Audit 56183

FY End
2022-06-30
Total Expended
$11.74M
Findings
10
Programs
16
Organization: Lake Michigan College (MI)
Year: 2022 Accepted: 2023-03-29

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
60545 2022-001 Material Weakness Yes N
60546 2022-001 Material Weakness Yes N
60547 2022-002 Significant Deficiency - L
60548 2022-002 Significant Deficiency - L
60549 2022-002 Significant Deficiency - L
636987 2022-001 Material Weakness Yes N
636988 2022-001 Material Weakness Yes N
636989 2022-002 Significant Deficiency - L
636990 2022-002 Significant Deficiency - L
636991 2022-002 Significant Deficiency - L

Contacts

Name Title Type
CT89PKK5Q4G5 Kelli Hahn Auditee
2699276701 Vicki Vandenberg Auditor
No contacts on file

Notes to SEFA

Title: Adjustments and Transfers Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Lake Michigan College (the College) under programs of the federal government for the year ended June 30, 2022. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the College, it is not intended to and does not present the financial position, changes in net position, or cash flows of the College. Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The pass through entity identifying numbers are presented where available.The College has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. As allowable and in accordance with federal regulations issued by the U.S. Department of Education, the College carried forward and spent $8,914 of 2020 2021 Federal Supplemental Education Opportunity Grant Program (84.007) funds in 2021 2022 and carried forward and spent $7,525 of 2020 2021 Federal Work Study Program (84.033) funds in 2021 2022.In addition, the College transferred and spent $35,368 of Federal Work Study Program funds in the Federal Supplemental Education Opportunity Grant Program.

