Finding 2022-701: Higher Education Emergency Relief Fund?UW-La Crosse Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from the Higher Education Emergency Relief Fund (HEERF), which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in American Rescue Plan Act (ARPA) funds to UW institutions to be used for student aid (Assistance Listing number 84.425E) and institutional aid (Assistance Listing number 84.425F). UW-La Crosse received an allocation that totaled $35.3 million, of which $19.4 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW-La Crosse is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with the coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and the federal Office of Management and Budget?s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) prohibit UW institutions from using the funds to cover certain costs, including those for student recruitment. Condition: UW-La Crosse used a total of $127,448 of its HEERF institutional aid allocation for consulting, advertising, and recruitment costs to increase student enrollment. Context: During FY 2021-22, UW-La Crosse used $2.9 million of its total HEERF institutional aid allocation. We reviewed 151 transactions for which UW-La Crosse used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW-La Crosse signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested information or supporting documentation for each transaction and interviewed UW-La Crosse staff. Questioned Costs: $127,448 Effect: Because unallowable costs were charged to HEERF, UW-La Crosse was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-La Crosse received federal reimbursement of $127,448 for unallowable costs during FY 2021 22. Cause: UW La Crosse interpreted the federal guidance to permit the costs for which it used its HEERF institutional aid allocation because the intention of the services was to increase enrollment that had declined during the public health emergency. After we questioned the use of HEERF funds, UW-La Crosse subsequently returned the funding. Recommendation: We recommend the University of Wisconsin La Crosse ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-701: Higher Education Emergency Relief Fund?UW-La Crosse Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F200067 2021 Questioned Costs: $127,448 Type of Finding: Noncompliance Response from the University of Wisconsin La Crosse: The University of Wisconsin-La Crosse agrees with the audit finding and recommendation.
Finding 2022-702: Higher Education Emergency Relief Fund?UW Platteville Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from HEERF, which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in ARPA funds to UW institutions to be used for student aid and institutional aid. UW-Platteville received an allocation that totaled $26.4 million, of which $14.5 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW Platteville is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and Uniform Guidance prohibit UW institutions from using the funds to cover certain costs, including those for student recruitment and entertainment. Condition: UW-Platteville used $23,500 of its HEERF institutional aid allocation to create online tours of its campuses for recruiting purposes and $1,018 for student entertainment for a summer 2021 program. Context: During FY 2021-22, UW-Platteville used $6.4 million of its total HEERF institutional aid allocation. We reviewed 13 transactions for which UW Platteville used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW Platteville signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested supporting documentation for certain transactions and interviewed UW Platteville staff. Questioned Costs: $24,518 Effect: Because unallowable costs were charged to HEERF, UW Platteville was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-Platteville received federal reimbursement of $24,518 for unallowable costs during FY 2021 22. Cause: UW-Platteville indicated it used HEERF institutional aid funding for online tours in order to provide prospective students an alternative way to learn about the campus. UW-Platteville indicated it interpreted the federal guidance to permit such use of HEERF institutional aid. However, we found the tour content was predominately marketing because it included encouragement for viewers to enroll at UW-Platteville. We consider any activities that encourage enrollment to be recruiting activity prohibited under federal regulations. After we questioned the use of HEERF funds for the presemester entertainment event, UW-Platteville subsequently returned the funding for this expense. Recommendation: We recommend the University of Wisconsin Platteville: -work with the federal government to resolve the $23,500 in unallowable costs that we identified; and -ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-702: Higher Education Emergency Relief Fund?UW Platteville Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F200891 2021 Questioned Costs: $24,518 Type of Finding: Noncompliance Response from the University of Wisconsin Platteville: The University of Wisconsin-Platteville agrees with the audit finding and recommendations.
Finding 2022-703: Higher Education Emergency Relief Fund?UW Superior Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from HEERF, which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in ARPA funds to UW institutions to be used for student aid and institutional aid. UW-Superior received an allocation that totaled $8.8 million, of which $4.9 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW Superior is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with the coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and Uniform Guidance prohibit UW institutions from using the funds to cover certain costs, including those for alcohol and entertainment. Condition: During FY 2021-22, UW-Superior used $30,376 of its HEERF institutional aid allocation to offset lost revenue from the sale of alcohol at sporting and other events and $1,500 for student entertainment for a presemester summer event. Context: During FY 2021-22, UW-Superior used $2.4 million of its total HEERF institutional aid allocation. We reviewed 26 transactions for which UW Superior used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW Superior signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested information or supporting documentation for each transaction and interviewed UW Superior staff. Questioned Costs: $31,876 Effect: Because unallowable costs were charged to HEERF, UW Superior was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-Superior received federal reimbursement of $31,876 for unallowable costs during FY 2021 22. Cause: UW-Superior indicated it was aware that alcohol sales should be excluded from lost revenue calculations and agreed that it had incorrectly included a cost center for alcohol sales in its FY 2021-22 lost revenue calculation. When this issue was identified during the audit, UW Superior subsequently adjusted the accounting records in November 2022 to make $30,376 available to fund additional lost revenues under the HEERF program. In December 2022, UW-Superior also adjusted the accounting records to make the $1,500 in costs for the student entertainment available to fund additional HEERF program expenses. Recommendation: We recommend the University of Wisconsin Superior ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-703: Higher Education Emergency Relief Fund?UW Superior Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F202112 2021 Questioned Costs: $31,876 Type of Finding: Noncompliance Response from the University of Wisconsin Superior: The University of Wisconsin-Superior agrees with the audit finding and recommendation.
Finding 2022-701: Higher Education Emergency Relief Fund?UW-La Crosse Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from the Higher Education Emergency Relief Fund (HEERF), which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in American Rescue Plan Act (ARPA) funds to UW institutions to be used for student aid (Assistance Listing number 84.425E) and institutional aid (Assistance Listing number 84.425F). UW-La Crosse received an allocation that totaled $35.3 million, of which $19.4 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW-La Crosse is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with the coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and the federal Office of Management and Budget?s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) prohibit UW institutions from using the funds to cover certain costs, including those for student recruitment. Condition: UW-La Crosse used a total of $127,448 of its HEERF institutional aid allocation for consulting, advertising, and recruitment costs to increase student enrollment. Context: During FY 2021-22, UW-La Crosse used $2.9 million of its total HEERF institutional aid allocation. We reviewed 151 transactions for which UW-La Crosse used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW-La Crosse signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested information or supporting documentation for each transaction and interviewed UW-La Crosse staff. Questioned Costs: $127,448 Effect: Because unallowable costs were charged to HEERF, UW-La Crosse was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-La Crosse received federal reimbursement of $127,448 for unallowable costs during FY 2021 22. Cause: UW La Crosse interpreted the federal guidance to permit the costs for which it used its HEERF institutional aid allocation because the intention of the services was to increase enrollment that had declined during the public health emergency. After we questioned the use of HEERF funds, UW-La Crosse subsequently returned the funding. Recommendation: We recommend the University of Wisconsin La Crosse ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-701: Higher Education Emergency Relief Fund?UW-La Crosse Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F200067 2021 Questioned Costs: $127,448 Type of Finding: Noncompliance Response from the University of Wisconsin La Crosse: The University of Wisconsin-La Crosse agrees with the audit finding and recommendation.
Finding 2022-702: Higher Education Emergency Relief Fund?UW Platteville Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from HEERF, which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in ARPA funds to UW institutions to be used for student aid and institutional aid. UW-Platteville received an allocation that totaled $26.4 million, of which $14.5 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW Platteville is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and Uniform Guidance prohibit UW institutions from using the funds to cover certain costs, including those for student recruitment and entertainment. Condition: UW-Platteville used $23,500 of its HEERF institutional aid allocation to create online tours of its campuses for recruiting purposes and $1,018 for student entertainment for a summer 2021 program. Context: During FY 2021-22, UW-Platteville used $6.4 million of its total HEERF institutional aid allocation. We reviewed 13 transactions for which UW Platteville used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW Platteville signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested supporting documentation for certain transactions and interviewed UW Platteville staff. Questioned Costs: $24,518 Effect: Because unallowable costs were charged to HEERF, UW Platteville was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-Platteville received federal reimbursement of $24,518 for unallowable costs during FY 2021 22. Cause: UW-Platteville indicated it used HEERF institutional aid funding for online tours in order to provide prospective students an alternative way to learn about the campus. UW-Platteville indicated it interpreted the federal guidance to permit such use of HEERF institutional aid. However, we found the tour content was predominately marketing because it included encouragement for viewers to enroll at UW-Platteville. We consider any activities that encourage enrollment to be recruiting activity prohibited under federal regulations. After we questioned the use of HEERF funds for the presemester entertainment event, UW-Platteville subsequently returned the funding for this expense. Recommendation: We recommend the University of Wisconsin Platteville: -work with the federal government to resolve the $23,500 in unallowable costs that we identified; and -ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-702: Higher Education Emergency Relief Fund?UW Platteville Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F200891 2021 Questioned Costs: $24,518 Type of Finding: Noncompliance Response from the University of Wisconsin Platteville: The University of Wisconsin-Platteville agrees with the audit finding and recommendations.
