Finding Text
Finding 2025-003 – Reporting Repeat Finding: No Federal Program Title – U.S. Department of Education Higher Education Institutional Aid 84.031C Federal Award Year 2024-2025 Award Number: 21061-210822-1-HWC Pass-Through Entity: Northeastern Illinois University Condition For one of the four reports tested for the Higher Education Institutional Aid Program, City Colleges did not timely submit a quarterly report to the Pass-Through Entity (PTE). A quarterly performance report was due on May 1, 2025 and submitted 14 days late on May 15, 2025. Criteria Per the terms of the PTE's annual Subaward Agreement, City Colleges is required to submit quarterly reports along with annual performance reports. Quarterly reports are required to be submitted within 30 days of the period end. 2 CFR Section 200.303 requires entities receiving Federal awards establish and maintain internal controls deigned to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures in place to ensure timely reporting of required performance reports. Questioned Costs There were no questioned costs related to testing of reporting. Cause Submission delay was the result of poor time management and breakdowns in communication between PIs and the grantor. Context Frequent. One out of four reports (25%) selected for testing. Effect Failure to submit reports timely is noncompliance with the requirements of the grant award and could result in loss of funding or other penalties. Recommendation We recommend City Colleges implement monitoring procedures to ensure that reports are submitted in a timely manner. Views of responsible officials We agree with this finding. See corrective action plan.