Finding 30446 (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.

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
  • 30440 2022-005
    Material Weakness
  • 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
  • 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