Finding 2022-703: Higher Education Emergency Relief Fund?UW Superior Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from HEERF, which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in ARPA funds to UW institutions to be used for student aid and institutional aid. UW-Superior received an allocation that totaled $8.8 million, of which $4.9 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW Superior is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with the coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and Uniform Guidance prohibit UW institutions from using the funds to cover certain costs, including those for alcohol and entertainment. Condition: During FY 2021-22, UW-Superior used $30,376 of its HEERF institutional aid allocation to offset lost revenue from the sale of alcohol at sporting and other events and $1,500 for student entertainment for a presemester summer event. Context: During FY 2021-22, UW-Superior used $2.4 million of its total HEERF institutional aid allocation. We reviewed 26 transactions for which UW Superior used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW Superior signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested information or supporting documentation for each transaction and interviewed UW Superior staff. Questioned Costs: $31,876 Effect: Because unallowable costs were charged to HEERF, UW Superior was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-Superior received federal reimbursement of $31,876 for unallowable costs during FY 2021 22. Cause: UW-Superior indicated it was aware that alcohol sales should be excluded from lost revenue calculations and agreed that it had incorrectly included a cost center for alcohol sales in its FY 2021-22 lost revenue calculation. When this issue was identified during the audit, UW Superior subsequently adjusted the accounting records in November 2022 to make $30,376 available to fund additional lost revenues under the HEERF program. In December 2022, UW-Superior also adjusted the accounting records to make the $1,500 in costs for the student entertainment available to fund additional HEERF program expenses. Recommendation: We recommend the University of Wisconsin Superior ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-703: Higher Education Emergency Relief Fund?UW Superior Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F202112 2021 Questioned Costs: $31,876 Type of Finding: Noncompliance Response from the University of Wisconsin Superior: The University of Wisconsin-Superior agrees with the audit finding and recommendation.
Finding 2022-701: Higher Education Emergency Relief Fund?UW-La Crosse Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from the Higher Education Emergency Relief Fund (HEERF), which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in American Rescue Plan Act (ARPA) funds to UW institutions to be used for student aid (Assistance Listing number 84.425E) and institutional aid (Assistance Listing number 84.425F). UW-La Crosse received an allocation that totaled $35.3 million, of which $19.4 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW-La Crosse is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with the coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and the federal Office of Management and Budget?s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) prohibit UW institutions from using the funds to cover certain costs, including those for student recruitment. Condition: UW-La Crosse used a total of $127,448 of its HEERF institutional aid allocation for consulting, advertising, and recruitment costs to increase student enrollment. Context: During FY 2021-22, UW-La Crosse used $2.9 million of its total HEERF institutional aid allocation. We reviewed 151 transactions for which UW-La Crosse used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW-La Crosse signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested information or supporting documentation for each transaction and interviewed UW-La Crosse staff. Questioned Costs: $127,448 Effect: Because unallowable costs were charged to HEERF, UW-La Crosse was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-La Crosse received federal reimbursement of $127,448 for unallowable costs during FY 2021 22. Cause: UW La Crosse interpreted the federal guidance to permit the costs for which it used its HEERF institutional aid allocation because the intention of the services was to increase enrollment that had declined during the public health emergency. After we questioned the use of HEERF funds, UW-La Crosse subsequently returned the funding. Recommendation: We recommend the University of Wisconsin La Crosse ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-701: Higher Education Emergency Relief Fund?UW-La Crosse Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F200067 2021 Questioned Costs: $127,448 Type of Finding: Noncompliance Response from the University of Wisconsin La Crosse: The University of Wisconsin-La Crosse agrees with the audit finding and recommendation.
Finding 2022-702: Higher Education Emergency Relief Fund?UW Platteville Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from HEERF, which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in ARPA funds to UW institutions to be used for student aid and institutional aid. UW-Platteville received an allocation that totaled $26.4 million, of which $14.5 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW Platteville is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and Uniform Guidance prohibit UW institutions from using the funds to cover certain costs, including those for student recruitment and entertainment. Condition: UW-Platteville used $23,500 of its HEERF institutional aid allocation to create online tours of its campuses for recruiting purposes and $1,018 for student entertainment for a summer 2021 program. Context: During FY 2021-22, UW-Platteville used $6.4 million of its total HEERF institutional aid allocation. We reviewed 13 transactions for which UW Platteville used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW Platteville signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested supporting documentation for certain transactions and interviewed UW Platteville staff. Questioned Costs: $24,518 Effect: Because unallowable costs were charged to HEERF, UW Platteville was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-Platteville received federal reimbursement of $24,518 for unallowable costs during FY 2021 22. Cause: UW-Platteville indicated it used HEERF institutional aid funding for online tours in order to provide prospective students an alternative way to learn about the campus. UW-Platteville indicated it interpreted the federal guidance to permit such use of HEERF institutional aid. However, we found the tour content was predominately marketing because it included encouragement for viewers to enroll at UW-Platteville. We consider any activities that encourage enrollment to be recruiting activity prohibited under federal regulations. After we questioned the use of HEERF funds for the presemester entertainment event, UW-Platteville subsequently returned the funding for this expense. Recommendation: We recommend the University of Wisconsin Platteville: -work with the federal government to resolve the $23,500 in unallowable costs that we identified; and -ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-702: Higher Education Emergency Relief Fund?UW Platteville Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F200891 2021 Questioned Costs: $24,518 Type of Finding: Noncompliance Response from the University of Wisconsin Platteville: The University of Wisconsin-Platteville agrees with the audit finding and recommendations.
Finding 2022-703: Higher Education Emergency Relief Fund?UW Superior Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from HEERF, which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in ARPA funds to UW institutions to be used for student aid and institutional aid. UW-Superior received an allocation that totaled $8.8 million, of which $4.9 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW Superior is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with the coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and Uniform Guidance prohibit UW institutions from using the funds to cover certain costs, including those for alcohol and entertainment. Condition: During FY 2021-22, UW-Superior used $30,376 of its HEERF institutional aid allocation to offset lost revenue from the sale of alcohol at sporting and other events and $1,500 for student entertainment for a presemester summer event. Context: During FY 2021-22, UW-Superior used $2.4 million of its total HEERF institutional aid allocation. We reviewed 26 transactions for which UW Superior used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW Superior signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested information or supporting documentation for each transaction and interviewed UW Superior staff. Questioned Costs: $31,876 Effect: Because unallowable costs were charged to HEERF, UW Superior was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-Superior received federal reimbursement of $31,876 for unallowable costs during FY 2021 22. Cause: UW-Superior indicated it was aware that alcohol sales should be excluded from lost revenue calculations and agreed that it had incorrectly included a cost center for alcohol sales in its FY 2021-22 lost revenue calculation. When this issue was identified during the audit, UW Superior subsequently adjusted the accounting records in November 2022 to make $30,376 available to fund additional lost revenues under the HEERF program. In December 2022, UW-Superior also adjusted the accounting records to make the $1,500 in costs for the student entertainment available to fund additional HEERF program expenses. Recommendation: We recommend the University of Wisconsin Superior ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-703: Higher Education Emergency Relief Fund?UW Superior Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F202112 2021 Questioned Costs: $31,876 Type of Finding: Noncompliance Response from the University of Wisconsin Superior: The University of Wisconsin-Superior agrees with the audit finding and recommendation.
Finding 2022-701: Higher Education Emergency Relief Fund?UW-La Crosse Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from the Higher Education Emergency Relief Fund (HEERF), which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in American Rescue Plan Act (ARPA) funds to UW institutions to be used for student aid (Assistance Listing number 84.425E) and institutional aid (Assistance Listing number 84.425F). UW-La Crosse received an allocation that totaled $35.3 million, of which $19.4 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW-La Crosse is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with the coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and the federal Office of Management and Budget?s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) prohibit UW institutions from using the funds to cover certain costs, including those for student recruitment. Condition: UW-La Crosse used a total of $127,448 of its HEERF institutional aid allocation for consulting, advertising, and recruitment costs to increase student enrollment. Context: During FY 2021-22, UW-La Crosse used $2.9 million of its total HEERF institutional aid allocation. We reviewed 151 transactions for which UW-La Crosse used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW-La Crosse signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested information or supporting documentation for each transaction and interviewed UW-La Crosse staff. Questioned Costs: $127,448 Effect: Because unallowable costs were charged to HEERF, UW-La Crosse was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-La Crosse received federal reimbursement of $127,448 for unallowable costs during FY 2021 22. Cause: UW La Crosse interpreted the federal guidance to permit the costs for which it used its HEERF institutional aid allocation because the intention of the services was to increase enrollment that had declined during the public health emergency. After we questioned the use of HEERF funds, UW-La Crosse subsequently returned the funding. Recommendation: We recommend the University of Wisconsin La Crosse ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-701: Higher Education Emergency Relief Fund?UW-La Crosse Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F200067 2021 Questioned Costs: $127,448 Type of Finding: Noncompliance Response from the University of Wisconsin La Crosse: The University of Wisconsin-La Crosse agrees with the audit finding and recommendation.
Finding 2022-702: Higher Education Emergency Relief Fund?UW Platteville Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from HEERF, which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in ARPA funds to UW institutions to be used for student aid and institutional aid. UW-Platteville received an allocation that totaled $26.4 million, of which $14.5 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW Platteville is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and Uniform Guidance prohibit UW institutions from using the funds to cover certain costs, including those for student recruitment and entertainment. Condition: UW-Platteville used $23,500 of its HEERF institutional aid allocation to create online tours of its campuses for recruiting purposes and $1,018 for student entertainment for a summer 2021 program. Context: During FY 2021-22, UW-Platteville used $6.4 million of its total HEERF institutional aid allocation. We reviewed 13 transactions for which UW Platteville used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW Platteville signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested supporting documentation for certain transactions and interviewed UW Platteville staff. Questioned Costs: $24,518 Effect: Because unallowable costs were charged to HEERF, UW Platteville was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-Platteville received federal reimbursement of $24,518 for unallowable costs during FY 2021 22. Cause: UW-Platteville indicated it used HEERF institutional aid funding for online tours in order to provide prospective students an alternative way to learn about the campus. UW-Platteville indicated it interpreted the federal guidance to permit such use of HEERF institutional aid. However, we found the tour content was predominately marketing because it included encouragement for viewers to enroll at UW-Platteville. We consider any activities that encourage enrollment to be recruiting activity prohibited under federal regulations. After we questioned the use of HEERF funds for the presemester entertainment event, UW-Platteville subsequently returned the funding for this expense. Recommendation: We recommend the University of Wisconsin Platteville: -work with the federal government to resolve the $23,500 in unallowable costs that we identified; and -ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-702: Higher Education Emergency Relief Fund?UW Platteville Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F200891 2021 Questioned Costs: $24,518 Type of Finding: Noncompliance Response from the University of Wisconsin Platteville: The University of Wisconsin-Platteville agrees with the audit finding and recommendations.
