Core Issue: The College misused Student Aid funds by purchasing audio-visual equipment instead of providing awards to students.
Impacted Requirements: This action violates compliance requirements for the Education Stabilization Fund, leading to noncompliance with federal guidelines.
Recommended Follow-Up: The College should create a process to reconcile ESF funds to ensure proper allocation and usage in the future.
Finding Text
Finding 2022-003 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Activities Allowed/Unallowed Type of Finding: Noncompliance Criteria: The Student Aid Portion of the Higher Education Emergency Relief Fund (HEERF) is to provide awards to students. Condition: The College expended Student Aid funds on the purchase of audio-visual equipment. Cause: The College misapplied funds drawn under the Student Aid Portion. Effect: The College is noncompliant with the ESF program. Context: 1 sample selection ($15,044) out of total sample of 1 item tested from a population of 3 items ($17,920). Recommendation: We recommend that the College develop a process to reconcile amounts drawn under the ESF to ensure the proper allocation and use of funds.
Corrective Action Plan
Finding 2022-003 Corrective Action Plan To ensure that funds drawn under the ESF properly allocated to the appropriate sub-program and are used in accordance with guidance provided by the granting agency, the College will develop a reconciliation process that includes a review of allowable use of funds under the granting agency?s grant award notification and a second review of the reconciliation of funds drawn and expended of the allocations made to the sub-programs against the College?s internal records. Anticipated Completion Date The College anticipates completion of this corrective action on or before August 31, 2023. Name of Contact Person Responsible for Corrective Action Thomas R. Cipriano, Jr. ? Manager of Business Operations and Facilities Ross Holgado ? Manager of Financial Reporting