audit of valencia community college’s gaining early ...valencia community college (vcc) valencia...

FINAL AUDIT REPORT ED-OIGA07-B0011

May 2003

Audit of Valencia Community Collegersquos Gaining Early Awareness and Readiness for Undergraduate Programs

Matching Requirement

Our Mission is to promote the efficiency effectiveness and integrity of the Departmentrsquos programs and operations

US Department of Education Office of Inspector General

Kansas City Missouri Office

NOTICE Statements that managerial practices need improvements as well as other

conclusions and recommendations in this report represent the opinions of the Office of Inspector General Determinations of

corrective action to be taken will be made by the appropriate Department of Education officials

In accordance with Freedom of Information Act (5 USC sect 552) reports issued by the Office of Inspector General are available if requested to

members of the press and general public to the extent information contained therein is not subject to exemptions in the Act

UNITED STATES DEPARTMENT OF EDUCATION OFFICE OF INSPECTOR GENERAL

KANSAS CITY OFFICE

8930 WardParkway Suite 2401 Kansas City Missouri 64114-3302

AUDIT SERVICES INVESTIGATION SERVICES Telephone (816) 268-0500

FAX (816) 823-1398 FAX (816) 268-0526

Control No ED-OIGA07-BOOII

Dr Sanford C Shugart President MAY 082003 Valencia Community College Chicone Building 190 South Orange Avenue Orlando FL 32801

Dear Dr~ Shugart

Enclosed is our report entitled Audit oValencia Community Colleges Gaining Early Awareness and Readinessor Undergraduate Programs Matching Requirement (Control No ED-OIGA07shyBOO11) The report incorporates the comments you provided in response to the draft audit report Ifyou have any additional comments or infonnation that you believe may have a bearing

on the resolution of this audit you should send them directly to the following Department of Education official who will consider them before taking final Departmental action on the audit

Ms Sally 1 Stroup Assistant Secretary Office ofPostsecondary Education US Department ofEducation 1990K StreetNW Washington DC 20006middot

Office ofManagement and Budget Circular A-50 directs Federal agencies to expedite the resolution ofaudits by initiating timely action on the findings and recommendations contained therein Therefore receipt ofyour comments within 30 days would be greatly appreciated

In accordance with the Freedom ofInformation Act (5 USC sect552) reports issued to the Departments grantees and contractors are made available ifrequested to memberS ofthe press and general public to the extent information contained therein is not subject to exemptions in the Act

Sincerely

LA)~-~-Gg~~s-_ William Allen Regional Inspector General for Audit

Enclosure

Our mission is to ensure ellllll access to edClltion and to promote edcaliollill erceUellce throughollt the Nation



Table of Contents

Executive Summary 1

Introduction3

Audit Results 5

Finding No 1 ndash Partnerships Did Not Contribute The Required Non-Federal Cost-Share To The Projects 5

Finding No 2 ndash All Non-Federal Costs Claimed Were Improperly Calculated11

Finding No 3 ndash Duplicated Unallocable and Unreasonable Room Usage Claims 16

Objectives Scope and Methodology19

Statement on Management Controls 21

Attachment 1 Valencia Community College Comments on the Draft Report22

Audit of Valencia Community Collegersquos Gaining Early Awareness and Readiness for Undergraduate Programs Matching Requirement

Executive Summary

We found that Valencia Community College (VCC) officials did not administer the matching requirement for its Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP) projects in accordance with legislative regulatory and administrative requirements VCC is the fiscal agent for three GEAR UP partnership grants awarded in 1999 three continuation awards in 2000 and four new GEAR UP partnership grants awarded in 2000 totaling $3023019 The objectives of our audit were to determine whether the seven partnerships were eligible entities whether VCC maintained adequate documentation to support the required match totaling $4972373 and whether the claimed matching costs were allowable allocable and reasonable We found that

bull The partnerships met the requirements for an eligible entity by providing documentation of minimal participation by two community partners for each grant

bull VCC did not assure that it complied with the programsrsquo matching requirement in accordance with legislative regulatory and administrative requirements Contrary to Federal regulations six of the seven GEAR UP partnerships did not contribute $1600749 of the required non-Federal cost-share (match) VCC fell short of required match amounts because VCC only claimed sufficient match to meet the statutory minimum 50 percent of total project costs instead of the higher proposed percentages as required by GEAR UP regulations and contained in the applications

bull VCC claimed unallowable matching costs totaling $4105975 for all GEAR UP grants because all costs were calculated using commercial rental rates instead of the actual depreciation costs or use allowance as required by Federal cost principles

bull VCC included unallowable unallocable and unreasonable room usages on the spreadsheets documenting the facilities match costs The spreadsheets contained numerous overstatements because duplicated costs were claimed shared use rooms were charged 100 percent to the grant and claimed hours were in excess of actual hours used We have not calculated all instances of these errors and overstatements because we have already questioned the costs based on the unallowable method of calculating facilities costs

ED-OIG A07-B0011

We recommend that the Assistant Secretary for Postsecondary Education require that VCC officials

11 refund $496932 the amount of Federal expenditures required to be converted to match in order to conform to the regulation requiring the partnership to comply with the application match percentages for the six under-matched grant awards

12 comply with the stated percentage in each of its GEAR UP applications each year

21 refund $1325932 of Federal funds required to be converted to match in order to conform to the regulation requiring the partnership to comply with the application match percentages to cover the unallowable facilities and equipment match claim

22 establish controls to ensure any future claims of partnersrsquo facilities and equipment are computed using depreciation or use allowances

31 establish and implement policy and procedures to maintain proper record keeping for in-kind non-Federal match according to applicable Federal regulations including assurance that all claimed matching costs are allowable allocable and reasonable

VCC provided narrative comments in response to our draft report VCCrsquos narrative comments are included in their entirety in Attachment 1 VCC did concur that it had claimed duplicated and shared costs and with recommendation 31 but it did not concur with the remainder of our findings or recommendations We summarized VCCrsquos comments and provided our response following each finding Our analysis of the VCCrsquos comments did not persuade us to change our overall conclusions or recommendations for any of the findings

ED-OIG A07-B0011 Page 2

Introduction

Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP)

Congress authorized the Gaining Early Awareness and Readiness for Undergraduate Programs as part of the Higher Education Amendments of 1998 (Public Law 105-244) The GEAR UP initiative is designed to accelerate the academic achievement of cohorts of disadvantaged middle and secondary school students GEAR UP gives disadvantaged students and their families pathways to college by partnering middle and high schools with colleges and community organizations The goal is to support institutions of higher education local schools community-based organizations businesses and States in working together to help students and their parents gain needed knowledge and strengthen academic programs and student services in the schools GEAR UP provides two types of competitive grants partnership and State which support early college preparation and awareness activities at local and state levels The Office of Postsecondary Educationrsquos Policy Planning and Innovation Office currently administers GEAR UP GEAR UP grants are five years in length

Partnership grants are submitted on behalf of a locally designed partnership between one or more local education agencies (LEA) acting on behalf of an elementary or secondary school one or more degree-granting institution of higher education and at least two community organizations or entities These other entities could include such organizations as businesses professional associations philanthropic organizations community-based organizations religious groups college student organizations State or local agencies and parent groups

Partnership grants must include an early intervention component The early intervention component involves the project providing early college awareness and preparation activities for participating students through comprehensive mentoring counseling outreach and supportive services The mission of GEAR UP is to significantly increase the number of low-income students who are prepared to enter and succeed in postsecondary education

The first GEAR UP grant was awarded in 1999 During this first year ED awarded 164 partnership grants and 21 State grants totaling $120 million In 2000 73 new partnership grants and 7 new State grants were awarded and in 2001 6 new partnership grants and 2 new State grants were awarded GEAR UP appropriations for 2000 totaled $200 million with $295 million appropriated in 2001


Valencia Community College (VCC)

Valencia Community College was established in the fall of 1967 Today VCC serves more than 50000 students a year making it the fourth largest of Floridarsquos 28 community colleges VCC maintains four campuses and two centers in the Orlando area VCC became eligible for participation in the Federal student aid programs and other Higher Education Act programs November 27 1968 VCC is fully certified with the US Department of Education (ED) and holds a current Program Participation Agreement that will expire on September 30 2003

ED awarded VCC as fiscal agent seven GEAR UP partnership grants For fiscal year 1999 VCC was awarded three GEAR UP grants totaling $873600 The following year in 2000 VCC was granted continuations for its three grants in addition to being awarded four new GEAR UP grants The total Federal grant dollars for fiscal year 2000 was $ 2149419

1999 Grants Federal Award

P334A990094 Osceola Campus of Valencia Community College $252000 P334A990149 East Campus of Valencia Community College $354400 P334A990234 West Campus of Valencia Community College $267200

$873600 2000 Continuation Grants


$873600 2000 Grants

P334A000155 Osceola Campus of Valencia Community College $301961 P334A000226 West Campus of Valencia Community College $331190 P334A000185 West Campus of Valencia Community College $306163 P334A000184 West Campus of Valencia Community College $336505

$1275819


Audit Results

We found that VCC officials did not administer its GEAR UP projects in accordance with legislative regulatory and administrative requirements for non-Federal match VCC was able to provide documentation of minimal participation by two community partners for each of its seven GEAR UP grants However VCC did not maintain adequate documentation to support the required match claimed facilities and equipment costs were improperly calculated and matching claims included unallowable unallocable and unreasonable room usages

Finding No 1 ndash Partnerships Did Not Contribute The Required Non-Federal Cost-Share To The Projects

Contrary to Federal regulations the partnership did not contribute $1600749 of the required non-Federal cost-share (match) for six grant awards VCC fell short of required match amounts because VCC only claimed sufficient match to meet the statutory minimum 50 percent of total project costs instead of the higher percentages proposed in its approved grant applications as required by GEAR UP regulations Since the GEAR UP partnerships did not provide the proper proportion of non-Federal match we recommend that the Assistant Secretary for Postsecondary Education require VCC to refund $496932 The refund would achieve the required match proportion by converting Federally funded project costs to non-Federal match We also recommend that VCC comply with the proposed partnership match for each grant each year

A partnership must comply with the match percentage stated in its application each year and the percentage may not be less than 50 percent to comply with the regulations in 34 CFR sect 6947

What are the matching requirements for a GEAR UP Partnership (a) In general A Partnership must--

(1) State in its application the percentage of the cost of the GEAR UP project the partnership will provide for each year from non-Federal funds subject to the requirements in paragraph (b) of this section and

(2) Comply with the matching percentage stated in its application for each year of the project period (b) Matching requirements

(1) hellip the non-Federal share of the cost of the GEAR UP project must be not less than 50 percent of the total cost over the project period


Award Federal Required Match Claimed Match Under

Award Year Award (a) Amount 1 Amount 2 3 Match 4 P334A990234 1999 $267200 $278886 5107 $ 414605 6081 None P334A990094 1999 $252000 $393484 6096 $ 262073 5098 $131411 P334A990149 1999 $354400 $367874 5093 $ 450642 5598 None P334A990234 2000 $267200 $280505 5121 $ 506153 6545 None P334A990094 2000 $252000 $394840 6104 $ 326350 5643 $68490 P334A990149 2000 $354400 $369493 5104 $ 659709 6505 None P334A000226 2000 $331190 $665309 6676 $ 332130 5007 $333179 P334A000184 2000 $336505 $669902 6656 $ 409003 5486 $260899 P334A000185 2000 $306163 $873395 7404 $ 307745 5013 $565650 P334A000155 2000 $301961 $678685 6921 $ 437565 5917 $241120

Totals $3023019 $4972373 $4105975 $1600749 1 Federal Award + Required MatchRequired Match 2 Per January 14 2002 set of claimed costs 3 Federal Award + Claimed MatchClaimed Match 4 Required (proposed) amount less claimed

Actual Federal Expenditures and Non Cash Match

2 Award Total Project 1 Project Reduction Fed Share Award Year Proposed Actual Amount Percent Increase

P334A990094 1999 $645484 $514073 $131411 2036 998 P334A990094 2000 $646840 $578350 $68490 1059 461 P334A000226 2000 $996499 $663320 $333179 3343 1669 P334A000184 2000 $1006407 $745508 $260899 2592 1170 P334A000185 2000 $1179558 $613908 $565650 4795 2391 P334A000155 2000 $980646 $739526 $241120 2459 1004 Total $1600749 1 Total Project Costs = Federal Award + NonndashFederal Match 2 Federal Share Increase = Required Match - Claimed Match From Table Above

Each of the seven original applications which included detailed budgets of Federal and non-Federal matching costs as required for consideration in the grant competition exceeded the required 50 percent minimum non-Federal share of total project costs The proposed match ranged from 51 to 74 percent all exceeding the required 50 percent minimum of total project costs The partnerships proposed to provide a total $4972373 for the 10 grant awards audited

Review of VCC accounting records showed that all awarded Federal dollars were spent or encumbered however the partnerships have significantly under matched six of the grant awards

The failure to provide the proposed non-Federal match for six of the grant awards harmed the Federal interest as it significantly reduced the size of the projects in those years and increased the proportion of the project funded by the Federal government


Award Award Year

Actual Project

Required Match

Percent Required Match1

Claimed Match

Although VCC submitted grant applications to ED with higher non-Federal match percentages and those proposals were incorporated into the GEAR UP grants award notifications VCC officials informed us they only had to match at the minimum 50 percent of total project costs However as stated above the regulations are clear that the required match is the proposal percentage

In order to meet the regulation requiring the partnership to comply with the application match percentages for the above six grant awards a portion of project costs paid by Federal funds would need to be converted to match The amounts required to be converted from Federal to partnership funding range from $26662 to $146785 for a total $496932 which should be subtracted from the project costs paid from Federal funds and refunded

Calculation of Required Match and Refund Amount

To Refund2

P334A990094 1999 $514073 6096 $313379 $262074 $51305 P334A990094 2000 $578350 6104 $353025 $326363 $26662 P334A000226 P334A000184 P334A000185 P334A000155

2000 2000 2000 2000

$663320 $745508 $613908 $739526

6676 6656 7404 6921

$442832 $496210 $454537 $511826

$332124 $408986 $307752 $437578

$110708 $87224

$146785 $74248

Total $496932 1 Actual Project Required Match Percent 2 Required Match ndash Claimed Match (This amount is converted from Federal to Non-

Federal to comply with proposed match percentage)

Recommendations

We recommend that the Assistant Secretary for Postsecondary Education require that VCC



Auditee Comments and OIG Response

VCC asserted that the partnership did in fact meet the required non-Federal cost-share for each of the grants because the required cost share was only 50 percent of total project costs The


response provided nine points to support the partnershiprsquos position We have summarized each of those points below along with our response to those points

1 The partnerships committed to in-kind matching that exceeded the minimum requirement of 50 percent of program costs in the grant proposals for each of the grants

OIG Response Consistent with the applicable regulations in 34 CFR 6947 we used the proposed match for each of the grants to determine the required match in the finding

2 The 1999 and 2000 GEAR-UP application instructions provided that the partnerships could choose how much to match in any award year as long as the non-Federal contribution equaled at least 50 percent of the total project costs

OIG Response Any applicant does have the choice of varying the match percent in its application This is consistent with the regulation (34 CFR sect 6947 (a)(1)) that requires that the partnership state each year the percentage of total project costs to be provided from non-Federal funds However 34 CFR sect 694 7 (a) (2) requires the partnership to comply with the percentage proposed each year The requirement to provide the percentage match in the year proposed was also included in the application instructions ldquo the non-Federal matching dollars must be spent during the year in which they are listed in the budget rdquo as stated in the page from the application instructions submitted by VCC as Attachment D to the response

3 None of the award letters states a matching commitment in the space provided for that purpose

OIG Response The specific non-Federal matching amounts were not printed in Block 7 of the Grant Award Notification documents (award letters) However the Terms and Conditions sections of the award letters specifically state that the application was incorporated in each grant agreement

4 The GEAR-UP program officer sent an email to the VCC grants coordinator in November 2000 ldquo directing the college to reduce its matching budgets rdquo The email informed them that the required match was the amount of Federal funding (a 50 percent match) and listed the amounts of required match exactly equal to the Federal funds for the three grants awarded in 1999 (a 50 percent match) and the amount of the direct Federal funds for the four grants awarded in 2000 (a less than 50 percent


match) The revised budgets were requested to resolve issues about matching costs duplicated between the grants the appropriateness of indirect costs charged and to bring the matching in line with the 50 percent requirement

OIG Response The email discussed in the VCC response resulted from a concern over apparent improprieties with the source of proposed matching funds in the application budgets for several grants The grant applications appeared to use the same funds to provide the match on more than one grant For example the grants listed part-time efforts of personnel that added to more than 100 percent when all the grants were put together In addition there were other concerns that facilities usage might be included in the VCC indirect cost rate

The purpose of the email was not to reduce the budgeted match costs to 50 percent or that VCC was directed to reduce the match percentage but to resolve the concerns regarding possible duplication of proposed match as stated by VCC

Regardless 34 CFR sect 75900 prohibits any employee of ED from waiving any regulation unless the regulation specifically provides that it may be waived The regulation requiring the partnership to comply with the match as stated in the application 34 CFR sect 6947 only allows a reduction to 30 percent if certain conditions (which the partnerships do not meet) are met Therefore the ED Program Specialist (EPS) was not allowed to reduce the match below the percentage proposed in the grant applications