Finding 2022-703: Higher Education Emergency Relief Fund?UW Superior Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from HEERF, which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in ARPA funds to UW institutions to be used for student aid and institutional aid. UW-Superior received an allocation that totaled $8.8 million, of which $4.9 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW Superior is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with the coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and Uniform Guidance prohibit UW institutions from using the funds to cover certain costs, including those for alcohol and entertainment. Condition: During FY 2021-22, UW-Superior used $30,376 of its HEERF institutional aid allocation to offset lost revenue from the sale of alcohol at sporting and other events and $1,500 for student entertainment for a presemester summer event. Context: During FY 2021-22, UW-Superior used $2.4 million of its total HEERF institutional aid allocation. We reviewed 26 transactions for which UW Superior used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW Superior signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested information or supporting documentation for each transaction and interviewed UW Superior staff. Questioned Costs: $31,876 Effect: Because unallowable costs were charged to HEERF, UW Superior was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-Superior received federal reimbursement of $31,876 for unallowable costs during FY 2021 22. Cause: UW-Superior indicated it was aware that alcohol sales should be excluded from lost revenue calculations and agreed that it had incorrectly included a cost center for alcohol sales in its FY 2021-22 lost revenue calculation. When this issue was identified during the audit, UW Superior subsequently adjusted the accounting records in November 2022 to make $30,376 available to fund additional lost revenues under the HEERF program. In December 2022, UW-Superior also adjusted the accounting records to make the $1,500 in costs for the student entertainment available to fund additional HEERF program expenses. Recommendation: We recommend the University of Wisconsin Superior ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-703: Higher Education Emergency Relief Fund?UW Superior Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F202112 2021 Questioned Costs: $31,876 Type of Finding: Noncompliance Response from the University of Wisconsin Superior: The University of Wisconsin-Superior agrees with the audit finding and recommendation.
Finding 2022-701: Higher Education Emergency Relief Fund?UW-La Crosse Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from the Higher Education Emergency Relief Fund (HEERF), which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in American Rescue Plan Act (ARPA) funds to UW institutions to be used for student aid (Assistance Listing number 84.425E) and institutional aid (Assistance Listing number 84.425F). UW-La Crosse received an allocation that totaled $35.3 million, of which $19.4 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW-La Crosse is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with the coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and the federal Office of Management and Budget?s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) prohibit UW institutions from using the funds to cover certain costs, including those for student recruitment. Condition: UW-La Crosse used a total of $127,448 of its HEERF institutional aid allocation for consulting, advertising, and recruitment costs to increase student enrollment. Context: During FY 2021-22, UW-La Crosse used $2.9 million of its total HEERF institutional aid allocation. We reviewed 151 transactions for which UW-La Crosse used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW-La Crosse signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested information or supporting documentation for each transaction and interviewed UW-La Crosse staff. Questioned Costs: $127,448 Effect: Because unallowable costs were charged to HEERF, UW-La Crosse was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-La Crosse received federal reimbursement of $127,448 for unallowable costs during FY 2021 22. Cause: UW La Crosse interpreted the federal guidance to permit the costs for which it used its HEERF institutional aid allocation because the intention of the services was to increase enrollment that had declined during the public health emergency. After we questioned the use of HEERF funds, UW-La Crosse subsequently returned the funding. Recommendation: We recommend the University of Wisconsin La Crosse ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-701: Higher Education Emergency Relief Fund?UW-La Crosse Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F200067 2021 Questioned Costs: $127,448 Type of Finding: Noncompliance Response from the University of Wisconsin La Crosse: The University of Wisconsin-La Crosse agrees with the audit finding and recommendation.
Finding 2022-702: Higher Education Emergency Relief Fund?UW Platteville Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from HEERF, which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in ARPA funds to UW institutions to be used for student aid and institutional aid. UW-Platteville received an allocation that totaled $26.4 million, of which $14.5 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW Platteville is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and Uniform Guidance prohibit UW institutions from using the funds to cover certain costs, including those for student recruitment and entertainment. Condition: UW-Platteville used $23,500 of its HEERF institutional aid allocation to create online tours of its campuses for recruiting purposes and $1,018 for student entertainment for a summer 2021 program. Context: During FY 2021-22, UW-Platteville used $6.4 million of its total HEERF institutional aid allocation. We reviewed 13 transactions for which UW Platteville used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW Platteville signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested supporting documentation for certain transactions and interviewed UW Platteville staff. Questioned Costs: $24,518 Effect: Because unallowable costs were charged to HEERF, UW Platteville was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-Platteville received federal reimbursement of $24,518 for unallowable costs during FY 2021 22. Cause: UW-Platteville indicated it used HEERF institutional aid funding for online tours in order to provide prospective students an alternative way to learn about the campus. UW-Platteville indicated it interpreted the federal guidance to permit such use of HEERF institutional aid. However, we found the tour content was predominately marketing because it included encouragement for viewers to enroll at UW-Platteville. We consider any activities that encourage enrollment to be recruiting activity prohibited under federal regulations. After we questioned the use of HEERF funds for the presemester entertainment event, UW-Platteville subsequently returned the funding for this expense. Recommendation: We recommend the University of Wisconsin Platteville: -work with the federal government to resolve the $23,500 in unallowable costs that we identified; and -ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-702: Higher Education Emergency Relief Fund?UW Platteville Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F200891 2021 Questioned Costs: $24,518 Type of Finding: Noncompliance Response from the University of Wisconsin Platteville: The University of Wisconsin-Platteville agrees with the audit finding and recommendations.
Finding 2022-703: Higher Education Emergency Relief Fund?UW Superior Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from HEERF, which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in ARPA funds to UW institutions to be used for student aid and institutional aid. UW-Superior received an allocation that totaled $8.8 million, of which $4.9 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW Superior is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with the coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and Uniform Guidance prohibit UW institutions from using the funds to cover certain costs, including those for alcohol and entertainment. Condition: During FY 2021-22, UW-Superior used $30,376 of its HEERF institutional aid allocation to offset lost revenue from the sale of alcohol at sporting and other events and $1,500 for student entertainment for a presemester summer event. Context: During FY 2021-22, UW-Superior used $2.4 million of its total HEERF institutional aid allocation. We reviewed 26 transactions for which UW Superior used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW Superior signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested information or supporting documentation for each transaction and interviewed UW Superior staff. Questioned Costs: $31,876 Effect: Because unallowable costs were charged to HEERF, UW Superior was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-Superior received federal reimbursement of $31,876 for unallowable costs during FY 2021 22. Cause: UW-Superior indicated it was aware that alcohol sales should be excluded from lost revenue calculations and agreed that it had incorrectly included a cost center for alcohol sales in its FY 2021-22 lost revenue calculation. When this issue was identified during the audit, UW Superior subsequently adjusted the accounting records in November 2022 to make $30,376 available to fund additional lost revenues under the HEERF program. In December 2022, UW-Superior also adjusted the accounting records to make the $1,500 in costs for the student entertainment available to fund additional HEERF program expenses. Recommendation: We recommend the University of Wisconsin Superior ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-703: Higher Education Emergency Relief Fund?UW Superior Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F202112 2021 Questioned Costs: $31,876 Type of Finding: Noncompliance Response from the University of Wisconsin Superior: The University of Wisconsin-Superior agrees with the audit finding and recommendation.
Finding 2022-701: Higher Education Emergency Relief Fund?UW-La Crosse Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from the Higher Education Emergency Relief Fund (HEERF), which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in American Rescue Plan Act (ARPA) funds to UW institutions to be used for student aid (Assistance Listing number 84.425E) and institutional aid (Assistance Listing number 84.425F). UW-La Crosse received an allocation that totaled $35.3 million, of which $19.4 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW-La Crosse is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with the coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and the federal Office of Management and Budget?s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) prohibit UW institutions from using the funds to cover certain costs, including those for student recruitment. Condition: UW-La Crosse used a total of $127,448 of its HEERF institutional aid allocation for consulting, advertising, and recruitment costs to increase student enrollment. Context: During FY 2021-22, UW-La Crosse used $2.9 million of its total HEERF institutional aid allocation. We reviewed 151 transactions for which UW-La Crosse used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW-La Crosse signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested information or supporting documentation for each transaction and interviewed UW-La Crosse staff. Questioned Costs: $127,448 Effect: Because unallowable costs were charged to HEERF, UW-La Crosse was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-La Crosse received federal reimbursement of $127,448 for unallowable costs during FY 2021 22. Cause: UW La Crosse interpreted the federal guidance to permit the costs for which it used its HEERF institutional aid allocation because the intention of the services was to increase enrollment that had declined during the public health emergency. After we questioned the use of HEERF funds, UW-La Crosse subsequently returned the funding. Recommendation: We recommend the University of Wisconsin La Crosse ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-701: Higher Education Emergency Relief Fund?UW-La Crosse Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F200067 2021 Questioned Costs: $127,448 Type of Finding: Noncompliance Response from the University of Wisconsin La Crosse: The University of Wisconsin-La Crosse agrees with the audit finding and recommendation.
