FAC Explorer

Finding 32607 (2022-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2022-12-19
Audit: 27116
Organization: Life University, Inc. (GA)
Auditor: Bdo USA LLP

AI Summary

  • Core Issue: The University failed to prepare and timely post required quarterly reports for the HEERF Student Aid and Institutional Portions.
  • Impacted Requirements: Non-compliance with HEERF reporting obligations, including quarterly and annual reporting deadlines.
  • Recommended Follow-Up: Enhance internal controls and procedures to ensure timely and accurate HEERF reporting, including implementing calendar reminders for deadlines.

Finding Text

FINDING 2022-001 Information on Federal Program Higher Education Emergency Relief Fund (?HEERF?) Student Aid Portion (ALN# 84.425E) and Institutional Portion (ALN# 84.425F) Criteria or specific requirement (including statutory, regulatory or other citation) Reporting - Special Reporting: There are three components to reporting for HEERF: (1) public reporting on the (a)(1) Student Aid Portion; (2) public reporting on the (a)(1) Institutional Portion (a)(2) and (a)(3) subprograms (Quarterly Reporting Form), as applicable; and 3) the annual report. Institutions must report publicly on their primary websites on a quarterly basis for both student portion and institutional portion funds. Condition The University did not appropriately prepare certain portions of the quarterly reports for the Student Aid Portion and Institutional Portion. The University did not timely post quarterly reports on the University website during the year ended June 30, 2022, for the Student Aid Portion and Institutional Portion. Additionally, the University did not complete the annual reporting requirement. Cause Insufficient internal controls and administrative oversight with respect to HEERF reporting requirements. Effect The University is not in compliance with the HEERF reporting requirements. Questioned costs None. Context For 2 of 2 Institutional Portion quarterly reports selected for testing, the University did not prepare certain portions of the quarterly reports accurately and did not submit the quarterly reports within 10 days of each quarter end as required. For 1 of 1 Student Aid Portion quarterly report selected for testing, the University did not prepare certain portions of the required information and did not submit the quarterly reports within 10 days of the quarter end as required. Additionally, the University did not complete the annual reporting requirement. Repeat Finding This is not a repeat finding from prior year. Recommendation We recommend that the University enhance its policies, procedures and internal controls over the applicable HEERF reporting requirements. Views of responsible officials and planned corrective actions As of November 30, 2022, the University has evaluated the cause of the finding. For the annual reporting requirement, the University has enhanced its procedures to monitor the deadline date for annual reporting and will submit the fiscal year 2022 annual report when the portal is available. For the Student Aid Portion and Institutional Portion, the University will update its web page to reflect the accurate information. Further, the University will implement a calendar reminder to ensure the quarterly deadlines are met.

Corrective Action Plan

Clear guidance was not properly disseminated or made available for the University to timely and accurately report the use of HEERF funding. HEERF Annual Report Director of Institutional Research is the contact person for the University. He will ensure for the annual report he is the contact person, so he receives the emails and has the credentials for the portal. He will coordinate Finance, Financial Aid, and Information Technology department to report the data. He will monitor the deadline dates to ensure we are collecting the data and reporting prior to the deadline. We are unable to go back into the portal currently to submit HEERF Year 2 report. We anticipate remediation for the fiscal year 2022 annual report will be complete in Spring 2023. Student Aid Portion Reporting Director of Financial Aid and the Marketing department will update the Life University COVID-19 web page to reflect all required information for emergency financial aid grants to students by November 30, 2022. Institutional Portion Reporting EVP Finance and Operations and Controller will be responsible for accurately updating the quarterly reports and having the Marketing department post the non-editable PDF on the Life University COVID-19 webpage by November 30, 2022, and prior to the quarter deadlines for fiscal year 2023. A calendar reminder will be added for the quarter ends to ensure the deadlines are met. Individuals Responsible for Corrective Action Plan ? Howard Wright, Director of Institutional Research ? Jessica Magazu, Director of Financial Aid ? William Jarr, EVP Finance and Operations ? JoAnne Miller, Controller ? Matthew Shaul, Marketing

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 609049 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $98.77M
84.425 Education Stabilization Fund $3.05M
84.063 Federal Pell Grant Program $2.12M
84.033 Federal Work-Study Program $527,593
84.007 Federal Supplemental Educational Opportunity Grants $241,176