5 VCC provided revised budgets to the program officer in December 2000 with reduced matching budgets

OIG Response The EPS lacked authority to waive the regulation requiring the partnership to comply with the match as stated in its application Even if she could have waived the regulation requiring compliance with the application match the budgets submitted in December 2000 were only for the 2000 ndash 2001 award year The budgets did not cover the 1999 - 2000 award year and grant P334A990094 was under matched that award year

6 The program officer responded that the budgets were ldquomuch much betterrdquo and that some questions remained However VCC also noted that the purpose of the budgets were to resolve the duplicated match issues and that the match commitment was not questioned


OIG Response As documented in the email message attached to the VCC response the revised budgets were not approved by the EPS In fact the last message from the EPS stated that there were still some questions remaining to be answered In our opinion the comments could only be construed to refer to the removal of duplicated and unallowable matching costs The email did not provide nor was it intended to provide a specific approval for a match reduction

7 VCC quoted 34 CFR sect 7425(m) that requires ED to notify the recipient whether budget revisions have been approved The response stated that after 30 days and ldquo having received no disapproval rdquo VCC implemented the revised matching budgets

OIG Response ED actions regarding the budget revisions are irrelevant because pursuant to 34 CFR 75900 no official agent or employee of ED could waive the regulation requiring the partnership to comply with the match as stated in its application Even if EDrsquos actions could be construed as a waiver the claimed non-Federal costs did not match the ldquorevised matching budgetsrdquo in either content (source and type of cost) or total In fact the claimed match for three of the grants was less than the amount committed to in the December 2000 budgets

Grant Number 122000 Budget Match Claimed Shortfall P334A000155 $470379 $437565 $ 32814 P334A000185 $414379 $307745 $106634 P334A000226 $341774 $332130 $ 9644

8 VCC stated that it provided budgets with a 50 percent match to program staff for the 2001 and 2002 award years and was verbally assured that it was only required to meet the 50 percent match VCC pointed out that the subsequent grant award notifications for the 2001 and 2002 award years also did not specify specific match amounts

OIG Response The 2001 and 2002 award years are outside our audit period Our audit period covered the 1999 and 2000 award years and as stated above 34 CFR sect 75900 prohibits any employee of ED from waiving any regulation unless the regulation specifically provides that it may be waived

9 The partnership actually overmatched all award years by claiming at least as much match as the total Federal award

OIG Response We disagree The partnership did not maintain the percentage of match contained in the approved applications for six of the grant periods


VCC also disagreed with the recommendations because they contended that they had received approval to reduce the match percentage to the statutory minimum of 50

OIG Response We did not alter our findings or recommendations because

1 The regulations require the partnerships to comply with the percentage of match proposed each budget year

2 No approval was sought or given to alter the match for the 1999 ndash 2000 budget period

3 The communications with the EPS neither directed or granted approval to reduce the match percentages for the 2000 ndash 2001 budget periods regardless of whether the EPS had the authority to approve the use of the lower percentage

4 The claimed match was still less than the unapproved December 2000 proposed match budgets for three grants and

5 Even if the EPS had clearly approved the match reduction the EPS did not have the authority to waive the program regulation requiring the partnership to comply each year with the match percentage included in the proposal for that year

Finding No 2 ndash All Non-Federal Costs Claimed Were Improperly Calculated

All $4105975 of matching costs claimed by VCC for the GEAR UP grants were unallowable because all costs were calculated using commercial rental rates instead of the actual depreciation cost or use allowance as required by Federal cost principles VCC used the commercial rental rates because it did not meet its responsibility as fiscal agent by maintaining the proper records to claim the use of partnersrsquo facilities and equipment Therefore we recommend that the Assistant Secretary for Postsecondary Education require VCC to meet the required match by refunding another $1325932 of project costs originally paid with Federal funds

We analyzed the summary schedules and spreadsheets provided by VCC to support its claimed in-kind matching costs for the 19992000 and 20002001 award years for the seven grants In both funding cycles rather than providing proposed match from community partners that


included volunteer tutors and mentors marketing and personnel or facilities VCC claimed the use of existing VCC and LEA facilities as its total non-Federal in-kind match The spreadsheets showed the dates the number of hours and the rooms used at VCC and the LEA for GEAR UP activities These matching costs were calculated at an hourly rate based on estimated commercial hourly rental rates ranging from $20 to $150 based on the type of room VCC also claimed a small amount of LEA owned equipment at estimated commercial rental rates

The use of commercial hourly rates to cost the partnersrsquo facilities and equipment is not an allowable method to account for project costs The cost principles applicable to VCC (Office of Management and Budget (OMB) Circular A-21) and the LEAs (OMB Circular A-87) require accounting for the use of granteesrsquo buildings and equipment using either depreciation or use allowance

OMB Circular A-21 Section J General provisions for selected items of cost

12 Depreciation and use allowances Institutions may be compensated for the use of their buildings capital improvements and equipment Such compensation shall be made by computing either depreciation or use allowance

OMB Circular A-87 Attachment B ndash Selected Items of Cost

15 Depreciation and use allowances

a Depreciation and use allowances are means of allocating the cost of fixed assets to periods benefitting from asset use Compensation for the use of fixed assets on hand may be made through depreciation or use allowances

The use of commercial hourly rental rates for partnersrsquo facilities and equipment would result in the claiming of more than allowable project costs because of the provision in such rates for profit indirect costs in excess of the restricted rate and other unallowable costs

Because all claimed non-Federal match claimed was calculated using unallowable commercial rental rates we have determined that the entire $4105975 amount claimed is unallowable According to a VCC official VCC and the LEAs do not have a space usage study to calculate facilities costs for allocation to cost centers Therefore we are unable to determine a value for the use of partnersrsquo facilities and equipment An additional refund of $1325932 for Federally funded project costs requiring reprogramming to non-Federal match would be required to fulfill 34 CFR sect 6947 (a) (2) requiring the partnership to comply with the match percentages stated in the applications for each year


Unallowable Match and Calculation of Federal Funds to Refund

Non-Federal Match Total Required Aw Finding 1 Project Match Match To Be

Award Yr Claimed1 Unallowed2 Refund 3 Federal1 Costs4 Amount5 Refunded6

P334A990234 99 $414605 $414605 $0 $267200 $267200 5107 $136459 $136459 P334A990094 99 $262073 $262073 $51305 $200695 $252000 6096 $153619 $102314 P334A990149 99 $450642 $450642 $0 $354400 $354400 5093 $180496 $180496 P334A990234 00 $506153 $506153 $0 $267200 $267200 5121 $136833 $136833 P334A990094 00 $326350 $326350 $26662 $225338 $252000 6104 $153821 $127159 P334A990149 00 $659709 $659709 $0 $354400 $354400 5104 $180886 $180886 P334A000226 00 $332130 $332130 $110708 $220482 $331190 6676 $221102 $110394 P334A000184 00 $409003 $409003 $87224 $249281 $336505 6656 $223978 $136754 P334A000185 00 $307745 $307745 $146785 $159378 $306163 7404 $226683 $79898 P334A000155 00 $437565 $437565 $74248 $227713 $301961 6921 $208987 $134739 Total $4105975 $496932 $1325932

1 Including Proj costs formerly paid by Fed Funds from Finding 1 4 Allowed Match + Federal 2 Claim amount (January 14 2002) version 5 Total Proj Costs Required Match 3 Project costs converted from Federal funds in Finding No 1 6 Required Match ndash Finding 1 Refund

VCC did not fulfill its responsibility as fiscal agent in maintaining accurate and complete records for the seven GEAR UP grants OMB A-21 Appendix C contains the documentation requirements for claiming facility and equipment costs It states that an institution is required to provide several pieces of information including an audited financial statement and supporting data a schedule showing amount by building of use allowance andor depreciation distributed to all functions and a reconciliation of equipment cost used to compute use allowance andor depreciation Further a grantee shall keep records that fully show the amount of funds under the grant how the grantee used the funds the total cost of the project the share of that cost provided from other sources and other records to facilitate an effective audit (34 CFR sect75730)

VCC originally proposed matching costs provided by a number of partners including some facilities costs calculated at a commercial rental rate based on square footage During a site visit in 2001 VCC provided an ED official with a single page listing totals for facility and personnel costs for each grant but was unable to provide support for how those costs were calculated When informed that detailed documentation of the match was required VCC prepared the spreadsheets of room and equipment usage only at an hourly rate

Recommendations






Auditee Comments VCC disagreed and stated that the facilities costs were properly calculated using fair market value because ED had verified the correctness of their method of calculating the facilities match through approval of the grant and a site visit report and that another set of criteria should apply The response stated that the use of fair market value was specified in the grant application and budget submissions and approval of the application and other budgets implied that the Secretary had verified that the facilities costs charged at those rates were allowable Additional support for ED approval was provided by a report of a site visit by an ED representative who reviewed the match and had notified the college that the review was closed Finally VCC claimed that OMB Circular A-21 Section J-12 should not apply because of the use of the word compensated Because the space was donated by partners as in-kind match they were not ldquocompensatedrdquo The response also stated that even if the section is applicable it should not be followed because Circular A-21 Section J also states ldquoIn case of a discrepancy between the provisions of a specific sponsored agreement and the provisions below the agreement should governrdquo The VCC response infers that the approval of the application and subsequent budgets again should allow VCCrsquos methodology of valuing the facilities VCC claimed that the actual cost principals which applied was Circular A-110 Sub-part C section 23(h) (3) which provides that the value of donated space shall not exceed the fair-market value of comparable space

OIG Response ED did not approve the facilities costs at the rates which were actually claimed The facilities costs in the applications included office space that ranged from $583 per square foot to $120 per square foot and classrooms on the VCC West Campus that were quoted at $529 per month In the budgets submitted in December 2000 the same classrooms quoted at $529 per month were changed to 960 square feet at $2226 per square foot (or $1780) per month However when the summer program was held the classrooms were claimed at an hourly rate of $125 per hour for 9 hours per day totaling $1125 per day or ($125 9 hours 20 days) $22500 per month

The site visit report from the Department representative also did not grant approval of the use of the match as claimed Following the language quoted in the response the report stated

hellipAlthough I was as thorough as possible in the review I do not presume to be all-inclusive in the report Therefore the absence of statements regarding any


specific practices followed by your institution does not imply approval of those practices In short the specific nature of this letter does not limit your obligation to comply with all statutory and regulatory provisions governing the programhellip

Circular A-110 Sub-part C section 23(h) (1) makes it clear that the section does not apply to the donation of recipient facilities to be used as cost-sharing but rather for facilities donated to the recipient by a third party

(1) The value of donated land and buildings shall not exceed its fair market value at the time of donation to the recipienthellip[emphasis added]

In addition the first part of section (5)(ii) quoted in the response also makes the context of third-party donations clear

(5) The following requirements pertain to the recipientrsquos supporting records for in-kind contributions from third parties [emphasis added]

Thus the fair-market rates are not applicable to donations by the grant recipients The cited cost principal provisions also do not pertain to LEA facilities or equipment because the LEAs are not third parties Although VCC is the fiscal agent the GEAR UP grants were awarded to the entire partnership for each grant The HEA (sect404A(c)) states that an eligible entity for a GEAR UP award means a State or a partnership consisting of one or more LEAs acting on behalf of one or more elementary or secondary schools one or more degree granting institutions of higher education and at least two community organizations or entities To be declared an eligible entity a partnership must have the requisite parts including at least one LEA If the LEA was to be considered a third party and not part of the partnership there would be no eligible entity and no entitlement to a grant award under GEAR UP

The VCC response did not cause us to alter our findings or recommendations The grant application instructions page provided as Attachment D to the response (underlined) states that ldquo the value assigned to in-kind contributions included in the non-Federal match must be reasonable rdquo


Finding No 3 ndash Duplicated Unallocable and Unreasonable Room Usage Claims

VCC included unallowable unallocable and unreasonable room usages on the spreadsheets documenting the facilities match costs The spreadsheets contained numerous overstatements because duplicated costs were claimed (within and between grants) shared use rooms were charged 100 percent to the grant and claimed hours were in excess of actual hours used We have not calculated all instances of these overstatements

Duplicated Costs Were Claimed as Non-Federal In-Kind Match Federal regulations state that cost sharing or matching must not be included as contributions for any other Federally assisted project or program [34 CFR 7423 (a) (2)] We found 48 duplications totaling $71100 in the 1999-2000 award year and 44 duplications totaling $5043750 in the 2000-2001 award year where the same room at the same date and time were claimed on two or more of the GEAR UP grants We also found instances where use of a particular room was claimed twice at the same time for the same grant

Shared Costs Were Claimed as Non-Federal In-Kind Match OMB Circular A-21 Part C 2 states that allowable costs must be reasonable allocable and given consistent treatment Numerous instances were found where rooms being shared were charged 100 percent to GEAR UP grants as in-kind matching cost The examples include

bull Meetings attended by personnel from more than one GEAR UP grant or GEAR UP and other Federally sponsored programs at the college were charged to one of the GEAR UP grants needing additional matching costs instead of being allocated fairly The shared use was emphasized because the cost in one grant was supported by the calendar of meetings for the staff working on another GEAR UP grant

bull The school media center was charged as a dedicated GEAR UP lab (at a $125 hourly rate based on a computer equipment training room) The ldquolabrdquo was actually a few tables at the back used for tutoring during normal school time while the school continued normal usage of the library

bull The regular classrooms during classroom times were charged to one GEAR UP grant when GEAR UP personnel were assigned as classroom aides instead of operating a pull-out tutoring program


Room Usage for Unreasonable Hours Were Claimed as Non-Federal In-Kind Match Federal regulations also require that matching costs be necessary and reasonable [34 CFR 7423 (a) (3)] The hours of room usage claimed were poorly documented and excessive For example

bull Rooms in the LEAs were claimed as GEAR UP labs from the beginning of September 2000 for the initial years of the grants even though grant personnel did not move into the school until February 2001 and tutoring did not begin until March 2001 A few grants charged rooms prior to the grant period beginning on September 15 2000

bull GEAR UP labs and offices were claimed for up to 11 hours a day even though tutoring was only occurring an hour before school and during the school day

bull A gym was charged to a summer program for 6 hours a day while only being used for an hour after lunch

VCC has centralized controls over accounting for Federal funds however the accounting for in-kind match is maintained within the individual GEAR UP projects The spreadsheets documenting match costs have been changed several times to account for changes in room rates duplications unsupported costs and other errors but many errors remain The documentation supporting the spreadsheet summaries of room usage is minimal and contradictory We have concluded that the conditions under which the VCC matching records were generated lack sufficient administrative controls to be reliable and are insufficient to detect errors and irregularities

Some of the unallowable facilities usage claims have been acknowledged by VCC officials through their numerous restatements of facilities usages after we questioned them on specific instances However many of the duplicated unallocable and unreasonable charges still remain Since all claimed costs have been disallowed because of the use of unallowable commercial rental rates we have not calculated the full scope of the unallowable unreasonable and unallocable claims

Recommendation





Auditee Comments VCC concurred that there were duplicated and shared costs in the matching costs claimed and concurred with the recommendation and has implemented procedures to update matching records monthly and have asked the internal auditors to review twice a year match claims

However VCC did not concur that there were unallocable and unreasonable room usage claims because claiming the use of rooms before the grant period was allowable pre-award costs The rooms were charged when not used because they were dedicated to the use of the grant and comparable space cannot be rented for minutes at a time The college also did not concur that documentation supporting spreadsheet summaries of room usage was minimal and contradictory because they followed the methods of documentation provided by an ED representative and maintained records of the location size room number or name date hours of use and fair-market value

OIG Response We disagree with VCCrsquos claim that facilities usage prior to grant award dates was allowable pre-award costs to allow the staff to prepare for the grants Staff were not hired until well after that time In addition services were not provided in the LEAs until six months after the grant period began VCCrsquos comment that space could not be rented for minutes at a time conflicts with their claimed method of valuing space usage in 60-minute increments Even after interviewing grant personnel and review of supporting documentation we were not able to resolve all questions about specific rooms used or dates


Objectives Scope and Methodology

The purpose of our audit was to determine whether VCC administered the GEAR UP program in accordance with legislative regulatory and administrative matching and eligible entity requirements Specifically if

bull Each partnership included ldquoat least two community organizations or entitiesrdquo bull VCC maintained adequate documentation to support the required match and bull Claimed matching costs were allowable allocable and reasonable

To accomplish our audit objectives we reviewed applicable laws and regulations governing the enactment of the GEAR UP program In addition we conducted interviews with program officials and staff in the GEAR UP office located in Washington DC and obtained and analyzed documentation related to the projects We reviewed the seven VCC funded grant applications the claimed in-kind facilities partnership match and the documentation supporting those claims at both VCC and the ED

An entrance conference was held on June 4 2001 on the campus of VCC Fieldwork was conducted the weeks of June 4-15 2001 October 2-5 2001 and December 11-14 2001 We visited the EDrsquos GEAR UP program office located in Washington DC on April 9 2002 VCC declined an exit conference therefore we updated our fieldwork on October 18 2002

We focused our review on funding cycles FY 1999 and FY 2000 To perform our work we focused on seven grants Three GEAR UP grants were awarded in FY 1999 covering the period September 1 1999 through August 31 2001 Four GEAR UP grants were awarded in FY 2000 covering the period September 15 2000 through September 14 2001

We relied on VCC computerized accounting records to determine the Federal funds received and spent for each grant award We tested the accuracy and support for the data by comparing source records to reported expenditures and project revenue to Federal drawdown records Based on our assessments and tests we concluded that the data used was sufficiently reliable for the purpose of our audit

Our audit was conducted in accordance with generally accepted government auditing standards appropriate to the scope of the review described above