Finding 2022-702: Higher Education Emergency Relief Fund?UW Platteville Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from HEERF, which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in ARPA funds to UW institutions to be used for student aid and institutional aid. UW-Platteville received an allocation that totaled $26.4 million, of which $14.5 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW Platteville is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and Uniform Guidance prohibit UW institutions from using the funds to cover certain costs, including those for student recruitment and entertainment. Condition: UW-Platteville used $23,500 of its HEERF institutional aid allocation to create online tours of its campuses for recruiting purposes and $1,018 for student entertainment for a summer 2021 program. Context: During FY 2021-22, UW-Platteville used $6.4 million of its total HEERF institutional aid allocation. We reviewed 13 transactions for which UW Platteville used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW Platteville signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested supporting documentation for certain transactions and interviewed UW Platteville staff. Questioned Costs: $24,518 Effect: Because unallowable costs were charged to HEERF, UW Platteville was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-Platteville received federal reimbursement of $24,518 for unallowable costs during FY 2021 22. Cause: UW-Platteville indicated it used HEERF institutional aid funding for online tours in order to provide prospective students an alternative way to learn about the campus. UW-Platteville indicated it interpreted the federal guidance to permit such use of HEERF institutional aid. However, we found the tour content was predominately marketing because it included encouragement for viewers to enroll at UW-Platteville. We consider any activities that encourage enrollment to be recruiting activity prohibited under federal regulations. After we questioned the use of HEERF funds for the presemester entertainment event, UW-Platteville subsequently returned the funding for this expense. Recommendation: We recommend the University of Wisconsin Platteville: -work with the federal government to resolve the $23,500 in unallowable costs that we identified; and -ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-702: Higher Education Emergency Relief Fund?UW Platteville Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F200891 2021 Questioned Costs: $24,518 Type of Finding: Noncompliance Response from the University of Wisconsin Platteville: The University of Wisconsin-Platteville agrees with the audit finding and recommendations.
Finding 2022-703: Higher Education Emergency Relief Fund?UW Superior Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from HEERF, which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in ARPA funds to UW institutions to be used for student aid and institutional aid. UW-Superior received an allocation that totaled $8.8 million, of which $4.9 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW Superior is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with the coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and Uniform Guidance prohibit UW institutions from using the funds to cover certain costs, including those for alcohol and entertainment. Condition: During FY 2021-22, UW-Superior used $30,376 of its HEERF institutional aid allocation to offset lost revenue from the sale of alcohol at sporting and other events and $1,500 for student entertainment for a presemester summer event. Context: During FY 2021-22, UW-Superior used $2.4 million of its total HEERF institutional aid allocation. We reviewed 26 transactions for which UW Superior used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW Superior signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested information or supporting documentation for each transaction and interviewed UW Superior staff. Questioned Costs: $31,876 Effect: Because unallowable costs were charged to HEERF, UW Superior was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-Superior received federal reimbursement of $31,876 for unallowable costs during FY 2021 22. Cause: UW-Superior indicated it was aware that alcohol sales should be excluded from lost revenue calculations and agreed that it had incorrectly included a cost center for alcohol sales in its FY 2021-22 lost revenue calculation. When this issue was identified during the audit, UW Superior subsequently adjusted the accounting records in November 2022 to make $30,376 available to fund additional lost revenues under the HEERF program. In December 2022, UW-Superior also adjusted the accounting records to make the $1,500 in costs for the student entertainment available to fund additional HEERF program expenses. Recommendation: We recommend the University of Wisconsin Superior ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-703: Higher Education Emergency Relief Fund?UW Superior Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F202112 2021 Questioned Costs: $31,876 Type of Finding: Noncompliance Response from the University of Wisconsin Superior: The University of Wisconsin-Superior agrees with the audit finding and recommendation.
Finding 2022-701: Higher Education Emergency Relief Fund?UW-La Crosse Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from the Higher Education Emergency Relief Fund (HEERF), which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in American Rescue Plan Act (ARPA) funds to UW institutions to be used for student aid (Assistance Listing number 84.425E) and institutional aid (Assistance Listing number 84.425F). UW-La Crosse received an allocation that totaled $35.3 million, of which $19.4 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW-La Crosse is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with the coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and the federal Office of Management and Budget?s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) prohibit UW institutions from using the funds to cover certain costs, including those for student recruitment. Condition: UW-La Crosse used a total of $127,448 of its HEERF institutional aid allocation for consulting, advertising, and recruitment costs to increase student enrollment. Context: During FY 2021-22, UW-La Crosse used $2.9 million of its total HEERF institutional aid allocation. We reviewed 151 transactions for which UW-La Crosse used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW-La Crosse signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested information or supporting documentation for each transaction and interviewed UW-La Crosse staff. Questioned Costs: $127,448 Effect: Because unallowable costs were charged to HEERF, UW-La Crosse was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-La Crosse received federal reimbursement of $127,448 for unallowable costs during FY 2021 22. Cause: UW La Crosse interpreted the federal guidance to permit the costs for which it used its HEERF institutional aid allocation because the intention of the services was to increase enrollment that had declined during the public health emergency. After we questioned the use of HEERF funds, UW-La Crosse subsequently returned the funding. Recommendation: We recommend the University of Wisconsin La Crosse ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-701: Higher Education Emergency Relief Fund?UW-La Crosse Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F200067 2021 Questioned Costs: $127,448 Type of Finding: Noncompliance Response from the University of Wisconsin La Crosse: The University of Wisconsin-La Crosse agrees with the audit finding and recommendation.
Finding 2022-702: Higher Education Emergency Relief Fund?UW Platteville Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from HEERF, which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in ARPA funds to UW institutions to be used for student aid and institutional aid. UW-Platteville received an allocation that totaled $26.4 million, of which $14.5 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW Platteville is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and Uniform Guidance prohibit UW institutions from using the funds to cover certain costs, including those for student recruitment and entertainment. Condition: UW-Platteville used $23,500 of its HEERF institutional aid allocation to create online tours of its campuses for recruiting purposes and $1,018 for student entertainment for a summer 2021 program. Context: During FY 2021-22, UW-Platteville used $6.4 million of its total HEERF institutional aid allocation. We reviewed 13 transactions for which UW Platteville used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW Platteville signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested supporting documentation for certain transactions and interviewed UW Platteville staff. Questioned Costs: $24,518 Effect: Because unallowable costs were charged to HEERF, UW Platteville was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-Platteville received federal reimbursement of $24,518 for unallowable costs during FY 2021 22. Cause: UW-Platteville indicated it used HEERF institutional aid funding for online tours in order to provide prospective students an alternative way to learn about the campus. UW-Platteville indicated it interpreted the federal guidance to permit such use of HEERF institutional aid. However, we found the tour content was predominately marketing because it included encouragement for viewers to enroll at UW-Platteville. We consider any activities that encourage enrollment to be recruiting activity prohibited under federal regulations. After we questioned the use of HEERF funds for the presemester entertainment event, UW-Platteville subsequently returned the funding for this expense. Recommendation: We recommend the University of Wisconsin Platteville: -work with the federal government to resolve the $23,500 in unallowable costs that we identified; and -ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-702: Higher Education Emergency Relief Fund?UW Platteville Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F200891 2021 Questioned Costs: $24,518 Type of Finding: Noncompliance Response from the University of Wisconsin Platteville: The University of Wisconsin-Platteville agrees with the audit finding and recommendations.
Finding 2022-703: Higher Education Emergency Relief Fund?UW Superior Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from HEERF, which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in ARPA funds to UW institutions to be used for student aid and institutional aid. UW-Superior received an allocation that totaled $8.8 million, of which $4.9 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW Superior is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with the coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and Uniform Guidance prohibit UW institutions from using the funds to cover certain costs, including those for alcohol and entertainment. Condition: During FY 2021-22, UW-Superior used $30,376 of its HEERF institutional aid allocation to offset lost revenue from the sale of alcohol at sporting and other events and $1,500 for student entertainment for a presemester summer event. Context: During FY 2021-22, UW-Superior used $2.4 million of its total HEERF institutional aid allocation. We reviewed 26 transactions for which UW Superior used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW Superior signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested information or supporting documentation for each transaction and interviewed UW Superior staff. Questioned Costs: $31,876 Effect: Because unallowable costs were charged to HEERF, UW Superior was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-Superior received federal reimbursement of $31,876 for unallowable costs during FY 2021 22. Cause: UW-Superior indicated it was aware that alcohol sales should be excluded from lost revenue calculations and agreed that it had incorrectly included a cost center for alcohol sales in its FY 2021-22 lost revenue calculation. When this issue was identified during the audit, UW Superior subsequently adjusted the accounting records in November 2022 to make $30,376 available to fund additional lost revenues under the HEERF program. In December 2022, UW-Superior also adjusted the accounting records to make the $1,500 in costs for the student entertainment available to fund additional HEERF program expenses. Recommendation: We recommend the University of Wisconsin Superior ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-703: Higher Education Emergency Relief Fund?UW Superior Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F202112 2021 Questioned Costs: $31,876 Type of Finding: Noncompliance Response from the University of Wisconsin Superior: The University of Wisconsin-Superior agrees with the audit finding and recommendation.
Finding 2022-701: Higher Education Emergency Relief Fund?UW-La Crosse Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from the Higher Education Emergency Relief Fund (HEERF), which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in American Rescue Plan Act (ARPA) funds to UW institutions to be used for student aid (Assistance Listing number 84.425E) and institutional aid (Assistance Listing number 84.425F). UW-La Crosse received an allocation that totaled $35.3 million, of which $19.4 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW-La Crosse is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with the coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and the federal Office of Management and Budget?s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) prohibit UW institutions from using the funds to cover certain costs, including those for student recruitment. Condition: UW-La Crosse used a total of $127,448 of its HEERF institutional aid allocation for consulting, advertising, and recruitment costs to increase student enrollment. Context: During FY 2021-22, UW-La Crosse used $2.9 million of its total HEERF institutional aid allocation. We reviewed 151 transactions for which UW-La Crosse used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW-La Crosse signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested information or supporting documentation for each transaction and interviewed UW-La Crosse staff. Questioned Costs: $127,448 Effect: Because unallowable costs were charged to HEERF, UW-La Crosse was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-La Crosse received federal reimbursement of $127,448 for unallowable costs during FY 2021 22. Cause: UW La Crosse interpreted the federal guidance to permit the costs for which it used its HEERF institutional aid allocation because the intention of the services was to increase enrollment that had declined during the public health emergency. After we questioned the use of HEERF funds, UW-La Crosse subsequently returned the funding. Recommendation: We recommend the University of Wisconsin La Crosse ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-701: Higher Education Emergency Relief Fund?UW-La Crosse Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F200067 2021 Questioned Costs: $127,448 Type of Finding: Noncompliance Response from the University of Wisconsin La Crosse: The University of Wisconsin-La Crosse agrees with the audit finding and recommendation.
