Finding Text
Criteria: The tracking and matching of grant revenues and expenditures and the related grant
receivable and unearned revenue amounts is necessary to assist in making management decisions
and for the proper reporting and use of such funds in accordance with each of the individual grant
requirements and this information is essential for grant administration and for preparing the Center's
Schedule of Expenditures of Federal Awards (SEFA).
Condition/Context: The Higher Education Emergency Relief Fund (HEERF) Institutional Portion grant
was funded under the reimbursement method where costs for which reimbursement was requested
are to be eligible to be reimbursed for or paid for prior to the date of the reimbursement request.
During the year, the Center drew down $69,999 prior to being eligible to be reimbursed for these
costs. One of the two draws tested did not comply with requirements.
Effect: The Center has worked with the U.S. Department of Education for purposes of determining
whether the $69,999 should be returned and was instructed that it should not be returned, but that the
quarterly and annual reporting that included these costs were incorrectly filed and should be revised.
The Center also did not prepare a complete and accurate SEFA in a timely manner to comply with its
financial reporting requirements.
Cause: The Center has not prioritized a formal system for tracking its grant activities and also lacked
a complete and accurate understanding of grant funding under the reimbursement method.
Questioned Costs: $69,999
Recommendation: We recommend that the Center develop and implement a formal system for
tracking its grant related activities including the review and approval of grant reports and draw down
requests reconcile to the general ledger grant activity or eligible costs prior to submitting a
reimbursement request or grant report.
Views of Responsible Officials and Planned Corrective Actions: Management agrees, and is working
to realign the grant process from formalizing the administration and determining the involvement of
staff members. A timeline will be initiated between all involved staff to oversee, track, report and
manage all of the Center's grant awards. Timeline will ensure that budgets, reporting requirements
and purchases are handled in a timely manner. Management is also revising the quarter ending
September 30, 2022 report and the 2022 annual report and working with the U.S. Department of
Education regarding the resolution of this matter. See Corrective Action Plan.