Finding 22986 (2022-005)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 18559
Organization: Metro Technology Center (OK)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The District failed to provide the required annual report for HEERF funds, impacting compliance with federal reporting standards.
  • Impacted Requirements: The inability to access necessary reports puts the Department at risk of noncompliance with HEERF reporting requirements.
  • Recommended Follow-Up: Implement controls to retain annual reports and ensure that current personnel have access to all federal reporting tools.

Finding Text

2022-005 U.S. Department of Education Higher Education Emergency Relief Fund (HEERF) (FAL #84.425E, 84.425F) Reporting Material Weakness in Internal Controls over Compliance and Material Noncompliance Criteria: Per the Compliance Supplement for HEERF: ED [the Department of Education] will be collecting an annual report for HEERF grantees in April 2022. ED will share more information regarding this annual report, which will require institutions to report on their uses of HEERF I CARES Act funds, HEERF II CRRSAA funds, and HEERF III ARP funds in advance of the ARP annual reporting deadline. Note: Auditors are reminded that they must use the framework outlined in Part 1 of this Compliance Supplement to perform reasonable procedures to ensure that the compliance requirements identified as subject to audit are current and to determine whether there are any additional provisions of federal awards relevant to the compliance requirements subject to the audit that should be covered Condition: The District could not provide the annual report to the audit team in order for the audit team to perform the reasonable procedures. Cause: The reporting was performed by personnel that are no longer with the District and access to the required reporting could not be obtained. Context/Sampling: No annual reports could be obtained from the District. Questioned Costs: None as this relates to reporting. Effect: The Department is at risk for noncompliance with reporting requirements. Repeat Finding from prior year: No Recommendation: Certain controls should be put in place to ensure that annual reports are retained by the District. Furthermore, the District should ensure that proper personnel have access to all required federal reporting tools as required by the Federal standards. View of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Due to personnel changes, we do not access to the requested report. The finance team searched all files in their shared drive, and in any personal computer files to no avail. Moving forward, digital copies of reports will be kept in a shared drive accessible by multiple staff in the finance department.

Categories

Material Weakness Reporting Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 22987 2022-006
    Material Weakness
  • 599428 2022-005
    Material Weakness
  • 599429 2022-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $1.50M
84.268 Federal Direct Student Loans $508,242
93.558 Temporary Assistance for Needy Families $199,100
84.048 Career and Technical Education -- Basic Grants to States $169,143
12.002 Procurement Technical Assistance for Business Firms $50,770
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $45,837
84.243 Tech Centers That Work $13,165
84.063 Federal Pell Grant Program $1,080