Finding 2022-702: Higher Education Emergency Relief Fund?UW Platteville Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from HEERF, which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in ARPA funds to UW institutions to be used for student aid and institutional aid. UW-Platteville received an allocation that totaled $26.4 million, of which $14.5 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW Platteville is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and Uniform Guidance prohibit UW institutions from using the funds to cover certain costs, including those for student recruitment and entertainment. Condition: UW-Platteville used $23,500 of its HEERF institutional aid allocation to create online tours of its campuses for recruiting purposes and $1,018 for student entertainment for a summer 2021 program. Context: During FY 2021-22, UW-Platteville used $6.4 million of its total HEERF institutional aid allocation. We reviewed 13 transactions for which UW Platteville used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW Platteville signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested supporting documentation for certain transactions and interviewed UW Platteville staff. Questioned Costs: $24,518 Effect: Because unallowable costs were charged to HEERF, UW Platteville was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-Platteville received federal reimbursement of $24,518 for unallowable costs during FY 2021 22. Cause: UW-Platteville indicated it used HEERF institutional aid funding for online tours in order to provide prospective students an alternative way to learn about the campus. UW-Platteville indicated it interpreted the federal guidance to permit such use of HEERF institutional aid. However, we found the tour content was predominately marketing because it included encouragement for viewers to enroll at UW-Platteville. We consider any activities that encourage enrollment to be recruiting activity prohibited under federal regulations. After we questioned the use of HEERF funds for the presemester entertainment event, UW-Platteville subsequently returned the funding for this expense. Recommendation: We recommend the University of Wisconsin Platteville: -work with the federal government to resolve the $23,500 in unallowable costs that we identified; and -ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-702: Higher Education Emergency Relief Fund?UW Platteville Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F200891 2021 Questioned Costs: $24,518 Type of Finding: Noncompliance Response from the University of Wisconsin Platteville: The University of Wisconsin-Platteville agrees with the audit finding and recommendations.
Finding 2022-703: Higher Education Emergency Relief Fund?UW Superior Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from HEERF, which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in ARPA funds to UW institutions to be used for student aid and institutional aid. UW-Superior received an allocation that totaled $8.8 million, of which $4.9 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW Superior is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with the coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and Uniform Guidance prohibit UW institutions from using the funds to cover certain costs, including those for alcohol and entertainment. Condition: During FY 2021-22, UW-Superior used $30,376 of its HEERF institutional aid allocation to offset lost revenue from the sale of alcohol at sporting and other events and $1,500 for student entertainment for a presemester summer event. Context: During FY 2021-22, UW-Superior used $2.4 million of its total HEERF institutional aid allocation. We reviewed 26 transactions for which UW Superior used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW Superior signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested information or supporting documentation for each transaction and interviewed UW Superior staff. Questioned Costs: $31,876 Effect: Because unallowable costs were charged to HEERF, UW Superior was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-Superior received federal reimbursement of $31,876 for unallowable costs during FY 2021 22. Cause: UW-Superior indicated it was aware that alcohol sales should be excluded from lost revenue calculations and agreed that it had incorrectly included a cost center for alcohol sales in its FY 2021-22 lost revenue calculation. When this issue was identified during the audit, UW Superior subsequently adjusted the accounting records in November 2022 to make $30,376 available to fund additional lost revenues under the HEERF program. In December 2022, UW-Superior also adjusted the accounting records to make the $1,500 in costs for the student entertainment available to fund additional HEERF program expenses. Recommendation: We recommend the University of Wisconsin Superior ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-703: Higher Education Emergency Relief Fund?UW Superior Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F202112 2021 Questioned Costs: $31,876 Type of Finding: Noncompliance Response from the University of Wisconsin Superior: The University of Wisconsin-Superior agrees with the audit finding and recommendation.
Finding 2022-701: Higher Education Emergency Relief Fund?UW-La Crosse Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from the Higher Education Emergency Relief Fund (HEERF), which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in American Rescue Plan Act (ARPA) funds to UW institutions to be used for student aid (Assistance Listing number 84.425E) and institutional aid (Assistance Listing number 84.425F). UW-La Crosse received an allocation that totaled $35.3 million, of which $19.4 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW-La Crosse is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with the coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and the federal Office of Management and Budget?s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) prohibit UW institutions from using the funds to cover certain costs, including those for student recruitment. Condition: UW-La Crosse used a total of $127,448 of its HEERF institutional aid allocation for consulting, advertising, and recruitment costs to increase student enrollment. Context: During FY 2021-22, UW-La Crosse used $2.9 million of its total HEERF institutional aid allocation. We reviewed 151 transactions for which UW-La Crosse used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW-La Crosse signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested information or supporting documentation for each transaction and interviewed UW-La Crosse staff. Questioned Costs: $127,448 Effect: Because unallowable costs were charged to HEERF, UW-La Crosse was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-La Crosse received federal reimbursement of $127,448 for unallowable costs during FY 2021 22. Cause: UW La Crosse interpreted the federal guidance to permit the costs for which it used its HEERF institutional aid allocation because the intention of the services was to increase enrollment that had declined during the public health emergency. After we questioned the use of HEERF funds, UW-La Crosse subsequently returned the funding. Recommendation: We recommend the University of Wisconsin La Crosse ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-701: Higher Education Emergency Relief Fund?UW-La Crosse Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F200067 2021 Questioned Costs: $127,448 Type of Finding: Noncompliance Response from the University of Wisconsin La Crosse: The University of Wisconsin-La Crosse agrees with the audit finding and recommendation.
Finding 2022-702: Higher Education Emergency Relief Fund?UW Platteville Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from HEERF, which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in ARPA funds to UW institutions to be used for student aid and institutional aid. UW-Platteville received an allocation that totaled $26.4 million, of which $14.5 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW Platteville is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and Uniform Guidance prohibit UW institutions from using the funds to cover certain costs, including those for student recruitment and entertainment. Condition: UW-Platteville used $23,500 of its HEERF institutional aid allocation to create online tours of its campuses for recruiting purposes and $1,018 for student entertainment for a summer 2021 program. Context: During FY 2021-22, UW-Platteville used $6.4 million of its total HEERF institutional aid allocation. We reviewed 13 transactions for which UW Platteville used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW Platteville signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested supporting documentation for certain transactions and interviewed UW Platteville staff. Questioned Costs: $24,518 Effect: Because unallowable costs were charged to HEERF, UW Platteville was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-Platteville received federal reimbursement of $24,518 for unallowable costs during FY 2021 22. Cause: UW-Platteville indicated it used HEERF institutional aid funding for online tours in order to provide prospective students an alternative way to learn about the campus. UW-Platteville indicated it interpreted the federal guidance to permit such use of HEERF institutional aid. However, we found the tour content was predominately marketing because it included encouragement for viewers to enroll at UW-Platteville. We consider any activities that encourage enrollment to be recruiting activity prohibited under federal regulations. After we questioned the use of HEERF funds for the presemester entertainment event, UW-Platteville subsequently returned the funding for this expense. Recommendation: We recommend the University of Wisconsin Platteville: -work with the federal government to resolve the $23,500 in unallowable costs that we identified; and -ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-702: Higher Education Emergency Relief Fund?UW Platteville Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F200891 2021 Questioned Costs: $24,518 Type of Finding: Noncompliance Response from the University of Wisconsin Platteville: The University of Wisconsin-Platteville agrees with the audit finding and recommendations.
Finding 2022-703: Higher Education Emergency Relief Fund?UW Superior Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from HEERF, which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in ARPA funds to UW institutions to be used for student aid and institutional aid. UW-Superior received an allocation that totaled $8.8 million, of which $4.9 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW Superior is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with the coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and Uniform Guidance prohibit UW institutions from using the funds to cover certain costs, including those for alcohol and entertainment. Condition: During FY 2021-22, UW-Superior used $30,376 of its HEERF institutional aid allocation to offset lost revenue from the sale of alcohol at sporting and other events and $1,500 for student entertainment for a presemester summer event. Context: During FY 2021-22, UW-Superior used $2.4 million of its total HEERF institutional aid allocation. We reviewed 26 transactions for which UW Superior used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW Superior signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested information or supporting documentation for each transaction and interviewed UW Superior staff. Questioned Costs: $31,876 Effect: Because unallowable costs were charged to HEERF, UW Superior was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-Superior received federal reimbursement of $31,876 for unallowable costs during FY 2021 22. Cause: UW-Superior indicated it was aware that alcohol sales should be excluded from lost revenue calculations and agreed that it had incorrectly included a cost center for alcohol sales in its FY 2021-22 lost revenue calculation. When this issue was identified during the audit, UW Superior subsequently adjusted the accounting records in November 2022 to make $30,376 available to fund additional lost revenues under the HEERF program. In December 2022, UW-Superior also adjusted the accounting records to make the $1,500 in costs for the student entertainment available to fund additional HEERF program expenses. Recommendation: We recommend the University of Wisconsin Superior ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-703: Higher Education Emergency Relief Fund?UW Superior Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F202112 2021 Questioned Costs: $31,876 Type of Finding: Noncompliance Response from the University of Wisconsin Superior: The University of Wisconsin-Superior agrees with the audit finding and recommendation.
