Audit 395164

2025-001 - Miscalculation of Reconnect Scholarship Awards Finding Type. Immaterial Noncompliance / Significant Deficiency in Internal Control over Compliance (Allowable Costs/Cost Principles). Program. Coronavirus State and Local Fiscal Recovery Funds; U.S. Department of Treasury; Assistance Listing Number 21.027; Award Number SLFRP0127. Criteria. Michigan Reconnect scholarship program is a last dollar scholarship, which is limited to the difference between in-district tuition and mandatory fees less any Pell grants and other state restricted scholarships or awards that a student receives following a specified packaging order. Condition. For 3 out of 12 students tested, the incorrect amounts of Michigan Reconnect scholarships were calculated and awarded to students. Cause. This condition was caused by a lack of detailed review of the calculation performed. Effect. As a result, the College had a total of 16 students whereby the Michigan Reconnect scholarships awarded during the fiscal year were miscalculated, resulting in $16,101 in under-awarded scholarships and $288 in over-awarded scholarships to students. The College corrected under-awarded scholarships by adjusting student accounts to reflect accurate award amounts and issued refunds to students as applicable on March 18, 2026. The College corrected over-awarded scholarships by adjusting the student accounts and updating the Michigan Student Scholarships Grants ("MiSSG") reporting system to refund MiLEAP on August 6, 2025. Questioned Costs. There were $288 in questioned costs as a result of this finding. Recommendation. We recommend that the College implement a review process for Michigan Reconnect scholarship award calculations, ensuring that each calculation receives a second, independent review to verify its accuracy. View of Responsible Officials. Management agrees with this finding and has prepared a Corrective Action Plan.

2025-002 - Inaccurate Reporting (repeat) Finding Type. Immaterial Noncompliance / Significant Deficiency in Internal Control over Compliance (Reporting). Program. Coronavirus State and Local Fiscal Recovery Funds; U.S. Department of Treasury; Assistance Listing Number 21.027; Award Number SLFRP0127. Criteria. The College is required to submit quarterly reports for the Associate Degree in Nursing to Bachelor of Science in Nursing ("ADN-BSN") program, free of errors, to MiLEAP's Office of Sixty by 30. Condition. During our review of the submitted quarterly reports, we noted there were errors in the amounts reported. Cause. This condition was caused by a lack of detail reviewer of the quarterly reports by a second individual prior to submitting, due in part to employee turnover during the year. Effect. As a result, the College's quarterly ADN-to-BSN reports were prepared incorrectly and were not corrected until the mistakes were identified by MiLEAP's Office of Sixty by 30 or external auditors. Questioned Costs. No costs were required to be questioned as a result of this finding, inasmuch as our testing did not reveal any unallowed costs. Recommendation. We recommend that the College implement a reconciliation and review process over the preparation and reporting of the ADN-to-BSN quarterly reports to ensure proper and accurate reporting. View of Responsible Officials. Management agrees with this finding and has prepared a Corrective Action Plan.