Finding 20097 (2022-003)

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

AI Summary

  • Core Issue: The University failed to accurately report on federal grant expenditures, violating compliance requirements under 2 CFR 200.303 and ARPA.
  • Impacted Requirements: Inaccuracies were found in student and institutional quarterly reports, as well as the annual report, affecting the integrity of financial data.
  • Recommended Follow-Up: The University should revise its reporting policies and procedures to ensure timely and accurate compliance with federal reporting standards.

Finding Text

Criteria or specific requirement: Per the Code of Federal Regulations, 2 CFR 200.303, non-Federal entities receiving Federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations and program compliance requirements. In accordance with section 2003 of the American Rescue Plan Act of 2021 (ARPA) (Pub. L. 117-2) (supplemental award or grant) by the U.S. Department of Education and section 2003 of the ARPA and section 314 of the Coronavirus Response and Relief Supplemental Appropriations Act, 2021 (CRRSAA) (Pub. L. 116-260), recipients must promptly and timely provide a detailed accounting of the use and expenditure of the funds provided by these supplemental award in such manner and with such frequency as the Secretary may require. There are three required components: 1) public reporting on the (a)(1) Student Aid Portion; 2) public reporting on the (a)(1) Institutional Portion (a)(2) and (a)(3) subprograms (Quarterly Reporting Form), as applicable; and 3) the annual report. Condition: During our reporting testing, we noted that there were elements of the student quarterly reporting, institutional quarterly reporting, and annual reporting that were not accurate. Questioned costs: N/A Context: We tested two of the four required quarterly student reports, two of the four required quarterly institutional reports, and the required annual report. Noncompliance on each report is below: Student Quarterly Reporting ? On both reports tested, the University reported total amount and count of emergency financial aid grants distributed cumulatively based on appropriation, not on a quarterly basis, as prescribed. Non-Compliant Institutional Quarterly Reporting. ? One of the two reports tested was an estimate of expenses incurred instead of being updated for actual expenses in the preceding quarter. Non-Compliant Annual Reporting ? The total amounts of emergency financial aid grants disbursed directly to students and applied to satisfy student's outstanding account balances on the 2021 Annual Report were incorrect. Cause: The policies and procedures of the University did not ensure that grant reporting requirements were accurately met. Effect: The University was not in compliance with HEERF reporting requirements. Repeat finding: No Recommendation: We recommend that the University review their reporting policies and procedures to ensure accurate and timely reporting. View of responsible official: The University agrees with the finding.

Categories

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 20094 2022-003
    Significant Deficiency
  • 20095 2022-001
    Significant Deficiency Repeat
  • 20096 2022-002
    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