Finding 2022-701: Higher Education Emergency Relief Fund?UW-La Crosse Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from the Higher Education Emergency Relief Fund (HEERF), which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in American Rescue Plan Act (ARPA) funds to UW institutions to be used for student aid (Assistance Listing number 84.425E) and institutional aid (Assistance Listing number 84.425F). UW-La Crosse received an allocation that totaled $35.3 million, of which $19.4 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW-La Crosse is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with the coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and the federal Office of Management and Budget?s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) prohibit UW institutions from using the funds to cover certain costs, including those for student recruitment. Condition: UW-La Crosse used a total of $127,448 of its HEERF institutional aid allocation for consulting, advertising, and recruitment costs to increase student enrollment. Context: During FY 2021-22, UW-La Crosse used $2.9 million of its total HEERF institutional aid allocation. We reviewed 151 transactions for which UW-La Crosse used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW-La Crosse signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested information or supporting documentation for each transaction and interviewed UW-La Crosse staff. Questioned Costs: $127,448 Effect: Because unallowable costs were charged to HEERF, UW-La Crosse was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-La Crosse received federal reimbursement of $127,448 for unallowable costs during FY 2021 22. Cause: UW La Crosse interpreted the federal guidance to permit the costs for which it used its HEERF institutional aid allocation because the intention of the services was to increase enrollment that had declined during the public health emergency. After we questioned the use of HEERF funds, UW-La Crosse subsequently returned the funding. Recommendation: We recommend the University of Wisconsin La Crosse ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-701: Higher Education Emergency Relief Fund?UW-La Crosse Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F200067 2021 Questioned Costs: $127,448 Type of Finding: Noncompliance Response from the University of Wisconsin La Crosse: The University of Wisconsin-La Crosse agrees with the audit finding and recommendation.
Finding 2022-702: Higher Education Emergency Relief Fund?UW Platteville Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from HEERF, which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in ARPA funds to UW institutions to be used for student aid and institutional aid. UW-Platteville received an allocation that totaled $26.4 million, of which $14.5 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW Platteville is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and Uniform Guidance prohibit UW institutions from using the funds to cover certain costs, including those for student recruitment and entertainment. Condition: UW-Platteville used $23,500 of its HEERF institutional aid allocation to create online tours of its campuses for recruiting purposes and $1,018 for student entertainment for a summer 2021 program. Context: During FY 2021-22, UW-Platteville used $6.4 million of its total HEERF institutional aid allocation. We reviewed 13 transactions for which UW Platteville used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW Platteville signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested supporting documentation for certain transactions and interviewed UW Platteville staff. Questioned Costs: $24,518 Effect: Because unallowable costs were charged to HEERF, UW Platteville was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-Platteville received federal reimbursement of $24,518 for unallowable costs during FY 2021 22. Cause: UW-Platteville indicated it used HEERF institutional aid funding for online tours in order to provide prospective students an alternative way to learn about the campus. UW-Platteville indicated it interpreted the federal guidance to permit such use of HEERF institutional aid. However, we found the tour content was predominately marketing because it included encouragement for viewers to enroll at UW-Platteville. We consider any activities that encourage enrollment to be recruiting activity prohibited under federal regulations. After we questioned the use of HEERF funds for the presemester entertainment event, UW-Platteville subsequently returned the funding for this expense. Recommendation: We recommend the University of Wisconsin Platteville: -work with the federal government to resolve the $23,500 in unallowable costs that we identified; and -ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-702: Higher Education Emergency Relief Fund?UW Platteville Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F200891 2021 Questioned Costs: $24,518 Type of Finding: Noncompliance Response from the University of Wisconsin Platteville: The University of Wisconsin-Platteville agrees with the audit finding and recommendations.
Finding 2022-703: Higher Education Emergency Relief Fund?UW Superior Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from HEERF, which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in ARPA funds to UW institutions to be used for student aid and institutional aid. UW-Superior received an allocation that totaled $8.8 million, of which $4.9 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW Superior is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with the coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and Uniform Guidance prohibit UW institutions from using the funds to cover certain costs, including those for alcohol and entertainment. Condition: During FY 2021-22, UW-Superior used $30,376 of its HEERF institutional aid allocation to offset lost revenue from the sale of alcohol at sporting and other events and $1,500 for student entertainment for a presemester summer event. Context: During FY 2021-22, UW-Superior used $2.4 million of its total HEERF institutional aid allocation. We reviewed 26 transactions for which UW Superior used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW Superior signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested information or supporting documentation for each transaction and interviewed UW Superior staff. Questioned Costs: $31,876 Effect: Because unallowable costs were charged to HEERF, UW Superior was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-Superior received federal reimbursement of $31,876 for unallowable costs during FY 2021 22. Cause: UW-Superior indicated it was aware that alcohol sales should be excluded from lost revenue calculations and agreed that it had incorrectly included a cost center for alcohol sales in its FY 2021-22 lost revenue calculation. When this issue was identified during the audit, UW Superior subsequently adjusted the accounting records in November 2022 to make $30,376 available to fund additional lost revenues under the HEERF program. In December 2022, UW-Superior also adjusted the accounting records to make the $1,500 in costs for the student entertainment available to fund additional HEERF program expenses. Recommendation: We recommend the University of Wisconsin Superior ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-703: Higher Education Emergency Relief Fund?UW Superior Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F202112 2021 Questioned Costs: $31,876 Type of Finding: Noncompliance Response from the University of Wisconsin Superior: The University of Wisconsin-Superior agrees with the audit finding and recommendation.
Finding 2022-701: Higher Education Emergency Relief Fund?UW-La Crosse Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from the Higher Education Emergency Relief Fund (HEERF), which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in American Rescue Plan Act (ARPA) funds to UW institutions to be used for student aid (Assistance Listing number 84.425E) and institutional aid (Assistance Listing number 84.425F). UW-La Crosse received an allocation that totaled $35.3 million, of which $19.4 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW-La Crosse is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with the coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and the federal Office of Management and Budget?s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) prohibit UW institutions from using the funds to cover certain costs, including those for student recruitment. Condition: UW-La Crosse used a total of $127,448 of its HEERF institutional aid allocation for consulting, advertising, and recruitment costs to increase student enrollment. Context: During FY 2021-22, UW-La Crosse used $2.9 million of its total HEERF institutional aid allocation. We reviewed 151 transactions for which UW-La Crosse used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW-La Crosse signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested information or supporting documentation for each transaction and interviewed UW-La Crosse staff. Questioned Costs: $127,448 Effect: Because unallowable costs were charged to HEERF, UW-La Crosse was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-La Crosse received federal reimbursement of $127,448 for unallowable costs during FY 2021 22. Cause: UW La Crosse interpreted the federal guidance to permit the costs for which it used its HEERF institutional aid allocation because the intention of the services was to increase enrollment that had declined during the public health emergency. After we questioned the use of HEERF funds, UW-La Crosse subsequently returned the funding. Recommendation: We recommend the University of Wisconsin La Crosse ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-701: Higher Education Emergency Relief Fund?UW-La Crosse Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F200067 2021 Questioned Costs: $127,448 Type of Finding: Noncompliance Response from the University of Wisconsin La Crosse: The University of Wisconsin-La Crosse agrees with the audit finding and recommendation.
Finding 2022-702: Higher Education Emergency Relief Fund?UW Platteville Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from HEERF, which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in ARPA funds to UW institutions to be used for student aid and institutional aid. UW-Platteville received an allocation that totaled $26.4 million, of which $14.5 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW Platteville is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and Uniform Guidance prohibit UW institutions from using the funds to cover certain costs, including those for student recruitment and entertainment. Condition: UW-Platteville used $23,500 of its HEERF institutional aid allocation to create online tours of its campuses for recruiting purposes and $1,018 for student entertainment for a summer 2021 program. Context: During FY 2021-22, UW-Platteville used $6.4 million of its total HEERF institutional aid allocation. We reviewed 13 transactions for which UW Platteville used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW Platteville signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested supporting documentation for certain transactions and interviewed UW Platteville staff. Questioned Costs: $24,518 Effect: Because unallowable costs were charged to HEERF, UW Platteville was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-Platteville received federal reimbursement of $24,518 for unallowable costs during FY 2021 22. Cause: UW-Platteville indicated it used HEERF institutional aid funding for online tours in order to provide prospective students an alternative way to learn about the campus. UW-Platteville indicated it interpreted the federal guidance to permit such use of HEERF institutional aid. However, we found the tour content was predominately marketing because it included encouragement for viewers to enroll at UW-Platteville. We consider any activities that encourage enrollment to be recruiting activity prohibited under federal regulations. After we questioned the use of HEERF funds for the presemester entertainment event, UW-Platteville subsequently returned the funding for this expense. Recommendation: We recommend the University of Wisconsin Platteville: -work with the federal government to resolve the $23,500 in unallowable costs that we identified; and -ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-702: Higher Education Emergency Relief Fund?UW Platteville Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F200891 2021 Questioned Costs: $24,518 Type of Finding: Noncompliance Response from the University of Wisconsin Platteville: The University of Wisconsin-Platteville agrees with the audit finding and recommendations.
Finding 2022-703: Higher Education Emergency Relief Fund?UW Superior Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from HEERF, which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in ARPA funds to UW institutions to be used for student aid and institutional aid. UW-Superior received an allocation that totaled $8.8 million, of which $4.9 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW Superior is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with the coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and Uniform Guidance prohibit UW institutions from using the funds to cover certain costs, including those for alcohol and entertainment. Condition: During FY 2021-22, UW-Superior used $30,376 of its HEERF institutional aid allocation to offset lost revenue from the sale of alcohol at sporting and other events and $1,500 for student entertainment for a presemester summer event. Context: During FY 2021-22, UW-Superior used $2.4 million of its total HEERF institutional aid allocation. We reviewed 26 transactions for which UW Superior used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW Superior signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested information or supporting documentation for each transaction and interviewed UW Superior staff. Questioned Costs: $31,876 Effect: Because unallowable costs were charged to HEERF, UW Superior was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-Superior received federal reimbursement of $31,876 for unallowable costs during FY 2021 22. Cause: UW-Superior indicated it was aware that alcohol sales should be excluded from lost revenue calculations and agreed that it had incorrectly included a cost center for alcohol sales in its FY 2021-22 lost revenue calculation. When this issue was identified during the audit, UW Superior subsequently adjusted the accounting records in November 2022 to make $30,376 available to fund additional lost revenues under the HEERF program. In December 2022, UW-Superior also adjusted the accounting records to make the $1,500 in costs for the student entertainment available to fund additional HEERF program expenses. Recommendation: We recommend the University of Wisconsin Superior ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-703: Higher Education Emergency Relief Fund?UW Superior Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F202112 2021 Questioned Costs: $31,876 Type of Finding: Noncompliance Response from the University of Wisconsin Superior: The University of Wisconsin-Superior agrees with the audit finding and recommendation.