The response also commented that the scope and purpose of the audit had evolved and changed since it began and commented on the delay in receiving the draft audit report While one objective was added at the end of the survey phase of the audit the primary objectives were always to determine whether VCC maintained adequate documentation to support the required match and whether the claimed matching costs were allowable allocable and reasonable We added the objective to determine whether the seven partnerships were eligible entities at the end of the survey due to the significant changes from the grant applications including changes from the significant match provided by community partners to the claimed match records with no contribution by community partners We informed VCC of the added objective at the interim briefing we held with them at the end of the survey phase of the audit in October 2001

The delay in receiving the draft report was largely the result of numerous restatements by VCC of its records provided to support room usage and rates Considering the duplicated unreasonable and unallocable room usage claims as discussed in Finding No 3 these numerous restatements required that we compare the restated records for new duplications that occurred for each change

The VCC response made several comments it asserts are attributable to the OIG audit staff The statements made in the response inferring bias or misrepresentation by the audit staff are in error or have been taken out of context Our audit was conducted in accordance with Generally Accepted Government Auditing Standards (GAGAS) As such our work was conducted with the objectivity and independence required under GAGAS The issues audited and developed during the course of this audit were determined by the data available to the audit staff conducting the assignment and the determination of its reliability The conclusions drawn by auditors are subject to change as new data is available These conclusions are discussed with auditees as early as practical These early discussions are not fully developed but are discussed to obtain auditee input as soon as practical to assure the audit focuses on meaningful issues to both the auditee and the Department of Education


Statement on Management Controls

As part of our audit we assessed the system of management controls policies procedures and practices applicable to VCCrsquos administration of the GEAR UP programs Our assessment was performed to determine the level of control risk for determining the nature extent and timing of our substantive tests to accomplish the audit objectives

For the purpose of this report we assessed and classified the significant controls into the following categories

bull partnership in-kind match claimed bull community partnership participation

Because of inherent limitations a study and evaluation made for the limited purposes described above would not necessarily disclose all material weaknesses in the management controls However our assessment disclosed significant management control weaknesses which adversely affected VCCrsquos ability to administer the GEAR UP programs These weaknesses included non-compliance with Federal regulations regarding partnership in-kind match claimed These weaknesses and their effects are fully discussed in the AUDIT RESULTS section of this report


VCC did not concur As fully discussed in the AUDIT RESULTS section of this report we disagree with VCC comments and have provided our response at the conclusion of each of the three findings


Attachment 1

Valencia Community College

Comments on the Draft Report


CIA CUJflnlrmillj C(ller~t c

1[1 Illillll lkll

Rqc1l1tlIl15jlCUur Cri~IlJl1(r ldil 1_ ~ D2pallrllcl1 or E(waliUll

Ulric -f InsllC~tJr (jentCrai )()(I Ol~-J Publ 8111c 24(l1

Kmlls Cily h~~()lIn i4114 3-()2

jL )r~1L dli RLpr-1 CDlllrulllllb_i LD-OJCir07-R(jl)j I lkicll (11l1l11l1~ (IlL (fR-tl blchw~ ]qlllnllHr1_

DCll-lr- ~lell

I dill Tiling in ILPOlbC T0 WHir ktlltr utJanlwry 9 2(J03 by whidl YOli l()IlCY~J

dlc aflVlt r~ler~lc( drafl audl( repllrt ou prO i(kd JCrlCi1 Ithq day~ In blllJllll i rI1 ki C llT111 11 U II [Ii jill di il ~ 111lt1 r l ill [1011 dd t I U II~ i II ~m dl3 fl aLld I cp1It

lach~d r-klt~c lind ltlI~llcia ()lllill~n[ un caell olthcl)lrcc tlndllg~ llId In

Ih -cclIlmlutili()n~ llll 111 ilskd IJlldlJ cJell lindill)_ Also COllllTlent ltlIT 1rlt1VIkd lli

the 01icctlCS gt[C~)( elmj _vklliOdu1ngy sctinll of tl~lt Drall Rlort

1 ll[ldclSLllId th1 I~I Ii Ildk~ CIlir COlllIllCu1s into Jcc()un ~IS yOl~ tinali-l Ylllll-

1(]1UI rkJSL rontacl 1_ SJ5111 K~II~ lcllcias Yiclt Prcsickll (or InstllllllUn~11

_ d ~llCClrltn t al (-j()7) ltlt2 J -11 7 (lJ bc]e (it 1)(1( ia SCU_O_ if elLl 1u c qUSWJlh

1i1lil Jil U C)- r~]l()IlC IS ll prltldlc YUill (iwl aunllcpurL

Cc 111- Robert ALLlin icc Prcidclll for Adminidratic ~cf-cc~ 1r [fIChlc] I1rusteln llruklll 8 hnascit ivl- Slisan Kelley ict 11C~1knl for Ins11tuliollal AdiHl-lllenl 11 L Wi lLalll lull (l lle~ -lcc Irsi tiC1 t 10 r VIic y mel Cenef~1 n Il1sli 11 Todd F~)er In~tmal _lfiiUf

I I I -- shy

shy

bull II I -

))(Ili J f 11 i A II f (-port C 01111 1 o[-OIJ middot A (I fj Iii i

val (1 ( IIWUI) Cuig GFI P -I 1 jIIC 1 114 n 1

IIrr ri- li(lj hl~ ()I1t ()i

I)rafl I itdjll~ il1I1)11)tr I

III (c)iitclt did III racl lll-d bt- reqUIred non-Lderal ()I-~11MI for ~al-h of IH ([=1middot

11 P-UjfctS The CUkgf reLJuests lhll the fkplrlllleni fn-icv thc [Illloi~l~ ni([llIatilI1

lhat sup[Jorb the Colleges rosilon

ilCIil ~Uld lh~ (il_AR I)-P PClr[IICr comrllltr_cd ill 111lt grant prllrll~al~ III kiEti ltldidllll S th~1 ~XLcc 12d (11(0 reljulnJl12nt oj r i1J~-- uf prlgralll U~b lh~lt WlS olakd

III tlh fPIc~llIll insruclilS hidl wa~ direcled lilt apprnlld ~rbllly laquo[111111 wlitll) by Uw jlIl)grarn niC2 ~[lft and whichs st~ltd illlllt GLl-ll law_ )( 34 CIR ~ (ilU(b) III order ILl l~lnh 2S strong a parlnership as posolillc cach

or the hTJnts submilted projected lTIllling ahuvt l1Hl hCYUlld li1e milliTlcl-lIl k-OI ()( SlY

I IlL I)ljc) l-SI)OF _R-Ilp lpllicio1 i1Hruciulb jJIUilic-d In Ihe STktIY

Ol Eltlucalll mu ~IPPWHd by 11- Olllc of -Iallag~llleni m I3udcgtd Llie n pel- 1 JJll-tllCTI)~ 1 tll Ikblilly I() de-ilc wh( pcrccllla~~ I thc proiLc( cu~ts (]ICY 1 iililli 1]1 nI-rtd~Lll expClldtur~ ~ah Lr _~ llIl h

Ih-c t(lrtlILU[I-~ClkLd ()~lllbliLll O(-j llll~llSlll olhl gltlII ~ard Pllld -LjlIo ~l ka1 )1) lcrl~lIl Dr lll- tOLd projet L()~t nlC~C p~)1fItrhip jwl matchl]-

req 11 reJl1lIlS ~ I e dcSIgil td I P -n ide a1]1 I i litn I with 111 d Wll i f18X i I) I II Y 11 k lI1C(lmtIJl~ applicilib [( C0111i1l1e Ih program alk- fcdcnd fllndlng ends Ihc 2IJ()) grant ~lppllcali(l1~ 1lstUClilllS provlJed by tleo S~n-wry slal~ on )L S_ -I ltedcL (11m hall prud~ nDI Inure lli1Il 511 PCICcIl uf Ihe lot11 (OSb I al y ]l[oJtcl LLlldcd- (Sec Ituhlllent j

The l~ud Jelllrlt f-ul all ~cHgtll grulllt Ii-on the l_S OC)l1IIlCllt or t(JuclliUl I[C pwid~d to lle Ol(j OI1C or lhc~e aW(lrj lcttcr~ ~tak nW_clting ((ltllrTllllllltellt IJl til ~pacc prnlI(ed for that PWlllQSC Ibe ~lard elk IS lhlto cllntrct dltl(lITllllt -iglWd hy t~e )flllal nprcsClIbtive of tll Slcrd~T -1 l_cilLl1ioIl

f Tb IILX)F (I R-( T rlltlL2~aJll clniC~t CI~clgled (n tIneil h (lUIs 1(l~Cl

~C~lt 111 _gtmlil (SLC Atuchncnt [1) 10 VdleIllll ~rllll c-urlillldtr -OJ kl l)Jh on oncmber 27 2110U IldrH111tng r11 culkg~ [hltll it was middotreqlll-cd 1ltgt

Inl ide Ilnhill~ 1)1 1(11 g~-~lllt in ~ll alllOllJl uf rl federal fUHliJg a lt1 march) Hnti dircct) the collqe to rcbce its JIlJtchl1lg bwJgct ll1d ltdhllll

rClsJ matching JudgdS by DeCCTliher 152000 Tn her emaiL he stJkd Iht j(l1iI Trlalci-Ilrg rc-qmiddotl1rltd I-or ~ach yenranl each yeH and It as adiy th~ sall Jul~lr 1~1l1~j~ tho l)II gnmt Illr tl~ thre~ grnts lwanied 111 ]1 l)) r_i~--u lll1tcill It a- Ih~ 1ITUlIllt 1 the dir1 grlt1l1l costs fl] Ihe four gralll~ ilvmkd ill (11)(1

1 I1Ih i~ luwcr lhll i()- 0 [oJ chj TI1C conecrb ~bal she cxptC~-ed III ]~LI

~nwJ WClT thlt malching nol he JUp1i-ted 1lnollg the scvcn Tallts and tllal IlHlin( I LosL~ h~ ellrgcJ a)1propna(~]y_ fhe rcv~eJ budgels r(qu-~tcd )- s_

gt

)1111_ r[ (i j)rrdt 1lt11 Ro Ir (0 111 i)cl 11 -I )11 (i i I(i i

I -a (-I1lnwill nIle 1- Ii_ f ll ( i~ FII -11 ~I-d FdI ~ -N ( J f i (-Jf (

( Jnlei -~-c ITlI~nJtd 10 [-cooh l thlSC h~lC~ Ild to LlrIn~ thl JJlJthl~ ill line Ill lilt 50 nquitclIlnl

) Valencia compilcd with lhe rittcll tlinction giell the CollqG hy til U S Dli11lInwllt L-lrdlJ~lrl11 pn)~lJn oC~_(e IlJ SLlblllitkJ rltheeJ [IlllLnim lJlJiCl~

Ull DeltlTl-~r 15 2(H(J IltI-(rillg t~le Itilkhin ILldf-ci~ I JiJlt~LIltd t) L()IE~ 1Il1_

lllle Ih lk 5(1-- (qLlir~ll1ellt l(JllIlllUtlKlted III illl C(1ik~ 11 the Llkdi proram ofE[(~- (In som~ cai~~ ilcn(ia~ nVislIHl a~ llthii Jllh~1 tllilll tl~

muLElt ~lrJil(J h~ Ihe pWfrllll dew) (()P1C~ pf t~lOC bllli~cts crc pngtVIJeu [c) the (JIG llldli [calll_

() - Chri~ Tomei ihe lSDOl GlAR UP program oj-liCe o~1l1 Ul eHLlil lo let-] Dnis altfliIS ralliS oodinaIUl un IanllU) 2 20r) rnuicaling tlwl tLc

hudgets were r~lUclL tTluch hctler and lkt tht ([Ihestions Ihat lCITlCllil are nor un

In dLSk c Ill kec) Y(lll iPPll~td Tht ~Inl lilat could ildjlpCn ill In~ uplll()n i~

ill~ ~ uuld lmeu ISlt md Ill ltJlk throu~11 Ih IUSl~lics Icgdha Tilt -ullcgc lIlllkrShl()d tilal lhJse rell~ilillg COJlccrns Imolved mv IUkf_liJ dllplicataHI of matclling amulg th~ scven WalltS that )Is Turrl J~I

utllfilimicated iii her ellail 01 vcmhl[ 27 20111 Th~ il) m]lciln~

lUllnnitnwlt a never in ql~li()ll

lklCld Ic2eicl 11 llni1lr [lh()n~ call cll1tili or cllllT cornpomkllc~ Lom the prlrralll st1rr abott rl bldlS TIll EUICttIO1 DejlL1~1111l1 ( _1l11l _dminis(t-at_~ ResmiddotIliioIL dUl_R) pWllk 11 _-I Cf R ~ -4 2~(IllJ tliLl YitlUTl ill cilel)(~lr G~y~ I-I-rn lile Ll I IT~eill -d- the rcq[l~~1 r)t- hud rL15iUls tIll S~cr~tlry 111111100 (he [L_jljst ~nd JH)til~ 111- ~Cl11llen hcrhcr 1]( )udgel rei~l(ns un h~11 aJproed If the budget nviSlUl1 is still llPj

c()fI~ikratiOIl allhc end 1fJO takndar (lars Ihe Secrelltlry intomlS tlC fnipient III riliug (q-the d~te Ivhc-tl thl rceJPleJ~t Imly expect tie rkcisioll_ 011 JallllLry 15 llllll with _W dilY~ haring pased Ilillg rccelved llO Wliiten ind~cli111 lhdl [ie LCl~JUll Wltl~ 1111 111lkr re i~ liaviag tcccicd no disdPPWL Jnd IJkil illi

acclIlill Iii] llll 11lIdgd ~Ie chlnged II tl~e -Hilten w~trlleti(1l1 ~I the pmgrCim otlicc VlicnciJ procccrlcrl to IInpcment the re-h~d matclnS budgets III lliclitioll_ (J~_h~r than the ltlmOlnl uf Ille illltltcilillg rcquir~d )llch hld b~lll

stiplllaed by 1--_ I unwi in iler -overnbcr 27 2()()) elll~lll 110]( of thL ChlIlt

mci til tct Tn J4 (Y_R S 7--1- 25g) 10 l-cquire pnnr llSDUE aPlJoval (Jr hllt[~d llaJl-C

~ ~uhaqllctltl or 11ll 21]111 ()2 ll1d (1(12-03 years t- lhe ~ants -ajLl(~i

ll hmiltd WlllIj ralt hl1d~t I U h~ prSTllll ltlnj~ ~ [- [pprm d E~t(h uf tlle hlldgel~ 11lLlwkd l )(Jgt) 1l1ltchll1t c(nnjllllttlt and I t1t-nti()1 0 il~ )If()~Tdm

-fce 3tClfr Wl~ clikd In Itll tact The progr~[l~ ()]licc cOIiirll1ed the ~(-r

mndllng level J~ (he re-Ulremcn( ltcrhfLily IS Vltlicmil Ueclllpcd the hlldget~

and approed lile level ill writing 1fter the hllJgcts were apprDed Th plOgr-nl ~tan continued thlOUgh December 2002 to mtoml alclllli1 tlat 50 v-il~ the m]IJlllll of 1he IcwIrc-d [nate]l_ -dtlilionally aard Irllr_ jr tI IJlll i2 d~d

_)1111 nn 11- [limT (II Ylni I LII-OI Air H) V(li lie ( 1 J 11-1 cE IN -1_ Igt HI( illllg I- 011lt

1111 -cbnw J 110_ I I i nO1 ( fll - f C

2(1(Jl-(I_ VClr dId 11IJ1 iIlludc ~Ul 1lllDllrlt of r(qllllCl] nPllcil III lh~ ~TltlC

p-()lied 11- Ilut 11Ilpos

1 Til fJllDWill ciuJt 1I1cillltllcS lhe [IlOlll( of oa(i1 -iIIlL ranb lJld lilt lIlHllJril ui r)lltlkllil~g PLlVldcd tu U) du(lilo(0 i)1 Ihr review as lt(akLl irl the U(-Ilt Wdll r-cp()rl rag (_ c 111 added ) la~cubtion of lil~ -Otll1atek th--ll 111lt meltdl1ng III (XCCS~ orIl~e 50~ rctjllrcucnt

(jJall - 8--L )lt)- OQ

P 3I ))IIV)4

I) 1 ~-I O)ill-l-)

l~ ~middotrA)IJ23i

(GlI11 _- Illlt )1n1 S 2iJJ(lO

S 51411() I)()I

Vjl1chiJlli moUIlJ ClainL~d

S 2IJ2()71 -+5il(A~

I 414)J5

0 ellllkli 1(JrI~J

S 2-+ S q 111

CrI)1 cJr(iII-()1 (irmt molnt gtbtchlllg ~llOllnt ( blTllcd I Innll_atch P334A9QIIOJ4 S 2520(1) S J2G350 S 7410 f--_-l Nil I ) S J5440() S (5971)9 S 115_ II) j__-I )l)U4 S 2(j-2iJ(1 S 0(153 S n-l-)=

1- __-1 11111) 15 5 S II L)(] S -+rS(i~ S lrlr

I) 111111 )4 S )fl51IS S 4U90rn I 24)- Ij~j--IIJII(II -i5

S _)JI laquo S _H)745 S j c2

i)~~__4 n()()22I) S jll)(j S 2130 S 9-W

-c ecrd) ~PP)vJ a mCllllllTl~ bUJd Ihal 1 5()~ elf Iml(ehil)~ c()~r_ bull fili

tlie (ilAk-U) pJCJjeds ltm(~ WIJltcn ~llJ erbal mstnJCtiol and ltlpPf()ltlb w(crc pHgt-IQed to ilcllcia to set tile 1118krung hllllgets t th 51) kvc_ ltli0I1Cid rc~p~clfllIly eltjues that the Secreary h()nor his rrnlOu~ instrudlOi1S to lh~