Finding Details

ALN, Federal Agency, and Program Name - Student Financial Assistance Cluster - Federal Direct Student Loan Program ALN 84.268 Federal Award Identification Number and Year Various Pass-through Entity - None Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - Yes 2021-002 Criteria - If an institution credits a student ledger account with a direct loan, the institution must notify the student or parent no earlier than 30 days before, and no later than 30 days after, crediting the student's ledger account at the institution of: (i) The anticipated date and amount of the disbursement (ii) The student's or parent's right to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned to the secretary (iii) The procedures and time by which the student or parent must notify the institution that he or she wishes to cancel the loan or loan disbursement (34 CFR Section 668.165(a)(2) and (a)(3)). Condition - The College was not sending notifications meeting the required criteria during the the year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - The College did not send notifications with the required information included for the entire fiscal year. Cause and Effect - The College did not have a process in place to provide students and parents with required notifications. As a result, students and parents were not provided with the required information. Recommendation - The College should implement a process to ensure notifications sent to students and parents include all required information. Views of Responsible Officials and Planned Corrective Actions - The College has updated their notifications to include the required elements beginning in the Fall 2022 semester.
ALN, Federal Agency, and Program Name - Student Financial Assistance Cluster - Federal Direct Student Loan Program ALN 84.268 Federal Award Identification Number and Year Various Pass-through Entity - None Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - Yes 2021-002 Criteria - If an institution credits a student ledger account with a direct loan, the institution must notify the student or parent no earlier than 30 days before, and no later than 30 days after, crediting the student's ledger account at the institution of: (i) The anticipated date and amount of the disbursement (ii) The student's or parent's right to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned to the secretary (iii) The procedures and time by which the student or parent must notify the institution that he or she wishes to cancel the loan or loan disbursement (34 CFR Section 668.165(a)(2) and (a)(3)). Condition - The College was not sending notifications meeting the required criteria during the the year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - The College did not send notifications with the required information included for the entire fiscal year. Cause and Effect - The College did not have a process in place to provide students and parents with required notifications. As a result, students and parents were not provided with the required information. Recommendation - The College should implement a process to ensure notifications sent to students and parents include all required information. Views of Responsible Officials and Planned Corrective Actions - The College has updated their notifications to include the required elements beginning in the Fall 2022 semester.
ALN Number, Federal Agency, and Program Name - Education Stabiliazation Fund - Higher Education Emergency Relief Fund ALN 84.425 Federal Award Identification Number and Year - P425E203216, P425F202937, P425M200864 Pass through Entity - None Finding Type - Significant deficiency Repeat Finding - No Criteria - CARES Act 18004(e) and the CRRSAA 314(e) require an institution receiving funds under HEERF I and HEERF II to submit a report to the secretary at such time in such a manner as the secretary may require. ARP Act 2003 specifies that the same terms and conditions of CRRSAA 314 apply to HEERF III funds. While the acts do not explicitly identify procedures by which institutions must report on their uses of HEERF grant funds, pursuant to these requirements, the Department of Education required quarterly public reporting of student portion and institutional portion awards and an annual report. Additionally, quarterly student reports are due 10 days after the end of the quarter. Condition - The College did not submit HEERF student quarterly reports timely and reported inaccurate information in certain line items within the 2021 HEERF annual report. Questioned Costs - N/A Identification of How Questioned Costs Were Computed - N/A Context - The HEERF studently quarterly reports for the fourth quarter of 2021 and the first quarter of 2022 were not prepared until October 2022 and were not posted publicly until February 2023. The annual report reported incorrect figures for the number of unduplicated students who received HEERF grants and the collective value of those grants for calendar year 2021. Cause and Effect - There were inadequate controls implemented to ensure that the required information was properly made available on the College's website on a timely basis and that reports were prepared accurately. Recommendation - The College should implement additional controls to ensure reporting requirements for federal grants are complied with in all instances. Views of Responsible Officials and Planned Corrective Actions - The delay in posting the quarterly reports online was an oversight but they were properly submitted to the US Department of Education timely. We will correct the annual report and resubmit it and going forward we will ensure there is a review of data before it is submitted or posted.
ALN Number, Federal Agency, and Program Name - Education Stabiliazation Fund - Higher Education Emergency Relief Fund ALN 84.425 Federal Award Identification Number and Year - P425E203216, P425F202937, P425M200864 Pass through Entity - None Finding Type - Significant deficiency Repeat Finding - No Criteria - CARES Act 18004(e) and the CRRSAA 314(e) require an institution receiving funds under HEERF I and HEERF II to submit a report to the secretary at such time in such a manner as the secretary may require. ARP Act 2003 specifies that the same terms and conditions of CRRSAA 314 apply to HEERF III funds. While the acts do not explicitly identify procedures by which institutions must report on their uses of HEERF grant funds, pursuant to these requirements, the Department of Education required quarterly public reporting of student portion and institutional portion awards and an annual report. Additionally, quarterly student reports are due 10 days after the end of the quarter. Condition - The College did not submit HEERF student quarterly reports timely and reported inaccurate information in certain line items within the 2021 HEERF annual report. Questioned Costs - N/A Identification