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SPARTANBURG COMMUNITY COLLEGETable of ContentsPageNumberIndependent Auditors’ Report On Internal Control Over FinancialReporting And On Compliance And Other Matters Based On AnAudit Of Financial Statements Performed In AccordanceWith Government Auditing Standards1-2Independent Auditors’ Report On Compliance For EachMajor Program And On Internal Control OverCompliance and Report on Schedule of Expendituresof Federal Awards Required By The Uniform Guidance3-5Schedule Of Expenditures Of Federal Awards6Notes To Schedule Of Expenditures Of Federal Awards7Summary Schedule Of Prior Audit Findings8Schedule Of Findings And Questioned Costs9-10
MembersAmerican Institute of CPASPrivate Companies Practice SectionSouth Carolina Association of CPASCLINE BRANDT KOCHENOWER& CO., P.A.Certified Public AccountantsGovernmental Audit Quality CenterAlbert B. Cline, CPA (1923-2013)Raymond H. Brandt, CPABen D. Kochenower, CPA, CFE, CVA, CICA, CGMATimothy S. Blake, CPA/PFSBrandon A. Blake, CPABethany S. Noblin, CPAEstablished 1950Independent Auditors' Report On Internal Control OverFinancial Reporting And On Compliance And Other MattersBased On An Audit Of Financial Statements PerformedIn Accordance With Government Auditing StandardsTo the Commission MembersSpartanburg Community CollegeSpartanburg, South CarolinaWe have audited, in accordance with the auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standardsissued by the Comptroller General of the United States, the financial statements of the business-typeactivities and the discretely presented component unit of Spartanburg Community College, a discretelypresented component unit of the State of South Carolina, as of and for the year ended June 30, 2020 andthe related notes to the financial statements, which collectively comprised Spartanburg CommunityCollege’s basic financial statements, and have issued our report thereon dated September 30, 2020. TheSpartanburg Community College Foundation’s financial statements were not audited in accordance withGovernment Auditing Standards, and accordingly, this report does not include reporting on internal controlover financial reporting or instances of reportable noncompliance associated with Spartanburg CommunityCollege Foundation.Internal Control Over Financial ReportingIn planning and performing our audit of the financial statements, we considered Spartanburg CommunityCollege’s internal control over financial reporting (internal control) as a basis for designing audit proceduresthat are appropriate in the circumstances for the purpose of expressing our opinion on the financialstatements, but not for the purpose of expressing an opinions on the effectiveness of SpartanburgCommunity College’s internal control. Accordingly, we do not express an opinion on the effectiveness ofthe Spartanburg Community College’s internal control.A deficiency in internal control exists when the design or operation of a control does not allow managementor employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, ininternal control, such that there is a reasonable possibility that a material misstatement of the entity’sfinancial statements will not be prevented, or detected and corrected on a timely basis. A significantdeficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than amaterial weakness, yet important enough to merit attention by those charged with governance.Our consideration of internal control was for the limited purpose described in the first paragraph of thissection and was not designed to identify all deficiencies in internal control that might be materialweaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify anydeficiencies in internal control that we consider to be material weaknesses. However, material weaknessesmay exist that have not been identified.1Post Office Box 848, 1225 West Floyd Baker Boulevard, Gaffney, SC 29342-0848, (864) 489-7121 Fax (864) 489-7123Post Office Box 161300, 145 Rogers Commerce Boulevard, Boiling Springs, SC 29316-1300, (864) 541-0218 Fax (864) 541-0221Internet Address: www.cbkpa.com
Spartanburg Community CollegeSpartanburg, South CarolinaPage TwoCompliance and Other MattersAs part of obtaining reasonable assurance about whether Spartanburg Community College’s financialstatements are free of material misstatement, we performed tests of its compliance with certain provisionsof laws, regulations, contracts and grant agreements, noncompliance with which could have a direct andmaterial effect on the financial statements. However, providing an opinion on compliance with thoseprovisions was not an objective of our audit and, accordingly, we do not express such an opinion. The resultsof our tests disclosed no instances of noncompliance or other matters that is required to be reported underGovernment Auditing Standards.Purpose of this ReportThe purpose of this report is solely to describe the scope of our testing of internal control and complianceand the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internalcontrol or on compliance. This report is an integral part of an audit performed in accordance with GovernmentAuditing Standards in considering the entity’s internal control and compliance. Accordingly, thiscommunication is not suitable for any other purpose.Gaffney, SCSeptember 30, 20202