CoIkge all] find that -[lencia 11OUld nll hl rC(jlired [] rcilUld any ol-the iml~ CO1111Wmled h y tb-oO 0 lei

dlcncl SllOLlld complil ~l rnillllllLlrTl with the pTentage ofmatchlng dlrelled ltmu lppO ed 11)- th~ jllOgmm otli lin each Yflr of h~ ~r~lllb vhii i~ Sw ralh~1 than the amount prniectt( In Ihe original ~Tunl propoSJIs denel1 lias donr r)

lkJlllI~ III~-r-dlt~d cyl~ ebllllJ Ill fllilillC~ lT2 jllopedgt alcllla(~d 1~1Ilt r 1l1J]litT Ydli~_ eitiltr Uff)l I _Clnagvmclll and Bldp~l CIlTllilrs Tlor flp~lrlllwill If

l_dl~(llIUI rulatIUt1S lqllHcs till usc Of dCPTcjlilon It duC ilIlldllllg (~tilitiL~jgt II~

( ) I( J IKUJ Iltt11 Y arh I iceL( (-lt)II~ldcr the t(lliuWll1g

J Thc ~lppllatI()Jl illgtlrudl()IlS listetl IJl-illielt alll()llg Ihe amp]e of ellgihc malch_ -] le lward crilcl-id aWilllkd POll1ts III Ihe gW1l1 cOlllpltitcn flr the USl oi

luil1tics_ (Sec allildll~lLilT C)

I lie )Iiltcd illpl-aIILlIl Jl5nllli()~b pnJllku hv tlK Sccrdll-Y I-dlicatiuiI IIlJ

IP ell h- ill t 0 f il -11 n1 gem ellt an ~ But gel d ir~Cle(i app i ICi1 ts tl 4 (1 1 ~ - +1 hl d(dop 1tlt ItIdrhi1S bmiddotldgcl (Sce atLlchmcll( D)

-_ III her N(1Tmllr 27 200ll enaiL tile j1ogram (lffic [11- TOI)lci dlrlytmiddot~d tile

Cli2C tll dUUfllenl the OJlIllI1I11tnt or pe-soIllid time ill th2 gr-allt ~( 1 cl 111)klt Liel] (il1t none Ofllw tille wa~ dllplcatcci in the --I-ants aJld tn IoclInwnl tltc -i 1Il~ dEd coSS Th Illdt(hiJl~ hllrl~ILh submit_ In tli~ I)paltJrJ1t elll

j)CtTlhn IS lOUI 11( Idc Ihlt il[j()tmati(ll ltU(llll~l(lilS the alhtgtII111 Llf lilI elwl p~TSUIl IJS irlcenJd ~o Cllllllli t to cadi Talt nd Ihe LlUll- fILlllte~ iWII- L()[)trihulc1 as ill-kllHi tllt1lhill~ AdriT~ollalty Vllelmiddotl~iJ ~pplid n_~ Dzpdrlrncill wllh illf)rm~tlrJll dOLllIHcming tlt lJil Iflarkct htillC of eOrllpa_rable p~lCC 111 lI~c

Colkge scnJj Jis(rict to sllbsantiate the Clbt used to Lalcutatc liw aI1I(Hllll h~lu__ dilin1ld f()r th~ Ill-1l(hin~ r~ilitle_

+ rile r-Iinal approvcd patt hlldgeL uu the ri~lIlns to the 1lll1(ilim blld_~ct~

~llhn-i-cd j)lccmh~r I~ 2(lI)iJ induded YakJlCIltl lld pllblrC ~clIOOI flcililc~~ t

IlIltch f[)(i R stiplll1I2~ at 34 cf_r~ ~ 523~ lilat tilt SldHry PC]j(1I111 Lnltj tntlysJS ul-tlll ~t-a~l1 hlldset bdc-rc tbe grant i lrl1ed lilt III ~o d)lllg hemiddot (1) veriflcs Ihe (0( btll in lilt (ellllcd hudget (Of the pnjltell en emiddotlillal tilt gtp~C1Jie lCJl~nt or CUss ilml (l) examines costs t( detennln~ 11 thlty il

n~cessary rcas(lrl-lbic and alIowlhle lIndCl ~ppliblc -l~tutcs and reguLlhnns rhe-tCforc )CeOrcilllg 1( r~f)(jtR lht Secretary vltrifitd that [ilCllitics lOS_~

plC~~T1~d 11)- Vtlcnril er ~tllowlbk pliOI hl aWdrdillo the 1 ltlll

~ ill fdlllJJry 21)111 lr [lLl1[ jl~or a ITprlS~IlLlIil uCllw 1 _ l1eplI1Illt1l1 f EdllclIiclls 1)[111 RC~l-llJI Utllce (Olducled ~ site i~il _(1 lhtC p10le(tgt Hd i~swd a rqwrT daled -LIY 2J 20G ValenCia was glVeTL ~il dJY lu reslnnd Illlt rcun indicQtlu th)t IKil1tie~ could [lnl bc ns~d fur matd1 if (lepr~i(in or Igt Jliowltillce JJd been mctlded in the colkge lI1cl1rtoct ost PO)) and l~kcd lhe College 10 clerly (1Ullwnt dl flwtch 11-_ Taylur aI(l provided dirclliun ltS to tlc 1[1c ur-rec(jrd t1Q -hNld be IlWinLllIltCd whICh the Clkc l1j1lclmflled_ I

U

IU JHII IiI n-r (no 1lt11 Igt OIG 0 _IIgt

- ( ( C 0 1_gt GF I R_ M j ~ H I mllI SIIltI I (hiIlT )(1 h 1 (())ilhUJIII Ioi c

ilt in~p()11ant to ]tle [1111 lilellli) did not calculate rlcrLciatlo~1 cou lin ll~

(hlitlC Illltil [lie rl~c~t yC~lr llllilg JUlie ~O 2002 JCJl CASH 14 and _h nquirltd 1( It ouiJ 1101 h1IC leen 1)()isibI2 Igt lhl Cnllcgt t-) Il~ il~illJci

dq1]CLlalioll nb In lt~ IIlt Ii-IC[ Iul [-I[e )r in tiJl Ilrlrrhilig bu(ld Il) filL

-lt1llb_

( il- LI)lurs CPO] wi I-CLecd Illi JUIlL --1- 21)1)1 Ihe day tilat Ihc meli_ klJl

frolll tile K~JIs~~ City onicc or the Oflice ell Insrcctor GlllClilI ITTd lntJ

illforilled by VaknC)1 h~11 arTln~lg lile vi~il the (JTG lC~Jlj sl~kd lhl th IC Ulllwale lh~t Ilr [lylur 111 i~lled lhl~ Ogtlkge nr WIS prltpJrilJ~o 1~~Il a JeperL VlelHll pru[deu1 copy of the rlt2pon tn rhe OIC kalll_ I h~ ()Iicge huJ

Illllk-SIOOU li1a till ltllldjlo~s lOr~ to take into aCCltlUl11 Ihlfk dOlle h~ oticr UepJrlJllenl l(pr~gtscnltti 85 xlieTi pialning an d~di1 as l means oj I~JlIL-nt~ lIlh of illC twilt ~l1d perhap~ ell~hli1l~ lSlllS tn be fL~IlInl irhuul n~-d ror a I-il

IlltJICli J~~Jl(]ndlJ to MrTnylws lepon i(ltin the 0 Jays alIlvd]]I it kttLT

clilkd lui 12 2001 pngtidJll~ exlrlpk~ of thc tvpes ur dC1Clllrlnlli(j timl till (okg Vl rliclura~Jlil jc] ere based Oil Ilis c-llilel reCI)Tll]lell(Ltirln~ nd al prolllill~ nH)I- IhoIl tlle Culk( ltli1 1101 Ilciud llcpr~ciltl111 n~ -I~

dluIIlCc r ~r]kll a( Ille~ III Ii Ilhlirn C()~ p] 1-1 m~titi(ll wllh [Le T SnClL

1) I L)it)T lspol1ied Oil 111- ~I 21111 hi~ 1( iw uf lbL CF -Z-I 1 PlOieCI (J) c(llTWlde ill(~ Isclt1 III all GarlicI Idler l)rll-I1Y gt)_ lltll _ Mr_l aylw ~taILdgt0

t p~rtlClilariy ill to tllallk tile C[lile~l Llislnd ~llppOt ~Iljt f fcICJiiLllng ill

leIC Ol[ ~11J yllllr IH In er- G()()pe]iltiC i1nd opcn tu 1~1L Olmlll~lllOn 0) ()jT prmlduTes Ic[yitirs lI1d reuHis Yuu CIl aLl rCicphlC hi

nTnmmcnd-1lltlult and ltnpk uf alTllaivc ltays Jt lTl~intallild rcltlrcis [ilt slJlpml the otii Df ile proSTilm_ lIc ul~() noted u tht ILiImiddot 24 21)0 I telle] til ill lh Colles~ lII~ly he cllntHt-d hy lile Program Of(iltlr In ~l~lllllgtn D_ l-

reJltJrdillg 1Ilgt [I(juircd ldioll llld Illt hI -uuld ltlWUil lilc rlO~lJlrs ()j (he 010 lllilt

)_ HlOprsentltit- or (he (ullcgl yislkd INlth tho rrorltllll ~t~dr dld 1_ r-bWCC1 kLHlgillm il~ -I~hiw--toJl n ( on Scptemh(t 15 let)l 1( rcie the

CltgtikCjL f(~pnlt~~ to Jr llylor~ nput- sire lhe Illclhu-b of k~eri[~g ~rll

[TlH-d tllal hlU hLcn llpicll~eilJ 1S CI resull OVIJ I lylors Lil lo _81 if there l[-~ Ill LJIJci (C()lICJ dd ic t]l) Ill Dcpartlllent c)Ild nl~r IIHJ to 1laquo It-li~

jlfIJ~li1ll (l(lil~ llltllllc~d t till 0( grllltcc~ 11 proVide ~()~ t11lklling ~Ild I~ [be

[IT n1rke lill~ il assigning vlll~ to falililic~ CiS E])CmiddotR ll)lIlld1e~ ]Ilt Cclkgc Js rmnded wi~h 110 additiomil tdicc Ulli lIe pfObTarn uffice l()Tl1lnulcI II) Iprnn-c akncias lSe ofLir n1ltlrkd 1111( to vall ltLii(ieo IS part oi ~ 5( mllchrg buJgd I~ich ~ s~alC(f 111 Ihe hudgd 1Ilratlllt$ telr ~a(h sll(cccdin~

sranl ~~I(_

(

( r OrIIi I Id Ii -I ( teun hu FI [)J( i J _III)I i

1(11ltw -011 nIL ( n _ (r W_ p Hm II~ II ( 1111 1 I

Sdpqcd ihrn 7 _(if) hi )c- Ii mil (-1

jllllll-~ ()~- IlI-klJld llluchil1i taciliIC_ SectJOil J-I~ oLltes lIlhll~illl1S inol [

C)IJIPtJlS(1lti Ii)) the liSe oftl)~11 illliIJl1llt ldrilallmpltncmtflb and qllipJt~nl

Such mlCijnri(I ~hdil he mad hv COtl1putillg cithLT deprtCialillil (11 I lllUall- _ (EmphasIs addtd)

TIlt (ne illcurnltiy tales Ihat CctiUll I-12 applies tll IIlt11cid ill-kill Illdkhlllg huJ2el_ VCrio dId 1101 -lirsl ClililPCfiSIllWfi fw use of EICIlC_ fIthn the C011q~~ dnd prtllcr ~chnls c()llnhllal (hr friOIIi I ltli il-llllc1 1111-llljlg -J) C-ll1pclsaI10II va~ rcql~1 cd UI- I~cei cd

llfcHLlI gt-1 sCCliun tA)(2) stales Thc illcccsful appliLIIJOli 01 u)1 clCCollIllng nrlcipk rcqll1rcs dcd)~)1len llf TlIutlwl ullderst~Ulding ]clclt11 1-pjL~ntl1ic~ I (dllc~ltl()nll ill5itliliollS and (If the retieral (jOltn1Illcn as 10 lilcir- SCOPL im)lcncnt~l1iOI1 md llltcl[lleli1IOJI

Vdilncid ClJllfCITL( with repreSllltatic or the SCLi-~(~lJ of hl[llti1U md nxcicd wnticll a]lptl-il for i~ budgctlt Jlld (he lISt ul-iJ( marker lllll 1(1 15~1~n ~liu( h ill-kll1d lllatrlllll~ racilltle

l rcuhr 1-21 ivctjll (I ) stJtc~ Ill C~~ of a discn~pllcy hltWcll the )HO igtlOIl~

Oi-l ~p(O(iflc pOIlncJ ItfCeJl1-cnl 1I1J the prL)lsions below ll ag-e[ll~llt gt11]Id gllTrn -hi dflCil linds [10 dirCpilIlC 11th UK c)JltiJlu~s to l~~1 11111 rll~rc is di~c-lp111CY iJctWttll tne ag-CC1llcnl -~ill th [kp11melll ane till ]In~lnw uf -21 tilltc Clrclda~ dlllct tklI11llt I)Cl-cClll(nt ~hltHld YIltnl_ ]lie

il 1 ~~1l1 CIII I ~I rl inc II ~ lhr II ~c (11 Lltl Ill I kcl gt 11 Ue

rlrII]L- 21 ~nlj_1 JU 3) _ClleS I-ile valm ()~ dOl1Jltu serL~ llId )[CIIClly

lly h~ used (0 mcct lltlot slunr( or Illltciung rcqlliTlmellts 11 1lcordJllcltc llh

Ctlcubr i ItU

[oDGAR stat-s It 34 CI R_ sect 74 23(c) states Ill~ tor pcpienl ()nl1ibJtiotis

f senic~~ lIlJ pIOperty shall hc sthisbcd iil dU1Idal1( itl1 the Jrrl1clbk cos I prnc1plcs

(mllLT -~ i) Sub-part ( cclill[l 2(111 addrcss~s CDst ihiIil~ 0 mtcliilljlt ltto ()] lt) i

d) -I hc 1111 oj dlJlliltcu pace shlttll nOI exceed the rllr ll1arket tlll~ I ~ompJrahlc SplCC as slahllsled by an incl~pcndlTI[ applniql gtI (Llmpalanlc KP~lC~ lnd 1iltlilie Ill PTlVllcy-ltllled building in the ~lllC

lCJCLl[

1~1) Thc vllue Gr IOJlltol tqLllpnl~nl ~htll OOI cc~d its renlal -aluo_

(5111) The hltl~i for dcl(I-minlllg [Ill ahlltliOll of prToI1~1 (lYle

Ill-lkriltl ~qllq1J1JC[lL IllllldlI~S nd land slall be dOC1llltll1ed

r I u h m F1Hr 1iI R-i 11 1- I-UI [1 HI )-i ( IF H i ~ rif_1 ~ilh III II

1[- ( 11 Ii iJ) ~ iltII (OIII- C

~dtIKW prov]ckd to Ihc SeCleLJrY ami to thc OHj the valucs c~tabli~ned h~ Ill IIIJepcnJcnt apprai~er j(1r l~OIpnmble pIiviliC E1Cilitic~ in th~ 5~me lnc~ill a~

clt1ch cunptb anJ cilooi Ifl[ Ilich ill-kind SPdlC was hudgeted and sUb~e(rl(Jll) ciJimed JS mlkhmg Ih ScIdrry lt1S C(lITCCt if apprvillg Ih llC 1~11J

lilar~~t value rdlhc~ thlIl dqJlcciil(iOIl In a~i(ll -due to in-klTld spux plOI Ided d~ nalchll~ ticlllil 15 lITYI 1 all1illg 1l1l pan L ipp~OCd -y lilL

gtclrlLlry

The 01( stJeos Ilwt In[illg a ~ic vlsit in 20Ul vee pllWllkd -lIlED nllie]] ~itl~ J 5111gic pae iiWIl1 to1a for (IOU- dud prrs()Tlnd cltSb fr c~lCb grlIlt hilt n 1 lIlllh1c tu proid~ support fill buw hugte euq~ wcn~ ctlculated hel1 illflJYlllcyi lhll Jelai)rl docUIllCJI~liuli or tilt nnlcli Jgt leqllircJ vee JLpjr~l (tL

illlaJhC~b OftHJlll 111lt1 (lliljllj 111 lgl onlgt It Ill 110Uri r~ltL

okllcia SLlI1k~ 1111 Ii Icf~rclice is to tilL l~it bv 11 Slat Tjyior JrolH Ille [)allt legi(lllj jiIC in rd)lll~ry 2Unl hen ll1r Taylur islt~d VileTlclltl hJ l~C)lds of tll~ matchlJlg (lst~ illl was not Llin~ lht fortuat lu r-Clt1rd tin InoIIIlt11ioll h~l VII I~ylor rcolnmelldeJ The C()k2~ lttdopted 111( rcTunllllcntied ()[]nL alld lonk the ~tra ~kp or listlllg ~111 ll1atC]linL Oil

lll-HIslled rll~l( liskd C in-kinJ lliall-hlllg bemg cbil1~ed fiJI each Frlll~ I ill C(dkot pfui(kJ IllllSC ~1relllhGGt 111( OIUITII11011 lJdCk-up rxmd$ cl1T11lllltd 11 IIJ~~ IIPkboob t- thc ole) team dllrillg tle tcam thr~l site jSIH (n Orl_ndo lu rOI- dKllJIlCIltltiol] II i~ illC(l~rcd 10 say 11M Vakl1~il was uIlahk 0 proldl ~uPIUl1 fill how the cub lre cC1cubted 1h Colllt1e prmilicd seppnr ]lh which tli~ OIG Ji~agrecu

