Finding 26020 (2022-003)

Significant Deficiency
Requirement
G
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 failed to conduct required outreach to financial aid applicants regarding financial aid adjustments due to family unemployment or other circumstances.
  • Impacted Requirements: This non-compliance with the American Rescue Plan's stipulations could lead to the Department of Education withholding future payments.
  • Recommended Follow-Up: Management should establish a control system to monitor changes in DOE regulations for any future funding opportunities.

Finding Text

Finding No. 2022-003 ? Higher Education Emergency Relief Funds Earmarking Federal Agency: U.S. Department of Education Program: COVID-19 Education Stabilization Fund: ALN: 84.425 Criteria: The American Rescue Plan created a new requirement that a portion of the HEERF III institutional funds must be used to 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. Condition: There was no evidence that direct outreach was performed during the fiscal year in which the remaining federal fundings under the award were expended. Questioned Costs: None. Prevalence: There was no evidence that direct outreach occurred as required by the program. Effect: Not complying with requirements outlined within applicable grant agreements could result in the DOE withholding payments to the College. Cause: This issue is a result of a lack of proper understanding of applicable requirements. Recommendation: The Federal funding for this program has ended. If the DOE should add additional funding or create new or similar programs, we recommend that management implement a control to regularly monitor and manage changes to rules and regulations promulgated by the DOE. Reporting Views of Management and Corrective Actions: Management agrees with the finding and corrective actions will be made.

Corrective Action Plan

Finding: No. 2022-003 Higher Education Emergency Relief Funds Earmarking. Finding: The American Rescue Plan (ARP) created a new requirement that a portion of the HEERF III Institutional Funds must be used to 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. The College utilized direct emails to students, however, no evidence of direct outreach occurred as required by the program. Corrective Action Taken or Planned: The Federal funding for this program has ended. If the DOE should add additional funding or create new or similar programs, management will have implemented a control to regularly monitor and manage changes to rules and regulations promulgated by the DOE. Both the Financial Aid Director, Erin Hanlon and the VP of Administration and Finance, William McDonald will regularly monitor and manage changes to rules and regulations promulgated by the DOE effective immediately 3/29/2023.

Categories

Matching / Level of Effort / Earmarking Reporting

Other Findings in this Audit

  • 26016 2022-004
    Significant Deficiency
  • 26017 2022-005
    Significant Deficiency
  • 26018 2022-004
    Significant Deficiency
  • 26019 2022-002
    Significant Deficiency Repeat
  • 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