Finding 387167 (2023-004)

Material Weakness
Requirement
G
Questioned Costs
$1
Year
2023
Accepted
2024-03-28

AI Summary

  • Core Issue: The University did not spend the required minimum of HEERF funds on student grants, violating earmarking rules.
  • Impacted Requirements: Non-compliance with CARES Act and subsequent legislation led to questioned costs of $436,565.
  • Recommended Follow-Up: The University should return funds as directed by the Department of Education and improve reconciliation processes for future compliance.

Finding Text

Higher Education Emergency Relief Fund (HEERF) Earmarking Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.425E and 84.425F Federal Award Identification #: P425E200101, P425F201431 Condition: The University had drawn all their authorized HEERF funds by the end of the performance period but did not fully spend the student portion, therefore the University did not meet the earmarking requirements for the minimum amount of HEERF funds spent on student grants. Criteria: CARES Act section 18004 (a) (1), CRRSAA Act section 314 (a) (1), ARP Act Questioned Costs: $436,565 Context: The University did not have support for providing $193,858 of grants to students from the HEERF student portion (84.425E) which represents the University's remaining available authorization at the beginning of fiscal year 2023. Due to not fully spending this student portion, this disallowed a prorated amount totaling $242,707 of the institutional portion (84.425F) given the conditions and earmarking requirements for HEERF. Cause: Inadequate reconciliation of HEERF expenditures and drawdowns and lack of review at the end of period of performance. Effect: Since the student grant minimum was not met, the University is not eligible for the full allocation of the institutional portion of the HEERF. Identification as repeat finding, if applicable: N/A Recommendation: We recommend the University return funds as applicable and as directed by Department of Education. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Categories

Questioned Costs Period of Performance Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles Cash Management Material Weakness

Other Findings in this Audit

  • 387156 2023-002
    Material Weakness
  • 387157 2023-002
    Material Weakness
  • 387158 2023-002
    Material Weakness
  • 387159 2023-002
    Material Weakness
  • 387160 2023-002
    Material Weakness
  • 387161 2023-002
    Material Weakness
  • 387162 2023-003
    Material Weakness Repeat
  • 387163 2023-003
    Material Weakness Repeat
  • 387164 2023-003
    Material Weakness Repeat
  • 387165 2023-003
    Material Weakness Repeat
  • 387166 2023-004
    Material Weakness
  • 387168 2023-005
    Significant Deficiency
  • 387169 2023-006
    Significant Deficiency
  • 387170 2023-006
    Significant Deficiency
  • 387171 2023-006
    Significant Deficiency
  • 387172 2023-006
    Significant Deficiency
  • 387173 2023-006
    Significant Deficiency
  • 387174 2023-006
    Significant Deficiency
  • 387175 2023-007
    -
  • 387176 2023-008
    -
  • 387177 2023-009
    -
  • 387178 2023-009
    -
  • 963598 2023-002
    Material Weakness
  • 963599 2023-002
    Material Weakness
  • 963600 2023-002
    Material Weakness
  • 963601 2023-002
    Material Weakness
  • 963602 2023-002
    Material Weakness
  • 963603 2023-002
    Material Weakness
  • 963604 2023-003
    Material Weakness Repeat
  • 963605 2023-003
    Material Weakness Repeat
  • 963606 2023-003
    Material Weakness Repeat
  • 963607 2023-003
    Material Weakness Repeat
  • 963608 2023-004
    Material Weakness
  • 963609 2023-004
    Material Weakness
  • 963610 2023-005
    Significant Deficiency
  • 963611 2023-006
    Significant Deficiency
  • 963612 2023-006
    Significant Deficiency
  • 963613 2023-006
    Significant Deficiency
  • 963614 2023-006
    Significant Deficiency
  • 963615 2023-006
    Significant Deficiency
  • 963616 2023-006
    Significant Deficiency
  • 963617 2023-007
    -
  • 963618 2023-008
    -
  • 963619 2023-009
    -
  • 963620 2023-009
    -

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $21.60M
84.063 Federal Pell Grant Program $6.22M
84.425 Covid-19 Education Stabilization Fund Heerf - Institutional Portion $4.09M
84.425 Covid-19 Education Stabilization Fund Heerf - Minority Serving Institutions $1.29M
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $426,874
84.033 Federal Work-Study Program $389,051
84.007 Federal Supplemental Educational Opportunity Grants $324,032
84.038 Federal Perkins Loan Program $269,283
84.425 Covid-19 Education Stabilization Fund Heerf - Student Aid Portion $26,000