courses are not stand-alone courses. Details of the total tuition and fees related to the College?s CTE programs during the year, including the 3 samples tested, are summarized below. See Schedule of Findings and Questioned Costs for chart/table. No questioned cost is presented for this finding because the College subsequently returned $59,726 to the grantor on June 8, 2023 with G5 refund identification no. R2306074881. Cause: The College?s Adult Education Program - SEA personnel was of the understanding that CTE courses were allowable based on 29 USC 3274 Sec. 205, which states, ?Nothing in this title shall be construed to prohibit or discourage the use of funds provided under this title for adult education and literacy activities that help eligible individuals transition to postsecondary education and training or employment, or for concurrent enrollment activities.? Effect: The College is not in compliance with applicable activities allowed or unallowed requirements. Recommendation: Prior to charging activities to the program, the College should consider seeking clarification and approval from the grantor agency to verify compliance with the grant. Views of responsible officials: See Corrective Action Plan.

Federal Agency: U.S. Department of Education ALN and Title: 84.002 ? Adult Education ? Basic Grants to States Federal Award Number: V002A190061 Compliance Requirement: Period of Performance Questioned Cost: $0 Criteria: In accordance with applicable period of performance requirements, a non-Federal entity may charge only allowable costs incurred during the approved budget period of a federal award?s period of performance. Grant award V002A190061 specifies that the period of performance is from July 1, 2019 to September 30, 2020 with additional costs that can be obligated up to September 30, 2021 and liquidated through January 28, 2022. Condition: For 5 (or 18%) of 28 samples, aggregating $80,231 of $552,945 in total unaudited program costs, the cost was incurred subsequent to September 30, 2021 and was charged to award number V002A190061 after the award?s period of performance ended on September 30, 2021. See Schedule of Findings and Questioned Costs for chart/table. No questioned cost is presented for this finding because the costs could be charged to award number V002A200061 with a period of performance from July 1, 2020 to September 30, 2021 with additional costs that can be obligated up to September 30, 2022 and liquidated through January 28, 2023. This grant award has an available balance of $120,138 as of September 30, 2022. The College provided journal voucher number J00019662, transferring the cost to the available award. Cause: The College did not enforce monitoring controls over compliance with applicable period of performance requirements. Program personnel was of the understanding that costs may be incurred through the award?s liquidation end date. Effect: The College is not in compliance with applicable period of performance requirements of the grant. Recommendation: The College?s management should enforce monitoring controls over compliance with applicable period of performance requirements. Responsible personnel should seek clarification from the grantor as to whether costs may be incurred through the award?s liquidation end date. Views of responsible officials: See Corrective Action Plan.