Finding 381216 (2023-003)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-03-19
Audit: 295932
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The District failed to publicly post 5 out of 6 required quarterly reports for HEERF funding on its website.
  • Impacted Requirements: Compliance with federal reporting obligations under the CARES Act and subsequent regulations, including timely and accurate public disclosures.
  • Recommended Follow-Up: Establish internal controls to ensure all reporting requirements are met and deadlines are communicated effectively to staff.

Finding Text

Reporting Program Name: COVID-19: Higher Education Emergency Relief Funds, Institutional Portion Federal Financial Assistance Listing Numbers: 84.425F Federal Agency: U.S. Department of Education (ED) Direct funded by the U.S. Department of Education (ED) Criteria or Specific Requirement There are three components to reporting for HEERF: 1) public reporting on the (a)(1) Student Aid; 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. The CARES Act 18004(e) and the CRRSAA 314(e) requires an institution receiving funds under HEERF I and HEERF II to submit a report to the secretary, at such time in such a manner as the secretary may require. While ARP does not explicitly identify procedures by which institutions must report on their uses of HEERF grant funds, ED exercises this reporting authority under 2 CFR section 200.328 and 2 CFR section 200.329. ED collected an annual report for HEERF grantees in March 2023 covering calendar year 2022 expenditures. On June 17, 2022, ED announced an updated format for the HEERF Quarterly Report effective for Q2 2022, report to be posted July 10, 2022. The quarterly portion reporting requirements involve publicly posting completed forms conspicuously on the institution’s website. Condition Significant Deficiency in Internal Control over Compliance - The quarters ended September 30, 2022 and December 31, 2022 quarterly public report were selected for testing. 5 of the 6 reports selected for testing were not made publicly available on the District’s website. Questioned Costs There are no questioned costs associated with this finding. Context The District has 3 colleges that were required to post forms covering the aggregate amounts spent for HEERF I, II, and III quarterly, as well as one annual report per college. Effect The quarterly reports were not publicly posted on the District’s website. In addition, the supporting documentation was not available for review. Cause The District did not have internal controls in place to ensure quarterly reports were made publicly available and completed accurately with sufficient supporting documentation. Recommendation The District should implement internal controls to ensure that reporting requirements and deadlines are clearly communicated to all staff.

Corrective Action Plan

We concur. Procedures will be put in place and reporting will be modified and improved to ensure deadlines are met.

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 381210 2023-002
    Significant Deficiency Repeat
  • 381211 2023-002
    Significant Deficiency Repeat
  • 381212 2023-002
    Significant Deficiency Repeat
  • 381213 2023-002
    Significant Deficiency Repeat
  • 381214 2023-002
    Significant Deficiency Repeat
  • 381215 2023-002
    Significant Deficiency Repeat
  • 957652 2023-002
    Significant Deficiency Repeat
  • 957653 2023-002
    Significant Deficiency Repeat
  • 957654 2023-002
    Significant Deficiency Repeat
  • 957655 2023-002
    Significant Deficiency Repeat
  • 957656 2023-002
    Significant Deficiency Repeat
  • 957657 2023-002
    Significant Deficiency Repeat
  • 957658 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $3.96M
84.268 Federal Direct Student Loans $3.35M
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.00M
84.007 Federal Supplemental Educational Opportunity Grants $2.31M
84.048 Career and Technical Education -- Basic Grants to States $575,574
84.033 Federal Work-Study Program $520,214
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $415,597
84.042 Trio_student Support Services $363,912
84.047 Trio_upward Bound $318,307
84.002 Adult Education - Basic Grants to States $244,701
84.382 Strengthening Minority-Serving Institutions $160,758
84.031 Higher Education_institutional Aid $118,967
10.558 Child and Adult Care Food Program $79,537
84.063 Federal Pell Grant Program $49,553
47.070 Computer and Information Science and Engineering $43,697
94.006 Americorps $40,454
93.859 Biomedical Research and Research Training $38,240
47.076 Education and Human Resources $23,993
10.223 Hispanic Serving Institutions Education Grants $10,276
84.408 Postsecondary Education Scholarships for Veteran's Dependents $6,501
64.117 Survivors and Dependents Educational Assistance $3,261
93.558 Temporary Assistance for Needy Families $2,116