Finding 26019 (2022-002)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 24461
Organization: Laboure College of Healthcare (MA)
Auditor: Rsm US LLP

AI Summary

  • Core Issue: The College inaccurately reported Higher Education Emergency Relief Funds (HEERF) amounts, leading to non-compliance with federal reporting requirements.
  • Impacted Requirements: Timely and accurate public reporting of HEERF expenditures on the College's website, with amounts reconciling to underlying documentation.
  • Recommended Follow-Up: Correct the inaccurate quarterly reports and enhance review controls to ensure future reporting accuracy.

Finding Text

Finding No. 2022-002 ? Higher Education Emergency Relief Funds Reporting (Repeat Finding ? 2021-001) Federal Agency: U.S. Department of Education (DOE) Program: COVID-19 Education Stabilization Fund: ALN: 84.425 Criteria: The College is required to publicly report both timely and accurately on its website aggregate amounts expended for Higher Education Emergency Relief Funds (HEERF) each quarterly reporting period from assistance listings 84.425F Institutional Portion and 84.425M Strengthening Institutions Program. The College must post the quarterly report form no later than 10 days after the end of each calendar quarter publicly on the College?s website on the same page the reports of the College?s activities as to the emergency financial aid grants to students (Student Aid Portion) are posted. Additionally, the amounts reported in the quarterly reports must reconcile to the underlying documentation to ensure accuracy. Condition: As it related to the institutional portion of HEERF, the College inaccurately reported the quarterly amount drawn from the G5 system and reported amounts in the wrong category (misclassified). Questioned Costs: None. Prevalence: Identified in 2 out of 4 institutional quarterly reports tested. The sample was not intended to be, and was not, a statistically valid sample. Effect: The College was not in compliance with reporting requirements for HEERF as the amounts were not accurately reported. Cause: There was conflicting and/or unclear guidance available at various times during the fiscal year that led to some misunderstandings on how to report information accurately on the quarterly reporting forms. Additionally, review controls over the reconciliation of information reported to the underlying documentation did not operate effectively. Recommendation: We recommend that the College correct the quarterly reports on its website and ensure that review controls are adequately designed to ensure the accuracy of the amounts reported. Reporting Views of Management and Corrective Actions: Management agrees with the finding, and corrective measures have been taken.

Corrective Action Plan

Finding: No. 2022-002 Higher Education Emergency Relief Funds Reporting. Finding: Institutions that expended HEERF grant funds during the calendar quarter from January 1- March 30, 2021 are required to post the quarterly report that involved the expenditure of HEERF I CARES Act funds and HEERF II CRRSAA. The Department did not previously affirm this reporting requirement for HEERF II CRRSAA funds. As such, institutions may have until the end of the second calendar quarter, June 30, 2021, to post these retroactive reports if they have not already done so. The specific errors were that the amount reported on the 12/31/2020 quarterly report was $38,750 but based on the drawdowns, no funds were drawn in this quarter and that $ 38,750 was drawn in February 2021 and was captured in the total reported on the 3/31/2021 quarterly report. The other issue is that on the 3/31/2021 and 6/30/2021, the amounts drawn for SIP should have been reported separately in the 18004(a)(2) column. Corrective Action Taken or Planned: The issue was the result of a misunderstanding of how drawdowns versus actual expenditures were reported. There were corrections made to the quarterly reports, however, the report in question was never updated on the website. The quarterly reports were corrected by the VP of Administration and Finance, William McDonald and posted to our website by the end of September 2022. according to the previous corrective action plans 06/30/2021. The issue arising is the 09/30/2021and 12/31/2021 reports for the fiscal year ending 06/30/2022 were wrong and corrected at the same time. The VP of Administration and Finance made the corrections to the quarterly report as of 09/30/2022. Corrections have been completed as of 09/30/2022.

Categories

Reporting

Other Findings in this Audit

  • 26016 2022-004
    Significant Deficiency
  • 26017 2022-005
    Significant Deficiency
  • 26018 2022-004
    Significant Deficiency
  • 26020 2022-003
    Significant Deficiency
  • 26021 2022-002
    Significant Deficiency Repeat
  • 26022 2022-005
    Significant Deficiency
  • 26023 2022-005
    Significant Deficiency
  • 26024 2022-005
    Significant Deficiency
  • 602458 2022-004
    Significant Deficiency
  • 602459 2022-005
    Significant Deficiency
  • 602460 2022-004
    Significant Deficiency
  • 602461 2022-002
    Significant Deficiency Repeat
  • 602462 2022-003
    Significant Deficiency
  • 602463 2022-002
    Significant Deficiency Repeat
  • 602464 2022-005
    Significant Deficiency
  • 602465 2022-005
    Significant Deficiency
  • 602466 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $9.33M
84.063 Federal Pell Grant Program $2.20M
93.364 Nursing Student Loans $465,874
84.007 Federal Supplemental Educational Opportunity Grants $163,369
84.038 Federal Perkins Loan Program $103,649
84.425 Education Stabilization Fund $20,153
84.033 Federal Work-Study Program $14,571