FAC Explorer

Finding 38124 (2022-004)

Material Weakness
Requirement
A
Questioned Costs
$1
Year
2022
Accepted
2023-05-30
Audit: 36033
Organization: Gratz College (PA)
Auditor: Kreischer Miller

AI Summary

  • Core Issue: The College did not give students the option to receive their awards directly, violating compliance requirements.
  • Impacted Requirements: Noncompliance with the Education Stabilization Fund program due to incorrect grant administration.
  • Recommended Follow-Up: Implement new procedures to ensure federal funds are managed according to program rules.

Finding Text

Finding 2022-004 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: Material Noncompliance Criteria: Disbursements of student awards under the Student Aid Portion of HEERF are to provide the student with the option to receive the award directly or to apply the award to the student's outstanding tuition balance. Condition: The College did not provide students with the option to receive the award directly. All awards were directed to the student's outstanding tuition balance. Cause: The College utilized the wrong form when administering grants to students. Effect: Students were prevented from receiving the awards directly. The College is noncompliant with the ESF program. Questioned Costs: $40,801 Context: 2 sample selections ($4,801) out of a total sample of 2 items tested from a population of 14 items ($40,801) resulted in errors. The full population of student awards was disbursed on a single date. The College acknowledged that all student awards disbursed on that single date utilized the form that directed the award to the student's tuition balance. Recommendation: We recommend that the College develop and implement procedures to ensure that federal funds are administered in accordance with program compliance requirements.

Corrective Action Plan

Finding 2022-004 Corrective Action Plan The College acknowledges that it erroneously applied the funds awarded to students to the incorrect subprogram. To ensure that federal funds are administered in accordance with program compliance requirements, the College will review and document, in summary form, all requirements made by the granting agency, including but not limited to proper use of funds, timeline for disbursement of federal funds, and reporting requirements. This documentation will be used by the responsible persons the ensure that the administration of the program and its related expenditures follow the guidelines of the granting agency Anticipated Completion Date The College anticipates completion of this corrective action on or before August 31, 2023. Names of Contact People Responsible for Corrective Action Thomas R. Cipriano, Jr. ? Manager of Business Operations and Facilities Ross Holgado ? Manager of Financial Reporting

Categories

Questioned Costs

Other Findings in this Audit

  • 38121 2022-001
    Material Weakness Repeat
  • 38122 2022-002
    - Repeat
  • 38123 2022-003
    -
  • 38125 2022-005
    Significant Deficiency
  • 38126 2022-006
    -
  • 38127 2022-001
    Material Weakness Repeat
  • 38128 2022-002
    - Repeat
  • 38129 2022-006
    -
  • 38130 2022-001
    Material Weakness Repeat
  • 38131 2022-002
    - Repeat
  • 38132 2022-005
    Significant Deficiency
  • 38133 2022-006
    -
  • 614563 2022-001
    Material Weakness Repeat
  • 614564 2022-002
    - Repeat
  • 614565 2022-003
    -
  • 614566 2022-004
    Material Weakness
  • 614567 2022-005
    Significant Deficiency
  • 614568 2022-006
    -
  • 614569 2022-001
    Material Weakness Repeat
  • 614570 2022-002
    - Repeat
  • 614571 2022-006
    -
  • 614572 2022-001
    Material Weakness Repeat
  • 614573 2022-002
    - Repeat
  • 614574 2022-005
    Significant Deficiency
  • 614575 2022-006
    -

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $1.20M
84.425 Covid 19 - Education Stabilization Fund $204,099
84.425 Covid-19 - Education Stabilization Fund $15,990
84.063 Federal Pell Grant Program $6,495