Finding 35291 (2022-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-27
Audit: 24699
Organization: Lincoln University (CA)
Auditor: Tang&lee LLP

AI Summary

  • Core Issue: LU did not fully utilize HEERF III grant funds due to a temporary freeze on their G5 account, resulting in unmet expenditure requirements.
  • Impacted Requirements: LU failed to spend all grant funds within one year and did not submit the 2021 annual report or timely quarterly reports.
  • Recommended Follow-Up: LU must replenish the required annual reports for 2021 and 2022 and ensure timely reporting moving forward.

Finding Text

(1) We found that LU only spent part of HEERF III grant fund for student aid portion, which did not meet the minimum expenditures requirement because ED temporarily had frozen the G5 grant withdrawal account of LU. (2) We found that LU did not fully expend its HEERF III grant funds within one year from the date of award of this grant. The amount of $41,114 was remained unused because the G5 platform was temporarily frozen by ED. Therefore, LU had not submitted the 2021 annual report to ED and had not posted a couple of quarterly reports in a timely fashion at their website for HEERF grant. LU has been notified by ED to replenish the required annual reports for calendar year 2021 and 2022.

Corrective Action Plan

The management plans to closely monitor compliance requirements in accordance to laws and regulations and resubmit the belated grant reports immediately.

Categories

No categories assigned yet.

Other Findings in this Audit

  • 611733 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
59.008 Disaster Assistance Loans $500,000
84.425 Education Stabilization Fund $451,165
84.032 Federal Direct Student Loan $392,032
84.063 Federal Pell Grant Program $224,491