CLINE BRANDT KOCHENOWER& CO., P.A.MembersAmerican Institute of CPASPrivate Companies Practice SectionSouth Carolina Association of CPASCertified Public AccountantsGovernmental Audit Quality CenterAlbert B. Cline, CPA (1923-2013)Raymond H. Brandt, CPABen D. Kochenower, CPA, CFE, CVA, CICA, CGMATimothy S. Blake, CPA/PFSBrandon A. Blake, CPABethany S. Noblin, CPAEstablished 1950Independent Auditors' Report On Compliance ForEach Major Program And On Internal ControlOver Compliance; and Report on Schedule of Expendituresof Federal Awards Required by the Uniform GuidanceTo the Commission MembersSpartanburg Community CollegeSpartanburg, South CarolinaReport on Compliance for Each Major Federal ProgramWe have audited the Spartanburg Community College’s compliance with the types of compliancerequirements described in the OMB Compliance Supplement that could have a direct and material effecton each of Spartanburg Community College’s major federal programs for the year ended June 30, 2020.Spartanburg Community College’s major federal programs are identified in the summary of auditors’ resultssection of the accompanying schedule of findings and questioned costs.Management’s ResponsibilityManagement is responsible for compliance with the federal statutes, regulations, and the terms andconditions of its federal awards applicable to its federal programs.Auditors’ ResponsibilityOur responsibility is to express an opinion on compliance for each of the Spartanburg Community College’smajor federal programs based on our audit of the types of compliance requirements referred to above. Weconducted our audit of compliance in accordance with auditing standards generally accepted in the UnitedStates of America; the standards applicable to financial audits contained in Government AuditingStandards, issued by the Comptroller General of the United States; and the audit requirements of Title 2U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, andAudit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidancerequire that we plan and perform the audit to obtain reasonable assurance about whether noncompliancewith the types of compliance requirements referred to above that could have a direct and material effect ona major federal program occurred. An audit includes examining, on a test basis, evidence about theSpartanburg Community College’s compliance with those requirements and performing such otherprocedures as we considered necessary in the circumstances.We believe that our audit provides a reasonable basis for our opinion on compliance for each major federalprogram. However, our audit does not provide a legal determination of the Spartanburg CommunityCollege’s compliance.Opinion on Each Major Federal ProgramIn our opinion, Spartanburg Community College complied, in all material respects, with the types ofcompliance requirements referred to above that could have a direct and material effect on each of its majorfederal programs for the year ended June 30, 2020.3Post Office Box 848, 1225 West Floyd Baker Boulevard, Gaffney, SC 29342-0848, (864) 489-7121 Fax (864) 489-7123Post Office Box 161300, 145 Rogers Commerce Boulevard, Boiling Springs, SC 29316-1300, (864) 541-0218 Fax (864) 541-0221Internet Address: www.cbkpa.com
Spartanburg Community CollegeSpartanburg, South CarolinaPage TwoReport on Internal Control Over ComplianceManagement of Spartanburg Community College is responsible for establishing and maintaining effectiveinternal control over compliance with the types of compliance requirement referred to above. In planningand performing our audit of compliance, we considered the Spartanburg Community College’s internalcontrol over compliance with the types of requirements that could have a direct and material effect on eachmajor federal program to determine the auditing procedures that are appropriate in the circumstances forthe purpose of expressing an opinion on compliance for each major federal program and to test and reporton internal control over compliance in accordance with the Uniform Guidance, but not for the purpose ofexpressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do notexpress an opinion on the effectiveness of