Re()lllr[)endation~ for Draft Finding IlJllht~]middot 2

The f~lciltlc- dlll equipmGlIt lEltGhing claimed IS ailowlhk_ as d~~cnhJ abo 0 refunJ is due Ihe trs DepartmclIt otEdlJ~aliIJll

alencl] ()uld hc in ll-lbliOIl of (inulil~ --11 - I fI EDCiAR and the ljJproved hlldg~l for tile grant~ if II wcr-~ to compute fumrc claims llf facllitie~ anJ a]Lllpll1elll j~ il kind Illdteiling Llom) depreciation or use _dloanltlts

-jo rorrcctiYG acliun is proposed ~wcc none is rcqlllrCQ

UJl

r un co )11 _1h i( ((10 _Vw I I Iel ()ilt- - ( - -H(i I-i c- (O11 Ill n - _ (I -11 - i liI J I ( n I

I-- -rulIr 7 ()J hI i-(I1( i (- C i

Braff Finding umhel I hlf(

iJ1cmiddotIlltELCltlncu-s 11jILth~rc HOI liriiclk1 (II middothlItd c)Sls iOlIl1LJIiHJJIg lilt lIlliill~

(IJlJ~d liLtllL iC1 e1JTl[tl-~

11Ilt Ihe ((-lle~e rcsrds lhe-~lnpl the dlphcaiun~ of which we 1lC 1118 hll - l)e~1l ~ Ii 11 II aklL alit i Ittgt -e Ill 0 va I of Iii c d IIp Ii c~ tcd cosb and (LJrrect ion s () r cn (Irs J iJ 11l[

ll~dlcC lhre t1] l11LlLhing chirncd to helow lh Tl-lilirni 51) cost ~Itrinj~ IneL

-Illlt LrnJ~ wcrc urlintcntOlllt1l hU1JII entJr~ lllltlde 11lt11 cOllllriing and calCldaling lle -IIl~d ilLI~_ It -l~ lh~ CollCr undr~talldmg _hal ~Il or the Jlle-cd dllPH-CtJn~

IclLItiiitclly thc OIG lclT1 cre hrouillI to PIt CpJleees alklllilll and 1111 ~ld] _~

itll~I- jUIJl)vcl or ldJ1l~ICd iran reTor lind i] fKt heel Imld~_

I he Colleges rropo~ed ~~OTCCle actiun llll he fuul1d wllh ils C(llllllleJIS 01] RlTotnlllenddtioJ] -- I hc-lnw_

I T- Ilti d 0 L I_lN Cil(rrJbiu til ~ rc tT-- II 1 I l)l 1~llc ill l(I l1l[1-i~ dh IL lie r I I Sclg 11111 -_

I-D( R prcn Idc) IluI pre -~l clrcll-LlIS Ill he illlI [ed ullder jcuelid gldllb lil slaishy

lsihel (u bunch till UIR-LT _II~ilIL ead war 1ll1ICI[Jltcel tIl st~ri[l~ datc~ llld

)(l _l r-vel in Scptcmbcl tile prujoc( diltxtur cnkcJ 1 itll (h~ (11 kge ~1I1(1 [he SChllOI

)rllllTc Iegt Iilake rCddy dl~ Illde faciiticlt alld Il1i1tcnab l lew Jay prior [Il tlw IJlllc date oi Ill crJnL To the hc[ Ill wr hIlOkdS~ the ~Lf(cdrr)lllg 011 tile Iork ulthe

tllII~ 1 th~l tlJ~ UOCU lhus~ pr-dwud tlays ((l actiiltCi such as rrcparin~ cOfl1pllta lab~ I ld hJld in all d tcti n~~ t) I afC II ~ in f-dL liill tf fUI Uffl (c ~palT for phllHllllg llld

Tllllling JliTl)n~~ 1](1 preparing dussmums ltkdicJlcd III tIll program and made reH~Y uUliug ll( ci-lys IlS pnul to the pallt stlrt dak It) lHe by tll~ phlfrilUl TllltsC n ~dl)alllL lilt nasullltll)k ill-kiltd couiibuliulb thill ar~ pror~rlY all()c~lled wlhe bTmt Id hlc11 l~l1cilreu the ~ttdeilt Wllll pl11cipdul a[tC1 Iht gralt hcg-tn_

-Julonaiy -hen lLJnt~1O at 1ho sdwub were ckuicaL8U tu thc rrll~ram the vallic llf lill~l roOll] Im the IU)lll dedidlred on puperly -oLLnled as in-kmd ImlelJillg_

COJllPlI-lhk sllice c~JWI Ill rc~lkl in IhL llllttrkd fOT1T1lllUls li llinw VIllOlll cb-l

lkdlClkd IIle fur lise tlll-()Il~IiltJtt tI dl n [be rl~[ll (lor cilmpk for 01e on Ulle

JIcIIi tJ- 1UI-ll1- Iilh ~LJJ~r(~ Jll1lkd IJUlti Ih( cI-SIOUJ~ll IIe -lllleg~ propcrl inCllbllil~ ~lllO )lth~ m)11 11- thL ~Jlti-l~ by 1 -alc~jlatll1~ the lllltCliT~ (olitrihutHlll

TJ~_CQllegL does riltlL)llCUf lbat the (1l)Clm~0111l1Uri ~llrVOlinbn-I~ ~preub)lld ~JlIt t n~ i(s Il r- lYlUm 11 ~a ICC ~s I11 i11 lllla Jlld eQJl Ltd I( I()r

1 l J 1 -

l 11 n [I I) uli 1 h R P I-f) Ir IlInI r t-LJ () I i () middotil lL r I

valta (IIIJUl II~( (JrANmiddot r tIcic jfolil

11 m- j 0 7 o()l by r)IIU Ilt ( (middotiC (i

IIii (gt111(e 1ll1pltlllCTllcd the 1~lch()ils ufdncIllncntnliorl p)Qidcd hv1I 1111 Tlylr Jr lll~ I IkJiutlnelll )ImiddotlJcIIOIl IIlJ lliCh Iletpprlvcd ill his hlu (f July 31 11111

1 plirl ulc lI1middottmiddot~ rc~~Jull~( ( illS ite Yhl rpoll bted 11ly 12 21)j)J [le C(lIIC~ h I rL1 thus tl et il nh with lIw 11 () Lrilill 0 1111 ~w 1- ill Ish i II gtrlll i ~1 -ertcll1l~l 21 JI) I [Lcolds l-t n]linlaincd urtlw itlcltio) Sllt wonl [lumheJ or GIrlI dalclwllTS uj me

purpooe and fi)r mlrkd vliu~ (~d by II indltiEtldenl J]1ITlisal of c-omp~rahic priate

fll)itic511 Ihe ar~1 ofelch (Killl) drlf)Lled) 01 each lOOI11 Of facility eLl 1I1ell 1

lllmchlllL(_ [Ile cU5todiil1 oftl1 rO111 or rdcililY In~ sl~n~d lll~ [(c(rd~ JI(I1ltiI~ 1111 Ill Il n~ rllHC Illl~C ()nlTlO ur fHJillICc ~lilltlik 11 (h(~ Jl1d Llld lilIlt-- poundgt1 IIHl~

]llltrph middotddIIIO]ll hackIJ1 dn2111l1IILllil)[] IS mainlaJ[cJ iJlLiudllg lOf e)(IIllrk lll~

luun rcmiddotcnlligtJi 1gtr1I~_ IllirUkc ofrncctnlS hldn tilC wors prograrlls 1(gt1 el[](- 11111

1ltl)k piac In 11L f00nl~_ Jnd rl~ter~ oipartJeipltlms ho allClld~d tvcllto rn ~k~ rooms

i-llll h () I IlC dOltUlli elll ltiIi () 11 ex Ll~dc 1Ii at req 11 iled hy kdcwl feguLltiol~ Til e

doculllCnldllo(1 i~ cxhallsttYC Jud llmc th~I1 md~ fCdcrd reqlIlrClitllts_

() JlI-eIlt acli-gtl is pn)po~ltcl Inc~ nOIC is reqmrcll_

~_ I V dell~d C(ll1lur-_Ij~I (he c)1 kg sl~(1llld illtli ntUll pI OEel rl~[(ml ktTPlnl dS Il_LlLdJll llo O)(j rccUm)1~llilJli(illll

11e ( I kol ~11 Ci 1) ltlclt I tlc ~lIpl(nillm 1 hlt ~- fuund and the cal( ulaljlt_l1 nw 1_

lile ml_illnc~ ducunhIIIij(l md llll Cltleglt Ll 1Jlhgt-ec rO(Jlll itJgcO rUI iuclt lin I 1uJliIf dlIn~lllltlt() (u llrlr~ lin (0llill~ lISC for lh rrnrml_ l-h~~e UfflXcd rl-d~ arC LIlb~ (O ~IHIlcdlt)II (lIJcCIHII) inrlucled Jerlb sllch 1lt lSI spre~dll-_

ruu nd ill rur_ Jnd Iil S~ (i (ic Li 1 llUl1 enor () 11 ltI SjlT cJhllee (il II I() In IeJ lt _ S J()I (karl) the Coll~o-~ god IS to ~clt that rhre are no --rrors in liS l--cords_ IllS IIlporlanL

fOl111c record lbat Ile namrc orlhe ~nors jOtll( be ckallyunclel~tolld which is Ihe

rtl~un for proWl ding these ltxanlples_

TIi~ (ul lei-- 11-0 akcd tiC iutenlc1 auditur (0 ITVI CW 11K ~rrcadsllCeE m] tht Tllalci1mg

1iun~lhli()n 1) ddlTmi Ill hethCl he noted IllY additi(nll lTrors tha~ 11-ud n-ll b ~el]

clltllLd_ 1 LfI(lr~ Ikl tht ole-c lu~ bttll ci1k to Idltnlify hle hteen eOITlld IliC Ille I()U] urlhe m1ldllllg ClIl1111Ilt tn l1et (ile () Illllirmlll re-juifL-d_

The ()IU Jhlc~ Illal Ilw rCcord~ ere corrected or updated numcrous tim~ A sct (1

ITlurl~ Il PIocl1(clto tlc lIICJ11tllfi in JlIne OOI rhe alldltUl~ rn~d Ullile Illiddk

lI-II111 -[-alll clr Thc C lllkefc updltcd lecOfl~ 1~ le gr~1ll vear PJugr~scd Jen cIHd in

- ~pt~n rer _III I 111IdltI-UI]Ill- Ihat Ih lurinor wuneJ Llp-lU-datc fecord for l_h ) eal~

liliI h wrc 1IdJli~1 I hc (Ikgt uITeetcd errors Wlltlltbe werc iJellified 1)1) l

lh~ lIT~middoticln hrc)Il~l-ll[~ maclm2 lollis l1Llo the rcqulred 5u~ tlla(chlrlt_

11

~ ie P

1 (- 111 Ii _ fIN r r 1 I I I

OIlII cd~ (Ii I J IiiI I _

1he (ILLL ilc1i hllwcd Iigt rdlllllc11IIlU f(I[ fllJtclini UOCllIllCl1luinJi jlli til- prUill1

d llCll()r md his s u pen 1lt1 S TiJlti r fllk~ 1I1 erl III i II g lh1t docti nltntlt IOn is rJl~ Inll Iled

aCltlll aiel - lllvt 1c~11 IC jcwell itb cach uf t 1c11 [ he pruj 11 director J1JS bcell d iJ CCC

lu tlpUal mll~hill dOLUrnClllJlioll OJ] a munthly lnlsis J1l~ (0 levicv (Ill dU(U)1lCTliallol

I]ltHIIII while in draft ~l)rnL lu ensun lli11 dllpllcltinll~ UiU lTroT~ Ile clillliJlal~d hdu[( tllc dUltUJ1lClllaLII)) i filUlizgtd_ Tkll is being dllllC

11 CnllX il ccntiJlliC It prldiv~ OJ 1k1n~ tle irtcnrJl Judilur til mcJlIic the (i_L--r~shy(F grlI[~ Oil his ~l[lI11lCll1i t ulpWtorallls lhal he rcviws We 111 lcjwsktl a Illld-~ir [-viG1 Il1d1 flll]1 rcvinv allile elld ofth veI- I h~ Illte-I1ltl1 JlHlitor r~p(rli direclly to

1l1e UI~IIIll H(]l)d ()~-TJlistl~lt~_

llI~ctlly tile ColleglC Ild~ rcqu(stCG thaI tlie Proyralll Oftlc( in W(shng(on D_ C hilft dilY jddl(i-lallllctllltlJ~ llid II middotH[ld [ccol11nlLnd It th~ rulh~~~c to improve It rC(lr_ -VtPll1g I hL (ulkgc 111 rccCccillt 1ddJiJI)r~1 Ivice nr reC(111l111Cllblli nfld Il~(

(u~I~ ila~ Irllpll~11~Tlitd ftllyth~ -lCltTllIlWlhjllinIlS malk hv 11ll 11 lJlt 1aII-_ lhc --I-Ct (r~ltII~I-- Iq)l-c~clll(i ~ il fhy 2~11

II

H

_ c 111- 1 r)Iltl middot1 Uli R_1f ( wi lid J IJ (J I(i A Ii -- iN i I-( 1 111 (-(1) (L ii-II H rn~ 1 i - IM Jigt

-bI -1Im)- 2ml_ I) lAut ( (-[it

CIIIllI~]1 Is 011 Oh jecti S SmiddotOIJ~ aud 1 hmiddottlwdo]ogv

Ilw )111-_( ((III alldl~ d~ L)JI)IlIllli-aL~(1 it kiter lrom (lie O](i 10 thl iresidellt LltLd 1 1 20UI wa I(] fC1 in ~he aceptabiliv ufllw plOjlosed llwlch cld rhc YCIICierioll lt)1 (ile match c1lilfleJ Ill the GrAR-l r prOlram I Ills dlffn frum tlw ~l(le

~[at~d 1I tllC Dwll Audit RcpurL TII~ 0r-igllwJ scup diu not includL lt dct~nninatilln (lr

I11dhj Each partllcrship illclld~d Il kl~tlo cPlllmurily organi-itlltlll or entili ltI~ is Lr~d ill Ihe Dra ft wll t R lpurl

-I ills pllr]ls~ W~~ aJJcd b lh (JI( aUdlllcltl1ll dllnng the C()l1rslt (rlhlt ~lllhl -)]Lrl rIle C)liege ekcted IlLlt to cJailll IS 11Iall] Iditiollll s i(TS pm IJeJlo the Ci ER -1 P llidenl~ hy pin ate sector panners Since (he CulJegc cil()~( nut to ~uiJmll mallhing how tile I 2qui rcmiddotJ 5()~) (vd the pri [Lie sector parllers Vcr ~]ltre1 Ihc inq UlnC from tl1lt lelkuti 1IIdil[calll II is in th~ be1 il1(lf~1 ofth st~[lknt in Ih rtO-=l1[Jl ljl pri lI ~Llr IMllllll~ Jeull their linil~J tilTl~ ( rrovici)g ocrmiddot[lt-lt tnllwlll ratilcr thall il~

II_ICSLI i1lelll1t~ iliJ kJ~r-d llldl(UI-~_ fl I 1il (h~ best lllltT-SI cl IIl parll]lJsllll~

1111 i 111 i li e ~c I )[ I Jrlri c ~1uoi tl -e I~ Iho-Il 1 h(1 r nv( I- till (Ill w 11~ - lIklll~ I til( I lilI- ltiUIlIn~ (ldltllJjlilj pp_TIJI-k bLlnl~n~ _ill c~rrliltllt IlIrkns 11i11 Yolld bc iWjeJ Iiitt CQlkg~ hd lkl~--d ro cJaiill their c()lllJibujllTlS lt1 nWlcllill nil( i In c 11t lion Iii a I the J1 -j vate ~cctor plItwn erc act i ~ W~l~ pro 1 cd lOt I 0 Iti IUclll team c Cl tlh)l1gh In dae the C)lkgc has len chosen to lllcIlCC the clighk rOlllnbcltlOlls made by Ihe-e partners ltI claimed lwlching

nlrint~ tll~ tirsl Slilt i~ll to lile (llke ill fll11L 2riOI the al1lhllcJm nllltled l~al1hcv

)111111101110 111 juiillle- mCllillllt hltraust VaenCia Imircct cost IJte Id~ pllrpurld bv llll 1lt1111 10 Include- I~eilllle~ r0sh_ A rcin ()flhc aclltllindirect e()~t mil 1llllwHL1l cl(CUm~lll mbmiltc(i to tile Deparlmcnt howed (hallhis was not IllIG VlcrwiIs indlreL ens ralc poul did no ]]1cluQe clprcriaion_ dltlcia was pUlled as [() ~l th~

LkplLn]-1ll Jld nollenc these dlt)Clllll~n(s helHe the audil Ic~m a~ dispached (0 Orlando tu mak( that COI)ItllliUl _

