Finding Text
Michigan Reconnect Expansion Calculation Error. Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Allowable Costs/Cost Principles). Program. Coronavirus State and Local Fiscal Recovery Funds; U.S. Department of Treasury; Assistance Listing Number 21.027; Award Number SLFRP0127. Criteria. As outlined in State of Michigan's Michigan Reconnect Expansion program guide, the Reconnect scholarship program is a last-dollar scholarship, which is equal to the difference between in-district tuition and fees (i.e., tuition, contact hours and mandatory fees) and any Pell Grant and any state tuition-restricted scholarships or awards that a student receives following the packaging order. Condition. The amount of scholarship a student is eligible to receive from the Michigan Reconnect Expansion grant is dependent on the total cost of tuition and fees as well as other financial aid received (Pell and Tuition Restricted Scholarships). When performing the calculation, the College mistakenly included tuition related to welding programs in with the fees. Cause. The College performs a review by selecting a group of students who are manually reviewed before they disburse funds for the semester. The overpayment of Michigan Reconnect Expansion scholarship funds was missed during the review of the calculation, as the two students with errors were not a part of the manual review. Effect. As a result of this condition, two students' scholarship calculations were incorrect, resulting in an overpayment of $3,054 to those students. It is our understanding that on October 30, 2024, the College refunded this amount to the Michigan Department of Treasury for those affected by this calculation error. Questioned Costs. No costs were required to be questioned as a result of this finding insomuch as our testing did not reveal any unallowed costs over the $25,000 threshold. Recommendation. We recommend that the College follow the review processes they have in place and include formal documentation showing the preparer is a separate individual from the reviewer. View of Responsible Officials. Management agrees with this finding and has prepared a Corrective Action Plan.