Finding 1190878 (2025-001)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2025
Accepted
2026-03-27

AI Summary

  • Core Issue: Miscalculations in Michigan Reconnect scholarship awards led to incorrect amounts for 16 students.
  • Impacted Requirements: Compliance with allowable costs and cost principles under the Coronavirus State and Local Fiscal Recovery Funds.
  • Recommended Follow-Up: Implement a second, independent review process for scholarship calculations to ensure accuracy.

Finding Text

2025-001 - Miscalculation of Reconnect Scholarship Awards 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. Michigan Reconnect scholarship program is a last dollar scholarship, which is limited to the difference between in-district tuition and mandatory fees less any Pell grants and other state restricted scholarships or awards that a student receives following a specified packaging order. Condition. For 3 out of 12 students tested, the incorrect amounts of Michigan Reconnect scholarships were calculated and awarded to students. Cause. This condition was caused by a lack of detailed review of the calculation performed. Effect. As a result, the College had a total of 16 students whereby the Michigan Reconnect scholarships awarded during the fiscal year were miscalculated, resulting in $16,101 in under-awarded scholarships and $288 in over-awarded scholarships to students. The College corrected under-awarded scholarships by adjusting student accounts to reflect accurate award amounts and issued refunds to students as applicable on March 18, 2026. The College corrected over-awarded scholarships by adjusting the student accounts and updating the Michigan Student Scholarships Grants ("MiSSG") reporting system to refund MiLEAP on August 6, 2025. Questioned Costs. There were $288 in questioned costs as a result of this finding. Recommendation. We recommend that the College implement a review process for Michigan Reconnect scholarship award calculations, ensuring that each calculation receives a second, independent review to verify its accuracy. View of Responsible Officials. Management agrees with this finding and has prepared a Corrective Action Plan.

Corrective Action Plan

2025-001 - Miscalculation of Reconnect Scholarship Awards. Auditor Description of Condition and Effect. For 3 out of 12 students tested, the incorrect amounts of Michigan Reconnect scholarships were calculated and awarded to students. As a result, the College had a total of 16 students whereby the Michigan Reconnect scholarships awarded during the fiscal year were miscalculated, resulting in $16,101 in under-awarded scholarships and $288 in over-awarded scholarships to students. The College corrected under-awarded scholarships by adjusting student accounts to reflect accurate award amounts and issued refunds to students as applicable on March 18, 2026. The college corrected over-awarded scholarships by adjusting the student accounts and updating the Michigan Student Scholarships Grants ("MiSSG") reporting system to refund MiLEAP on August 6, 2025. Auditor Recommendation. We recommend that the College implement a formal review process for Michigan Reconnect scholarship award calculations, ensuring that each calculation receives a second, independent review to verify its accuracy. Corrective Action. The College recalculated the awards for the students impacted, adjusted their student accounts, notified the students of these corrections and returned $288 in over-awarded scholarships to MiLEAP by updating the MiSSG reporting system. Additionally, the College plans to conduct additional training of stafff on the Michigan Reconnect Expansion program, including the last-dollar calculation methodology, and will implement a review of the calculations by a second individual of all disbursements. Responsible person. Maryann DeCaire, Director of Financial Aid. Anticipated Completion Date. March 31, 2026.

Categories

Allowable Costs / Cost Principles Student Financial Aid Reporting Significant Deficiency

Other Findings in this Audit

  • 1190874 2025-001
    Material Weakness Repeat
  • 1190875 2025-001
    Material Weakness Repeat
  • 1190876 2025-001
    Material Weakness Repeat
  • 1190877 2025-001
    Material Weakness Repeat
  • 1190879 2025-002
    Material Weakness Repeat
  • 1190880 2025-002
    Material Weakness Repeat
  • 1190881 2025-002
    Material Weakness Repeat
  • 1190882 2025-002
    Material Weakness Repeat
  • 1190883 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $1.80M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $1.03M
84.268 FEDERAL DIRECT STUDENT LOANS $679,631
84.042 TRIO_STUDENT SUPPORT SERVICES $301,000
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $72,992
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $47,603
84.033 FEDERAL WORK-STUDY PROGRAM $25,883