FAC Explorer

Finding 25121 (2022-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-29
Audit: 22620
Organization: Mount St. Mary's University (MD)
Auditor: Rsm US LLP

AI Summary

  • Core Issue: The University failed to include all required funds in the Schedule of Expenditures of Federal Awards (SEFA) for the COVID-19 Education Stabilization Fund.
  • Impacted Requirements: The SEFA must be complete and accurate as per 2 CFR 200.510(b) and include all federal awards expended.
  • Recommended Follow-Up: Management should review guidance documents to clarify how to report lost revenues and ensure compliance with federal reporting requirements.

Finding Text

2022-002: Improper Preparation of Schedule of Expenditures of Federal Awards Identification of the federal program: U.S. Department of Education ALN 84.425 COVID-19 Education Stabilization Fund (ESF) Criteria or specific requirement: Per 2 CFR 200.510(b), the University must prepare a complete and accurate Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee?s financial statements which must include the total Federal awards expended in accordance with requirements in 2 CFR 200.502. Condition: The SEFA initially drafted and provided by the University was not complete as it did not include all ESF Institutional funds that should have been reportable for the year ended June 30, 2022. Cause: Management initially believed lost revenues were not reportable on the SEFA as they are not technically ?expenditures? in nature. Effect or potential effect: The University?s Schedule of Expenditures of Federal Awards excluded certain federal funding that were required to be reported as they did meet the Department of Education?s guidelines for reportable award expenditures. Questioned costs: None Context: The concept of lost revenues as introduced under various pandemic funding is not how federal awards are typically expended and this lead to internal confusion as to the need to report or not on the SEFA. Repeat finding: No Recommendation: We recommend management review applicable FAQ documents as to how Uniform Guidance relates to the funding received and how such funds should be reported on the SEFA, or not reported, as applicable. Views of responsible officials: The University agrees with the finding. Refer to the University?s corrective action plan.

Corrective Action Plan

Identifying Number: 2022-002: Improper Preparation of Schedule of Expenditures of Federal Awards Finding: The SEFA initially drafted and provided for formal audit documentation by the University contained all expenditures but was considered incomplete as the definition was expanded to include lost revenues which were not included in the first draft of the report. As a result, this finding is categorized as not complete as it did not include all ESF Institutional funds that should have been reportable for the year ended June 30, 2022. Corrective Actions Taken or Planned: Management has reread the applicable FAQ documents incorporated in the Uniform Guidance regulations related to HEERF III lost revenue documentation and how such funds should be reported on the SEFA, or not reported, as applicable. Person(s) Responsible for Correction Actions: William E. Davies, Vice President for Finance and Business, Anne Miller, Controller Anticipated Completion Date: Completed March 22, 2023

Categories

Reporting

Other Findings in this Audit

  • 25120 2022-001
    Significant Deficiency
  • 25122 2022-003
    Significant Deficiency
  • 25123 2022-001
    Significant Deficiency
  • 25124 2022-002
    Significant Deficiency
  • 25125 2022-003
    Significant Deficiency
  • 601562 2022-001
    Significant Deficiency
  • 601563 2022-002
    Significant Deficiency
  • 601564 2022-003
    Significant Deficiency
  • 601565 2022-001
    Significant Deficiency
  • 601566 2022-002
    Significant Deficiency
  • 601567 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $14.04M
84.063 Federal Pell Grant Program $2.84M
84.038 Federal Perkins Loan (fpl) $2.40M
84.425 Covid 19: Education Stabilization Fund $2.28M
84.007 Federal Supplemental Educational Opportunity Grants $276,230
84.033 Federal Work-Study Program $216,528
93.859 Biomedical Research and Research Training $79,330
47.076 Stem Education (formerly Education and Human Resources) $48,841
97.036 Covid 19: Disaster Grants - Public Assistance (presidentially Declared Disasters) $11,841
45.164 Promotion of the Humanities_public Programs $3,629