_1 the lmcll~si0n ()jhc trlt1 SlC ViSIII) (he College ill Jlmc 21)1)1 lh~ mdlt tedlll ~liltl

illflllll1d Ilic Cltll1~~~ tll1 it hltII~Cd lhat till C)lkg~ hlIl slIppllled_ Tl1( ilt)d ~UJltl-

1-1 Il~ OIG team tulll ale_1cm~ lIJl~ll to IIL tcall illal ~hl OlHlllllld I believe rhlt till ~1~11Ilic V0U)( he JI~alh)cd fur -umt rC1SIllI and tlllt fthe were not JISJll)IlJ dUL 1lt) lh~ indinn ()~t lSS[le ch~ Iso beJIlIed that th~ (~llcg( Ilad suppbllfcd III

en~raL ViHlI ltikell k)r m c-xJlllpk ~h2 diJ not provide ltnc ami flllply Iartri thlt _hilc ~he dlJ nlH have spccfics shew~s pretty surc l-l1( ailtncid had sclppl11]lld Ilw kMi ~llllli(or tOt th Or( Vas asked to providc an xmqJle as non a posiblt s- (1i11 lilL

(11k cOllld j(~dlL~s i ~illCC Jlclcid poiion 1~ thm it did Ilot upplanl

12

ltj J

-J [lt nil l1 Ii 1i1 -IIF I VI)cF 1-1 (1(( 117 ill)

Vr ill C- UI II _ i gc F [ FI- [ c IIi I - I iii n _ Iied -hpH) jijili h Ii- (-JIIJIIfI1l i-]

I-iw 111~ SlCclIHJ Sill lisH ugt IIJ~ (g rhe 01( mdil klrll informed Ie CO[kCOl Thit

it W- 1I1l[ jJLlIuin it daillJ [lsardlll- md~cu costs -Iu rt0l5Crl ltis citll 1((middoterlh (otlc--L J~ inorrded tll-[I Ihe C01~ltl1ioll til]1 the Colkge hud sllprlin(~11 ()u]d be )lUl-sunL Jje lacil1llt_~ maILijng IS de~llcd (0 hc sllr)lIHnt~d I1v thc 01( CCIIISt lilt tlilniLs pr(violls[y cXbkd

l till JIJelllnI2111~~liIlg llfth qmiddotClIHI site iSll ill Octobcr 21(11 thL 0[( 1(~1Il 1 ao-(~

dehe sLlpplaT1tin lll~ Lam (gt[d C(1i121l otlilla[s [Igt Ilmk i[ IIp III th~ thLIHlnlr~ Till (Jil -CLill lS 1led tu pWlld~ illlCfTlH(lltlIl Ie thet olkLc (gtI1h klsl- j0ril~ illdlII~l]b ~lhllJr ~llpilarllllg Tile kdleJ llf [Ill (lIn Itln r(ll~ed hdl Ihlt le~HIl nl~lllbLr wcre tltjllrl_ ill IhoC 11 rllCllh1l th~y kJl~ suppblltin~ when tl1~r 31 It lll~ Cplk~L

hhJ tht UK IClI11 lltJ [equet oClhc[r -urernsn in KallSJS CII) my dOCllrrCllts 0(

iclinitlofl Wilt w(Or( beilg lled [or gUidance

In tile eXlllllcCtll1)- nfOClOhcr S IA the fir~lllllle the 1l1dlh)r~ stakd their the ITl-IChill IllIi1 nceed the 5()~ III1lillllll ill Ih( Lnlt_ Alco [he 010 (em iniOn1Kd the C(IIG~e (b11 -I~ UII 11 un Ille ~lrplmn 1~112 tllllt inknckd to dls~llIow 11( faLllileS costs 11 llie h a_1 ) ~- (he lllCtLod II ~cd [u a 1111 lK fci Ii li ( w II l h til cy ltu n terllt led shll ill d 1111 lt hoCe n dltpn-Clu i [1

11l loietGs 11[15l)1I t(gt tile Ol(i killil slj~~ctcd that ~ good r~litil erm( Well1lt1 ~[lIlI

LlllilllIg whld intcry-clJIl] lltJc IS-IW~ Yldded 11 rc~llh (hal ))]~J ill1ltil(lt

IIIJ ~hJ lile pn-llioll LlkcL In II~ )er2tlry i[1 [1)1- I~ alclCllt llIJ~els lS tll~

rOIlllt1l ()~d lS rcpOI~I 10 lUlt[-SW)llI Illknl ]llrh 1 t) c~[blih llrllllt3~]15

lwt ~I rtllits_

I hlt Ielt auditor 10[- the Oiei kaJil n~plJldld tha -hik ValencI1 1Hj foli(-d ilC

dPpIJL~li(1 g[lldclines s I~SUtC by the tcrdltlry dfld willI f-lciIitis mal ching -~

lpPlll lU In tJ]~ bldg~ls lkll(lil had becn givcn bad ddvice She ~~(i Vlkileiil pC~JlI-I] W)S lICldJslanuahk btl that Ille C()ll(~ge hld Hgtllownl -bad HhiCt Illik thll a rnliigatlllg CirclLUlstlIK that Ilt u--cd the CL)lk1~ TO il1(llllk ill ijS response j]lt

all -tiLIlll as klhlc tT h~vlllg optrmeu Ill( prugrwn in hltr OpiTilOll III violltml (llshylilt lT~JIILillOns vrJl 1 r tllt (nllesC hl dJ[lC 0 on lhc uviec of mJ ith tle dP-PIO al (If lhe StcnLny lJJLl the Pwgrl11 Olfi(e

Thc Colkge u[gtd Ihe OIG klti1l1 lu c(llsiucr that Is JiITcrences lIer with tloc rrubT~IIl lalt ut tht DerlI1lllenr of Fdllcltiol1_ Hld Iwt with the College Slllce the (-ollqe had liI~l~ed rhe dircctHlTl provlLkd b the DcranmenL The College Ilrthn urcd the kllll I ClHik- r~hllg ~h~c 1~lkS inClTlllly with tlie nparllllltrlt PlOglalll Uffi(( so llill it IWck(i imrn) C[lenl~ clIld hl llHce l1d ~harcd 1 [h 111 bralll(e~ Ll Updcl(d kdTlul dlh I~ ratI~1 rhlll lilldln- 111C a College 11111 cklrl- i-Jotcl the dil-LiIltl L~jcli II 1 [ill DcpJrlllell[ I ilL (lIe npIild Ihl[ th -Cl5 [Jot lile aY IL[ I~ ltlrd 11lISlll- fie cam kaJ~r [ned illl l~ OG had net ulsultd 11( Program O-ficl (U

IT~ illkrprdlIion j SlippLIltl1l- 01 ul the I11mvlbility or fmitllls match and did nor plm lv dD so_ rll- Umft icPJrl -e(1I that till Progran1 Slaff were Int(nlltw~d linarv IE

-pril 2002

L

~_ 1J In-

- -I Ilii iudmiddot i) ( 111 1 IJ_()(_) LiI- 1 r -IJa 1 c~AII i _1- ~ 1(10 I

-bill Iimiddotr I c Im_- 7 103 Vti 1111 ( -UII1i1 r - s

Thc C)I~~~ cquec(cd h11 Ih~ OIC COIllpktl iL dnl1 audit npot s qu)(ldy IS p(j~i) III ()tllcT thallhc matl he rcsulved Tile C1IkfC was told iL lPcTlth i)1-lrt All(ill RcIJrl 1Il vLueil _pt1 r 2(j(J2_ The ( ul kt wlitcd Ol( ycr 10 reeein 1111 rVpli (Ii-I)lll lallllJIY 211()2IoJanulry 2J(Jj

Cmmfllt~ on the Statement of i1anagtment Controls

J h~ Oin )lak~ (hat lliir a~s~slfJnt di~l()svd o~l1itic~1ll wclklllss i~l _1(

rl1ln~enIl n))lruh (llIdu(hll~) non LllJllpllallct wlIli rdc~ll regulalioll~ rtgurtiHIshy

larlluill[1 IT1-kIl1J I~ rkll LLIneci

ValI1(i~laIlII()( dlgtJgrv- nn gt1-ol1gly A ~lrcngtl ofVdkncil Or-l-LP programs cllHI urI gtlkg( IllanagtmCl has Ilioen tlte GX11-0l(JrdinlrY Icngl1ls to dllch the mill(ul~UIl Iws OT1V tu ensure [hal II 1011 r 1id([lt11 regulallOlls regnij I1j~ parlncrshljl ill-kind malel ( iaiulld d lask nude exceeding_ eli flinlt mel Ii nlt clt 1I1iumill wlwr CDII n(lIl1Cd by Ill UI( dlilIrt [tml whose npilllUllS J11[) [Itrely 11-)Jrl (he e1ir~cllUn SlVEIllile (ollqc h- tlHc Scmiddotcr~rlrj s l-mgrII SLlf( limll lhv Tilkn apllicallOJ illilrllcwll arprnd Ily [lie -ClTcTI y lIlj thc oncc u f -bnQcemerl and Budgel li-Olll 0-)1 nnu]f ~nd frOI IDCAR

middot f

II ~L 1til Fe (1 III LI ()j 1 _f )-0( ( (l~ 1 n- 1 h 1 1 c

[IIC[ I--UI) ~ ~() C ) i I 1- I

Allachments

(f-llt Uf AppllCdlwll jrIIIIl-lOIl~ RcgmiILlt rlrilili(~ as MaKhing

D_(_r r ] -L1gt - PjJIi(allUn In~) rJ [1011 ~ R r~ur(_lllg V lttlllal iu II I f 1al c 11m

I I t I I 1 fi 1 (I i1 - i 1_ I- 1( - I

Ie ( Ilt ((I- c (11 11 If h i_- lt1shy

J

llaclll1l11 -

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t lplljtvHL tur f-rh (cjl -[ Ill 1)(-)---1 P(middotmiddot

ImiddotI H2tf-il middot1_I2uuJ--11lilJi

tl18 Cflst of the om non Fuderi-ll funds for urty y0Cl in

the proJect perlod-(~) The non -r-l--(h)L~l hen of Lbo) roost 01 the GEAH UP Jnoj8lt2L

InllsL hmiddot] lot leSG thlt-l[l SO percent uf Lhn totell cost ovor tho

proJoct peiori

(J) TI10 lofl-edcl(ll shole ot lhC 051 of C GEAR UP prujoct

t (AlIlhr)r~ty 2(J lj C 11~1-2))

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) bull A~(Iitl- lId illimillatiull re~ltJdl[lI lUI~llng U)[ inlplvi~ll ur~lll lIlVO]lllltnt 11

lrepJnl[~ lud~[~I f()j u)lIe~(~ c~ktt adrillsiull aud Ichievelnern tetmiddot alhl l-()Ikg~

applIcation pnHldul

)o kCljl UI nllnd thrllh wTviCLS iDU~1 be provided to lh ohort of PHltiipmiug sllltie1I lhrOlI~lt f()llpetiOll of i 2h fade

Vhat is the m~ljchillg requirement fur Partncrship~

TIl( Pari unchip must provide (punion of the total project costs clch year [nlncrships havl th~

fkxihility to decide wlwl pe]elltarltC ofHle projttI co~l~ they will fund wjth non-Federal expcllditllr tach Tarlls IOIlt a~ 111[0 tOI~l2-hdcral cm~~tioll over the It[]rth orlhe wanl ~Iward PI iail equals at least 50 percent of the total project r()st~ nlC minilIllJJll non-Federal ~DlltnlHltiOfi per ye~r w1lt be 70 perclOIl1 ufilie ffiJl)ua[ projcltt cosL - l1fsc Pltlltucrsllp~t iilatClling requirements wen~ (IeSlgned to proTltk sectTjlcHnts it maxill1TIl flexibility whik cOOJmapinr a liemt to )rovide Ilon-fedewl TIlJtcheSlhai-dicct siJnitktIlt local commitlllltnts Ul a captcity to contlnuc the programl cr edew [nndin cnd

The 1lJn-Fcdcr~1 match alay bc provideu through clsll 01 in-kind cOIllnhution~ (Sec gene-roll QampJ In f[ml sedlOn oftlw upriotiolJ packet fr rXJl11pks of reOllccs that CltUl heJJilOd tp

IlKd thc nnlrhiug fcqllirCfllcllL)

Vhat arc sonw cxantpks of budgets forl Ilrtuership project taking into (~onjidcration the matching rcquil-emcnl ancl the alllHIaI maximum Fcdcnll contrihution of$SOO per stmknt i ~ P[1 () r tile A cI tlll 11 i~lr) ti0 n ~ I ei n v t ~ti ug (iowmllwn~ Initiative ~he Ik pHlIrcnl requi r~~ (Ii I(

tll applicmt jir mlltl-y~lr uward~ jJfl)yide igtu-igd intunuatio[j laquoJ[ TJ1~ totd lrUlt period ItIU(lnl This dinlI1k~ til( nlt~d for eotctli VI non-COIn petill cOIlTinuutjull application in Ihe rcmlin~n~ project YC[Is n cmnla p~r(nla]lU rcJllrl will be w(d in pace of (11lt continUHlll ~ PIl ml 1 Oil 1 r Ii kfIll fit pm ~~tmiddot-lt5 1htTcmiddotgt ( rcl iC- i IJ~ grltUlt tt of tll~ ))111 d~n or fest hUJ itli llr~

~i~UI d Ilcr~ ~ln ( (crti Ii ltItiou UlIIII)Iy

1 5-ytal hlld[ld Will Jr for c-Ich jutfltr~hip depending upon a number ufvanahk uc] is I) thc llulllhu ofgrltldc~ middotrved by the prDccln lhe (ol] numbn 0rstudent~ ltlaved 3) the lOul project cu~ per jrrticipallt and 1) til l[11lll311(l11-fcuera sh~r( (hal a proiect c(mtribuk~ IS the 11lJlchiIW [lcuirc]IICIlI

XAMIJE J r 1 Imiddot J~ -h J 1 m(Ilc 11[1 ()ldd start Vlth grade cuhClll [e Ir( YCl anG ltt a uew gf e co lurt 1lch yca[middot ~cliecs wOlllJ be ir)v[d~J 1 11 CUhOlis Df siudents ltllliey provrcss through tile 1jU grade In lilt rhi] yem of the 1Iml tlWIC wClld be 1 frcl(k cobn1 m SUIrUC cellun ~nct c 7- ~rJd cOl8rt middottil remiddot~imiddotin~ ocnmiddoties 5middotynr hd~d SUI[lrj~aly fOtThi~ Inll~rhip cqllid lk like tillt fui[]e

gt ~ WHAT CAN You Do WITH AGRANT

hi~~ program surp()l1-~ (~drly Intervention stlatcgiep for ilicreClslng the numbel oi

T~uwmiddotincnmr ~turJtnh Of thr patilWilY til ctlll(Qe_ GtAR IW takJ(-lt the 1110 lTlo~t

IIllf)Urtant stumbllnn blueks to dchleurovlny this qOlt-JI

(1) GGttiny Stllfj(llts acq(jcnllcally prepared f0r coIleqe work

(2) Educatinlj them ind theil families atlOut Ule real cwhi mn linallliai reS()llrCp~ til]1 Illdhl collenc afforddble for every child

GFAn UP grants SUppOlt SI1t and local Pdrtnmsllip eftort~ to bring about program improvement and positlVO clvmqu within a State and at the locl1 levRI Matching rosources leverage suppor1 Clnd cPlnent local cornmitmont necossary to sustain thcse chHnges beyond the lifo of the GcAJ1 UP grant Tlli broadmiddothased coopertlive approach ensures that lowmiddot income studfmt recflive the academir services Clno support they need to aspire and atttln imd that purents rlGt the middotInforrllation they wClnt to be effedive academic mentors to tiH-oir children

Develop Matching Commitments

Federal funds shall Er~Hg ~Q ~ than 50 Rercent of the to~ cost of any project funded by ltl grant under t~~ PQgJ~I1~ The non Frltdprai stlare of project costs may be In cSstl or lil Kim(fc1irly valued including services CUrprmiddotiCS or efjuipmenL This grant program enrOlHaCJt~ Uw leveraginG of grilntee re00urcps ltJltld investmenb and contrihutions from tll( PIIVCl~) cJrld rublic sectors_ Subject to some exceptioils tiw itol11 of non-Federal cornlllltlll-mts mCd(~ by States and loc~1 Partwrsi1ip rnombcIG 8nd tile value of private sclll) irlJcstments ilnd don8tions may he inclvd8d if] ttlf matcll It is particularly important thctt Illest matching cornmitinents contrihute to the lonU term sust8inability of thu projeq after tho qrants funding ends

In detr-nmining the Cldequacy of regtOUfCteS undur thu selection rrltHia for WanLs applicatiuns will be 8vGluated on tile refevClnre and demonstrated cQlllmitmnt at each p~rtner in the proposed proj~ct [lnd lho potential for continuod stJppOG of he projec~

otter Fpderill funding ends

All giant recipients are Ilmiteri tn d maximum rndm)ct cost rate of eight (8) percent of d modified tot)1 direct cost t)~l or the arllOlJrlt permitted by its n8Qotliled indirect CIlS rGte agroement whictl8vH is Inss

For certain applicants and under specific circumstances the Secretary provl(les IIllt a Partnership may propose a nonmiddotl-edral contribution of no I~ss than 30 of tll~ total projfgtct co Set p 19 for details

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LIII11 rinrn Jrugr1[ll Otfloer

