Finding 12633 (2022-009)

Material Weakness
Requirement
A
Questioned Costs
$1
Year
2022
Accepted
2023-03-29
Audit: 17529
Organization: Barclay College (KS)
Auditor: Adamsbrown LLC

AI Summary

  • Core Issue: The institution improperly conditioned HEERF aid on students' outstanding account balances, violating federal requirements.
  • Impacted Requirements: Institutions cannot require students to use financial aid for account balances or impose restrictions on fund expenditures beyond statutory allowances.
  • Recommended Follow-Up: Review funding guidance thoroughly to ensure compliance with all applicable requirements moving forward.

Finding Text

MATERIAL WEAKNESS 2022-009 Education Stabilization Fund ? Higher Education Emergency Relief Fund ? 84.425 ? Activities Allowed or Unallowed Criteria or specific requirement Institutions may not condition the receipt of financial aid grants to students on continued or future enrollment in the institution and may not require a student to consent to the application of the financial aid grants to satisfy a student?s outstanding account balance as a condition of receipt of or eligibility for the financial aid grant. In addition, as it relates to expenditures under HEERF II and III, or for additional emergency financial aid grants made using other HEERF grant funds, the institution should not place any restrictions on the expenditure of those funds beyond what is allowed per statute, and the institution should not reimburse itself for any costs or expenses previously issued to students. Condition Students were awarded HEERF aid in June 2022 based upon their outstanding account balance, and they were not given the option to take the disbursement as anything other than a credit to their account. Cause The College was not aware that they could not require students to accept the aid as an application towards their outstanding account balance. Effect Students were restricted as to method of disbursement and expenditure of the funds. Context The total amount of June student aid HEERF awards totaled to $316,206. Recommendation We recommend that the institution carefully review guidance regarding new funding sources in order to ensure that all applicable requirements are being met. Views of responsible officials and planned corrective actions See corrective action plan.

Corrective Action Plan

MATERIAL WEAKNESS 2022-009 Education Stabilization Fund ? Higher Education Emergency Relief Fund ? 84.425 ? Activities Allowed or Unallowed Condition Students were awarded HEERF aid in June 2022 based upon their outstanding account balance, and they were not given the option to take the disbursement as anything other than a credit to their account. Recommendation We recommend that the institution carefully review guidance regarding new funding sources in order to ensure that all applicable requirements are being met. Actions Taken As of April 1, 2023, the College has contacted the Department of Education in order to determine how best to remedy the situation and will take all actions recommended.

Categories

Questioned Costs Eligibility Material Weakness

Other Findings in this Audit

  • 12623 2022-003
    Significant Deficiency
  • 12624 2022-004
    Material Weakness
  • 12625 2022-003
    Significant Deficiency
  • 12626 2022-004
    Material Weakness
  • 12627 2022-005
    Significant Deficiency
  • 12628 2022-006
    Significant Deficiency
  • 12629 2022-004
    Material Weakness
  • 12630 2022-006
    Significant Deficiency
  • 12631 2022-007
    Significant Deficiency
  • 12632 2022-008
    Material Weakness
  • 12634 2022-011
    Significant Deficiency
  • 12635 2022-008
    Material Weakness
  • 12636 2022-010
    Significant Deficiency
  • 12637 2022-011
    Significant Deficiency
  • 12638 2022-008
    Material Weakness
  • 12639 2022-011
    Significant Deficiency
  • 589065 2022-003
    Significant Deficiency
  • 589066 2022-004
    Material Weakness
  • 589067 2022-003
    Significant Deficiency
  • 589068 2022-004
    Material Weakness
  • 589069 2022-005
    Significant Deficiency
  • 589070 2022-006
    Significant Deficiency
  • 589071 2022-004
    Material Weakness
  • 589072 2022-006
    Significant Deficiency
  • 589073 2022-007
    Significant Deficiency
  • 589074 2022-008
    Material Weakness
  • 589075 2022-009
    Material Weakness
  • 589076 2022-011
    Significant Deficiency
  • 589077 2022-008
    Material Weakness
  • 589078 2022-010
    Significant Deficiency
  • 589079 2022-011
    Significant Deficiency
  • 589080 2022-008
    Material Weakness
  • 589081 2022-011
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $682,538
84.063 Federal Pell Grant Program $480,533
84.033 Federal Work-Study Program $40,692
84.425 Education Stabilization Fund $40,019
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $18,860
84.007 Federal Supplemental Educational Opportunity Grants $11,800