Audit 382199

Program Title: Higher Education Institutional Aid (HEIA) Federal Assistance Listing Number: 84.031A Federal Award Year: 9/1/2024 – 8/31/2025 Federal Agency: U.S. Department of Education Compliance Requirement: Level of Effort Type of Finding: Material Weakness and Noncompliance Criteria: Under the provisions of the HEIA Program Guidelines, issued by the U.S. Department of Education, institutions are required comply with Level of Effort requirements outlined within the Grant Agreements. Condition: The College failed to meet the level of effort requirements for three (3) of the nine (9) employees, as stipulated in the grant agreements. Questioned Costs: None reportable Context: Three of the nine employees with required level-of-effort commitments did not have their payroll costs charged to the grant in accordance with the grant requirements. Effect: Failure to allocate payroll costs for employees with required level-of-effort commitments resulted in noncompliance with grant requirements. Cause: During the 2024-2025 award year, staff responsible for allocation of payroll costs lacked adequate understanding of the level-of-effort requirements as specified in the grant agreements. Repeat Finding: No Recommendation: Lone Star College should implement stronger payroll allocation controls by formalizing procedures to align charges with level-of-effort commitments, conducting regular reconciliations, maintaining clear documentation, and providing mandatory training for grant and payroll staff. Views of responsible officials: Agreed