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RE Budgets for ZOOO-2001

-Ti) n ri It I 1 ~ _ellr I ~ r )11 (iled_I~(j

I II illIlt lt))lt-laquo _-j I prr- - II

nho 0) -jIM

Suhj(-ct IF 1lJ(jleb tor OOIl-20111

H dl U iln-w 1001(1amp tor-nrcl Ie g Y_w OQkd O y bJdct and lOy ac~ mucl much beter _ Ilw ltl~stmiddotw shy

tl- rern~ oro no~ O~ lOW dk co Ill ~I yo~ apprs~c_ 1l1c IVt th~1 0 j -o~_el in nw o~o~ i lhJ we would lliJVe ta v ~n I IVk Ill 1lJ~ 11- ICi tJ~lhGr hE d()p ~ol ltecn floJr y-gt conl()LJwlng -001 bci Ii~ row

Iec lilY IH)jy Lo yoo 1 y~ir lcililL~ w~rrn (IJO 10 --d ~Ic)

~ I w CIe

em fl~o~6middot__ flrn _~fI [Iov [nlltL~-l- J)v ~ r~LI~- 0 cc_11 J- 0 Tu-_JJ] J~rrj 0 20lt)1 ( ~

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or ~ 1 101 - 1-0) C__~ crle on Icl I ron _ll I - It- -ne I c 1_ II ~- -1 I - elVn r- _- shy

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T lur new dv~ II LrJ~t [ nmiddot (I_X I 11lt re ~ I -j(Ilr~cNI

I ei)1 u Ill- c ~_ Ion 01 p_~ M u_h u( I [rnol em lt n J Do WI III 11~

rl ii -- I I I] I Iu 11 tl fr-Igt111

Ic-~I~ tl I I 111 11 IJJt IC I t~middotolrdlr ~cul rt~ Hl1 lcodi middotto (-I rRClItltj InjLrGd Csl r(o ~i-11-~ IS 3J7o I) Gr Cdp

v-I l-O LIG 0 -tl II jde1 In(i tll~ rl~1 hlleJ Le )GU e - CIltl~ jlJ e ~Xi -e 0 tJU III 5110 in I_lhlc mu J Illn 5( live I nQ~d 10 what th egtct ccce n_luu (he 8 d red co PCo JrC 0 bII de You rrlJt ~Io dumiddot1 ~-dly ]1 tll~ FampA d~ge 11107e_] ~ WN h ~w Ih flIlly u( _rnlndjoc deLV t Iv~1 01

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-r0 _ r hldoh til c Ir ~ WI I -oIl IiIII i I r-wcrotle 10 Iho ~url ~e-1 d- r el IH

c- fL r i ttl ~_ JrlII 1 II I yvu -LO l 1lt1_7 I - If I 11 tI ~) c II -r

1 )- ) lt - r I ~-~ 0 I I III k nl -IS r IU I en r d - 1I I 1 n 1 1 I -j2 IIe 0 Jr c~t I I I~ I-e C Ioe ~ II I wi - I til I ~I -rC- II lI1o) II ~ del1 1m t~1 tlCL b)19 - rol[ ~l lt10] to LI N-l be I[ a rj_ ne - dC 1_ J OOIY I ) _

C- tmiddot d lt~ 01-111 fG-_1 oil 11e middotj~t T~ late ~ J wry I 11 por Cllf~ I) t_~ (I~ pi nI- lJgt ot II

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b there a minimuill andor maximutll grant size No mlilimum maximum (jl av~ralc avud bs bcn (~tabli~hcd fot lulnerhip granb_ -I h ifA~ bull or lh 1l111Crship ClJli wili Jep~nd on the Humher Pi ~iudenls SClvld 11owcv~r tbe(e IS a mtxilllul cmllllli Federl e)ItniJlll1r)l1 0[$)1)1) pn tlrkm fur larlnnship tlltUlt~ Statl lllllL will havl no milliHlU1l 5~i milliJII llUlual m~xitnur award ltmd an (~limated aVTnLC aWltlrd IlC $1_) Iniilinn to $2 rniiwII_

ls thcn~ a minimum or lllIXimllll numlwr or students In be servld~

Nu_ Sec tht applicatioll materill spcGil1c to Partnltrlip finG Stlte ~rflls for lore delails about which students may be ~I-VCri throll~h GEAK UP projcc~

Vl~reSollrc(s may ~t u_~5ti t~)__n~~~t tl_IC lion-Federal matching rcq-lilcn~~n~

for CEAR UP grants Any combination of non Fed~wl Cdl expcllJituf~s aJl(i in-lind CO[llrihutiOllS nHy be ttscd to mct thr~ nnn-tcrlc[al matching lcquircrnclt for (fEAR UP hIants A few cxulllpies of allowahle in-kind conlrilmtinns lllcluut

bull Educational resourCl lJI( ~JIIlll-lt

bull Spacc anri faciiiliclt

Compntcr eqllilHlcll amI ~u-tw~If( I Tim~ sp~nt by y)lImlecr Oil tulotln~ m~nturing givin) mollYltllllLI iIKccilcs (Ia

iCll~()lIrJEC hiehe-r lcademic XhhV[lltJ1t OJ I)legtentin~ infonntl(ln ahout eollegc option and iinzl1lcial aid

TIlIlSPOttltionf pl-ti~ll iilll~ Sl)rl~llCgt tu (I-AI UP acllvilics

bull ArldilionJi professiullal dcvtlllpn~nt tivIlis tor leacher~ awl olh~r Inilnkd tluoug1 ~ GEAR liP

bull Day ~liC service for rl11i~rMI ill stuJcnt Willl childrlln awl

bull lmern5ilip 01 llLn~lJ~- iltgt pruviCImiddotJ t() pmlcip-ItinC tudcnts

I 1lkitioll lte lll~lc nd~dc the l()Il)~iT specific example 01 CdS] ~X~1rliunlt ~llrl

-II[1gt11i)1I3 Ill lUI I) _n- U~J lile HIgt1tchin [ltquinm~n

[ he UUUlUII l--P~DUlmiddot-I _1 (~ulm~mcd jrgltcd l(jn~-telm mcntori(I~ awl lounclir plOvid~d by -llll1tl~~ l pd 1(f of nnn~choC11 orgnllizlIiolto induding b1lsincgtsls rdil-i011 01 ganizatiml_ Clt111111l111lity )~rOllp p)~Lgtec()ndary Cducltiollfll institution [10(1110111 md llhibnthropic urgallizltiOI1S_ ~ld other LJrgani7atiuos

bull Tl~ alluunt or _he tinmClai ltL5SilttaJ1Clt~ plaquoid 0 ~ludents [rom St3k local instillltiul1al )r privclU hu](h llndr CrEAR UP lI1rl

bull Th ltl]()lJli 01 Luiu l-~ [1jltlll (f Iwnd waivld ur nd1( [)[ [jPllCllts of tiJJmc1 ~~~Un~~ 1l~(L-T (~iFT~ II

llcgtsgtc nuk Ibat t)w I n i~n(lt1I) iC)-kind CuntnhlltiQno ncucied i~ th~ non-fckral mlic I must he let~lla1J 111 11 v nu n_ ~(lt till l-l[ market valnc of th~ [lrope1v n 3[viu I u)lnb-~j Clllj tl nltr_ Fi~ral l1lchil ullln[s ffil1St Ic ]l(01l1 dJrin~ t~C yem il which thcy c~ l~t ~rI i1 he d ~n r - IJ r I -LO n i c1 ~ [1- F ~ lerJ malch lor 111f~ ddai kd Ifl f- nnl i 01 I - _h l I ~ -11 1)IIUL 1middot1 CFR 1-___ Whl~l gt1 h~ 11 11 11 I

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Is there~l minimum andor maximullI frlnt size N minmnlll ilJXiwulll 0[ uvtra[c award h-L~ bcen cslahlih~rl fOI l ICI ~hip o-amo Tlw SiD bull () r r~ltKh lattl(~(lllp Ipmt will dcpcw 011 tll Ilwulwr of studen octcd I[vwl~vn tiler( is a mlXilIlltlJl1 nuua] Fcdnal coul(ibuliou vr $ROO pc dtn[ for Pmtrwhip glanL Stat )1 ilL

will have nD l1linimum a l_~ million anmw maxilnun awald lml 111 e~tiIllCltcJ -i~1 ac ClidUl uf ~ 15 lllillioJ to f7 Ulillirll1

Is lhere a minimUllI 01 mximum numbl~r of students to he served No See lh~ applIcation matcrils ~pcclflC to Partnership and Stale grants for more ddaih aboHt vhich ~leitnl may w saved tluough GEAR 11 project

Vhat -sollncs ilia) he used to Ul~~et the lou-Federal matching requirement for CFAH VI ~ranjs

ny c0lnbina1irm ut nun-Fcdell cash ()(jJImlltw and in-kind cvnlributi(gtn may be used tu med the lOll-fcderal matehlnr rltquirellCnt for GEA] UP Ixanls_ A few cwmpics of allowable ill-kil cltmtrihutions illcmc

bull l-luGtional rcuurccs 3nu ~lpplic

bull Space und facilities

~ C()npulc[ equipmcrlt allli suftwlr(~

bull Till Sp~l)t by vlt)lullte~rs em tnlnrLlls llllnturing givinG llwtivilj(lll)l spcltlthc~ tbltlt

(~~ICOlrtg( hi~lwr ocadernic nchievcmut Dr presenting illfonnaioll ubout college optiln llIIJ fiwlcial ilt1

~ TPI1lor1aliltl1l r participlline ~Iknts t() (ImiddotA]( UP cltivitics bull AdditiDJm proCiona (kvdopnlcnt activities tin tcilch~~ _nd C)tltCT __ iitincd tlu()ngL

I lEAK UP

bull DI- (~r~ servic~ (n pSl1 Wipcllll itU(enb with childrcn a~td bull IrL11IlIp- -)r lllll)~ J()i p1Ov(kd lu partir~~in[ IIlclll_

In tdcilllI1 th ~L11tlk i~ldlk~ thl~ f()1()will spcciEc eXJllpk~ of LJil (x[lltndilUllts 110 clLUhatlU1i thai rlcl- u ltuulIll()wlt1rl tilC matching lc-uiremcllt ~ rilc um)uul t~pcwkj ltl ctocumtteci lirgtled Ullf-t~ml ult[llonrg and cnunsdin[

pr)iuroc bv vnl[lJcels or paid stlrr Lll- noncool orgltluization incluuing busim~~cs

rdilinl~ o[ani7li)[~ cl)lununity groups pL)~itsecolldary eltJll(aliDnaj ii1lilutiul uCllfltlllt

l)U phihuttlr()prc orgJnihltiom and nthcr nJ anizatious bull Ti UllUlllt 0 lllc Ell~mill a~iitam_ pel1 lu sLldents [Tunl lJl~ u II il1stitl~tiCnw lt[

l-~c jl1](h u~lt[(IlAP (J ltlnd

bull PI ll1)UllTl ()~ l-ttwn kn ~()(Ell 0 OOtCj wli~d or nulr~ci rill l~cipielHS flf fmanciJ 1~1_L1V- UlJ~( C~EAR 11_

P--C~ n()t~ lbal the vacc~=CsiE~1E~ tu in-kind contribution lndllli~d In ~lC non Fc(krallFltci nu -to no 1OI1lt1h1 lei 1) not ~cc~d til tj~ m~rkel VlIj( of tl1~ lwperly Or clti~t_

-nnhn~ Ini ~_ [--F(~l~~tlii~ io--lar mlst lc spe1 llllin IJC )r in which 11 1_ ~~ 1- 111~ )lld In oj tll~ )~-uj--c~ nr)I1-F~d--r1 mk~_ hl i~~-~aikG ~~0mF1) ---_ ~ ~~ - cr 1 - L 1 l C h i1lI__~ l t _t H( 7~ ~~ shimiddot--_ -1~~ O---c_2- ~ [l h Ill~ - I t i I]~J_2~~

1(

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Audit Control Number A07-B0011

Auditee

Dr Sanford C Shugart President Valencia Community College Chicone Building 190 South Orange Avenue Orlando FL 32801

Action Official

Ms Sally L Stroup Assistant Secretary Office of Postsecondary Education US Department of Education 1990 K Street NW Washington DC 20006

Electronic Copies of Report

Jay Noell OPE Audit Liaison Officer Harold Jenkins Office of the General Counsel William D Hansen Deputy Secretary Phil Maestri Office of the Deputy Secretary John Danielson Chief of Staff Eugene Hickok Under Secretary John Gibbons Director Communications Jack Martin Chief Financial Officer Clay Boothby Acting AS Legislation and Congressional Affairs Laurie M Rich AS Intergovernmental and Interagency Affairs Carolyn Adams OGC Correspondence Control LWanda Rosemond General Operations Team Charles Miller Post Audit Group OCFO Headquarters and Regional Audit Managers

NOTICE Statements that managerial practices need improvements as well as other

conclusions and recommendations in this report represent the opinions of the Office of Inspector General Determinations of

corrective action to be taken will be made by the appropriate Department of Education officials

In accordance with Freedom of Information Act (5 USC sect 552) reports issued by the Office of Inspector General are available if requested to

members of the press and general public to the extent information contained therein is not subject to exemptions in the Act


KANSAS CITY OFFICE



FAX (816) 823-1398 FAX (816) 268-0526



Dear Dr~ Shugart






Sincerely


Enclosure




Table of Contents

Executive Summary 1

Introduction3

Audit Results 5








Executive Summary














ED-OIG A07-B0011

Introduction














$873600 2000 Grants


$1275819


Audit Results




















Award Award Year

Actual Project

Required Match


Claimed Match




To Refund2

P334A990094 1999 $514073 6096 $313379 $262074 $51305 P334A990094 2000 $578350 6104 $353025 $326363 $26662 P334A000226 P334A000184 P334A000185 P334A000155

2000 2000 2000 2000

$663320 $745508 $613908 $739526

6676 6656 7404 6921

$442832 $496210 $454537 $511826

$332124 $408986 $307752 $437578

$110708 $87224

$146785 $74248



Recommendations





























































Recommendations

































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KANSAS CITY OFFICE



FAX (816) 823-1398 FAX (816) 268-0526



Dear Dr~ Shugart






Sincerely


Enclosure




Table of Contents

Executive Summary 1

Introduction3

Audit Results 5








Executive Summary















Introduction






ED-OIG A07-B0011








$873600 2000 Grants


$1275819


Audit Results




















Award Award Year

Actual Project

Required Match


Claimed Match




To Refund2

P334A990094 1999 $514073 6096 $313379 $262074 $51305 P334A990094 2000 $578350 6104 $353025 $326363 $26662 P334A000226 P334A000184 P334A000185 P334A000155

2000 2000 2000 2000

$663320 $745508 $613908 $739526

6676 6656 7404 6921

$442832 $496210 $454537 $511826

$332124 $408986 $307752 $437578

$110708 $87224

$146785 $74248



Recommendations





























































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Table of Contents

Executive Summary 1

Introduction3

Audit Results 5








Executive Summary















Introduction














$873600 2000 Grants


$1275819

ED-OIG A07-B0011

Audit Results




















Award Award Year

Actual Project

Required Match


Claimed Match




To Refund2

P334A990094 1999 $514073 6096 $313379 $262074 $51305 P334A990094 2000 $578350 6104 $353025 $326363 $26662 P334A000226 P334A000184 P334A000185 P334A000155

2000 2000 2000 2000

$663320 $745508 $613908 $739526

6676 6656 7404 6921

$442832 $496210 $454537 $511826

$332124 $408986 $307752 $437578

$110708 $87224

$146785 $74248



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Action Official





Executive Summary















Introduction














$873600 2000 Grants


$1275819


Audit Results









ED-OIG A07-B0011











Award Award Year

Actual Project

Required Match


Claimed Match




To Refund2

P334A990094 1999 $514073 6096 $313379 $262074 $51305 P334A990094 2000 $578350 6104 $353025 $326363 $26662 P334A000226 P334A000184 P334A000185 P334A000155

2000 2000 2000 2000

$663320 $745508 $613908 $739526

6676 6656 7404 6921

$442832 $496210 $454537 $511826

$332124 $408986 $307752 $437578

$110708 $87224

$146785 $74248



Recommendations





























































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1(

I

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Auditee


Action Official












Introduction














$873600 2000 Grants


$1275819


Audit Results



















ED-OIG A07-B0011

Award Award Year

Actual Project

Required Match


Claimed Match




To Refund2

P334A990094 1999 $514073 6096 $313379 $262074 $51305 P334A990094 2000 $578350 6104 $353025 $326363 $26662 P334A000226 P334A000184 P334A000185 P334A000155

2000 2000 2000 2000

$663320 $745508 $613908 $739526

6676 6656 7404 6921

$442832 $496210 $454537 $511826

$332124 $408986 $307752 $437578

$110708 $87224

$146785 $74248



Recommendations





























































Recommendations

































Recommendation































Attachment 1





1[1 Illillll lkll





DCll-lr- ~lell











I I I -- shy

shy

bull II I -






















gt






























P 3I ))IIV)4

I) 1 ~-I O)ill-l-)

l~ ~middotrA)IJ23i


S 51411() I)()I


S 2IJ2()71 -+5il(A~

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0 ellllkli 1(JrI~J

S 2-+ S q 111


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[IIC[ I--UI) ~ ~() C ) i I 1- I

Allachments



I I t I I 1 fi 1 (I i1 - i 1_ I- 1( - I


J

llaclll1l11 -

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_~~-~-----~72lamp






proJoct peiori



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n n I c



U _



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-)

