Finding Text
2024-002 Michigan Reconnect Expansion Refund 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 the 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. We noted that two students out of a testing population of forty whose disbursement amounts were not calculated correctly.
Cause. The College does not have a formal review process where a second individual looks over the disbursement calculations to ensure errors are caught before the disbursements are processed.
Effect. As a result of this condition, two calculations for the grant were incorrect, resulting in an overpayment of $224.
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.
Repeat Finding. N/A
Recommendation. We recommend that the College implement a review process to ensure that any disbursements are being reviewed for accuracy by an independent second individual prior to any disbursement.
View of Responsible Officials. Management agrees with this finding and has prepared a Corrective Action Plan.