of How Questioned Costs Were Computed - N/A Context - The HEERF studently quarterly reports for the fourth quarter of 2021 and the first quarter of 2022 were not prepared until October 2022 and were not posted publicly until February 2023. The annual report reported incorrect figures for the number of unduplicated students who received HEERF grants and the collective value of those grants for calendar year 2021. Cause and Effect - There were inadequate controls implemented to ensure that the required information was properly made available on the College's website on a timely basis and that reports were prepared accurately. Recommendation - The College should implement additional controls to ensure reporting requirements for federal grants are complied with in all instances. Views of Responsible Officials and Planned Corrective Actions - The delay in posting the quarterly reports online was an oversight but they were properly submitted to the US Department of Education timely. We will correct the annual report and resubmit it and going forward we will ensure there is a review of data before it is submitted or posted.
ALN Number, Federal Agency, and Program Name - Education Stabiliazation Fund - Higher Education Emergency Relief Fund ALN 84.425 Federal Award Identification Number and Year - P425E203216, P425F202937, P425M200864 Pass through Entity - None Finding Type - Significant deficiency Repeat Finding - No Criteria - CARES Act 18004(e) and the CRRSAA 314(e) require an institution receiving funds under HEERF I and HEERF II to submit a report to the secretary at such time in such a manner as the secretary may require. ARP Act 2003 specifies that the same terms and conditions of CRRSAA 314 apply to HEERF III funds. While the acts do not explicitly identify procedures by which institutions must report on their uses of HEERF grant funds, pursuant to these requirements, the Department of Education required quarterly public reporting of student portion and institutional portion awards and an annual report. Additionally, quarterly student reports are due 10 days after the end of the quarter. Condition - The College did not submit HEERF student quarterly reports timely and reported inaccurate information in certain line items within the 2021 HEERF annual report. Questioned Costs - N/A Identification of How Questioned Costs Were Computed - N/A Context - The HEERF studently quarterly reports for the fourth quarter of 2021 and the first quarter of 2022 were not prepared until October 2022 and were not posted publicly until February 2023. The annual report reported incorrect figures for the number of unduplicated students who received HEERF grants and the collective value of those grants for calendar year 2021. Cause and Effect - There were inadequate controls implemented to ensure that the required information was properly made available on the College's website on a timely basis and that reports were prepared accurately. Recommendation - The College should implement additional controls to ensure reporting requirements for federal grants are complied with in all instances. Views of Responsible Officials and Planned Corrective Actions - The delay in posting the quarterly reports online was an oversight but they were properly submitted to the US Department of Education timely. We will correct the annual report and resubmit it and going forward we will ensure there is a review of data before it is submitted or posted.
ALN, Federal Agency, and Program Name - Student Financial Assistance Cluster - Federal Direct Student Loan Program ALN 84.268 Federal Award Identification Number and Year Various Pass-through Entity - None Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - Yes 2021-002 Criteria - If an institution credits a student ledger account with a direct loan, the institution must notify the student or parent no earlier than 30 days before, and no later than 30 days after, crediting the student's ledger account at the institution of: (i) The anticipated date and amount of the disbursement (ii) The student's or parent's right to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned to the secretary (iii) The procedures and time by which the student or parent must notify the institution that he or she wishes to cancel the loan or loan disbursement (34 CFR Section 668.165(a)(2) and (a)(3)). Condition - The College was not sending notifications meeting the required criteria during the the year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - The College did not send notifications with the required information included for the entire fiscal year. Cause and Effect - The College did not have a process in place to provide students and parents with required notifications. As a result, students and parents were not provided with the required information. Recommendation - The College should implement a process to ensure notifications sent to students and parents include all required information. Views of Responsible Officials and Planned Corrective Actions - The College has updated their notifications to include the required elements beginning in the Fall 2022 semester.
ALN, Federal Agency, and Program Name - Student Financial Assistance Cluster - Federal Direct Student Loan Program ALN 84.268 Federal Award Identification Number and Year Various Pass-through Entity - None Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - Yes 2021-002 Criteria - If an institution credits a student ledger account with a direct loan, the institution must notify the student or parent no earlier than 30 days before, and no later than 30 days after, crediting the student's ledger account at the institution of: (i) The anticipated date and amount of the disbursement (ii) The student's or parent's right to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned to the secretary (iii) The procedures and time by which the student or parent must notify the institution that he or she wishes to cancel the loan or loan disbursement (34 CFR Section 668.165(a)(2) and (a)(3)). Condition - The College was not sending notifications meeting the required criteria during the the year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - The College did not send notifications with the required information included for the entire fiscal year. Cause and Effect - The College did not have a process in place to provide students and parents with required notifications. As a result, students and parents were not provided with the required information. Recommendation - The College should implement a process to ensure notifications sent to students and parents include all required information. Views of Responsible Officials and Planned Corrective Actions - The College has updated their notifications to include the required elements beginning in the Fall 2022 semester.