Finding 2022-701: Higher Education Emergency Relief Fund?UW-La Crosse Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from the Higher Education Emergency Relief Fund (HEERF), which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in American Rescue Plan Act (ARPA) funds to UW institutions to be used for student aid (Assistance Listing number 84.425E) and institutional aid (Assistance Listing number 84.425F). UW-La Crosse received an allocation that totaled $35.3 million, of which $19.4 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW-La Crosse is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with the coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and the federal Office of Management and Budget?s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) prohibit UW institutions from using the funds to cover certain costs, including those for student recruitment. Condition: UW-La Crosse used a total of $127,448 of its HEERF institutional aid allocation for consulting, advertising, and recruitment costs to increase student enrollment. Context: During FY 2021-22, UW-La Crosse used $2.9 million of its total HEERF institutional aid allocation. We reviewed 151 transactions for which UW-La Crosse used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW-La Crosse signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested information or supporting documentation for each transaction and interviewed UW-La Crosse staff. Questioned Costs: $127,448 Effect: Because unallowable costs were charged to HEERF, UW-La Crosse was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-La Crosse received federal reimbursement of $127,448 for unallowable costs during FY 2021 22. Cause: UW La Crosse interpreted the federal guidance to permit the costs for which it used its HEERF institutional aid allocation because the intention of the services was to increase enrollment that had declined during the public health emergency. After we questioned the use of HEERF funds, UW-La Crosse subsequently returned the funding. Recommendation: We recommend the University of Wisconsin La Crosse ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-701: Higher Education Emergency Relief Fund?UW-La Crosse Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F200067 2021 Questioned Costs: $127,448 Type of Finding: Noncompliance Response from the University of Wisconsin La Crosse: The University of Wisconsin-La Crosse agrees with the audit finding and recommendation.
Finding 2022-702: Higher Education Emergency Relief Fund?UW Platteville Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from HEERF, which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in ARPA funds to UW institutions to be used for student aid and institutional aid. UW-Platteville received an allocation that totaled $26.4 million, of which $14.5 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW Platteville is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and Uniform Guidance prohibit UW institutions from using the funds to cover certain costs, including those for student recruitment and entertainment. Condition: UW-Platteville used $23,500 of its HEERF institutional aid allocation to create online tours of its campuses for recruiting purposes and $1,018 for student entertainment for a summer 2021 program. Context: During FY 2021-22, UW-Platteville used $6.4 million of its total HEERF institutional aid allocation. We reviewed 13 transactions for which UW Platteville used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW Platteville signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested supporting documentation for certain transactions and interviewed UW Platteville staff. Questioned Costs: $24,518 Effect: Because unallowable costs were charged to HEERF, UW Platteville was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-Platteville received federal reimbursement of $24,518 for unallowable costs during FY 2021 22. Cause: UW-Platteville indicated it used HEERF institutional aid funding for online tours in order to provide prospective students an alternative way to learn about the campus. UW-Platteville indicated it interpreted the federal guidance to permit such use of HEERF institutional aid. However, we found the tour content was predominately marketing because it included encouragement for viewers to enroll at UW-Platteville. We consider any activities that encourage enrollment to be recruiting activity prohibited under federal regulations. After we questioned the use of HEERF funds for the presemester entertainment event, UW-Platteville subsequently returned the funding for this expense. Recommendation: We recommend the University of Wisconsin Platteville: -work with the federal government to resolve the $23,500 in unallowable costs that we identified; and -ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-702: Higher Education Emergency Relief Fund?UW Platteville Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F200891 2021 Questioned Costs: $24,518 Type of Finding: Noncompliance Response from the University of Wisconsin Platteville: The University of Wisconsin-Platteville agrees with the audit finding and recommendations.
Finding 2022-703: Higher Education Emergency Relief Fund?UW Superior Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from HEERF, which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in ARPA funds to UW institutions to be used for student aid and institutional aid. UW-Superior received an allocation that totaled $8.8 million, of which $4.9 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW Superior is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with the coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and Uniform Guidance prohibit UW institutions from using the funds to cover certain costs, including those for alcohol and entertainment. Condition: During FY 2021-22, UW-Superior used $30,376 of its HEERF institutional aid allocation to offset lost revenue from the sale of alcohol at sporting and other events and $1,500 for student entertainment for a presemester summer event. Context: During FY 2021-22, UW-Superior used $2.4 million of its total HEERF institutional aid allocation. We reviewed 26 transactions for which UW Superior used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW Superior signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested information or supporting documentation for each transaction and interviewed UW Superior staff. Questioned Costs: $31,876 Effect: Because unallowable costs were charged to HEERF, UW Superior was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-Superior received federal reimbursement of $31,876 for unallowable costs during FY 2021 22. Cause: UW-Superior indicated it was aware that alcohol sales should be excluded from lost revenue calculations and agreed that it had incorrectly included a cost center for alcohol sales in its FY 2021-22 lost revenue calculation. When this issue was identified during the audit, UW Superior subsequently adjusted the accounting records in November 2022 to make $30,376 available to fund additional lost revenues under the HEERF program. In December 2022, UW-Superior also adjusted the accounting records to make the $1,500 in costs for the student entertainment available to fund additional HEERF program expenses. Recommendation: We recommend the University of Wisconsin Superior ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-703: Higher Education Emergency Relief Fund?UW Superior Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F202112 2021 Questioned Costs: $31,876 Type of Finding: Noncompliance Response from the University of Wisconsin Superior: The University of Wisconsin-Superior agrees with the audit finding and recommendation.
Finding 2022-701: Higher Education Emergency Relief Fund?UW-La Crosse Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from the Higher Education Emergency Relief Fund (HEERF), which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in American Rescue Plan Act (ARPA) funds to UW institutions to be used for student aid (Assistance Listing number 84.425E) and institutional aid (Assistance Listing number 84.425F). UW-La Crosse received an allocation that totaled $35.3 million, of which $19.4 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW-La Crosse is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with the coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and the federal Office of Management and Budget?s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) prohibit UW institutions from using the funds to cover certain costs, including those for student recruitment. Condition: UW-La Crosse used a total of $127,448 of its HEERF institutional aid allocation for consulting, advertising, and recruitment costs to increase student enrollment. Context: During FY 2021-22, UW-La Crosse used $2.9 million of its total HEERF institutional aid allocation. We reviewed 151 transactions for which UW-La Crosse used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW-La Crosse signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested information or supporting documentation for each transaction and interviewed UW-La Crosse staff. Questioned Costs: $127,448 Effect: Because unallowable costs were charged to HEERF, UW-La Crosse was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-La Crosse received federal reimbursement of $127,448 for unallowable costs during FY 2021 22. Cause: UW La Crosse interpreted the federal guidance to permit the costs for which it used its HEERF institutional aid allocation because the intention of the services was to increase enrollment that had declined during the public health emergency. After we questioned the use of HEERF funds, UW-La Crosse subsequently returned the funding. Recommendation: We recommend the University of Wisconsin La Crosse ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-701: Higher Education Emergency Relief Fund?UW-La Crosse Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F200067 2021 Questioned Costs: $127,448 Type of Finding: Noncompliance Response from the University of Wisconsin La Crosse: The University of Wisconsin-La Crosse agrees with the audit finding and recommendation.
Finding 2022-702: Higher Education Emergency Relief Fund?UW Platteville Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from HEERF, which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in ARPA funds to UW institutions to be used for student aid and institutional aid. UW-Platteville received an allocation that totaled $26.4 million, of which $14.5 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW Platteville is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and Uniform Guidance prohibit UW institutions from using the funds to cover certain costs, including those for student recruitment and entertainment. Condition: UW-Platteville used $23,500 of its HEERF institutional aid allocation to create online tours of its campuses for recruiting purposes and $1,018 for student entertainment for a summer 2021 program. Context: During FY 2021-22, UW-Platteville used $6.4 million of its total HEERF institutional aid allocation. We reviewed 13 transactions for which UW Platteville used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW Platteville signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested supporting documentation for certain transactions and interviewed UW Platteville staff. Questioned Costs: $24,518 Effect: Because unallowable costs were charged to HEERF, UW Platteville was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-Platteville received federal reimbursement of $24,518 for unallowable costs during FY 2021 22. Cause: UW-Platteville indicated it used HEERF institutional aid funding for online tours in order to provide prospective students an alternative way to learn about the campus. UW-Platteville indicated it interpreted the federal guidance to permit such use of HEERF institutional aid. However, we found the tour content was predominately marketing because it included encouragement for viewers to enroll at UW-Platteville. We consider any activities that encourage enrollment to be recruiting activity prohibited under federal regulations. After we questioned the use of HEERF funds for the presemester entertainment event, UW-Platteville subsequently returned the funding for this expense. Recommendation: We recommend the University of Wisconsin Platteville: -work with the federal government to resolve the $23,500 in unallowable costs that we identified; and -ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-702: Higher Education Emergency Relief Fund?UW Platteville Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F200891 2021 Questioned Costs: $24,518 Type of Finding: Noncompliance Response from the University of Wisconsin Platteville: The University of Wisconsin-Platteville agrees with the audit finding and recommendations.