--














I lEAK UP










1(

I

I I



Auditee


Action Official




Introduction














$873600 2000 Grants


$1275819


Audit Results




















Award Award Year

Actual Project

Required Match


Claimed Match




To Refund2

P334A990094 1999 $514073 6096 $313379 $262074 $51305 P334A990094 2000 $578350 6104 $353025 $326363 $26662 P334A000226 P334A000184 P334A000185 P334A000155

2000 2000 2000 2000

$663320 $745508 $613908 $739526

6676 6656 7404 6921

$442832 $496210 $454537 $511826

$332124 $408986 $307752 $437578

$110708 $87224

$146785 $74248



Recommendations






ED-OIG A07-B0011























































Recommendations

































Recommendation































Attachment 1





1[1 Illillll lkll





DCll-lr- ~lell











I I I -- shy

shy

bull II I -






















gt






























P 3I ))IIV)4

I) 1 ~-I O)ill-l-)

l~ ~middotrA)IJ23i


S 51411() I)()I


S 2IJ2()71 -+5il(A~

I 414)J5

0 ellllkli 1(JrI~J

S 2-+ S q 111


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lwt ~I rtllits_







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L

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middot f


[IIC[ I--UI) ~ ~() C ) i I 1- I

Allachments



I I t I I 1 fi 1 (I i1 - i 1_ I- 1( - I


J

llaclll1l11 -

------

-

_~~-~-----~72lamp






proJoct peiori



~--- -

bull

iJTl2[]

(Au]I(_--i I Y

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applIcation pnHldul

























bull -



tl ldrnCTll H


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~ I w CIe


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I nj I~o 01

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J

umiddot

-

n n I c



U _



u




















-)

--














I lEAK UP










1(

I

I I



Auditee


Action Official











$873600 2000 Grants


$1275819


Audit Results




















Award Award Year

Actual Project

Required Match


Claimed Match




To Refund2

P334A990094 1999 $514073 6096 $313379 $262074 $51305 P334A990094 2000 $578350 6104 $353025 $326363 $26662 P334A000226 P334A000184 P334A000185 P334A000155

2000 2000 2000 2000

$663320 $745508 $613908 $739526

6676 6656 7404 6921

$442832 $496210 $454537 $511826

$332124 $408986 $307752 $437578

$110708 $87224

$146785 $74248



Recommendations















ED-OIG A07-B0011














































Recommendations

































Recommendation































Attachment 1





1[1 Illillll lkll





DCll-lr- ~lell











I I I -- shy

shy

bull II I -






















gt






























P 3I ))IIV)4

I) 1 ~-I O)ill-l-)

l~ ~middotrA)IJ23i


S 51411() I)()I


S 2IJ2()71 -+5il(A~

I 414)J5

0 ellllkli 1(JrI~J

S 2-+ S q 111


1- __-1 11111) 15 5 S II L)(] S -+rS(i~ S lrlr



i)~~__4 n()()22I) S jll)(j S 2130 S 9-W






















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ltj J














lwt ~I rtllits_







-pril 2002

L

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middot f


[IIC[ I--UI) ~ ~() C ) i I 1- I

Allachments



I I t I I 1 fi 1 (I i1 - i 1_ I- 1( - I


J

llaclll1l11 -

------

-

_~~-~-----~72lamp






proJoct peiori



~--- -

bull

iJTl2[]

(Au]I(_--i I Y

i bull

- I



applIcation pnHldul

























bull -



tl ldrnCTll H


w-




nho 0) -jIM





~ I w CIe


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I i

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Tf n CJu 311~il


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)~ 10 t~p WdCl









I nj I~o 01

Lgt2() 7 -ill -y )

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n 1 1 __ If 0 In- _ ~r - -~

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J

umiddot

-

n n I c



U _



u




















-)

--














I lEAK UP










1(

I

I I



Auditee


Action Official




Audit Results




















Award Award Year

Actual Project

Required Match


Claimed Match




To Refund2

P334A990094 1999 $514073 6096 $313379 $262074 $51305 P334A990094 2000 $578350 6104 $353025 $326363 $26662 P334A000226 P334A000184 P334A000185 P334A000155

2000 2000 2000 2000

$663320 $745508 $613908 $739526

6676 6656 7404 6921

$442832 $496210 $454537 $511826

$332124 $408986 $307752 $437578

$110708 $87224

$146785 $74248



Recommendations























ED-OIG A07-B0011






































Recommendations

































Recommendation































Attachment 1





1[1 Illillll lkll





DCll-lr- ~lell











I I I -- shy

shy

bull II I -






















gt






























P 3I ))IIV)4

I) 1 ~-I O)ill-l-)

l~ ~middotrA)IJ23i


S 51411() I)()I


S 2IJ2()71 -+5il(A~

I 414)J5

0 ellllkli 1(JrI~J

S 2-+ S q 111


1- __-1 11111) 15 5 S II L)(] S -+rS(i~ S lrlr



i)~~__4 n()()22I) S jll)(j S 2130 S 9-W






















U






-lt1llb_


















sranl ~~I(_

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lCJCLl[









gtclrlLlry









UJl
























1 l J 1 -






























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ltj J














lwt ~I rtllits_







-pril 2002

L

~_ 1J In-









middot f


[IIC[ I--UI) ~ ~() C ) i I 1- I

Allachments



I I t I I 1 fi 1 (I i1 - i 1_ I- 1( - I


J

llaclll1l11 -

------

-

_~~-~-----~72lamp






proJoct peiori



~--- -

bull

iJTl2[]

(Au]I(_--i I Y

i bull

- I



applIcation pnHldul

























bull -



tl ldrnCTll H


w-




nho 0) -jIM





~ I w CIe


---n_ ]1 ~- ifJI It_ I-T --- ~U--r

I i

-~




Tf n CJu 311~il


~1-) J-~C~O X _1388 1 ~lerCci IL]


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l c - - -

~-

1 II I I

_ ~ - I shy ~ -0 I 1 I 1shy

-- 1

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I J _ I I rI







)~ 10 t~p WdCl









I nj I~o 01

Lgt2() 7 -ill -y )

-shy

shy -I ~I

n 1 1 __ If 0 In- _ ~r - -~

) _t

J

umiddot

-

n n I c



U _



u




















-)

--














I lEAK UP










1(

I

I I



Auditee


Action Official














Award Award Year

Actual Project

Required Match


Claimed Match




To Refund2

P334A990094 1999 $514073 6096 $313379 $262074 $51305 P334A990094 2000 $578350 6104 $353025 $326363 $26662 P334A000226 P334A000184 P334A000185 P334A000155

2000 2000 2000 2000

$663320 $745508 $613908 $739526

6676 6656 7404 6921

$442832 $496210 $454537 $511826

$332124 $408986 $307752 $437578

$110708 $87224

$146785 $74248



Recommendations
































ED-OIG A07-B0011





























Recommendations

































Recommendation































Attachment 1





1[1 Illillll lkll





DCll-lr- ~lell











I I I -- shy

shy

bull II I -






















gt






























P 3I ))IIV)4

I) 1 ~-I O)ill-l-)

l~ ~middotrA)IJ23i


S 51411() I)()I


S 2IJ2()71 -+5il(A~

I 414)J5

0 ellllkli 1(JrI~J

S 2-+ S q 111


1- __-1 11111) 15 5 S II L)(] S -+rS(i~ S lrlr



i)~~__4 n()()22I) S jll)(j S 2130 S 9-W






















U






-lt1llb_


















sranl ~~I(_

(















Ctlcubr i ItU





lCJCLl[









gtclrlLlry









UJl
























1 l J 1 -






























11

~ ie P

1 (- 111 Ii _ fIN r r 1 I I I











II

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12

ltj J














lwt ~I rtllits_







-pril 2002

L

~_ 1J In-









middot f


[IIC[ I--UI) ~ ~() C ) i I 1- I

Allachments



I I t I I 1 fi 1 (I i1 - i 1_ I- 1( - I


J

llaclll1l11 -

------

-

_~~-~-----~72lamp






proJoct peiori



~--- -

bull

iJTl2[]

(Au]I(_--i I Y

i bull

- I



applIcation pnHldul

























bull -



tl ldrnCTll H


w-




nho 0) -jIM





~ I w CIe


---n_ ]1 ~- ifJI It_ I-T --- ~U--r

I i

-~




Tf n CJu 311~il


~1-) J-~C~O X _1388 1 ~lerCci IL]


-_ l



l c - - -

~-

1 II I I

_ ~ - I shy ~ -0 I 1 I 1shy

-- 1

- I )i~ Vi3 G) ]8

I J _ I I rI







)~ 10 t~p WdCl









I nj I~o 01

Lgt2() 7 -ill -y )

-shy

shy -I ~I

n 1 1 __ If 0 In- _ ~r - -~

) _t

J

umiddot

-

n n I c



U _



u




















-)

--














I lEAK UP










1(

I

I I



Auditee


Action Official




Award Award Year

Actual Project

Required Match


Claimed Match




To Refund2

P334A990094 1999 $514073 6096 $313379 $262074 $51305 P334A990094 2000 $578350 6104 $353025 $326363 $26662 P334A000226 P334A000184 P334A000185 P334A000155

2000 2000 2000 2000

$663320 $745508 $613908 $739526

6676 6656 7404 6921

$442832 $496210 $454537 $511826

$332124 $408986 $307752 $437578

$110708 $87224

$146785 $74248



Recommendations











































ED-OIG A07-B0011


















Recommendations

































Recommendation































Attachment 1





1[1 Illillll lkll





DCll-lr- ~lell











I I I -- shy

shy

bull II I -






















gt






























P 3I ))IIV)4

I) 1 ~-I O)ill-l-)

l~ ~middotrA)IJ23i


S 51411() I)()I


S 2IJ2()71 -+5il(A~

I 414)J5

0 ellllkli 1(JrI~J

S 2-+ S q 111


1- __-1 11111) 15 5 S II L)(] S -+rS(i~ S lrlr



i)~~__4 n()()22I) S jll)(j S 2130 S 9-W






















U






-lt1llb_


















sranl ~~I(_

(















Ctlcubr i ItU





lCJCLl[









gtclrlLlry









UJl
























1 l J 1 -






























11

~ ie P

1 (- 111 Ii _ fIN r r 1 I I I











II

H


















12

ltj J














lwt ~I rtllits_







-pril 2002

L

~_ 1J In-









middot f


[IIC[ I--UI) ~ ~() C ) i I 1- I

Allachments



I I t I I 1 fi 1 (I i1 - i 1_ I- 1( - I


J

llaclll1l11 -

------

-

_~~-~-----~72lamp






proJoct peiori



~--- -

bull

iJTl2[]

(Au]I(_--i I Y

i bull

- I



applIcation pnHldul

























bull -



tl ldrnCTll H


w-




nho 0) -jIM





~ I w CIe


---n_ ]1 ~- ifJI It_ I-T --- ~U--r

I i

-~




Tf n CJu 311~il


~1-) J-~C~O X _1388 1 ~lerCci IL]


-_ l



l c - - -

~-

1 II I I

_ ~ - I shy ~ -0 I 1 I 1shy

-- 1

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I J _ I I rI







)~ 10 t~p WdCl









I nj I~o 01

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n 1 1 __ If 0 In- _ ~r - -~

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J

umiddot

-

n n I c



U _



u




















-)

--














I lEAK UP










1(

I

I I



Auditee


Action Official


















































ED-OIG A07-B0011








Recommendations

































Recommendation































Attachment 1





1[1 Illillll lkll





DCll-lr- ~lell











I I I -- shy

shy

bull II I -






















gt






























P 3I ))IIV)4

I) 1 ~-I O)ill-l-)

l~ ~middotrA)IJ23i


S 51411() I)()I


S 2IJ2()71 -+5il(A~

I 414)J5

0 ellllkli 1(JrI~J

S 2-+ S q 111


1- __-1 11111) 15 5 S II L)(] S -+rS(i~ S lrlr



i)~~__4 n()()22I) S jll)(j S 2130 S 9-W






















U






-lt1llb_


















sranl ~~I(_

(















Ctlcubr i ItU





lCJCLl[









gtclrlLlry









UJl
























1 l J 1 -






























11

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1 (- 111 Ii _ fIN r r 1 I I I











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12

ltj J














lwt ~I rtllits_







-pril 2002

L

~_ 1J In-









middot f


[IIC[ I--UI) ~ ~() C ) i I 1- I

Allachments



I I t I I 1 fi 1 (I i1 - i 1_ I- 1( - I


J

llaclll1l11 -

------

-

_~~-~-----~72lamp






proJoct peiori



~--- -

bull

iJTl2[]

(Au]I(_--i I Y

i bull

- I



applIcation pnHldul

























bull -



tl ldrnCTll H


w-




nho 0) -jIM





~ I w CIe


---n_ ]1 ~- ifJI It_ I-T --- ~U--r

I i

-~




Tf n CJu 311~il


~1-) J-~C~O X _1388 1 ~lerCci IL]


-_ l



l c - - -

~-

1 II I I

_ ~ - I shy ~ -0 I 1 I 1shy

-- 1

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I nj I~o 01

Lgt2() 7 -ill -y )

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n 1 1 __ If 0 In- _ ~r - -~

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J

umiddot

-

n n I c



U _



u




















-)

--














I lEAK UP










1(

I

I I



Auditee


Action Official

















































Recommendations



ED-OIG A07-B0011






























Recommendation































Attachment 1





1[1 Illillll lkll





DCll-lr- ~lell











I I I -- shy

shy

bull II I -






















gt






























P 3I ))IIV)4

I) 1 ~-I O)ill-l-)

l~ ~middotrA)IJ23i


S 51411() I)()I


S 2IJ2()71 -+5il(A~

I 414)J5

0 ellllkli 1(JrI~J

S 2-+ S q 111


1- __-1 11111) 15 5 S II L)(] S -+rS(i~ S lrlr



i)~~__4 n()()22I) S jll)(j S 2130 S 9-W






















U






-lt1llb_


















sranl ~~I(_

(















Ctlcubr i ItU





lCJCLl[









gtclrlLlry









UJl
























1 l J 1 -






























11

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1 (- 111 Ii _ fIN r r 1 I I I











II

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12

ltj J














lwt ~I rtllits_







-pril 2002

L

~_ 1J In-









middot f


[IIC[ I--UI) ~ ~() C ) i I 1- I

Allachments



I I t I I 1 fi 1 (I i1 - i 1_ I- 1( - I


J

llaclll1l11 -

------

-

_~~-~-----~72lamp






proJoct peiori



~--- -

bull

iJTl2[]

(Au]I(_--i I Y

i bull

- I



applIcation pnHldul

























bull -



tl ldrnCTll H


w-




nho 0) -jIM





~ I w CIe


---n_ ]1 ~- ifJI It_ I-T --- ~U--r

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I nj I~o 01

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n 1 1 __ If 0 In- _ ~r - -~

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J

umiddot

-

n n I c



U _



u




















-)

--














I lEAK UP










1(

I

I I



Auditee


Action Official









































Recommendations










ED-OIG A07-B0011























Recommendation































Attachment 1





1[1 Illillll lkll





DCll-lr- ~lell











I I I -- shy

shy

bull II I -






















gt






























P 3I ))IIV)4

I) 1 ~-I O)ill-l-)

l~ ~middotrA)IJ23i


S 51411() I)()I


S 2IJ2()71 -+5il(A~

I 414)J5

0 ellllkli 1(JrI~J

S 2-+ S q 111


1- __-1 11111) 15 5 S II L)(] S -+rS(i~ S lrlr



i)~~__4 n()()22I) S jll)(j S 2130 S 9-W






















U






-lt1llb_


















sranl ~~I(_

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lCJCLl[









gtclrlLlry









UJl
























1 l J 1 -






























11

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lwt ~I rtllits_







-pril 2002

L

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middot f


[IIC[ I--UI) ~ ~() C ) i I 1- I

Allachments



I I t I I 1 fi 1 (I i1 - i 1_ I- 1( - I


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I I t I I 1 fi 1 (I i1 - i 1_ I- 1( - I


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ED-OIG A07-B0011







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Attachment 1





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P 3I ))IIV)4

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Attachment 1





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I I t I I 1 fi 1 (I i1 - i 1_ I- 1( - I


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P 3I ))IIV)4

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ED-OIG A07-B0011














Attachment 1





1[1 Illillll lkll





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P 3I ))IIV)4

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I I t I I 1 fi 1 (I i1 - i 1_ I- 1( - I


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llaclll1l11 -

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-

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ED-OIG A07-B0011









Attachment 1





1[1 Illillll lkll





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[IIC[ I--UI) ~ ~() C ) i I 1- I

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I I t I I 1 fi 1 (I i1 - i 1_ I- 1( - I


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llaclll1l11 -

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Recommendation






























ED-OIG A07-B0011

Attachment 1





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P 3I ))IIV)4

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[IIC[ I--UI) ~ ~() C ) i I 1- I

Allachments



I I t I I 1 fi 1 (I i1 - i 1_ I- 1( - I


J

llaclll1l11 -

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Attachment 1



ED-OIG A07-B0011


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P 3I ))IIV)4

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[IIC[ I--UI) ~ ~() C ) i I 1- I

Allachments



I I t I I 1 fi 1 (I i1 - i 1_ I- 1( - I


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llaclll1l11 -

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Attachment 1





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P 3I ))IIV)4

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[IIC[ I--UI) ~ ~() C ) i I 1- I

Allachments



I I t I I 1 fi 1 (I i1 - i 1_ I- 1( - I


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Action Official




audit of valencia community college’s gaining early ...valencia community college (vcc) valencia...

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