ALN Number, Federal Agency, and Program Name - Education Stabiliazation Fund - Higher Education Emergency Relief Fund ALN 84.425 Federal Award Identification Number and Year - P425E203216, P425F202937, P425M200864 Pass through Entity - None Finding Type - Significant deficiency Repeat Finding - No Criteria - CARES Act 18004(e) and the CRRSAA 314(e) require an institution receiving funds under HEERF I and HEERF II to submit a report to the secretary at such time in such a manner as the secretary may require. ARP Act 2003 specifies that the same terms and conditions of CRRSAA 314 apply to HEERF III funds. While the acts do not explicitly identify procedures by which institutions must report on their uses of HEERF grant funds, pursuant to these requirements, the Department of Education required quarterly public reporting of student portion and institutional portion awards and an annual report. Additionally, quarterly student reports are due 10 days after the end of the quarter. Condition - The College did not submit HEERF student quarterly reports timely and reported inaccurate information in certain line items within the 2021 HEERF annual report. Questioned Costs - N/A Identification of How Questioned Costs Were Computed - N/A Context - The HEERF studently quarterly reports for the fourth quarter of 2021 and the first quarter of 2022 were not prepared until October 2022 and were not posted publicly until February 2023. The annual report reported incorrect figures for the number of unduplicated students who received HEERF grants and the collective value of those grants for calendar year 2021. Cause and Effect - There were inadequate controls implemented to ensure that the required information was properly made available on the College's website on a timely basis and that reports were prepared accurately. Recommendation - The College should implement additional controls to ensure reporting requirements for federal grants are complied with in all instances. Views of Responsible Officials and Planned Corrective Actions - The delay in posting the quarterly reports online was an oversight but they were properly submitted to the US Department of Education timely. We will correct the annual report and resubmit it and going forward we will ensure there is a review of data before it is submitted or posted.
ALN Number, Federal Agency, and Program Name - Education Stabiliazation Fund - Higher Education Emergency Relief Fund ALN 84.425 Federal Award Identification Number and Year - P425E203216, P425F202937, P425M200864 Pass through Entity - None Finding Type - Significant deficiency Repeat Finding - No Criteria - CARES Act 18004(e) and the CRRSAA 314(e) require an institution receiving funds under HEERF I and HEERF II to submit a report to the secretary at such time in such a manner as the secretary may require. ARP Act 2003 specifies that the same terms and conditions of CRRSAA 314 apply to HEERF III funds. While the acts do not explicitly identify procedures by which institutions must report on their uses of HEERF grant funds, pursuant to these requirements, the Department of Education required quarterly public reporting of student portion and institutional portion awards and an annual report. Additionally, quarterly student reports are due 10 days after the end of the quarter. Condition - The College did not submit HEERF student quarterly reports timely and reported inaccurate information in certain line items within the 2021 HEERF annual report. Questioned Costs - N/A Identification of How Questioned Costs Were Computed - N/A Context - The HEERF studently quarterly reports for the fourth quarter of 2021 and the first quarter of 2022 were not prepared until October 2022 and were not posted publicly until February 2023. The annual report reported incorrect figures for the number of unduplicated students who received HEERF grants and the collective value of those grants for calendar year 2021. Cause and Effect - There were inadequate controls implemented to ensure that the required information was properly made available on the College's website on a timely basis and that reports were prepared accurately. Recommendation - The College should implement additional controls to ensure reporting requirements for federal grants are complied with in all instances. Views of Responsible Officials and Planned Corrective Actions - The delay in posting the quarterly reports online was an oversight but they were properly submitted to the US Department of Education timely. We will correct the annual report and resubmit it and going forward we will ensure there is a review of data before it is submitted or posted.
ALN Number, Federal Agency, and Program Name - Education Stabiliazation Fund - Higher Education Emergency Relief Fund ALN 84.425 Federal Award Identification Number and Year - P425E203216, P425F202937, P425M200864 Pass through Entity - None Finding Type - Significant deficiency Repeat Finding - No Criteria - CARES Act 18004(e) and the CRRSAA 314(e) require an institution receiving funds under HEERF I and HEERF II to submit a report to the secretary at such time in such a manner as the secretary may require. ARP Act 2003 specifies that the same terms and conditions of CRRSAA 314 apply to HEERF III funds. While the acts do not explicitly identify procedures by which institutions must report on their uses of HEERF grant funds, pursuant to these requirements, the Department of Education required quarterly public reporting of student portion and institutional portion awards and an annual report. Additionally, quarterly student reports are due 10 days after the end of the quarter. Condition - The College did not submit HEERF student quarterly reports timely and reported inaccurate information in certain line items within the 2021 HEERF annual report. Questioned Costs - N/A Identification of How Questioned Costs Were Computed - N/A Context - The HEERF studently quarterly reports for the fourth quarter of 2021 and the first quarter of 2022 were not prepared until October 2022 and were not posted publicly until February 2023. The annual report reported incorrect figures for the number of unduplicated students who received HEERF grants and the collective value of those grants for calendar year 2021. Cause and Effect - There were inadequate controls implemented to ensure that the required information was properly made available on the College's website on a timely basis and that reports were prepared accurately. Recommendation - The College should implement additional controls to ensure reporting requirements for federal grants are complied with in all instances. Views of Responsible Officials and Planned Corrective Actions - The delay in posting the quarterly reports online was an oversight but they were properly submitted to the US Department of Education timely. We will correct the annual report and resubmit it and going forward we will ensure there is a review of data before it is submitted or posted.