Spartanburg Community College's internal control overcompliance.A deficiency in internal control over compliance exists when the design or operation of a control overcompliance does not allow management or employees, in the normal course of performing their assignedfunctions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of afederal program on a timely basis. A material weakness in internal control over compliance is a deficiency,or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibilitythat material noncompliance with a type of compliance requirement of a federal program will not beprevented, or detected and corrected, on a timely basis. A significant deficiency in internal control overcompliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a typeof compliance requirement of a federal program that is less severe than a material weakness in internalcontrol over compliance, yet important enough to merit attention by those charged with governance.Our consideration of internal control over compliance was for the limited purpose described in the firstparagraph of this section and was not designed to identify all deficiencies in internal control over compliancethat might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internalcontrol over compliance that we consider to be material weaknesses. However, material weaknesses mayexist that have not been identified.4
Spartanburg Community CollegeSpartanburg, South CarolinaPage ThreeReport on Schedule of Expenditures of Federal Awards Required by the Uniform GuidanceWe have audited the financial statements of the business-type activities and the discretely presentedcomponent unit of the Spartanburg Community College, a discretely presented component of the State ofSouth Carolina, as of and for the year ended June 30, 2020, and the related notes to the financialstatements, which collectively comprise the College’s basic financial statements. We issued our reportthereon dated September 30, 2020, which contained unmodified opinions on those financial statements.Our audit was conducted for the purpose of forming an opinions on the financial statements that collectivelycomprise the basic financial statements. The accompanying schedule of expenditures of federal awards ispresented for purposes of additional analysis as required by the Uniform Guidance and is not a requiredpart of the basic financial statements. Such information is the responsibility of management and was derivedfrom and relates directly to the underlying accounting and other records used to prepare the basic financialstatements. The information has been subjected to the auditing procedures applied in the audit of thefinancial statements and certain additional procedures, including comparing and reconciling suchinformation directly to the underlying accounting and other records used to prepare the basic financialstatements or to the basic financial statements themselves, and other additional procedures in accordancewith auditing standards generally accepted in the United States of America. In our opinion, the scheduleof expenditures of federal awards is fairly stated in all material respects in relation to the basic financialstatements as a whole.The purpose of this report on internal control over compliance is solely to describe the scope of our testingof internal control over compliance and the results of that testing based on the requirements of the UniformGuidance. Accordingly, this report is not suitable for any other purpose.Gaffney, SCFebruary 25, 20215
SPARTANBURG COMMUNITY COLLEGESchedule of Expenditures of Federal AwardsFor the Year Ended June 30, 2020CFDANumberGrantPeriodStudent Financial Aid ClusterFederal Supplemental Education Opportunity Grant (FSEOG)84.007Federal Direct Loans84.268Federal Work-Study Program (FWS)84.033Federal Pell Grant Program 8-192019-202018-19Federal Grantor/Program Title/Grant TitleFY20 ExpendituresAs of 06/30/2020U.S. DEPARTMENT OF EDUCATION Total Student Financial Aid 321,488Pass-through from S.C. Department of Education ClusterPerkins IV Postsecondary FundingPerkins IV RESERVEAdult Education - AEFLATotal S.C. Department of 65,13811,29346,342322,773Higher Education Emergency Relief (Cares Act)COVID-19 Higher Education Emergency Relief Fund (HEERF) - Student PortionCOVID-19 Higher Education Emergency Relief Fund (HEERF) - Institutional PortionTotal Higher Education Emergency Relief (Cares 191,151TRIO ClusterTRIO- Student Support ServicesTotal TRIO ClusterTOTAL U. S. DEPARTMENT OF EDUCATION15,060,820U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICESPass-through from S.C. Department of Health and Human ServicesT.E.A.C.H.TOTAL U.S. DEPARTMENT OF HEALTH AND HUMAN 02019-20U.S. DEPARTMENT OF LABORTrade Adjustment Assistance