Finding 30709 (2022-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 26828
Organization: Rhode Island School of Design (RI)

AI Summary

  • Core Issue: The School failed to submit and publicly post required HEERF reports for three quarters, leading to non-compliance with federal guidelines.
  • Impacted Requirements: Quarterly reports for both student and institutional funds were not completed or posted as mandated by the U.S. Department of Education.
  • Recommended Follow-Up: The School should enhance understanding of HEERF reporting requirements and implement procedures to ensure timely and accurate submissions moving forward.

Finding Text

Finding 2022-001 - Higher Education Emergency Relief Funds (HEERF) Reporting ALN No.: 84.425E Education Stabilization Fund - Student Aid Portion and 84.425F Education Stabilization Fund - Institutional Portion Award Year: July 1, 2021 - June 30, 2022 Federal Agency: U.S. Department of Education Pass Through Entity: Not applicable Criteria: The U.S. Department of Education (the Department) has issued guidance for the Education Stabilization Funds (ESF) HEERF for quarterly reporting for all sections (a)(1), (a)(2), (a)(3) and (a)(4) that specifies the information to be reported and also that the deadline to submit all quarterly reports, student and institutional, is within 10 days of the end of the calendar quarter. The guidance also required these reports to be publicly posted on the institution's website within 30 days after the publication of the notice or 30 days after the date the Department first obligated the funds under HEERF I, II, or III to the institution for Emergency Financial Aid Grants to Students, whichever comes later. Condition: For three of the four quarters during the year, institutional reports were not completed and submitted and therefore, also not publicly posted to the School's website. For all four quarters of the year, student quarterly reports were not completed and publicly posted to the School's website. The annual report was completed, but not publicly posted to the School's website. Cause: The School noted there was a misunderstanding of the HEERF reporting requirements, as only one draw down occurred for each of the student and institutional expenditures during the year. The drawdowns occurred in the last month of the fiscal year. Effect: The School is out of compliance with the Department's reporting requirements. Questioned Costs: None. Recommendation: The School should ensure it keeps up to date on the Department?s HEERF guidance and ensure that reporting is done accurately and timely. Management Response: Management agrees with the recommendation and plans to post all reports and put in place procedures to remain in compliance with reporting timeliness.

Corrective Action Plan

Finding 2022-001: Higher Education Emergency Relief Funds (HEERF) Reporting 84.425E Education Stabilization Fund ? Student Aid Portion and 84.425F Education Stabilization Fund ? Institutional Portion Recommendation: The School should ensure it keeps up to date on the Department?s HEERF guidance and ensure that reporting is done accurately and timely. Action Taken: The School has posted the required reports on the school website as of March 31, 2023. The School has filed the required annual report on time, it was submitted on March 21, 2023 with a due date of March 24,2023. Name(s) of Contact Person(s) Responsible for Corrective Action: Anticipated Completion Date: If there are any questions regarding this corrective action plan please contact Thomas Mattos AVP of Finance/Controller at tmattos@risd.edu or 401-454-6649

Categories

Cash Management Reporting

Other Findings in this Audit

  • 607151 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $13.35M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $2.21M
84.425 Education Stabilization Fund $1.87M
84.063 Federal Pell Grant Program $1.67M
84.033 Federal Work-Study Program $463,450
84.038 Federal Perkins Loan Program $245,875
84.007 Federal Supplemental Educational Opportunity Grants $207,426
47.081 Office of Experimental Program to Stimulate Competitive Research $138,341
45.301 Museums for America $122,050
43.008 Education $39,242
66.129 Southeast New England Coastal Watershed Restoration Program $19,876
45.024 Promotion of the Arts_grants to Organizations and Individuals $18,300
11.417 Sea Grant Support $8,742
45.149 Promotion of the Humanities_division of Preservation and Access $4,837