Finding 30440 (2022-005)

Material Weakness
Requirement
G
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 24262
Auditor: Rsm US LLP

AI Summary

  • Core Issue: Required outreach to financial aid applicants was not conducted, violating ARP requirements.
  • Impacted Requirements: Non-compliance with grant agreements could lead to the Department of Education withholding funds.
  • Recommended Follow-up: Implement controls to monitor changes in DOE regulations for future funding opportunities.

Finding Text

Finding No. 2022-005?HEERF Earmarking Federal Agency: U.S. Department of Education Program: COVID-19 Education Stabilization Fund: ALN: 84.425 Criteria: 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. Condition: There was no evidence that the required direct outreach occurred and no costs were charged to the grant. Questioned Costs: None. Prevalence: There was no direct outreach and no costs were charged to the program. The sample was not intended to be, and was not, a statistically valid sample. Effect: Not complying with requirements outlined within applicable grant agreements could result in the DOE withholding payments to the Conservatory. Cause: This issue in the 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. View of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and corrective actions will be made.

Corrective Action Plan

Finding No. 2022-005 ? HEERF Earmarking Finding: There was no evidence that the required direct outreach occurred for financial aid applications Corrective Action Taken or Planned: As noted, the Conservatory experienced turnover in both the Business Office and the Office of Financial Aid. New staff are aware of this requirement and will ensure compliance if future funding should become available. Completed, March 2023. Responsible person Richard Bowman, Controller

Categories

Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 30432 2022-008
    Significant Deficiency
  • 30433 2022-009
    Significant Deficiency
  • 30434 2022-010
    Significant Deficiency
  • 30435 2022-009
    Significant Deficiency
  • 30436 2022-009
    Significant Deficiency
  • 30437 2022-009
    Significant Deficiency
  • 30438 2022-003
    Significant Deficiency
  • 30439 2022-004
    Significant Deficiency
  • 30441 2022-006
    Significant Deficiency Repeat
  • 30442 2022-007
    Significant Deficiency
  • 30443 2022-009
    Significant Deficiency
  • 30444 2022-003
    Significant Deficiency
  • 30445 2022-004
    Significant Deficiency
  • 30446 2022-005
    Material Weakness
  • 30447 2022-006
    Significant Deficiency Repeat
  • 606874 2022-008
    Significant Deficiency
  • 606875 2022-009
    Significant Deficiency
  • 606876 2022-010
    Significant Deficiency
  • 606877 2022-009
    Significant Deficiency
  • 606878 2022-009
    Significant Deficiency
  • 606879 2022-009
    Significant Deficiency
  • 606880 2022-003
    Significant Deficiency
  • 606881 2022-004
    Significant Deficiency
  • 606882 2022-005
    Material Weakness
  • 606883 2022-006
    Significant Deficiency Repeat
  • 606884 2022-007
    Significant Deficiency
  • 606885 2022-009
    Significant Deficiency
  • 606886 2022-003
    Significant Deficiency
  • 606887 2022-004
    Significant Deficiency
  • 606888 2022-005
    Material Weakness
  • 606889 2022-006
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $6.39M
84.038 Federal Perkins Loans $1.45M
84.425 Covid-19 - Education Stabilization Fund $468,940
84.033 Federal Work-Study Program $287,786
84.063 Federal Pell Grant Program $222,747
84.007 Federal Supplemental Educational Opportunity Grants $121,997
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $75,888