Community College and Career Training (TAACCCT)Pass-through from S.C. Technical College SystemGROW SCS.C. Apprenticeship Initiative Project (H-1B Job Training Grants)TOTAL U.S. DEPARTMENT OF LABORAPPALACHIAN REGIONAL COMMISSION (ARC)Pass-through from U.S. Department of Commerce ClusterPublic Works Program/Building RenovationPublic Works Program/Building RenovationTOTAL APPALACHIAN REGIONAL COMMISSIONU.S. DEPARTMENT OF COMMERCEPublic Works Program/Building RenovationTOTAL U.S. DEPARTMENT OF COMMERCEU.S. DEPARTMENT OF JUSTICEPublic Safety Program - Life Proof VestsTOTAL U.S. DEPARTMENT OF JUSTICE-U.S. DEPARTMENT OF AGRICULTURERural Development - Furnishings for Ready SC RelocationTOTAL U.S. DEPARTMENT OF AGRICULTURE99,99999,999NATIONAL SCIENCE FOUNDATIONPass-through from Clemson UniversityCenter for Aviation and Automotive Technical Education UsingVirtual E-School (CA2VES): A Resource to MeetDraw DownSPECTRACyber SecurityTOTAL NATIONAL SCIENCE FOUNDATIONTOTAL EXPENDITURES OF FEDERAL AWARDS50,18338,68888,871 616,510,724
SPARTANBURG COMMUNITY COLLEGENotes to Schedule of Expenditures of Federal AwardsFor the Year Ended June 30, 20201. GENERALThe accompanying Schedule of Expenditures of Federal Awards presents the activity of all federalaward programs of Spartanburg Community College. The reporting entity is defined in Note 1 of theCollege’s financial statements. All federal awards received directly from federal agencies, as well asfederal awards passed through other government agencies, are included on the schedule.2. BASIS OF ACCOUNTINGThe accompanying Schedule of Federal Awards is presented using the accrual basis of accounting,which is described in Note 1 of the College’s financial statements.The College has elected not to use the 10 percent de minimis indirect cost rate as allowed underUniform Guidance.3. FEDERAL LOAN PROGRAMSThe College has students who have approved loans which were received by those students during thecurrent year. The College began initiating loans through the Federal Direct Lending program in summer2010.The totals and types of loans received for the current fiscal year are:Federal Direct LoansSubsidizedUnsubsidizedTotal7 319,2022,136,069 2,455,271
SPARTANBURG COMMUNITY COLLEGESummary Schedule of Prior Audit FindingsJune 30, 2020Findings Relating to the Financial Statements:There were no findings relating to the financial statements.Findings and Questioned Costs Relating to Federal Awards:There were no findings and questioned costs relating to federal awards.8
SPARTANBURG COMMUNITY COLLEGESchedule of Findings and Questioned CostsJune 30, 2020Summary of Auditors’ Results: An unmodified opinion was issued on Spartanburg Community College’s basic financial statementsdated September 30, 2020. There were no material weaknesses or significant deficiencies relating to the financial statementsreported in the Independent Auditors’ Report on Internal Control over Financial Reporting and onCompliance and Other Matters Based on an Audit of Financial Statements performed inaccordance with Government Auditing Standards. There were no instances of noncompliance material to the financial statements of SpartanburgCommunity College disclosed during the audit. The auditors’ report on compliance for the major federal award programs for SpartanburgCommunity College expresses an unmodified opinion. There were no material weaknesses or significant deficiencies relating to the audit of major federalawards reported in the Independent Auditor’s Report on Compliance for Each Major Program andon Internal Control over Compliance required by the Uniform Guidance. There were no audit findings reported relative to the major federal award programs for SpartanburgCommunity College as depicted below in this schedule. Major federal programs:Department of EducationStudent Financial Aid ClusterCOVID-19 Higher Education Emergency Relief Fund (HEERF)COVID-19 Higher Education Emergency Relief Fund (HEERFCFDA #84.425ECFDA #84.425F The threshold for distinguishing between Type A and Type B Programs was 750,000. Spartanburg Community College is a low-risk auditee according to the criteria in Title 2 U.S. Codeof Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance).9
SPARTANBURG COMMUNITY COLLEGESchedule of Findings and Questioned Costs, ContinuedJune 30, 2020Findings Relating to Financial Statements:There were no findings relating to the financial statements.Findings and Questioned Costs Relating to Federal Awards:There were no findings and questioned costs relating to federal awards.10
on each of Spartanburg Community College's major federal programs for the year ended June 30, 2020. Spartanburg Community College's major federal programs are identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs.
