Finding 31785 (2022-001)

Finding No. 2022-001 Higher Education Emergency Relief Fund (HEERF) Reporting Federal Agency: Department of Education (DOE) Program: COVID-19 Education Stabilization Fund Under the Coronavirus Aid, Relief and Economic Security Act (CARES Act): ALN: 84.425F Criteria: Reporting requirements to the DOE state that the institutional portion of HEERF is reported by quarter in the quarter funds are drawn from the G5 system and reported for the allowable categories under the grant. The reports filed should include all information about expenditures incurred or lost revenues claimed under the grant. Condition: Amounts reported for the institutional portion by the University were originally reported in the incorrect period. Certain amounts were also reported in the wrong category (misclassified) or were omitted entirely ($137). Questioned Costs: None. Prevalence: 2 of 2 institutional quarterly reports tested. The sample was statistically valid. Effect: Incorrect amounts and classifications were reported to the DOE. Certain expenditures were also omitted. Improper reporting could result in the DOE withholding payments to the University. Cause: Changes to the program rules, regulations, and reporting for the HEERF programs were evolving throughout the different phases of the program. This issue is the result of improper tracking of those changes as they were occurring which resulted in errors in the original filing. The omission of certain costs was an oversight. The amount omitted was $137. Recommendation: We recommend the University amend the incorrect reports. 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 measures have been made.