Finding 2022-703: Higher Education Emergency Relief Fund?UW Superior Institutional Aid Allowable Costs Background: In prior fiscal years, UW institutions were awarded federal funding from HEERF, which was established and funded by federal legislation. For example, in May 2021, the U.S. Department of Education allocated $271.4 million in ARPA funds to UW institutions to be used for student aid and institutional aid. UW-Superior received an allocation that totaled $8.8 million, of which $4.9 million could be used for institutional aid. Criteria: Under 2 CFR s. 200.303, UW Superior is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Under ARPA, UW institutions are required to use a portion of the allocated HEERF funds to make direct aid payments to students and may use a portion of the allocated funds to defray institutional expenses associated with the coronavirus, including lost revenue. Section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, guidance from the Department of Education, the agreements each UW institution signed with the U.S. Department of Education, and Uniform Guidance prohibit UW institutions from using the funds to cover certain costs, including those for alcohol and entertainment. Condition: During FY 2021-22, UW-Superior used $30,376 of its HEERF institutional aid allocation to offset lost revenue from the sale of alcohol at sporting and other events and $1,500 for student entertainment for a presemester summer event. Context: During FY 2021-22, UW-Superior used $2.4 million of its total HEERF institutional aid allocation. We reviewed 26 transactions for which UW Superior used HEERF institutional aid, including the largest 10 transactions made using funds appropriated by ARPA. We reviewed whether each transaction met the requirements of federal legislation, guidance from the U.S. Department of Education, the agreements UW Superior signed with the U.S. Department of Education, and Uniform Guidance. To complete our testing, we requested information or supporting documentation for each transaction and interviewed UW Superior staff. Questioned Costs: $31,876 Effect: Because unallowable costs were charged to HEERF, UW Superior was not in compliance with federal requirements for the use of its HEERF institutional aid allocation. UW-Superior received federal reimbursement of $31,876 for unallowable costs during FY 2021 22. Cause: UW-Superior indicated it was aware that alcohol sales should be excluded from lost revenue calculations and agreed that it had incorrectly included a cost center for alcohol sales in its FY 2021-22 lost revenue calculation. When this issue was identified during the audit, UW Superior subsequently adjusted the accounting records in November 2022 to make $30,376 available to fund additional lost revenues under the HEERF program. In December 2022, UW-Superior also adjusted the accounting records to make the $1,500 in costs for the student entertainment available to fund additional HEERF program expenses. Recommendation: We recommend the University of Wisconsin Superior ensure that all expenses charged to the Higher Education Emergency Relief Fund (HEERF) program are allowable, such as performing an additional review of those costs allocated to HEERF and document the performance of such a review. Finding 2022-703: Higher Education Emergency Relief Fund?UW Superior Institutional Aid Allowable Costs COVID-19?Higher Education Emergency Relief Fund (Assistance Listing number 84.425F) Award Number Award Year P425F202112 2021 Questioned Costs: $31,876 Type of Finding: Noncompliance Response from the University of Wisconsin Superior: The University of Wisconsin-Superior agrees with the audit finding and recommendation.
Finding 2022-101: Low-Income Home Energy Assistance Program?Heating Benefit Calculation Background: The U.S. Department of Health and Human Services (DHHS) provides funding to DOA?s Division of Energy, Housing, and Community Resources (DEHCR) for LIHEAP. This program is used to provide energy assistance to eligible low-income home owners and renters to reduce the energy burden in heating their homes. DOA uses the Home Energy (HE) Plus computer system to determine eligibility for individuals applying for benefits, calculate heating benefits, and store information on applicants and beneficiaries. Program benefits are calculated based on applicant information that is entered into Home Energy (HE) Plus by DOA?s local agency partners. DOA submits an annual state plan to DHHS for LIHEAP. This state plan includes the estimated program benefit levels, as well as other information. In the federal fiscal year 2022 state plan, DOA estimated a minimum program benefit award amount of $30 and a maximum program benefit award amount of $1,518. Criteria: Under 42 U.S. Code ch. 94, states are required to provide in a timely manner the highest level of assistance to those households with the lowest incomes and the highest energy costs or needs relative to income and family size. Under 2 CFR 200.303, DOA is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Condition: After we asked questions about the calculation of the maximum heating benefit award amount, DOA informed us that it did not accurately calculate the maximum heating benefit award amount for inclusion in its state plan. Specifically, DOA did not include the adjusted benefit factor, which is used to estimate total caseload and total budget for the year to ensure that as many eligible applicants may be served as possible. As noted, DOA calculated a maximum heating benefit award amount of $1,518. When the adjusted benefit factor was included in the calculation, the maximum heating benefit award amount increased to $2,407. Context: In FY 2021-22, DOA expended $205.6 million under the LIHEAP grant, including providing $80.6 million in heating benefits to over 190,000 households. We inquired of DOA staff regarding the LIHEAP benefit calculation and how it is determined. We tested the heating benefit calculation and analyzed DOA?s determination of the number of households affected by the error DOA made in calculating the maximum heating benefit amount. Questioned Costs: None. Effect: As a result of the error in calculating the maximum heating benefit award amount, DOA determined that it underpaid LIHEAP benefits for 605 households in FY 2021-22. DOA calculated that the 605 households were underpaid a total of $130,352 in heating benefits. At the time of our fieldwork in February 2023, DOA was in the process of recalculating heating benefits and issuing supplemental heating benefit payments. Cause: DOA staff indicated that the underlying parameters for determining the LIHEAP heating benefit maximum are calculated using an external Microsoft Access database. DOA Division of Enterprise Technology staff manually load these parameters into the benefit factor table into Home Energy (HE) Plus. DEHCR staff indicated they perform a review of the parameters after they are loaded into Home Energy (HE) Plus. However, this review was not effective in identifying the error in the maximum heating benefit award amount, and DOA did not document the performance of the review. Recommendation: We recommend the Wisconsin Department of Administration: -establish and implement written procedures for making updates to the benefit calculation parameters in the Home Energy (HE) Plus application; -reassess its existing procedures for performing a review of the benefit calculation parameters entered into the Home Energy (HE) Plus application, make adjustments to its existing procedures as necessary, and document the performance of each review; and -complete its review of the 605 households that were underpaid heating benefits due to the error and issue supplemental heating benefit payments. Finding 2022-101: Low-Income Home Energy Assistance Program?Heating Benefit Calculation Low-Income Home Energy Assistance Program (Assistance Listing number 93.568) COVID-19?Low-Income Home Energy Assistance Program (Assistance Listing number 93.568) Award Numbers Award Years 2101WILIE4 n/a 2201WILIEA 10/1/21?9/30/22 2101WIE5C6 (ARPA) 3/11/21?9/30/22 2201WILIEI (IIJA) 10/1/21?9/30/23 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-101: Low-Income Home Energy Assistance Program?Heating Benefit Calculation Background: The U.S. Department of Health and Human Services (DHHS) provides funding to DOA?s Division of Energy, Housing, and Community Resources (DEHCR) for LIHEAP. This program is used to provide energy assistance to eligible low-income home owners and renters to reduce the energy burden in heating their homes. DOA uses the Home Energy (HE) Plus computer system to determine eligibility for individuals applying for benefits, calculate heating benefits, and store information on applicants and beneficiaries. Program benefits are calculated based on applicant information that is entered into Home Energy (HE) Plus by DOA?s local agency partners. DOA submits an annual state plan to DHHS for LIHEAP. This state plan includes the estimated program benefit levels, as well as other information. In the federal fiscal year 2022 state plan, DOA estimated a minimum program benefit award amount of $30 and a maximum program benefit award amount of $1,518. Criteria: Under 42 U.S. Code ch. 94, states are required to provide in a timely manner the highest level of assistance to those households with the lowest incomes and the highest energy costs or needs relative to income and family size. Under 2 CFR 200.303, DOA is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that federal awards are managed in compliance with federal statutes, regulations, and the award terms and conditions. Condition: After we asked questions about the calculation of the maximum heating benefit award amount, DOA informed us that it did not accurately calculate the maximum heating benefit award amount for inclusion in its state plan. Specifically, DOA did not include the adjusted benefit factor, which is used to estimate total caseload and total budget for the year to ensure that as many eligible applicants may be served as possible. As noted, DOA calculated a maximum heating benefit award amount of $1,518. When the adjusted benefit factor was included in the calculation, the maximum heating benefit award amount increased to $2,407. Context: In FY 2021-22, DOA expended $205.6 million under the LIHEAP grant, including providing $80.6 million in heating benefits to over 190,000 households. We inquired of DOA staff regarding the LIHEAP benefit calculation and how it is determined. We tested the heating benefit calculation and analyzed DOA?s determination of the number of households affected by the error DOA made in calculating the maximum heating benefit amount. Questioned Costs: None. Effect: As a result of the error in calculating the maximum heating benefit award amount, DOA determined that it underpaid LIHEAP benefits for 605 households in FY 2021-22. DOA calculated that the 605 households were underpaid a total of $130,352 in heating benefits. At the time of our fieldwork in February 2023, DOA was in the process of recalculating heating benefits and issuing supplemental heating benefit payments. Cause: DOA staff indicated that the underlying parameters for determining the LIHEAP heating benefit maximum are calculated using an external Microsoft Access database. DOA Division of Enterprise Technology staff manually load these parameters into the benefit factor table into Home Energy (HE) Plus. DEHCR staff indicated they perform a review of the parameters after they are loaded into Home Energy (HE) Plus. However, this review was not effective in identifying the error in the maximum heating benefit award amount, and DOA did not document the performance of the review. Recommendation: We recommend the Wisconsin Department of Administration: -establish and implement written procedures for making updates to the benefit calculation parameters in the Home Energy (HE) Plus application; -reassess its existing procedures for performing a review of the benefit calculation parameters entered into the Home Energy (HE) Plus application, make adjustments to its existing procedures as necessary, and document the performance of each review; and -complete its review of the 605 households that were underpaid heating benefits due to the error and issue supplemental heating benefit payments. Finding 2022-101: Low-Income Home Energy Assistance Program?Heating Benefit Calculation Low-Income Home Energy Assistance Program (Assistance Listing number 93.568) COVID-19?Low-Income Home Energy Assistance Program (Assistance Listing number 93.568) Award Numbers Award Years 2101WILIE4 n/a 2201WILIEA 10/1/21?9/30/22 2101WIE5C6 (ARPA) 3/11/21?9/30/22 2201WILIEI (IIJA) 10/1/21?9/30/23 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.