FAC Explorer

Finding 20096 (2022-002)

Significant Deficiency
Requirement
G
Questioned Costs
-
Year
2022
Accepted
2023-03-28
Audit: 19907
Organization: Oregon Tech (OR)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The University did not fully comply with ARPA requirements, specifically failing to conduct outreach to financial aid applicants.
  • Impacted Requirements: The University met the requirement for implementing evidence-based practices but neglected the outreach obligation outlined in section 2003(5) of ARPA.
  • Recommended Follow-Up: The University should enhance its policies to ensure all grant earmarking requirements are understood and monitored for compliance.

Finding Text

Criteria or specific requirement: Under section 2003(5) of the American Rescue Plan Act (ARPA) of 2021 (ARP) (Pub. L. 117-2) (supplemental award or grant) by the U.S. Department of Education, Recipient must use a portion of their institutional funds received under this supplemental award to (a) to implement evidence-based practices to monitor and suppress coronavirus in accordance with public health guidelines; and (b) conduct direct outreach to financial aid applicants about the opportunity to receive a financial aid adjustment due to the recent unemployment of a family member or independent student, or other circumstances, described in section 479A of the Higher Education Act of 1965, as amended (HEA) (20 USC ? 1087tt). Condition: During our testing, we noted that the University only met the earmarking requirement to implement evidence-based practices to monitor and suppress coronavirus in accordance with public health guidelines. The University did not meet the requirement to conduct direct outreach to financial aid applicants. Questioned costs: Unknown. Context: During our testing, we noted that the University was not in compliance with the ARPA Earmarking requirements. Cause: The policies and procedures of the University did not ensure that grant earmarking requirements were accurately met. Effect: Non-compliance with federal regulations could lead to funds being required to be returned or reallocated in order to meet the earmarking requirement. Repeat finding: No Recommendation: We recommend that the University understand and monitor the earmarking requirements of all grants to ensure compliance requirements are met. View of responsible official: The University agrees with the finding.

Corrective Action Plan

Recommendation: We recommend that the University monitor the earmarking requirements of all grants to ensure compliance requirements are being met. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: Management respectfully agrees on all findings and recommendations. Management will include review sign-off on earmarking compliance requirements for any future HEERF grants as part of its procedures, similar to current practice with existing Federal grant compliance requirements. Management did engage in the required communication and outreach per the earmarking requirement, but had failed to charge the grant for related staff time, estimated to be less than one hour. The required communication was distributed via email to students, on or about January 20, 2022. Limited staff resources, including long-term open positions in the Office of Sponsored Projects & Grants Administration (SPGA), additional multiple concurrent open positions, and resulting increased workload during the height of the on-going COVID-19 pandemic were a major contributing factor to the finding. Name(s) of the contact person(s) responsible for corrective action: Michelle Meyer Planned completion date for corrective action plan: April 15, 2023

Categories

Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 20094 2022-003
    Significant Deficiency
  • 20095 2022-001
    Significant Deficiency Repeat
  • 20097 2022-003
    Significant Deficiency
  • 596536 2022-003
    Significant Deficiency
  • 596537 2022-001
    Significant Deficiency Repeat
  • 596538 2022-002
    Significant Deficiency
  • 596539 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Direct Student Loan $15.73M
84.425 Covid-19 - Higher Education Emergency Relief Fund (heerf) Institutional Portion $7.19M
84.063 Federal Pell Grant Program $4.47M
84.425 Covid-19 - Higher Education Emergency Relief Fund (heerf) Student Aid Portion $3.29M
84.038 Federal Perkins Loan $902,518
11.300 Investments for Public Works and Economic Development Facilities $724,342
84.042 Trio Student Support Services $257,220
84.007 Federal Supplemental Educational Opportunity Grants $231,394
84.033 Federal Work-Study Program $89,550
15.236 Environmental Quality and Protection $42,300
47.049 Mathematical and Physical Sciences $34,857
15.945 Cooperative Research and Training Programs ? Resources of the National Park System $25,575
47.076 Education and Human Resources $24,173
43.008 Office of Stem Engagement (ostem) $15,194
43.001 Science $8,410
10.868 Rural Energy for America Program $5,049
15.676 Youth Engagement, Education, and Employment $4,150
20.701 University Transportation Centers Program $3,610
84.425 Covid-19 - Governor's Emergency Education Relief (geer) Fund $656